HomeMy WebLinkAbout1984-0217.Crawford.85-05-13Between:
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT '.~ -_
Before
THE GRIEVANCE SETTLEMENT BOARD
OPSEU (Terry Crawford)
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Grievor
The Crown in Right of Ontario
(Ministry of Transportation and Carmunications)
Employer
Before: Paula Knopf Vice-Chairman
R. Russell Member
H. Roberts Member
For the Grievor: Maria Wysocki
Grievance Officer
Ontario Public Service Employees Union
~For the Employer: P. W. Codner
Employee Relations Officer
Ministry of Transportation and Convnunications
Hearing: March 14, 1985
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DECISION
The grjevor st:ltcc 1:i.s gricyancr as being ‘I.,.. that I did
not receive my pay cheque on due date.” The relief he requests.is
that his “pay cheques be received on due date.”
At the outset of the hearing, the agent for the Employer,*,
raised a preliminary objection to the proceedings, submitting that
the issue is not arbitrable. It was argued that nothing in the
collective agreement prescribed the date of payment, therefore there
was nothing for this Board to deal with by way of interpretation,
application or administration of the collective agreement.’ The agent
for the grievor asserted that the collective agreement obliges the
Employer to make “regular bi-weekly” payments in Article 2.1.
There shall be deducted from the regular
bi-weekly pay of every employee appointed
to the regular staff of the civil service
a sum in lieu of membership dues equivalent
to the bi-weekly dues of the Ontario Public
Service Employees Union.
It was submitted on behalf of the grievor that the case involves
a violation of Article 2.1 and is therefore arbitrable. In the
interests of expediency and fairness, the Board reserved the ruling
on the preliminary issue at the,hearing and allowed the parties to ::
call evidence and make submissions on the merits of the case. --.
On the preliminary issue, the Board has come to the
conclusion that the grievance does raise an arbitrable issue.
The Crown Employees Collective Bargaining Act gives the Board the
power and authority to deal with matters concerning the interpretation
application and administration of the collective agreement, S. 19.
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The issue raised by t~his priryancc- concern:, \ihzt, if any, ohij,cation-
are placed upon the Employer with respect to the payment of !~a,cr:
by Article 2.1. The ans!.:er to this \iill involve the interpretation
of Article 2.1. Further, the Employer’s obligations with regard to
the method of payments, while not specified anywhere in the collective :
agreement, may be considered a matter of administration bf the
obligation to pay the wages prescribed in the collective agreement.
.Thus, the issue raised in the grievance is also a concern of the
administration of the collective agreement. For these reasons, the
Board concludes that the grievance is arbitrable and we are therefore
prepared to deal with the merits of the case.
The parties were able to reach an agreed statement of the
facts which gave rise to this grievance:
IT IS HEREBY AGREED BETKEEN the parties that:
1. The schedule of pay is bi-weekly;
2. Pay day is always Thursday;
3. Mr. CraIgford receives his cheque through
the mail and picked up at General Delivery,
Greenbank LOC 1BO;
4. Mr. Cra\;ford in March, 3982 was notified of
Direct Deposit option;
5 - . Mr. Crawford had to choose.between mail or
direct deposit in writing and he chose mail
deliver)‘;
6. Frequently, Mr. Crawford receives his pay
cheque anywhere from one day to a week late;
7. He has received it on time twice in the
past year;
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6. There arc thrc,c n,rthods of chcque deliver!
in the Plinistry (ljirect deposit, Mail, Hand
delivery) ;
9. Mailed cheques are posted on the Tuesda)
preceding pay day;
10. In the past year, mailed cheques have been
posted on Monday whenever available and
delivered to the Post Office late afternoon; ‘!.
11. If an employee has a continui% problem(s)
with his bank in relation to direct deposits
he has the option of opting out of direct
deposit.
The “schedule of pay” referred to in the statement of facts is
published each year by the Management Board of Cabinet, setting out
the pay date and the period of services it relates to for the forth-
coming year. The pay date in that schedule is Thursdays, as referred
to in the agreed statement of facts.
The parties also chose to call some oral evidence. The
grievor explained that the late receipt of his cheque on a frequent
basis has caused difficulties with budgeting and mortgage payments.
He also explained that although he cashes his cheque at a bank which
is within one mile from his work and six miles from his home, he, does
not want to adopt the direct deposit approach to receiving his pay
cheque because he feels the bank is not close enough to his home and
his wife does not drive. The Employer’s witness, Mr. Radbourne
explained that the cheques are regularly sent out on the Monday
or Tuesday preceding the pay date, as soon as they are received
from the Treasury Board. Any delays thereafter in receipt are due
to the post office. He also explained that it would be practically
and economically unfeasible for the employer to hand deliver the
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cheques to employees in locations other than the larger centres. Thus,
the only.real choice the griever has as to box to receive his cheques
are thr0ug.h the mail or through direct deposit to his bank.
