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HomeMy WebLinkAbout1990-1035.Union & Policy.95-03-21ONTARIO CROWN EMPLO"E~S EMPL0vl2.9 DE LA coul7- DE L'oNT#m0 GRIEVANCE COMMISSION DE SETTLEMENT RiGLEMENT BOARD DES GRIEFS 100, TORONTO ,ON M5G 126 2100. TORONTO (ON) MG 128 TELEPHONEiTkL$PtiONE : FACSIMILEIT~&COPIE : (416) 326- 13.96 (416,326- ,396 I Mm 2 1 1995 GSB # 1035/90 THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT BETWEEN BEFORE: FOR~THE GRIEVOR FOR THE EMPLOYER HEARING: Before THE GRIEVANCE SETTLEMENT BOARD CUPE I?50 (Union/Policy Grievance)' - and - Grievor The.Crown in Rightof Ontario (Workers' Compensation Board) Employer B. Kirkwood Vice-Chairperson W. Rannachan Member F. Collict Member K. Martin Counsel Sack, Goldblatt, Mitcheli Barristers & Solicitors P. Pasieka Counsel Filion, Wakely & Thorup Barristers & Solicitors September 22, 1992 April 19, 20, 1993 September 2, 1993 April 4, 1994 Page 2 DECISION The Union claimed that on April 1, 1990 the Employer arbitrarily changed the intent and application of Article 8:09 (a) of the collective agreement, which establishes the salary for ._ irregular hour employees, by changing the salary base from 40 straight hours to 36 l/4. straight hours. The Union sought a c..: declaration that the collective agreement had been violated and claimed damages, including interest on all amounts due and owing r for the period from April 1, -1990, the day of the alleged breach to July 3, 1992, a date which the union and employer could be found to have reasonably renegotiated the provision. The parties entered into an agreed statement of facts and we heard further evidence. The following statement - . corresponds for the most part to the, agreed~statement of facts presented by the parties, but does not contain the Exhibits which were referenced in the agreed statement. 1. The Canadian Union of Public Employees, Local 1750 (the ."Union"~was certified in respect of all employees of the Workers' Compensation Board Qntario (the "Employer") save and except certain excluded positions in October, 1975. 2. In the original agreement between the parties, effective October 1, 1975 to September 30, 1976, Article 8.8 provided as follows: Page 3 3. The irregular hour employees referred to in Article 8.8 were those employees who worked in the field and were responsible to work on 'an "as required" basis to accommodate their clients' schedules. As a result, _1 their working hours varied from week to week. Under the first collective agreement; the irregular hour employees fell under the Senior Administrative Salary Schedule, Levels 70, 71, 72, 73, 74 and 75 of the collective agreement. Some of the employees in the aforementioned salary levels worked regular hours, although ,the majority of employees in the salary levels worked irregular hours. 8. An employee iS eligible for overtime compensation unless he: a)because of the nature of his position is required to work irregular hours. 4. In the negotiations for a,sec,ond collective agreeme:nt, . . the treatment of irregular hour employees was an important issue to the Union. It was the opinion of the Union that many irregular hour employees were working "unlimited" hours with no additional remuneration. To alleviate the situation, the Union proposed that irregular hour employees receive overtime payment or time off in lieu of overtime pay for any hours worked over 36 l/4 hours. It was theposition of the Employer that the then present circumstances concerning irregular hour employees be alleyiated through the Employer providing in a side letter to' the collective agreement would provide as follows: An employee who normally works on a irregular hours shall, for the purposes of payment, be deemed to be working a minimum of fbrty (40) hours per week and Page 4 5. his salary shall be adjusted to forty (40) hours on a straight time basis. J In the second collective agreement between the parties effective October 1, 1976 to September 30, 1977, the parties reached an agreement on the treatment of irregular hour' employees. In particular, Article 8, subsection 9, replaced the former language set out in ~_.. paragraph 2 above. Article 8; subsection9, provided as follows: I# - Article 8 9. An employee is eligible for overtime compensation unless he: . (4 b) because of the nature of his position is required to work irregular hours. Such an employee shall, for the purposes of payment, be deemed to be working a minimum of forty (40) hours per tieek, and his salary shall be adjusted to forty (40) hours on straight time ~basis; Notwithstanding the above, any such employee who is required by his supervisor to work on his day off or on a holiday,,,shall receive equivalent time off. _ - 6. On July 28, 1982 (sic), the Union distributed a bulletin which stated in part that "the 3/4 hour pay premium recognizes work performed outside regular hours". 