HomeMy WebLinkAbout1997-1316.Policy Grievance.00-05-11 Board Order
o NTARW EMPU) YES DE LA COURONNE
CROW"! EMPLOYEES DE L 'ONTARW
.. GRIEVANCE COMMISSION DE
SETTLEMENT REGLEMENT
BOARD DES GRIEFS
180 DUNDAS STREET WEST SUITE 600 TORONTO ON M5G 128 TELEPHONE/TELEPHONE, (416) 326-1388
180 RUE DUNDAS OUEST BUREAU 600 TORONTO (ON) M5G 128 FACSIMILE/TELECOPIE (416) 326-1396
GSB # 1316/97
CUPE # PBI0l PB130 PB131
IN THE MATTER OF AN ARBITRATION
Under
THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT
Before
THE GRIEVANCE SETTLEMENT BOARD
BETWEEN
CanadIan Umon of PublIc Employees Local 2412
(PolIc, Gnevance)
Grievor
- and -
The Crown m Right of Ontano
(Sudbun & DIstnct Ambulance ServIce)
Employer
BEFORE Barn B FIsher Vice ChaIr
FOR THE Ralph Camovale
GRIEVOR NatIOnal Representanve
Cana(han Umon of PublIc Employees
FOR THE Donald Robmson
EMPLOYER Counsel
Mathews Dmsdale & Clark
Barnsters & SolIcItors
HEARING April 17 2000
Tills case mvolves the determmaTIon of damages flowmg from vanous breaches by the Employer
of provIsIons of the CollectIve Agreement regardmg pensIOn Issues.
The matenal facts are not m dispute and can be convemently hsted as follows
1 In the penod from June 1 1980 to May 31 1984 the Employer neglected to make about
50% of the penSIOn contribuTIons that were reqUIred. ThIS resulted m a deficIency at the TIme
of $56 360 of employee contribuTIons and $68 824 of employer contribuTIons.
2 The actuanal reports filed at the TIme reqUIred the Employer to make a senes of deficIency
payments over a 15-year penod. However the Employer only made a few of these
payments, totalmg $10 979
3 The Umon found out about thIS problem and then negoTIated three specIfic provIsIons to take
care of the Issue.
. In ArtIcle 2101 [1] of the CollecTIve Agreement, the Employer agreed that"
momes owmg by the Employee to the PensIOn Plan shall be paId by the
Employer commencmg on raTIficaTIon, and shall be paId over a maxImum of a
three year penod."
. In a Letter of Understanding formmg part of the CollectIve Agreement the
partIes agreed" that If there IS surpluses generated by the present PenSIOn
Plan It shall be utihzed to enhance the Benefits of the Plan."
. In another Letter of Understanding formmg part of the CollecTIve Agreement
"the Employer agrees that the Employees have no deficIt owmg to the
PensIOn Plan as of December 16 1991 "
4 However m contravenTIon of the CollecTIve Agreement and the Letter of Understanding, the
Employer paId the employee deficIt not out of ItS own funds, rather It paId It out of the
penSIOn surplus. Tills vIOlated ArtIcle 21 01 {I} m that a payment out of penSIOn surplus IS
not a payment" by the Employer" Secondly utihzmg the penSIOn surplus to pay a debt of the
Employer vIolated the Letter of Understanding m that the surplus was obvIously not used to
enhance the benefits of the Plan.
5 Furthermore, the Employer took a contribuTIon hohday (in other words did not make any
contributIOns to the Plan) from December 19 1994 to May 5 1996 as the penSIOn was m
an excess surplus pOSITIOn. Tills means that the PensIOn Plan had more surplus than was
allowed by Revenue Canada. The amount of the contribuTIon hohday came to $130837
Tills vIolated the Letter of Understandmg m that any penSIOn surplus was only to be used to
enhance the Benefits of the Plan, whereas m thIs case the surplus was m effect used to lower
the Employers' costs.
The Employer presented eVIdence regarding the quantum of the damage clrum through
Mr Robert R. Coyle, Semor Consultant, Defined Benefit Plans, Standard LIfe Company
Standard LIfe IS the current pensIOn plan admImstrator Mr Coyle told us that the present value
of the two breaches (in other words mcluding mterest over the many years smce the vanous
breaches) amounted to $520000 Even though thIS figure was less than the Dmon's estJmate of
the loss, after heanng Mr Coyle's testImony and methodology they admItted that ills $520000
was a better calculatIOn of the loss than theIr own calculaTIon.
I therefore have no hesItaTIOn m accepTIng the figure of $520000 as an accurate and
current assessment of the loss mcurred by the PenSIOn Plan due to the breaches of the CollecTIve
Agreement by the Employer
I therefore allow the gnevance and make the followmg order
. The Employer IS pay the sum of $520 000 wItilln 45 days of the release date of thIS
award to an mterest beanng trust account Jomtly admmIstered by the Dmon and the
Employer ( the "Trust Funds")
. The partIes will co-operate m obtaImng the necessary governmental and regulatory
approvals necessary so that the PenSIOn Plan benefits can be Improved by utihzmg
the Trust Funds and, upon receIvmg the necessary approvals, shall pay the saId Trust
Funds to purchase these enhanced benefits.
. The partIes will agree on how the PenSIOn Plan Benefits will be Improved With the
use of the Trust Funds.
. I retam JunsdicTIon regarding all matters ansmg from the mterpretaTIon and
apphcaTIon of thIS award, mcluding decIdmg how the Trust Funds are to be spent If
the partIes cannot agree
Dated at Toronto tills 11th day of May 2000
Bany B Fisher Vice-ChaIr