Arguments
It was argued on behalf of the grievor that he wants to ,,
receive his pay cheque on the published Thursday as opposed to some
time after that. Further, the fact that the collective agreement
-establishes a “regular bi-weekly pay” implies that the pay be
received regularly or at a uniformly recurring time according to
a predictable manner. If the grievor does not receive his wages
until a week after the due date is published in the calendar from
the Management Board, then it is argued that he is being deprived of
those wages for a period of time in violation of the collective
agreement. It xas submitted that the Employer is obliged to meet
pay dates and take steps to ensure delivery by those pay dates. Further
if the employee has a choice of how to receive payments, he should not
be disadvantaged by his choice of receiving the cheque by mail. This
Board was asked to order the Employer to take corrective steps to
ensure that the cheques arrive on the pay date as set out in the,
calendar.
On behalf of the Employer, it was argued that the.
collective agreement creates no obligation to provide a pay cheque
ofi a specified pay date. The Employer has provided an option to
employees to choose mail delivery or direct deposit. Since the
Employer cannot be responsible for postal delivery and cannot control
it, it ought not to be considered responsible for ensuring the receipt
of the cheques. IVe were also referred to a case of United Steelworkers
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7
and Uddcholm Steels Ltd., (1971 1 22 L.4C 419 (lieiler). That cast’
dealt with management’s right to change the method and the timing
of payments to employees. The case concluded that nothing in the.
parties collective agreement prevented the employer from inst~ituting
a change in the method of payment. L.,
Decision
In order for this grievance to succeed, the grievor must
show a violation of the collective agreement. The Article that
the grievor relies upon is Article 2.1. We agree with the grievor
that this creates an obligation upon the employer to provide payment
to employees bi-weekly and regularly. However, the evidence establishes
that the employer is in fact issuing cheques which are payable every
,w other Thursday. In addition, these cheques are consistently sent out
by mail on the preceding Monday or Tuesday or delivered personally to ~~
employees or paid into their accounts on the pay dates, being
Thursdays.
The collective agreement does not explicitly require that
payment be received by a specified day. The publication of pay days
by Elanagement Board is not part~ofthe collective agreement. It may ~~
create an expectation at pay dates that employees rely upbn, but it
does not’create an absolute liability on the Employer to ensure
personal delivery to employees on that day. What the Employer has
done in this case’is to take all ieasonable measures to ensure pay
cheques are received by employee’s on or before the published pay days.
,..
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r Employees in the position o f the gricvor have the choice of receiving
these cheques by regular ma il or via direct deposit into their bank
accounts.Barring unforeseen foul ups, the direct deposit system xi11
regularly result in the payment reaching the employee on the designated
day. When an employee chooses to receive his cheque by mail, he must
be seen to be accepting the risks of delay and inconsistency that ‘(.
has become too well known in our postal system. Surely it is impossible
to hold the Employer to be in violation of a collective agreement when
it regularly issues bi-weekly pay cheques and the only reason the
cheques do not reach the employee regularly and on the designated date
is due to the fault of the postal system he has chosen as his ‘method
of delivery. That system is beyond the Employer’s control. Even if
the cheques were issued and mailed earlier as the grievor suggests,
this will still not ensure the delivery on or before the designated
pay day. Alternatively, even though hand delivery of the cheques
might ensure receipt on the designated day, nothing in the collective \
agreement requires such delivery and this Board certainly does not
have the authority or jurisdiction to order such a thing.
It was urged on behalf of the grievor that the mailing~~.
of the cheques ought to have been done in sufficient time to ensure
delivery by the due date. But inevitably one asks how much time before
the pay date should this be done. Two days? Four days? A week?
Two weeks? Or a reasonable time? It is common sense and common
knowledge that the date of delivery of any mailed letter is subject
to variation for many reasons.. But the one day that can be easily
and definitely established and determined is the date of mailing.
In this case, the Employer has established on the agreed facts that
,:
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.
it mails the cheques regularly on or before the Tuesday
preceding the pay day. It does this in the hopes of
delivering the cheques to the employees by the designated ,.:
pay days. However, the fact that the cheques may not &rive
on the designated days is in no way the fault of the Employers.
Finally, the Board feels compelled to comment upon
the nature of this grievance. The grievor claimed that he
chose not to receive his cheque by direct deposit because of
his perception of the inconvenience it would cause him and his
family. Yet he admitted that he lives and works within six
miles of the bank and in fact regularly cashes his pay cheques
at that very bank. Further, he claimed that the fact that he
received the cheques irregularly causes him difficulty in
budgeting and mortgage payments. However, these problems
could be immediately remedied with the acceptance of the direct
deposit system. We agree with the theory of the submissions
made on the grievor's behalf that his choice of the method of
receipt of his pay cheque should not disadvantage him. But
any disadvantages that have resulted are either of his own
making or the result of the fallibility of the postal system.
~None are the fault or the responsibility of the~Employer.
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In summary, the collective agreement requires regularly
bi-weekly payments to employees. The facts of this case establish
that this is being done by the Employer. While the Employee may
be receiving his cheques irregularly, that is simply because of
the method of delivery that he has chosen for himself and is.not
the fault of the Employer. Therefore, the grievance is dismissed. .!
Dated at Toronto, this 13th day of May, 1985
Paula S. Rnopf, Vice Chairman 2z
R. Russell, Member
H. Roberts, Member 8 .