7. During the period October 9, 1976 to March I, 1990, irregular hour employees were paid, according to the Union, a salary based on 40 hours per week and according to the Employer, irregular pay based on 40 hours per week. In addition, any benefits payable to irregular hour employees under the collective agreement were calculated on the basis of 40 hours per week. Page 5 8. During the period up to March 7, 1990, an irregular hour employee was not required to submit an overtime form to receive the salary or irregular pay as set out in paragraph 7 above. Rather, once designa.ted as an irregular hour employee, the employee's regular pay and/or salary was simply calc!ulated accordingly. In comparison to irregular hour employees, regular hour employees who worked overtime were required to submit an _ overtime form and their pay; che,ques identified an amount for "regular" pay .and a separate amount for "overtime" 9. For several years prior to March 7, 1990, the Employer provided,new employees with in:formation about their pay cheque stubs. 10. From the time of the first collective agreement up until March 7, 1990, irregulars hour employees fell under salary grades 070, 071, 072, 073, 074 and 075. However, in the collective agreement effective October 1, 1988 to September 30, 1990, a separate salary was specified for employees working irregular hours. 11. In the context of this proceeding, the Union requested that the Employer produce, inter alia, any internal Worker's Compensation Board d.ocumentation setting out guidelines for the payment of salary and benefits :Eor irregular hour employees for the period October 1, 11376 to March 7, 1990. The Employer produced four manuals which were the working documents for 1982 and has advised the Union that there #are no other documents in existence: Human Resources; Policy and Procedures Manual; Administration Procedures Manual - Saliiry Administration Specialist; Administration Procedures Manual Benefit Clerk: and Administration Procedures Page 6 Manual Personnel Clerk. The latter three manuals set out detailed procedures governing the job duties of the Salary Administration Specialist, Benefits Clerk and Personnel Clerk: The incumbents of these position were responsible for the duties involved in the administration of salary and benefits during the reliant ~period. In the procedures governing the.duties of the Salary Administration Specialist, there were several references to the administration of salary for irregular hour employees. In the detailed.procedures.governing the calculation of benefits, the ,manuals tracked the language in the collective agreement indicating that benefits were to be based on salary pay, or whatever the applicable language was in the collective agreement. The Workers' Compensation Board Policy and Procedure Manual sets out the benefit policies in respect of the . - employees in, the bargaining unit, including the irregular hour employees. The policies for each benefit are approved by the Board of the Workers' Compensation Board. This !is reflected in the actual policies contained in the Policy and Procedure manual. In particular, then Board passes the policies in their Minutes prior to the-policies becoming in effect. In these policies, there is no distinction drawn between regular and irregular hour employees. Examples of such policies are set out in respect of vacation; leave of absence; bereavement leave; leave of absence for justifiable personal reasons and statutory and declared holidays. Page 7 12. 13. 14. 15. 16. 17. During the period October 1976 to March 7, 1990, irregular hour employees were defined as being in 370, 371, 312, 373, 374 and 375 in all personnel documentation. The description of irregular hour employees 370, 371, 372, 313, 374 and 375 was d.isclosed in information regularly supplied to the Union of hirings, terminations, classification changes on a monthly basis. On March 7, 1990, B. Homer, Manager, Employee Relations advised Frank Mucci the President of the Union that, henceforth benefits for irregular hour employees wou.ld be calculated on the basis ,of 36 l/4 hours per week, as opposed to 40 hours per week. On or about March 9, 1990, individual letters were sent to each employee who was designated as an "irregular hour employee" from A. J. Iiagan, Director of Human Resources, advising him/her of the change. A copy of that went to Mr. Mucci, inhis capacity as an irregular hour employee. On or about March 20, 1990, Mr. Mucci sent a letter to Mr. Homer requesting clarifica.tion on the implications of the change in the rights a:nd benefits of irregul.ar hour employees. In particular, he requested, j&:er alia, information on what benefits would be affected: how the benefits would be faffected: and the number of affected employees. On or about April 2, 1990, E.J. Baldwin, Employee Relations Specialist wrote'to Mr. Mucci addressing his concerns. Page 8 18. The change affected "irregular hour employees". Irregularly 'hour employees were identified as those employees in salary grades 370, 371, 372, 373, 374 and 375. As of February 23, 1990, the number of active employees in each of the aforementioned salary grades was as- follows: Salary Grade No.~of Active Employees as at Feb. 23/90 -' " 370 20 371 15 372 67' 373 '. .! 