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HomeMy WebLinkAbout2000-0447.Union Grievance.04-07-19 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# 2000-0447 2000-1039 2000-1042,2000-1484 UNION# OOU072, 00U090 00U130 01B041 IN THE MATTER OF AN ARBITRATION Under THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT Before THE GRIEVANCE SETTLEMENT BOARD BETWEEN Ontano PublIc ServIce Employees Umon (Umon Gnevance) Grievor - and - The Crown In RIght of Ontano (Mimstry of Commumty FamIly and ChIldren's ServIces) Employer BEFORE Deborah J.D LeIghton Vice-Chair FOR THE UNION Richard Blair Ryder Wnght, Blair & Doyle Barnsters and SOlICItorS FOR THE EMPLOYER John SmIth Semor Counsel Management Board Secretanat HEARING November 10 2003 2 DeCISIon The Issue before me IS the quantum of damages to be paid to the gnevors for the employer's breach of the collectIve agreement. In two earlIer decIsIOns, thIS board found 1) that the employer breached the collectIve agreement when It faIled to follow sectIOn 5 3 of AppendIx 18 In the dIvestment process for Genest, Project Dare and Syl Apps, and 2) that the breach (the loss of the opportumty to choose work wIth a new employer wIth the protectIOn of semonty for the purpose of lay-off and promotIOn) was deservIng of compensatory damages The umon takes the posItIOn that each gnevor's length of servIce should be used to assess the damages The employer's posItIOn IS that nomInal or no damages should be awarded. The Umon' s SubmIssIOn Counsel for the umon, Mr Richard Blair submItted that sectIOn 5 3 of AppendIx 18 of the collectIve agreement between the partIes was negotIated to Include semonty to provIde employees, whose work was beIng dIvested, wIth as much protectIOn as possIble - as counsel described It a "soft landIng," after dIvestment of theIr work to the pnvate sector Along wIth a guaranteed Job offer of at least 85% of theIr OPS salary the gnevors were entItled to semonty protectIOn for lay-off and promotIOn. But they dId not get the opportumty to choose such a Job offer because semonty for lay-off and promotIOn was not Included In the Job offer It IS thIS loss of opportumty that the board has already found must be compensated, In counsel's submIssIOn. Counsel argued that the GSB awarded damages for loss of opportumty In OPSEU Jafri and the Crown in Right of Ontario (Ministry of Correctional Services) 933/91 (DIssanayake) where the board found the employer acted In bad faith when It dId not extend the gnevor's contract. Counsel argued that the board In thIS case awarded SIX months of salary to an 3 unclassIfied employee for the loss of the opportumty of contInued employment. In counsel's submIssIOn thIS board put a sIgmficant value on the loss, even when the gnevor had no semonty Mr Blair argued In addItIOn that cases where arbItrators decIde not to reInstate but to award money for lost wages are InstructIve In that arbItrators put a value on the loss of the opportumty of contInued employment. Counsel relIed on Shaver Hospital and CUPE, Local 1742 (1991) 20L.A.C (/1) 122 (Raynel) DeHavillandlnc eta!. and CAW Local 112 (1999) 83 L.A.C (/h) 157 (Rayner) Municipality of Metropolitan Toronto and CUPE, Local 79 (2001) 99 L.A.C (4tl) 1 (Simmons) Counsel argued that these cases show that the loss of opportumty for contInued employment has been lInked to the gnevor's length of servIce In Metropolitan Toronto ArbItrator SImmons awarded 1 25 months salary for each year of the gnevor's servIce Thus counsel argued that the gnevors In thIS case who lost the opportumty of work wIth the protectIOn of semonty for lay-off and promotIOn, should receIve 1.25 months of the salary for each year of theIr servIce and an addItIOnal 15% of thIS sum, whIch would represent lost benefits The Emplover's SubmIssIOn Counsel for the employer Mr John SmIth, submItted that although the board has held that compensatIOn for the loss of opportumty IS the appropnate remedy damages could be assessed at nothIng. Counsel argued that the board had InSUfficIent eVIdence of actual financIal loss or proof of a reasonable probabIlIty that loss occurred. Mr SmIth submItted that the gnevors here had to show they would have got the benefit If the employment contract was completed. Counsel relIed on the folloWIng cases for the proposItIOn that the courts do not award damages for the "loss of a chance" or mere chance of loss Chaplin v Hicks [1911J 2 K.B 786 (CA.) Kinkel et a!. v Hyman et a!. [1939J 4 D.L.R.1 (S.C C ) 4 Further In counsel's submIssIOn If there are contIngencIes to the success of a contract, as was the case In EastJ+alsh Homes Ltd v Anatal Devlopments Ltd [1993J 12 OR. (3d) 675 (Ont. CA.) then "In asseSSIng damages the court must dIscount the value of the chance by the ImprobabIlIty of ItS occurrence" (p 10) Counsel for the employer also argued that the gnevors here got eIther severance payor a Job He questIOned the Importance of not IncludIng semonty for lay-off and promotIOn In the Job offers, CItIng Canadian Pacific Forrest Products Ltd [1990J OLRB Rep May 492 Mr SmIth argued that damages must be compensatory not pumtIve and SInce enhanced severance had been paid, thIS was a sUItable remedy Loss of semonty for lay-off and promotIOns was not sIgmficant, In counsel's VIew and wIthout eVIdence of actual financIal loss damages In thIS case should be nomInal - eIther nothIng or $500 per gnevor Counsel also relIed on Bechtel Canada lnc [1993J OLRB Rep July 581 CUPE, Local 79 v Riverside Hospital (1999) OL.A.A. No 579 (0 Neil) Mr SmIth made no submIssIOn on the Jafri case presented by the umon. DeCISIOn In the decIsIOn of March 21 2003 the board held that whIle damages are not a usual remedy for a breach of the collectIve agreement, It was the only feasIble remedy In thIS case That decIsIOn relIed In part on Chemical and Atomic Works and Polymer Corp Ltd (1959), 10 L.A. C 51 whIch held that arbItrators have an Inherent power to award damages for compensable loss ArbItrator LaskIn, as he