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HomeMy WebLinkAbout1986-1110.Austrins.89-02-07Between: Before: For the Grievor: For the Employer: Hearing: December 20, 1988 IN THE MATTER OF AN ARBITRATION under THE CROWN EMPLOYEES COLLECTIVE BARGAINING AC1 ‘_L. i ONT*RIO EMPLOYESDELA COURONNE CROWN EMPLOYEES OEL’ONIARIO CQMMISSION DE SETTLEMENT REGLEMENT DES GRIEFS 1110/86 Grievor before THE GRIEVANCE SETTLEMENT BOARD OPSEU (I. Austrins) and The Crown in Right of Ontario (Ministrv of Industrv Trade & Technoloo~v) Employer J.W. Samuels J. Anderson D. Andersen Vice-Chairperson Member Member C. Dassios Counsel Gowling and Henderson Barristers and Solicitors L. Pettigrew Counsel Office of the General Counsel Human Resources Secretariat 2 The grievor is a Senior Portfolio Officer in the Loan Administration Branch of the Ontario Development Corporation. He is classified as a Financial Officer 4, and he says that this is not appropriate. He claims that he should be classified as a Technical Consultant I. The grievor’s position specification is in Appendix A to this award. The Preambles to the Financial Officer series and the class standard for Financial Officer 4 are in Appendix B. The Preamble to the Technical Consultant Series and the class standard for the Technical Consuhant I are in Appendix C. The Ontario Development Corporation was established to stimulate the economic development of the Province. Among the ways in which the Corporation fulfils its mandate is to provide financial assistance and credit to business concerns who are unable to obtain sufficient~funding through the private sector. The grievor has long experience, both in the private sector and in government, in credit management. Since 1976, he has been a Senior Portfolio Officer in the Loan Administration Branch in Toronto. In brief, he manages a portfolio of some 95 outstanding export support loans and 15 term loans made by the Ontario Development Corporation to businesses in Ontario. His primary work is with the export support loans, and the term loans he manages are made to firms which also have export support loans. Export support loans are made to finance up to 75% of purchase orders and 90% of foreign receivables of Ontario firms exporting products abroad. Term loans are made to finance building, equipment, and other capital developments. His work involves five elements. Firstly, he monitors the performance of the borrowers by analyzing and evaluating their financial statements, forecasts of sales, profit/loss, and cash flow. He makes on-site inspections to observe the operations of the borrowers. He does in-depth 3 interviews with principals of the borrowers. Secondly, he diagnoses problems in marketing, manufacturing, finance and administration and advises the borrowers concerning solutions to these problems. Thirdly, he approves the extension of export lines of credit, or he recommends rejection of previously approved lines of credit. For approval, his own decision is final. For rejection, his recommendation goes to the previous approving authority for consideration. Fourthly, he approves requisitions for cheques for export support disbursements. Fifthly, he collects overdue loans and structures loan workouts. The borrowers operations are dynamic, and changes in fortune will occur during the currency of a loan. The grievor must assess the on-going creditworthiness of the borrower, taking into account various risk factors-managerial competence, earnings, security available. This is a significant part of his job. The grievor will be involved in arrangements for commercial credit for the borrowers, when this becomes feasible. Now, in these circumstances, is the grievor properly classified as a Financial Officer 4?~ At the outset, it is interesting to note that the employees who are responsible for assessing the borrower at the time of the initial application for a loan are classified as Technical Consultant 1. The grievor, who handles the on-going management of the loan and the on-going assessment of the borrower’s creditworthiness, is classified as a Financial Officer 4. The Union, however, does not argue that the grievor should be classified as a Technical Consultant 1 because he is doing the same work as others who are so classified. The Union’s case is based on the class standards themselves. From the Preamble to the Financial Officer series, one can see readily that this series is intended to cover positions whose primary 4 component is involvement with matters financial-audit, budget, financial information systems, general accounting, specialist accounting. The Financial Officer 4 level covers positions having significant responsibilities, but set within the context of a primary involvement with financial operations. In our view, the grievor’s job involves a much broader range of subject matter than financial affairs. In order to ensure the creditworthiness of the borrowers, and in accord with the Corporation’s overall goal of stimulating economic development in the Province, the grievor offers analysis