374 17 375 11 At the time of the grievance, the bargaining unit was comprised of approximately 2,200 members. 19. In addition, the change affected those benefits and/or rights set out below. Where applicable, reference is made to the corresponding provisions of the collective .agreement: . . Benefits Provision in the Collective Aareement (a) Superannuation Plan Contribution (b) Holidays n/a Article 10 - the calculation of "without reduction of salary" (Article 10); "regular rate" (Article 10.04); and regular days pay" (Article 10.05) (c) Vacation Article 11 - the calculation of "pay" (Article 11.02, 11.04); - the calculation of "current rate of salary" (Article 11.05) Page 9 (d) Attendance Credits Article 15 - the calculation of attendan,ce credits (article 15.01, 15.07); - the calculation of "rate of pa:y" and "salary" (Article 15.06) (e) Leave of Absence for jury duty, bereavement leave, military leave, sick leave adoption leave Article 16 - the calculation of "pay“ (Article 16.01(d), 16.02, 16.05) .. - the calculation of "salary" (Article 16.03, 16.04) - the calculation of "actual weekly "-. rate of pay for her classification" (Article 16.07) - the calculation of "salary" (Cuticle 16.07, 16.09) (f) Leave of Absence for Union Activities Article 17 - the calculation of "pay" (Article 17.03, 17.05, 17.06) (g) Workers' Compensation Benefits Article 21 - the calc.ulation of "full salary" (Article 21.02(b)) (h) Long-term disability Appendix 3, Section 3(c) - the calculation of "gross regular salary”; "normal salary"; and "earnings" (i) Life Insurance Appendix 3, Section 3(d) - the calculation of *basic annual salary"' (j) Employee Accidental Death and Dismemberment Appendix 3, Section 3(e) - the calculation of "annual salary" OTHER RIGHTS (k) Payment of Part-time and Temporary Employees Article 22 -"normal days' pay" (Article 22 (b)); "to.tal earningsm (Article 22(C)) "regular earnings" (1) Union dues- Article 20 Page 10 (article 22 (h) -refers to deduction of union dues in accordance with the Constitution - the calculation'of "regular weekly Pay" in the Union's By-Laws and Constitution _. .20. The Union and the Employer agree that: (a) the calculation of "earnings in Article 11.05(b) is based on the forty hour a week rate of irregular hour employees. (b) the calculation of "pay" in Article 17.02 and 17.04 is based on the forty hour a week rate for irregular hour employees. (c) the calculation of "wages" in Article 22(a) is based on the forty hour a week rate for irregular hour . . ~employees. . (d) In the event that an employee is off on sick leave, the employee's salary is protected for any period of the absence. For irregular hour employees the salary which is protected is the forty hour a week rate. 21.' As of the .date of the change, the relevant collective agreementcovered the period from October 1, 1988 to September 30;1990. 22. On May 14, 1990, the Union filed a grievance of the change in the treatment of irregular hour employees. 23. On June 19, 1990, the Employer filed its reply. Page 11 24. FOllOwing the change described in paragraph 17 above, irregular hour employees were required to complete an Overtime Pay authorisation Form to receive the 3 and 3/4 hour portion of the 40 hours pay. In addition, the "pay stub" of a'n irregular hour employee thereafter identified an overtime section. 25. A new collective agreement was negotiated ' commencing October 1, 1991. The Union forwarded proposals concerning irregular hour payment in these negotiations and a --- change to the provision concerning irregular hours was negotiated. Both~ counsel presented comprehensive arguments and provided books of authorities, which'we have reviewed in thei.r entirety, although they are not all referred to in this decision. The Union argued that the collective agreement was clear on its face. The Union claimed that the Employer violated the provisions.of the collective agreement by not paying benefits as set out in paragraph 19 of the agreed statement of facts, whic:h the Union submitted ought to be based on 40 hours per week and not on 36 l/4 hours per week. Union's counsel argued that irregula:r employees had a separate salary from the regular employees which was specified in the collective agreement, based on forty hours straight time. Union's counsel made arguments on each reference to ‘salary' and 'pay' as referred through the collective agreement, submitting that salary for irregular hour employees refers to the usual and normal rate of forty hours straight time. The Union argued that the references in the collective agreement to 'salary' refers to salary for all purposes. Page 12 Union's counsel argued that if the Board were to find _' the language in the collective agreement ambiguous, the Board must look to the ~spast practice of the ~parties to construe the collective agreement (Noranda Metal Industries Ltd., Fergus Division and Interna~tional "Brotherhood of Electrical _., Workers, Local -2345 et al. 44 O.R. (2d) 530 (Dubin); Motor Transport Industrial Relations, Bureau ‘of 'Ontario and -:. Teamsters Union, Locals 91, 141, 879, 880, ,938 4 L.A.C. (2d) 89 (Brown); Re Steel Co. of Canada Ltd. and United Steelworkers, Local' 3748 8 L.A.C.. (2d) (Palmer)). For a period of. 14 years, -the Employer paid benefits and remitted union dues on the basis of a 40 hour salary, which practice supports the Union's interpretation. - Union's counsel submitted that any argument that there . - had been a mistake-was not credible. The.