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HomeMy WebLinkAbout1984-0558.Canning et al.88-10-11ONTARIO CROWN EMPLOYEES GRIEVANCE SETTLEMENT BOARD EMPLOYES DE LA COURONNE DE L'ONTA RIO COMMlSSlON DE REGLEMENT DES GRIEFS 180 DUNDAS STREET WEST, TORONTO, ONTARIO. M5G lZ8 - SUITE 2100 180, RUE DUNDAS OUEST, TORONTO, (ONTARIO) M5G lZ8 - BUREAU2100 TELEPHONE/TELEPHONE (416) 598-0688 0558/84 IN THE MATTER OF AN ARBITRATION Under THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT Before THE GRIEVANCE SETTLEMENT BOARD Between: Before : OPSEU (D.W. Canning et al) Grievors and The Crown in Right of Ontario (Ministry of Government Services) Employer J.W. Samuels Vice Chairperson I.J. Thomson Member I.J. Cowan Member For the Grievors: T. Hadwen Counse 1 Cavalluzzo, Hayes & Lennon Barristers and Solicitors For the Employer: D.W. Brown, Q.C. Counse 1 Crown Law Office, Civil Ministry of the Attorney General Hearing : August 31, 1988 DECISION 2 On September 23, 1987, the Board issued an award in this matter. We concluded that the grievors were improperly classified as RE02, a bargaining-unit classification, and that they should be classified as AM17, one of the classifications in the Management Compensation Plan, which is a system of classification designed exclusively for employees performing managerial functions. We ordered that the grievors be compensated from the time they made known their complaint, and we awarded interest in the following terms (at pages 16-17): There should be interest on each and every sum at 10% compounded annually, from the date on which the sum was to have been paid to the date on which it is finally paid. And we reserved our jurisdiction to hear and determine any matters related to compensation which the parties were unable to agree upon themselves. The parties did have several matters over which there was some disagreement and we were asked to reconvene. The original panel consisted of Vice-chairman Samuels and Members Cowan and Schachter. On the day set for our reconvening, Mr. Schachter was not available. The parties agreed that Mr. Thomson could sit in Schachter's place. The first issue is whether or not, as part of the grievors' compensation, they are entitled to the Management Compensation Option ("MCO"), pursuant to Section 15 of Regulation 881 under the Public Service Act. MCO is a system of credits, which can be taken out as leave or cash, provided to "employees". Section 15(1)(a) of the Regulation defines "employee" for purposes of MCO as "a civil servant in a position in a class set out in Schedule 6 other than a class for which a salary range is determined through collective bargaining under any Act". 3 In our view, the grievors are entitled to MCO for the entire period for which they are to receive compensation for two reasons. Firstly, we ruled that the grievors had been improperly classified since they made known their complaint, and they were to receive compensation to put them in the monetary position they would have been in had they been properly classified as AM17 for the whole period. If they had been classified as AM17 from the outset, they would have received MCO. Thus, in order to put them in the financial position they would have been in, they should now get their lost MCO. Secondly, they fit the definition of "employee" in Section 15 of the Regulation. Their classification is set out in Schedule 6, and, as AM17s, they were not in a class for which the salary is determined through collective bargaining. An "employee", as defined in Section 15, is entitled to MCO. The second matter about which the parties have some disagreement is the meaning of our award of interest. We said: There should be interest on each and every sum at 10% compounded annually, from the date on which the sum was to have been paid to the date on which it is finally paid. Perhaps it would be best to give an example in order to demonstrate how the calculation is to be done. Suppose that a grievor received a pay cheque on February 15,1982, in the amount of $100. This was his salary as an RE02. If he had been properly classified as an AM17, he would have received $125 in that cheque. Therefore, he is now entitled to compensation of $25 in respect of that pay cheque. If the compensation was finally paid on October 15, 1987, then the amount which should have been paid in respect of the shortfall on February 15, 1982, is as follows: 4 $25 x 1.1(320/365)[to the end of 1982] x l.l4[to the end of 1986] x 1.1(288/365)[to October 15, 1987] Thus, to the end of the first year, there is simple interest for the number of days between the due date of the sum and the end of the year. Then, at the end of each of the next full years, the total is compounded again. Finally, the total is compounded to the date of payment. From the information given to us at our recent hearing, it appears that this is what was done in calculating the grievors' compensation. This interest calculation should also be done in respect of any MCO payments which were missed. 5 Once again, we will retain our jurisdiction to hear and determine any matters related to compensation which the parties are unable to agree upon by themselves. Done at London, Ontario, this 11th day of October ,1988. I.J. Thornson, Member I.J. Cowan, Member