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HomeMy WebLinkAbout1995-0725.Donoghue.02-12-03 Decision Crown Employees Commission de ~~ Grievance Settlement reglement des griefs Board des employes de la Couronne ~-,... Suite 600 Bureau 600 Ontario 180 Dundas Sl. West 180 rue Dundas Ouest Toronto Ontario M5G 1Z8 Toronto (Ontario) M5G 1Z8 Tel. (416) 326-1388 Tel. (416) 326-1388 Fax (416) 326-1396 Telec. (416) 326-1396 GSB# 0725/95 UNION# 95C913 IN THE MATTER OF AN ARBITRATION Under THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT Before THE GRIEVANCE SETTLEMENT BOARD BETWEEN Ontano PublIc ServIce Employees Umon (Donoghue) Grievor - and - The Crown In RIght of Ontano (Mimstry of TransportatIOn) Employer BEFORE Richard Brown Vice-Chair FOR THE UNION RobIn Gordon Gnevance Officer Ontano PublIc ServIce Employees Umon FOR THE EMPLOYER Kelly Burke Semor Counsel Management Board Secretanat HEARING October 4 & November 25 2002 2 DECISION Stephen Donoghue claims he has been dIscnmmated agamst on the ground of dIsabIlIty, because neIther Ius Long Term Income ProtectIOn (L TIP) benefits nor the penSIOn contributIOns made by Ius employer have been mcreased to reflect a raise m salary whIch came mto effect after he was dIsabled. II Mr Donoghue began workmg for the MmIstry of TransportatIOn m June of 1965 He held the posItIOn of TechnICIan 1 ConstructIOn when dIsabled. Mr Donoghue commenced receIvmg L TIP benefits m July of 1987 and dId not return to work before retInng approxImately nIne years later After he left actIve employment, Ius fonner posItIOn was reclassIfied and renamed SenIor TechnICIan TransportatIOn ConstructIOn The reclassIficatIOn led to a salary mcrease of nme per cent effectIve after he departed the Job The facts are set out m greater detail m the followmg agreed statement 1 The gnevor, Stephen Donoghue, began hIS employment wIth the MinIstry of TransportatIOn on June 28, 1965 2 Mr Donoghue was approved to receIve L TIP benefits effectIve July 16, 1987 As of that date, Mr Donoghue was m receIpt of L TIP benefits 3 Immediately pnor to hIS absence on L TIP the gnevor was employed m the TechnIcian 1 ConstructIOn (TIC) classIficatIOn 4 Mr Donoghue's L TIP benefits were calculated accordmg to the employee's gross salary at the date of dIsabIlIty m accordance wIth artIcle 42 2 1 the collectIve agreement HIS gross salary at the tune was $28,872 5 On vanous dates between January 28, 1988 and June 1988, many employees workmg m the TIC classIficatIOn filed gnevances claunmg the posItIOn was mappropnately classIfied. Mr Donoghue was not among the gnevors The gnevances were consolIdated by the partIes 3 6 The GSB Issued a decIsIOn m relatIOn to these gnevances It IS known as McCauley and Truchon et al dated January 22, 1990 The Board ordered the employer to reclassIfy the gnevors and to develop a new class standard for the TIC classIficatIOn 7 Pursuant to the McCauley Truchon decIsIOn, the TIC became Semor TechmcIan, TransportatIOn ConstnlctIOn (STTC) and the 20 day nlle was apphed wIth respect to retroactIvIty and mterest 8 The Issue of salary to be paid to the new classIficatIOn was determmed by an mterest arbItratIOn award. The arbItratIOn panel, chaired by Howard D Brown, awarded all steps of the S TTC classIficatIOn a 9% mcrease retroactIve to January 9, 1991 9 The partIes entered a Memorandum of Settlement dated August 24, 1994 wherem the employer agreed to compensate each gnevor wIth full retroactIvIty (retroactIve calculatIOns provIded m the award) to twenty days pnor to each mdIvIdual gnevance date, save and except where Management had commItted m wntmg that an employee would be treated as an exceptIOn to the "twenty day nlle" 10 By letter dated February 14, 1990, the employer confirmed that the McCauley and Truchon decIsIOn apphed to all non-gnevors m the affected classIficatIOn retroactIve to twenty days pnor to the date on whIch the award was receIved (January 22, 1990) Accordmgly, the effectIve date of the reclassIficatIOn to the STTC for non-gnevors became December 20, 1989 11 Mr Donoghue dId not return to work untIl hIS retIrement on June 30, 1996 II The umon contends the employer's treatment of the gnevor contravenes the Ontarzo Human Rlghts Code and the dIscnmmatIOn clause m the collectIve agreement As the prohibItIon agamst dIscnmmatIOn m the Code IS at least as broad as the one m the agreement, I need consIder only the statute The partIes agree Mr Donoghue has a "handIcap" wItllln the meanmg of the Code