-Employer did not calls anyone directly involved in the original negotiations to prove that the original intention ~was anything other than. what it carried out. It relied only on the minutes produced by the note- taker and the testimony of Jacquie Gray-Moores who. suddenly realised that the Employer was paying early retirement onthe basis of forty hours per week. Union's counsel argued that the minutes were ambiguous and the employer's documentation dividing the employees in categories of regular hour employees and irregular hour employees and their treatment of those employees, supported the Union's contention that the Employer intended to Page 13 treat the employees in this way. Finally Union's counsel submitted that due to the Employer's past practice, the Employer is now estopped from changing the meaning of the collective agreement (Re CN/CP Telecommunications and Canadian Telec'ommunications Union 4 _ L.A.C. (3d) 205 (Beatty), upheld in appeal in Re Canadian National Railway Co. et. al. and Beatty et al. 128 D.L.R. *.fi. (3d) 236 (Osler J); (Re Domglas Inc. and United Glass and Ceramic Workers, Local 203 9 L.A.C.(3d) 125 (Kennedy); Re Certified Brakes., Division of Lear Siegler Industries Ltd. and United Steelworkers of America, Local 14831 25 L.A.C. (IdI 418 (Davis)1 Re Kemptville District Hospital and Ontario Nurses' Association 1 L.A.C. (4th) (Burkett); Re Corporation of City of London and'canadian Union of Public Employees, Local 101 11 L.A.C. (4th) 319 (Roberts)). Union's - - counsel argued that even if there was a mistake, a .mistake.does not prevent the application of the concept of estoppel (Re Windsor Western Hospital Centre Inc. and Ontario Nurses Association 8 L.A.C.(4th) 116 (Watters)). The purpose of estoppel is to protect the party that reli.ed on the actions of the other. Union's counsel submitted that, at least, on the basis of the past practice evidence, the Employer should be estopped from changing its practice until the Union had a chance to negotiate the issue. Page 14 Employer's counsel submitted the only issue ~that this Board has to deal with is characterisation of the 3 3/4 hours difference between regular and irregular employees. That issue has been dealt with in the unreported decision of OPSEU (Gullen) G.S.B. #96/90 (Keller) which found that the extra pay was a _I~ premium to cover extra hours that any irregularly categorised employees might work land was not part of salary. As the board has r-.. already resolved the.issue of the treatment of this premium pay, this board must follow the Gullen decision, unless the board were to find that the decision was manifestly wrong. ' Employer's counsel argued that the Gullen (supra) decision was not manifestly wrong. She argued that the collective agreement was clear on its face. Employer's counsel argued that Article 8 refers only to the overtime provisions, and the 3 3/4 -- hours pay that was given to the irregular employees was payment in ~-. lieu of overtime and was not a basis for benefit payments. Employer's counsel argued that nowhere in the collective agreement did it refer to the premium being used for the calculation of benefits,. Employer's counsel argued that evidence of past practice could not be relied upon by the Union as the Employer had, notwithstanding its calculation on benefits, posted the positions for irregular hour employees on the basis of 36 l/4 hours per week. In the 9mployer's submission, there was no 'consistent and Page 15 clear practice as suggested by the Union. Employer's counsel argued that for estoppel to be applicable there must be a promise that was intended to affect legal relations and there must be detrimental reliance upon the promise (OPSEU (Brown) and The Crown in Right of Ontario _ (Ministry of Community and Social Services) GSB #0513/86 (Barrett). A mistake cannot be used to establish a promise. .'