then was, held There IS no need to emphasIze that the dIfficulty of asseSSIng damages has never been a reason for denYIng a claim thereto based on an establIshed breach of contractual or other oblIgatIOns owed to the claimIng party (p 64) 5 In the case before me the gnevors have establIshed a breach of the collectIve agreement - they lost the opportumty of choosmg a J ob offer wIth amongst other reqUIrements, semonty protectIOn for the purposes of lay -off and promotIOn. I am not persuaded by the employer's argument that thIS loss was non-exIstent or tnvIal As counsel for the umon pomted out, semonty protectIOn here was a cntIcal part of a complex dIvestment schema negotIated by the partIes Further It IS clear from the eVIdence m thIS case that many gnevors were worned wIth reason about the employer's representatIOn to them dunng the tendenng process that theIr Jobs were not protected by semonty after dIvestment. Semonty clearly effects Job secunty The challenge for the board IS to put a fair value on that loss of the opportumty Both counsels agreed that arbItrators followmg the lme of cases on damages for lost opportumty begmmng wIth the old EnglIsh case Chaplin v Hicks have the mherent power to order damages As noted m the excerpt from Damages for Breach of Contract Second edItIOn, PItch and Snyder put before me by the employer counsel To recover damages for loss of chance, the plamtIff must demonstrate a reasonable probabIlIty that he or she would have obtamed the benefit sought had the contract been completed. As the court wIll reJect a purely speculatIve claim, It IS msufficIent for the plamtIffto allege that there was a mere chance to obtam the benefit (p 3-3) In the case before me I have already held that the gnevors lost the opportumty of gettmg a Job offer wIth the protectIOn of semonty for the purpose oflay-off and promotIOn. The only reason the opportumty was demed to the gnevors was because the employer breached the collectIve agreement by not ensunng that the Job offer to them mcluded semonty for the purpose oflay-off and promotIOn. Thus I am not persuaded that thIS IS a case of a lost "mere chance" or that there were contmgencIes that lead to the conclusIOn that there IS no provable loss as suggested by the employer The real Issue or problem IS how to put a value on the loss 6 The Court of Appeal In Chaplin v Hicks noted that the dIfficulty of aSseSSIng the loss does not mean only nomInal damages are appropnate But the fact that damages cannot be assessed wIth certaInty does not relIeve the wrong doer of the necessIty of paYIng damages for hIS breach of contract. (p 792) The court of Appeal also said I thInk that, where It IS clear that there has been actual loss resultIng from the breach of contract, whIch It IS dIfficult to estImate In money It IS for the JUry to do theIr best to estImate It IS not necessary that there be an absolute measure of damages In each case (p 795) Here the dIfficulty IS that the gnevors have suffered a loss from the breach of the collectIve agreement, one whIch IS very dIfficult to estImate In dollars, and one for whIch, as umon counsel submItted, no clear precedent or absolute measure IS avaIlable However Vice-Chair DIssanayake's decIsIOn In Jafri IS InstructIve There the employer argued (as the employer dId here) that there was no proof of loss The board dIsagreed notIng that The Board must attempt to place the gnevor as much as possIble In the same posItIOn he would have been In, but for the employer's breach. In most cases that test can be applIed fairly precIsely ThIS unfortunately IS not one of those cases (p 58) The board held that but for the breach of the employer the gnevor would have receIved a 6 month contract. In addItIOn, the gnevor lost the opportumty to be consIdered for contInued employment wIth the Mimstry Thus the board awarded the gnevor damages equal to one year of earnIngs SIX months for the loss of the contract and SIX months for the loss of the opportumty of contInued employment. It IS Important to note that the gnevor was an unclassIfied employee, and therefore had no semonty And that the board awarded the eqUIvalent of SIX months of salary for the lost chance "to be consIdered for" employment. UnlIke the case before me, thIS gnevor was not entItled to a partIcular Job offer It was not clear that "the gnevor would have defimtely been offered employment "(p 57) The gnevors In the case before me lost the opportumty of employment wIth the protectIOn of semonty for lay-off and promotIOn. Counsel for the umon argued that 7 compensatIOn should be based on each gnevor's length of servIce and he cIted cases where arbItrators had compensated gnevors after wrongful termInatIOn for loss of employment. Employer counsel argued that gnevors have been compensated for loss of work. To some extent thIS IS true, but the gnevors stIll need to be compensated for the loss of the opportumty of work wIth semonty for lay-off and promotIOn, whIch would most lIkely have gIven them the opportumty of longer work wIth the new employer WhIle I am not persuaded that the cases on damages for termInatIOn are helpful, It does make sense to base the calculatIOn of damages here on semonty because the most semor employees lost the most. They were entItled to work wIth the most protectIOn from lay-off, and would have had the best chance of promotIOns, If they were equally qualIfied candIdates Thus havIng carefully consIdered the submIssIOns of the partIes I have decIded that the gnevors here shall be paid compensatory damages for the employer's breach of the collectIve agreement, calculated by multIplYIng what each was paid for two weeks salary by the number of years of servIce or semonty, and Interest on that amount calculated USIng the formula In the Courts of Justice Act The board shall remaIn seIzed of the outstandIng Issues In thIS case and In order to deal wIth InterpretatIOn or ImplementatIOn of thIS decIsIOn, If necessary Dated at Toronto thIS 19th day of July 2004