I was referred to the followmg sectIOns deahng wIth dIscnmmatIOn on the ground of handIcap 4 5 (1) Every person has a nght to equal treatment wIth respect to employment wIthout dISCnmInatIOn because of handIcap 11 (1) A nght of a person under Part I IS Infnnged where a reqUIrement, quahficatIOn or factor eXIsts that IS not dISCnmInatIOn on a prohibIted ground but that results In the exclusIOn, restnctIOn or preference of a group of persons who are IdentIfied by a prolubIted ground of dISCnmInatIOn and of whom the person IS a member, except where, (a) the reqUIrement, quahficatIOn or factor IS reasonable and bona fide In the cIrcumstances, or (b) It IS declared In tlus Act, other than In sectIOn 17, that to dISCnmInate because of such ground IS not an Infnngement of the nght (2) The CommIssIOn, a board of InqUIry or a court shall not find that a reqUIrement, quahficatIOn or factor IS reasonable and bona fide In the CIrcumstances unless It IS satIsfied the needs of the group of whIch the person IS a member cannot be accommodated wIthout undue hardshIp on the person responsible for accommodatIng those needs, consIdenng the cost, outsIde sources of fundIng, If any, and health and safety reqUIrements, If any III I begIn my analysIs by notIng the gnevor's complaInt IS about two forms of remuneratIOn L TIP benefits and penSIOn HIS complaInt IS not about beIng demed access to employment In general or to a partIcular Job In other words, the Issue concerns compensatIOn not partIcIpatIOn In the world of work. The apphcatIOn of the Code to matters of compensatIOn was consIdered by the Court of Appeal In OntarlO Nurses' AssoczatlOn v OrzUza Soldlers Memorzal Hmpltal (1999), 169 D.L.R. (4th) 489 The employer In that case paid the full premmm for health and welfare benefits provIded to actIve employees For the first thIrty months that dIsabled nurses were absent from work and In receIpt of long-term dIsabIhty benefits, the hospItal contInued to pay the full cost of provIdIng such benefits, thereafter, the employer made no contributIOn to health and welfare premmms The 5 OntarIO Nurses' AssOcIatIOn (aNA) argued thIS dIfferentIal treatment contravened the Code Holdmg there was no dIrect dIscnmmatIOn, Mr JustIce Rosenberg wrote on behalf of the Court DIsabled nurses do not receIve compensatIOn because they are not provIdmg servIces to theIr employer It IS not prohIbIted dIscnmmatIOn to dIstmgUIsh for purposes of compensatIOn between employees who are provIdmg serVIces and those who are not In the case presently before the court, the purpose of the employer contributIOns to benefit plans IS to provIde an addItIonal form of compensatIOn m exchange for work. Havmg chosen to provIde tlllS form of compensatIOn, the employer could not dIscnmmate on a prohibIted basIs However, the employer could dlstzngUlsh based on the reason for provldzng the compensatlOn work. On ltS face, dlscrzmznatlOn would eXlst if the employer provlded different levels of compensatlOn for work because of handlcap LlkeWlse, It would constltute dlscrzmznatlOn if the employer provlded different levels of compensatlOn for not workzng because of handlcap But, zn th,s context It makes no sense to compare workzng employees wlth those not workzng I also do not find It helpful to attempt to Isolate dIfferent elements of the compensatIOn package such as employer contributIOns to premmms, vacatIOn pay, and wages and ascnbe dIfferent purposes to each so as to create a dIscnmmatIOn argument They are all part of the compensatIOn package negotIated by the partIes m exchange for work by the employees When the employee IS not workmg, dIfferent consIderatIOns and dIfferent fonns of payment may apply For mstance, employees may receIve workers' compensatIOn or long- term dIsabIlIty payments Leavmg aSIde the dIfference between employees on workers' compensatIOn and those on long-term dIsabIlIty, whIch IS not properly before thIS court, the benefits provIded to handIcapped employees not provIdmg work are more generous than to other employees not provIdmg work. Therefore, there IS no dIscnmmatIOn on a prohibIted basIs wItllln the meanmg of s 5( 1) of the Code (pages 502 to 504) Turnmg to mdIrect or constnlctIve dIscnmmatIOn, governed by sectIOn 11 (1) of the Code, Mr JustIce Rosenberg wrote In my VIew, It IS possIble to find that a neutral rule m tlllS case has a dIscnmmatory effect wIthm the meanmg of s 11 (1) To repeat, the neutral rule may be stated as follows the employer 6 contributes toward