_.. (Monarch Fine Foods Co. Ltd. 18 L.A.C,, (3d) 257 (Schiff)). In this case, the Employer never intended to pay benefits on the basis of forty hours straight time, per week; as .seen in the minutes of the Employer's Board of Directors. She argued that the Union Bulletin also supported the Employer's position that Union considered the excess 3 3/4 hours a's overtime. The Union was unable to present evidence that contradicted this original intention. It relied on the testimony of Mr. Millage, who was _ present at the negotiations, but was'not the spokesman, and was __ not present when the decisions were made in drafting the collective agreement. Employer's counsel submitted that the original intention was as seen in the'Employer*s minutes to treat 36 l/4 hours as the base salary for irregular hour employees with an allowance for the nature of the hours of work that they had to do in excess of the normal hours. Due to the computerisation Iof the payroll a mistake was made and perpetuated. Employer's counsel argued,that if there has been no inequity, there can be no estoppel (Re Dominion Chain Inc. and Page 16 International Association of Machinists and Aerospace Workers> Local 1927 23 L.A.C. (3d) 341(Kennedy)). Furthermore estoppel cannot be applied where only one group of employees relied on the conduct' of the employer (OPSEU(Mills.) v. (Ministry of Transportation) January 2, 1990 (Low)). Where an employer has however bestowed .a benefit that is beyond that which _ it is required to do it.can discontinue that benefit. (Monarch (cited above) If the parties wished to include it/they had to -::. express it in the collective agreement to be binding. Employer's counsel argued that if the Board was to find that estoppel was applicable, the Employer could discontinue its practice ,on reasonable notice to the Union (OPSEU(Poapst)and The Crown in Right of Ontario (Ministry of Revenue) GSB. #267/90 (Barrett)). Employer',s counsel argued that there was no inequity as notice was given and the Union was in the position to negotiate forthe next collective agreement which would commence in approximately six months. Although Employer's Counsel argued that we are limited to interpreting article 8:09 (a) of the collective agreement, we find that we are not limited to a finding on the interpretation of article 8.09. The incident that triggered the grievance was the Employer's discontinued use of 40 hours as the basis of payments for benefits. The Union claimed a violation of article 8.09 and did refer to "violations of other articles of the collective agreement". While this is a broad term of reference, we do not Page 17 find that the Employer was surprized by the characterisation of the issue in any way. The Employer clearly knew the scope of the dispute between the parties. We find that we have jurisdiction to consider the articles as requested by Union's Counsel. The issue before us centres on the language set out in _ Article 8.09 and Schedule "A" of the colle,ctive agreement covering the period October 1, 1988 to September 30,, 1990. "-. The foundation of the Union's position is based on Article 8.09 and Schedule "A" which states:: 8.09 An employee is eligible for overtime compensation unless he: (a) because of the nature of his position is required to work,irregular hours. Such an employee shall, for the purposes of payment, be deemed to be working a minimum of forty . - (40) hours per week, and his salary shall be adjusted to forty'(40) hours on'straight time basis. The relevant portions of Schedule "A" state: SCREDULE "A" TEE WORKBRS' COMPENSATION BOARD ONTARIO SALARY SCALES AND CLASSIFICATIONS IN THE BARGAINING UNIT. The Employer shall pay salaries in accordance with this Schedule and this Schedule shall apply to all employees in the classifications listed herein.... TABLE OF CONTENTS Senior Administrative Salary Scale Page 18 SCHEDULE "A" SENIOR ADMINISTRATIVE SALARY SCALE Effective Oct. 1, 1988 Salarv Grade Minimum SteD 1 . ..etc 6 months...etc. '. 075 .739.21 784~.68...etc. (816.07 (866.10)...etc. (Includessalary Adjustment for-irregular hours under .I Article 8.09(a)) The issue is what are the ramifications of 'these*-."- articles-on the benefit provisions in the collective agreement. ~'-In our view the Gullen board was asked to resolve the essentially the same issue that is before us. Although the purposes may have been different the fundamental principle upon I. which the~decision'is based relies on the same issue that is before us, the determination of salary of irregular hour employees.. The purpose of the Gullen panel, was to determine - - ~whether the payment for,deemed additional hours of work'.tias part of the 'salary' to be protected when irregular hour employees were no longer needed bnd were reclassified,, but were entitled to income protection. In order to do so, it had to determine the nature of the 3 3'/4 hour payment which employees who work irregular hours receive which employees who work'regular hours do not. The effect of the Gullen decision is that interprets Article 8.09 as interlocking with Article 7.01 to protect the normal hours of work but not the premium attached for working irregular or overtime hours. The rate of pay for regular and irregular employees remained the same. The excess was characterised as c Page 19 "top-up" in lieu of overtime. Vice Chair Keller states at pages 6 and 7: The issue is whether salary protection is to be based 'on 36 l/4 or 40 hours per week for those to whom s. 8.09 applied in the past. Article 8 establishes the rules for the eligibility to, and the payment of, overtime. Its purpose, like all overtime provisions, is to establish the level and quantum of compensation where work hours exceed the norm established in the collective agreement. In the instant case, s. 7.01 establishes the normal working hours at 36 l/4 hours per week. That*'- establishes the norm: without express language to the contrary that is the basis for the application of the income protection plan. Does 5. 