and advice concerning the operations broadly of the borrowers. He assesses the borrower’s management, manufacturing operations, and marketing programs. He is not confined to an examination of the financial figures. Because of this broad range of subject matter, he is not properly classified in the Financial Officer series. On the other hand, an examination of the Preamble to the Technical Consultant series, and the class standard for the Technical Consultant 1, discloses that the latter fits the grievor’s position like a glove. He “conducts. investigations into the management problems of companies requesting assistance from the Corporation”. This is seen in the grievor’s analysis of the borrower’s business as disclosed in the financial statements, and during his on-site visits and discussions with the borrower’s principals. He “provides technical and advisory services to companies.... analyzing problems, arranging for financial and other aid and ensuring that proposed solutions are viable”. He “maintains liaison with chartered banks and other financial institutions........, in order to facilitate negotiations for long and short term loans for the companies with which they deal”. From the second paragraph of the class standard for the Technical Consultant 1, it appears that the standard is intended to cover those who 5 deal with the initial approval of loan applications, and those who are charged with the on-going management of the loan-“In co-operation with other advisers and analysts from the Corporation and after the granting of assistance, they ensure the Company’s adherence......” (emphasis added). And this makes good sense. The creditworthiness of a borrower is a dynamic function. It must be assessed on an on-going basis. The task of assessing the borrower’s creditworthiness at the outset is no different from the on-going assessment during the life of the loan. Furthermore, the advice and assistance offered by the Corporation doesn’t cease when the initial loan application is approved. There is on-going contact of a similar sort. In our view, it is very difficult to see any substantial distinction between the work done before the loan approval and the work involved in the on-going management of the loan. Their focus is the same. The methods of analysis are the same. The risk factors and broad operational considerations are the same. The second paragraph of the class standard for the Technical .Consultant 1 concludes “When assistance is granted a company, they represent the interests of the Province ensuring that the companies abide by the terms and conditions under which the assistance has been granted through a review of fmancial and other reports”. This is the grievor’s job in a nutshell. The grievor should be classified as a Technical Consultant 1. 6 The Union has asked for compensation as of 20 days before the grievance was filed on October 17, 1986. We so order. We will remain seized to deal with any matter arising out of this award which the parties are unable to settle between themselves. Done at London, Ontario, this 7th day of February , 1989. y/&fy J,. D. Andersen. Member Appendix A Position Specification--Senior Portfolio Officer To agtinister a pXtfolio of E-1-t S-r-t IAUS relative t-0 the distis~nt,~collectim of f:z-& ark3 the ontinuatim of the approve3 lows, ten76 a4 zrhticrs of the agree5enti. -.- 1. The inczrhnt, in sqzport of the Coqzoratior:s ’ mandate to pi-mote export sales, assws t3-1 follcving reqxnsibilities: 70% Esaluation of Approved Loans: - receiving an3 andyzing tusiness forecasts, a:mual financial statwents an3 interim rqrt to ascertain the viability of the hrrwer: - cmducting m-site inttiehs with the priwi+s/exeoAives to diagrxzse w prcb?a in tie arlas of nwufacturing, financial, rrarketlng or tier related difficulties: - develcping savd rexim-e3 ddticrs based m the ii~lysis & interview, an3 advisiq the S3rrwer of the qropriate actim to tie: - a*roving/rej&i.rq the continuatim of loans at the annual review or any other t&e: - preparing recmmen3atiws for the oiling of loans: - .negotiatt term, omditims, security ar~I repayrent of loans tiere ne.~~sary and preparing ?Jotices of CWnge to reflect sarre; - act-in3 as a liaism between the lxrrwer an3 other -033 of financial assistance axilable fran the private se&or. ‘. 2. Dishrsarrurt/Collectim of fun3s: _-___ 25% - advising the torrwer m the distirser;ent prc0zss an3 the mssaxy -tation required to omsider a Dishrs-t of runds: . c reiving tFle requisitions for hnis prepared bj the clerks, tqether with the Specific Rssigwent, Ivan disturswent Rw..~esT an3 other supfortirq vouchers: - detemining whether to amrove the requisition with reference to the quality of &0n33Yts a-1 vcwhers stitted, financial azndit~im of the h31-rwer an? arrj principal/interest .- -~ -arrmUQtiinordeyL _______ .~_. - ?lppxNcrlg t3e reqi;ls:em for fUrI& rangl.