premmm coverage of partIcIpatIng ehgIble nurses In the actIve employ of the hospItal ThIS rule has the effect of reqUInng the group of employees IdentIfied by the prohibIted ground of dISCnmInatIOn to assume the burden of paYIng the entIre contributIOns for these benefits If they wIsh to maIntaIn coverage Admlttedly, these employees are treated no differently than other employees on unpazd leave of absence, the dffference lS that these employees are adversely effected by the rule because of thelr dlsabllzty The lssue then lS whether the employers are entltled to the BFOQ [l e bonafide occupatwnal requlrement] Justificatwn Tn 51 11 (1) (b) [actually 51 11 (1) (a)J In my Vlew, they are I reach thIS conclusIOn not because of the dIstInctIOn drawn In Versa SerVlces between compensatIOn and partIcIpatIOn, but rather by havIng regard to the nature of the accommodatIOn reqUIred for thIS kInd of constnlctIve dISCnmInatIOn An example may assIst In understandIng the problem Assume that an employer changes from paYIng ItS employees wages based on hours worked to paYIng on the basIs of the number of pIeces produced. Assume further that the dIsabled employees are sImply unable to produce as many pIeces as able-bodIed employees and as a result theIr wages are reduced. Arguably, tlllS constItutes constructIve dISCnmInatIOn The facially neutral standard of paYIng by the number of pIeces produced results In a restnctIOn on the abIhty of the dIsabled employees to earn the same wages as able-bodIed employees In accordance wIth s 11 (1 )( a), the employer could JustIfy the dIfferent result by shoWIng that tlllS standard was reasonable and bonafide In the CIrcumstances However, In accordance wIth s 11(2), the board of InqUIry or a court IS only entItled to find that the standard IS reasonable and bonafide If It IS satIsfied the needs of the group cannot be accommodated wIthout undue hardshIp consIdenng the "cost, outsIde sources of fundIng, If any, and health and safety reqUIrements, If any" Nevertheless, I do not read s 11(2) as nnpOSIng upon the employer the burden of sImply tOppIng up the wages of the dIsabled employees That, In my VIew, IS not the type of accommodatIOn contemplated by s 11(2) and IS In fact InImICal to the prIncIples underlYIng the Code SImply tOppIng up the wages of the dIsabled employees and paYIng them as If they are not dIsabled IS notlllng more than reverse stereotypIng Rather, It would seem to me that the employer In thIS hypothetIcal must attempt to accommodate the group For example, the employer may provIde devIces and Instruments that would allow the dIsabled employees to perform at the same level as the able bodIed employees The duty IS on the employer to take all steps short of undue hardshIp to accommodate the need of the person dIscnmInated agaInst so that they can compete equally wIth the other employees It IS by attemptIng to accommodate theIr actual charactenstIcs so as to bnng them wIthIn the workplace enVIromnent that the employer comphes wIth the Code 7 It may be that thIS goal cannot be fully accomphshed and that short of undue hardshIp the employer, for example, can provIde technIcal aids that wIll only partly bnng the dIsabled employees to the same level as the able-bodIed employees However, m my VIew, that IS all the Code reqUIres the employer to do The employer IS not reqUIred to abandon the standard (assummg It to be a BFOQ) and pay the dIsabled employees accordmg to some dIfferent standard. ObvIOusly, It may do so voluntanly, but tlllS IS not what the Code reqUIres The appellant m thIS case does not seek any reasonable accommodatIOn or modIficatIOn of the rule for the actual charactenstIcs of ItS dIsabled members Assummg the nlle respectmg employer contributIOns to benefit plans constItutes constructIve dIscnmmatIOn, I am satIsfied that the JustIficatIOn m s 11(1 )(b) [actually s 11(1 )(a)] apphes ReqUlrzng work zn exchange for compensatzon lS a reasonable and bonafide requlrement (page 512 and 515, emphasIs added) In thIS passage, the Court of Appeal dIsagreed, to some extent, wIth the decIsIOn m Versa Servlces Ltd. and Mzlk and Bread Drzvers, Dazry Employees, Caterers and Allled Employees Unzon (1994), 39 L.A.C (4th) 398 As my decIsIOn m Versa Servlces was upheld by the DIvIsIOnal Court and then followed by most arbItrators subsequently grapphng wIth mdIrect dIscnmmatIOn m compensatIOn, It IS Important to understand precIsely how the law as stated m Versa Servlces has been changed by the Court of