8.09 provide that con.trary language. In our view, it does not. We reach that conclusion because of the very wording of s. 8 in general and 8.09 in particular. As indicated a:bove, s. 8 deals with overtime and its modalities. S.8.09 provides one 'of those modalities. It stipulat.es where employees wi:ll not be eligible to overtime compensation (i.e.) whe:re irregular hours of work #are the requirement of a position. In such a case, :employees are paid 40 hours rather than 36 l/4 hours per week as long as they . _ continue to work irregular ~hours. The result is not a different rate of pay than others in the pay..grade. It is the same rate of pay plus a "top up". This sche:me was negotiated, according to the evidence, to avoid the necessity of tracking the hours of those affected. Clearly in some weeks employees will earn more than their hours worked and vice-vers'a. The Keller board then protected salary based on 36 l/4 hours a:nd not on 40 hours as advanced by the Union. ' In order that there can be consistency in decisions of the Grievance Settlement Board, the Board adopted the test that previous decisions of the Board ought to consider the decisions of earlier panels of the Board, unless the Board was to find that the . . Page 20 earlier panel was manifestly wrong (Re Blake et al. and the Amalgamated Transit. Union and The Toronto Area Transit Operating Authority, unreported January 22, 1988). This test was accepted ,(M.C.S. v. OPSEU(Dupuis) and the Grievance Settlement Board, Reid J. May 8, 1990) with the recognition that subsequent boards use prior decisions as a guide in addressing the _. issues before them. We do not find that the Keller panel was manifestly wrong and we a;re guided by his treatment of 'salary'. As with the Keller panel, we do not find Article 8.09(a)'ambiguous. Article 8.09 must be read inconjunction with Articles 7.01 and Schedule A. Although headings to articles are not determinative of,the contents of the following articles they are nevertheless helpful in the interpretation of the ensuing _ . .~ articles. Article 7 is headed ‘Hours of,Work', Article 8, 'Overtime', and Schedule A, 'Salary Scales and Classifications'. Article 7.01 specifically references the normal hours of work for the Clerical, Administrative and Treatment Scale, the employees involved in this dispute, and makes no distinction whether these employees work regular hours or irregular hours. It specifically refers to employees "on,this scale". It states: ARTICLES 7 HOURS OF WORK 7.01 The normal hours of work for employees on this Page 21 scale are thirty-six and one-quarter (36 l/4) hours per week and seven and one-quarter (7 l/4) hours per day. Effective August 8th, 1979, theses hours of work will apply to the Treatment Salary Scale. The Salary Scale is set out in Schedule "A" of the collective agreement, and therefore the normal hours of work are equally applicable to both regular hour and irregular hour employees. When Article 7.01 is read with Article 8.02, which falls I... under the heading of 'Overtime', when employees on this salary scale work in excess of their normal weekly hours of work (36 l/4 hours per week) they are entitled, to payment for overtime. However, when Article 8.09(a) which ie also found under the general heading of 'Overtime', is read with Article 7.01, .it excludes employees who work irregular hours from overtime entitlement. Their normal hours are stillt caught by Article 7.01; however, because of the nature of their work, it deems them to be . -1 working 40 hours, .whether they do.-or not.. As Vice-Chair Kelller points out, the rates of pay of regular and irregular hozlr I employees remain the same. It is only that the irregular hour employees receive an additional 3 3/4 hours to compensate them for the nature of their work and overtime, if they were to work it, for so long as they are working on an irregular hour basis. The effect of the Keller decision is that 'salary is based on normal hours of work for both regular and irregular hour employees. This is consistent with the relationship between Article 7.01 and Schedule "A". Schedule "A" does not change t:he ” . Page 22 salary in each salary grade, but by referring back to Article 8.09(a), the ~overtime provision, shows the effect of the payment in lieu ~of ,overtime and the deemed provision for working "irregular hours". As in the Gullen (supra) decision~we do not find,that the reference by the employer and its designation of '3' in its documents relating to the irregular hour salary scale is anything more. than an'.internal designation ~for irregular hour employees to show that overtime was not applicable to .these ,,, employees. There is no reference to a ‘~3' designation in the collective agreement and therefore cannot be said to be agreed to by the parties as a separate salary level. Mr. Millage