~ f,-cx $l,ccO to $ 2 m’,llirn. - =;:+y:~ over&e prlnclpal/interest by zears rJf letters, t.e!ep?me and personal tisC*s. 3. i+rforrs tither re;at& duT.ies, sub as: 5% 8 In~rtt exerckes a hl#~ degree of judgernt. In z-esearchhg, analys-hg and resAv’.ng onplex fbancial cases such as det.e.mCnLq samdness or w&mess of bsbesses and recu;rrendbg me+hods for wmvamnt. hadEnt protides adtice to magemnt cm the use of flnanclal resa~ces and term of remsal of mtinued as&tan-. an3 is n~les. - 9 i !’ ~. . 10 11 12 .’ i’ , Appendix C Technical Consultant Series PfUXMBLE TECHX-ICAL CONSULTANT SERIES This class series covers the positions of consultants in the Ontario Developnent Corporation who carry out the Corporation’3 responsibilities under the Ontario Development Corporation Act. The Corporation is authoriced under’the legislatien to “20 all things that a corporation with share capiial may do” - including making loans, taking security, purchasing, managing, leasing, and selling real property; buying, holding and selling all kinds of bills, notes, negotiable instruments,,sharos, debentures, mortgages, etc.; borrowing such SUmS as it requires bv temporay loans or by the issue and sale of debentures, biX3 or notes bearing interest. The Corporation MS established for the purpose of stimulattig the econcmio development of all areas of the province. It assists and encourages the development and diversification of industT through the provision of financial aid, and advisory, technical, and management services to all types of businesses &ich meet the Corporation’s requirements. Financial assistance includes interest-free forgivable loans, long-term capital loans and guarantees ,of payment of loans. Loans are made awilable for the constmction of nev bui12in;sz rhe remodelling or wpansion of plant facilities and the purc,bsse of new equi-z;r.cnt .xhich will increase substantially opportunities for employmen:. The Carpcraticc~ 5 staff of consultants dnaly:e applicants 1 problem3 and provide expert advice on financial, engineering, marketing, production and technical matters to assist * established companies to introduce new techniques and processes, and to brin,?: new rypes of industry to areas of slow g.ro=h. They negotiate hith and assist overseas companies to establish new facilities in Ontario. The Corporation also operate3 industrial parks and provides industrial sites, equipment, premises and facilities . It encourages the invention of new products and processes in co-operation with the Ontario Research Foundar%on and offers ad*+ce on financing, *tenting and marketing. 13 ~HNICAL CONSULTANT 1 This class covers the positions of employees of the Ontario Development Corporation, vho conduct3nvestigations into the management problems of companies requesting assistance from the Corporation. Under the supervision of a senior consultant or Branch Director, thep provide technical and advisory services to companies and individuala,analyzing problems, arrangtig for financial and other aid and ensuring that proposed solutions are viable. lixy analyze applications, inter-view senior sxanagement officials and sbserx the actual operations in order to dete.-Lline the type of assistance required and how it may beat be provided. In addition to their ocn studies, they also evaluate reports solicited from such sources as cos:+ny auditors and indeper.2er.r investment analysts prior TV the granting of financz.1 or other assistance. In co-operation tith other advisers and analysts from the Corporation and after the ,ganring of assistance, they ensure the company’s adherence to a budget eatablishci by themselves through a con~intig review of financial atateroents and other reporrs. They maintain liaison with chartered banks and other financiai inatizzt.. and Pederal and Provincial Government depaar;nenta, in order to facilitate negotiations~ for long and short term loans for the companies ~5th SAich they ?erl, They IFake recommendations for the rejection or ratification of applicant cozpaoies. irhes assistance’ is granted a company, they represent the interests of the ?rsvinc~ ensuring that the companies abide by the tens and conditisns ur.der whi:h the assistance has been granted through a review of financial and other rePGr:s. Good understanding of the objectives and powers 3f the Ontario Develo-menc Carporation; extensive knowledge of Ontario’s industries, resources, and econcmic development; broad howledge of the wrious areas of business activities, financial, managerial and tec.bnical; good underatandilg of sound business rec~hri~~ea; ability ta analy:e c0m~ie.x problem sic,uations and reco,w,end so1uci~:r.s: managerial skills; ability to communicate tffec:ively; abili> to establish and maintain good vorkiq relationships; a high degree of tact ana good judgezent. A good general education and e.-xensive responsil-1 e ai-aqisrative ex;rrienc.e at the senior management level preferably in more than one nedium-sized or large industrial company, Professional education and c.xtensive Frogressiwly responsible industr?al experience as a senisr consultdnt or m.ra;er in a Praiessioral or technical are.3 sue+. as er.gL-xeri.z;, firarise, pi.3nZ D?.m3gERenT, T?anar!<?rLTg, production a.-2 qcali::; :mtroi.