Appeal I described the extent of that change m Canadzan Bank Note Company and Graphlc Communzcatzons Unzon, decIsIOn dated September 8, 1999 The Court's reasonmg m Orzllza Soldlers was anImated by the same fundamental premIse artIculated m my decIsIOn m Venw Servlces--I e that compensatIOn IS paid for work. ThIS qUld pro quo explams why the Code does not reqUIre an employer to pay employees unable to work because of handIcap, so long as the employer does not pay employees absent for other reasons for pen ods of the same duratIOn In Versa Servlces, I wrote Are employees on L TD benefits bemg denIed equal treatment wItllln the meanIng of the Code? They are bemg treated m a less advantageous manner than employees on the job for whom the company contributes towards the cost of benefits However, actIve employees are performmg servIces m exchange for tlllS benefit contnbutIOn, whereas those on L TD are not workmg L TD benefits do not commence untIl an employee has been off the job for more than a year and contmue untIl an employee IS 8 able to work agam or reaches retIrement age There IS no eVIdence to suggest the employer makes any benefit contributIOns for an employee wIthout a handIcap who IS absent for a penod of sImIlar duratIOn In the absence of such eVIdence, I cannot find handIcapped employees collectmg L TD benefits are bemg treated worse than those wIthout a handIcap who have a sImIlar attendance record. I must assume entItlement to benefit contributIOns turns on attendance at work, not on handIcap In other words, everyone IS treated the same way, based upon attendance, regardless of handIcap If tlllS type of equal treatment IS all the Code reqUIres, there would be no vIOlatIOn The case at hand IS not about modIfymg Jobs so they can be performed by dIsabled people It IS not about entenng or leavmg the world of work. The handIcaps afflIctmg employees on L TD benefits are sufficIently senous that they are unable to work for more than a year The umon contends the employer IS obhged to make benefit contributIOns on theIr behalf whIle they are off the Job As these contributIOns are a form of compensatIOn, thIS case concerns compensatIOn whIle not workmg, rather than partIcIpatIOn m the world of work. Accordmg to the umon, the Code compels the employer to bear the cost of provIdmg benefits to these employees, even though benefits are not provIded to able-bodIed employees who are absent from work for such a prolonged penod. Does equal treatment reqUIre not only accommodatIve measures to allow people to work, but also special payments for those unable to do so? I thmk not I have concluded the Code does not reqUIre employers to adopt special compensatIOn measures for people wIth dIsabIhtIes (pages 201 to 204) By saymg my award m Versa SerVlces and Court of Appeal's Judgement m Orzllza Soldlers rest upon the same prmcIple of qUld pro quo, I do not mean to suggest there IS no dIfference between them There IS a dIstmctIOn on a less fundamental level I held the notIon of mdIrect dIscnmmatIOn embodIed m sectIOn 11 (1) of the (1ode apphed only to partIcIpatIOn and not to compensatIOn The Court of Appeal dIsagreed on thIS pomt, ruhng that sectIOn 11 (1) does apply to compensatIOn However, the Court went on to say sectIOn 11(1 )(a) excuses an employer from adoptmg specIal compensatory measures to overcome mdIrect dIscnmmatIOn The dIfference between these two hnes of reasomng IS a subtle one wIth hmIted practIcal sIgmficance It would not affect the outcome m a broad range of cases, mcludmg not only Orzllza Soldlers and Versa Servlces, but also all or most of the cases whIch I revIewed m "Human RIghts m Employment Of 9 PartIcIpatIOn and CompensatIOn" (1997), 4 (>anadzan Labour and Employment Law Journal 283 On my approach, the facts In Orzllza Soldlers and Versa Servlces dIsclose no vIOlatIOn because IndIrect dISCnmInatIOn In compensatIOn IS not unlawful On the Court's approach, these are przmafacle cases of unlawful IndIrect dISCnmInatIOn, but there IS no vIOlatIOn because an employer IS not reqUIred to top-up compensatIOn The two approaches would produce dIfferent outcomes In the Court's hypothetIcal sItuatIOn InvolVIng pIece work. On these facts, the Court's reasonIng leads to a findIng of IndIrect dISCnmInatIOn and, therefore, reqUIres the employer to modIfy the workplace to the pOInt of undue hardshIp, whereas my analysIs suggests no dISCnmInatIOn has occurred. HavIng now turned my mInd to tlllS hypothetIcal sItuatIOn, I prefer the Court's