conceded, salary for regular hour emp,loyees did not include overtime. Therefore for us to find that compensation for overtime and type of work was to be included in salary for irregular hour employees, would create two different . - meanings to the word 'salary' which would depend on the nature of . work performed~. In .our view to accept the Union's argument that salary for irregular hour employees changed for all purposes and not just for the compensation for the nature of their work and in lieu of overtime would require clear language to the contrary. Both parties treated the additional payment as overtime. From the Employer's evidence the minutes of a meetings held on August 17, 1977 acknowledged that t.here were.employees who worked irregular hours and it indicated how the Employer intended their pay to be treated,, as distinguishing between the base pay and the Page 23 allowance for the irregular hours, when it stated: "the base pay of 36 l/4 hours would come under regular pay and the allowance of irregular working hours under the overtime heading." As these were minutes from an Employer's meeting we cannot say that they reflect the Union's understanding. However, when we look at the Union's bulletin, we see that the Union was also concerned with the hours in excess of the normal hours,, which is overtime, and the bulletin recognises the excess pay as pay premium for hours worked outside regular hours. The bulletin recognises that the employee did not have to work those hours to get the additional pay a The Union's bulletin also supports the interpretation that the premium 3 3/4 hours was in lieuof overtime and that was to compensate the employees for work in excess of normal hours. Therefore there was a recognition by'the Union of normal hours of work and of overtime. . - The next issue is are there other articles in t.he . collective agreement that create doubt on this interpretation and lead us to find that the wording is ambiguous. Use of words must be given a consistent meaning throughout the collective agreement.' Although we have seen that there are different adjectives describing salary such as "currt?nt rate of salary", "full salary", "gross regular salary" "normal salary" we do not find that this detracts from the meaning that flows from normal hours of work that would establish the salary for these employees, and which is Seen in the salary scales in Page 24 Schedule "A". In Re 'Chporation of City of Victoria and Canadian Union of Public Employees, Local 50 7 L.A.C. (2d) 239 (Weiler) found the language of the collective agreement sufficiently clear‘on its face and did not allow evidence of past practice that would be contradictory to his finding on the interpretation to be used to alter the clear meaning of the *'I collective agreement. Similarly, although we received evidence of past practice which is contrary to this interpretation, we are of the same vi&w thatthe collective agreement was sufficiently clear .+ on its face and past practice should not be applied to create a contradictory meaning to the collective agreement. Therefore we interpret the 'collective .agreement as providing salary based on the normal hours of work as set out in Article 7.01 which is reflected in the salary scales in Schedule “A", with the __ adjustment shown for the irregular hour employees and the additional "3 3/4 hours is compensation for overtime of the nature of the hours of work carried outby the irregular hour employees. . . Therefore, we find'that the Employer did not violate the agreement when it based its calculation of benefits on 36 l/4 hours per week. kowever, the Employers had established a practice that was contrary to this interpretation. Although the Employer had posted~ the irregular hour position on the basis of 36 l/4 hours per week, we do not find that it constituted an inconsistent Page 25 practice. Although the position was posted in one way, the Employer had based its calculations of be,nefits on forty hours per week for fourteen years and it is that conduct which constituted a consistent practice. As the Employer had been misapplying the collective . . agreement for many years and had paid the employees at an advantageous rate until April 1, 1990, the next issue is whether I the Employer is estopped from changing its practice. NumerOus cases from Ra CRlCP Telecommunications and Canadian Telecommunications Union (supra), upheld in appeal in Re Canadian Rational Railway Co. et. al.. and Beatty et al. (supra) have recognised that an establis:hed practice which is not included in a collective agreement (Re Domglas Inc. (supra)) or which is at variance with the s'trict interpretation of a collective agreement is sufficient to establish the principle of . ..- estoppel; provided however, that in addition the other party has acted on the representations established by the practice, to its detriment (OPsEU(Mills) (supra), Re Dominion Chain Inc.(supra)). However, based upon equity and fairness, even if there was conduct or past practice,: estoppel cannot be used to freeze a practice unless it can be shown that it would be inequitable to permit a change. Re Cominco LTD. and U.S.W, Local 489 9 L.A.C.(2d) 354 (Callagahan,) held that even a long standing error of 25 years in the interpretation of a collective agreement may be corrected once itis discovered by one of the Page 26 parties. In Domglas (supra), the board pointed out that as the union had relied on the employer's practice to provide 'lunch breaks, when determining its issues and areas of collective bargaining, thereby acting to its detriment, it was sufficent to . . apply the principle of estoppel. There was however, a right to put the estoppel to an end, but in doing so, the party-relying on the representation must be given an opportunity to resume its original position. Similarly as in Re ~Certified Brakes,~ .Divfsioa of' Lear Siegler Industries Ltd. (supra), parties have been held to the practice until such time as the parties could engage in collective bargaining. . . f Employer's counsel urged us to follow the views set out in the Monarch (supra) decision which in many ways was similar to the case before us. An errof had been committed and'perpetuated without the knowledge of those in authority.~ ,when the"mistake was discovered, the employer acted to correct the mistake. .Arbitrator Schiff did not agree with the rationale in the CN/CP decisions, as 'cited above, and viewed estoppel as promissory estoppel, thus based upon a promise, which thereby includes an intention to represent a course of conduct with the purpose of changing legal relations. In his view it'could not be based on mistake but there must be deliberate conduct. We recognise that mistakes may be committed by those . - Page 21 . subordinate to those in authority, and those mistakes must be correctable. However, when a mistake has been perpetuated for such a long period of time, thoge in authority must have responsibility for their lack of knowledge. The mistake in effect created a position for the other party, which in the context of general industrial relations and collective bargaining, became a manifestation of the Employer's position. The mistake, in effect, - affected legal relations. The purpose of estoppel is to prevent ._ '_ inequity and unfairness. Therefore we arti? not persuaded to follow the views set out by Arbitrator SchiflE, but follow the cases aclopting CB/CP (cited above). In this case the Employer identified that it had erred for a serious length of time. Until 'the issue was brought to the Union's attention on April 1, 1990, the Union had no reason to negotiate a different arrangement and therefore the Union had . . acted to its detriment by relying on the Employer's mistak.e. . There was no subterfuge by the Employer or the Union, nor was t.he Union trying to take advantage of the Employer's error. As in Domglas Inc. (supra) and Re Certifield Brakes (supra), the Employer should be allowed to correctthat error, however, without prejudice to the Union. The Union argued that on the basis of Re Corporation of City of London and Canadian Union of Public Employees, Local 101 11 L.A.C. (4th) 319 (Roberts) that the Union was entitled to pursue its rights through arbitration without risking 1 - - _ ;,-,_ - . Page 28 termination of estoppel. To the extent that the estoppel must apply during the duration of the agreement we agree, however, the Employer did give notice to'%he Union that it was discontinuing its practice, or was in effect,. not interpreting the collective agreement to the Union's benefit. This therefore gave notice to the Union that there was an issue between the parties which if the Union wished to remedy, had to be negotiated. - At that moment the Union had the opportunity to bargain for the continuation of that *'- right. We find that the Employer is estopped from changing its practice to the end of the collective agreement in effect at the - time of the notice. Therefore the Employer is to be held to its past practice from April 1, 1990 to September 30, 1990, the _ termination date of the collective agreement in issue. We therefore find that the salary for regular hours employees and irregular hour employees is the same. However, as . - set out in Schedule "A" the adjustment for irregular hours, which is specifically referenced as applicable under Article 8.09(a), is therefore characterised as overtime, and includes a payment in lieu of the overtime that is applicable under Article 8.02 for regular hour employees. We also find that none of the provisions for the benefits conferred under the collective agreement include the premium, or "top-up" as coined by Vice-Chair Keller. We were advised that if the board were to decide the principle that was to be applied, the parties expected that they would be able to settle its applications. Therefore we Will r---- Pac)e 29 remain seized as to any issue that may arise from the application I of the principles set out above, including that of interest due and owing, which the parties cannot resolve. Dated at North York, this 21st day of mrch, 1995 - Vice-chairperson. I