reasonIng, and I would adopt It even If I were not obhged to do so (pages 12 to 14) Umon counsel In the Instant case rehes upon three cases (1) Rlverdale Hospltal and Canadzan Unzon ofPublzc Employees (1993),39 L.A.C (4th) 63 (Stewart), (2) Ontarzo Publzc Servlce Employees Unzon and Mlnzstry of Health, deCISIOn dated March 7, 1994, GSB FIle No 2550/92 (DIssanayake), and (3) Vlctorzan Order of Nurses and Ontarzo Nurses' Assoczatzon (1996), 56 L.A.C (4th) 235 (Low) In each case, vacatIOn payor severance pay was based upon length of servIce, and serVIce was measured by excludIng penods when an employee was absent due to dIsabIhty Each arbItrator held thIS method of calculatIng servIce amounted to dISCnmInatIOn contrary to the apphcable collectIve agreement or the Ontarzo Human Rlghts Code, because employees absent from work due to dIsabIhty were treated less favourably than those actIvely employed. ThIS reasonIng was based upon the premIse that a dIsabled employee absent from work should be compared to those workIng and led to the conclusIOn that a employee wIth a dIsabIhty IS entItled to compensatIOn, In the fonn of vacatIOn or severance pay, for tune not worked. ThIS IS the very sort of reasomng subsequently rejected by the Court of Appeal In Orzllza Soldlers Memorzal Hmpltal 10 IV The calculatIOn ofLTIP benefits IS governed by artIcle 42 1 l(a) of the collectIve agreement The Long Term Income ProtectIOn benefit IS SIxtY-SIX and two thIrds percent (66 2/3%) of the employee's gross salary at the date of dlsabllzty, mcludmg any retroactIve salary adjustment to whIch the employee IS entItled. (emphasIs added) As the benefits receIved by Mr Donoghue were two-thIrds of hIS salary at the date of dIsabIlIty, the partIes agree he was treated m confonnIty wIth the reqUIrements of tlus artIcle He was not "entItled" to have the nme per cent mcrease reflected m hIS benefit payments, wIthm the meamng of thIS artIcle, because that mcrease was not retroactIve to Ius date of dIsabIlIty PensIOn contributIOns are governed by the OPSEU PenSIOn Plan The relevant portIOns of artIcle 7 3 of thIS plan states (2) If a member qualIfies for a benefit under a long term mcome protectIOn plan as a result of a dIsabIlIty mcurred on or after the 1st day of July, 1974, the employer that employed the member on the date when the member qualIfied for the benefit shall, subject to subsectIOn (7), contribute to the Fund on behalf of the member the amounts set out m subsectIOns (3), (4) and( 5) wlule the member contmues to qualIfy for the benefit (3) Subject to subsectIOn (4), the contnbutIOns mentIOned m subsectIOn (2) shall be calculated m accordance wIth ArtIcle 4 and paid on the annual salary rate of the member lmmedzately before the dlsabllzty was zncurred m respect of whIch he or she qualIfies for a benefit (emphasIs added) In complIance wIth these prOVISIOns, the penSIOn contnbutIOn paid by the employer on behalf of the gnevor was based upon hIS salary ImmedIately before he became dIsabled. The result of applymg the prOVISIOn m the collectIve agreement concernmg L TIP benefits, and the one m the penSIOn plan concernmg the employer's contributIOn, was that Mr Donoghue denved no advantage from the nme per cent mcrease receIved by employees who contmued to work after he left the workplace 11 Does thIS outcome vIOlate the OntarlO Human Rlghts Code? The reasonmg m OrzUza Soldlers Memorzal Hospltalleads to the conclusIOn there has been no vIOlatIOn Mr Donoghue was treated less favourably dunng hIS absence from work than employees remammg on the Job TheIr salary mcluded the nme per cent mcrease and It was also reflected m the employer's share of penSIOn contributIOns for them, whereas the mcrease was reflected m neIther the gnevor's L TIP benefits nor the penSIOn contributIOns made by the employer on hIS behalf ThIS dIfferentIal treatment was based upon work, not dIsabIhty, and does not contravene the Code There would be a contraventIOn only If the gnevor receIved less favourable treatment than employees absent from work for some reason other than dIsabIhty The facts presented to me dIsclose no such dIspanty Indeed, Mr Donoghue fared better, m two respects, than able-bodIed employees off the Job he receIved L TIP benefits, and the employer paid not only ItS share of penSIOn contnbutIOns but also the share that normally would have been contnbuted by an employee The gnevance IS dIsmIssed. Issued at Toronto thIS 3rd day of December, 2002 ~~ RJchard Brown VIce-Chair