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HomeMy WebLinkAbout1981-0526.Szalonczay.86-07-18r 526181 IN THE MATTER OF AN ARBITRATION - Under - THE CROWN EMPLOYEES COLLECTIVE BARGAINING ACT Before THE GRIEVANCE SETTLEMENT BOARD Between Before: For the Griever: For the Employer: Hearing: Prior Decisions: OPSEU (Leslie Szalonczay) and The Crown in Righr of Ontario (Ministry of Transportation and Communications) lean J.R.S. Prichard W. Walsh A.G. Sta;letOn R. Anand Counsel Cavalluzzo, Hayes & Lennon Barristers & Solicitors L.M. McIntosh Counsel Crown Law Office Civil Ministry of the Attorney General Witten submissions only GSB 443180 GSB 526/81 Griever Employer Vice-Chairman Member Member DECISION In our Award in this matter dated August 4, 1982, we concluded that the Griever was entitled to compensation for certain salary increases that had not been granted to him. We retained jurisdiction to determine the amount of compensation owing in the event rhat the parties were unable to reach agreement Subsequently, the parties advised us that they had reached agreement on the principal amount in dispute and the Griever received a payment of $1,155.24 on September 9, 1982. The parties were unable to agree, however, on the question of whether or not interest should be paid on this amount. We received written submissions on this issue and have concluded as follows: 1. 2. 3. 4. Pursuant to its remedial authority, the Grievance Settlement Board has jurisdiction to award interest in circumstances where it is a necessary element of achieving full compensation.(See Gingell 172184) Earlier decisions of the Grievance Settlement Board have made clear that the Board will exercise this jurisdiction and award interest in appropriate Cases. (See Gingell 172/84; Jones 537182; Knudson 34&3/80) The case before us is an appropriate one for in.teresc to be awarded. Absent an award of interest, the Griever will not be fully compensated. In their written submissions, both parties agreed that if interest were awarded, it should be calculated in accordance with the formula set out by the OLRB in @ Hallow11 House (1980) 1 Can. L.R.B.R. 499. . . . . 2 - 2 - 5. In their written submissions, the parties agreed that if interest were awarded, the relevant interest rate was 22.75% and the relevant principal amount ‘was the gross salary owing ($1,155.24). 6. The principal amount was paid on September 9, 1982 (the 252nd day of 1982). This amount covered the period from January 1, 1980 to December 31, 1981. The mid-point of this period is January 1, 1981. 7. In their written submissions the parties suggested different calculations based on this background. The Union suggested: $1,155.24 x (365 + 252) x 22.75% = $444.27 365 The Employer suggested: S1,155.24 x 22.75% x 2 = $98.56 12 a. We have concluded that the Union’s ‘calculation is correct. It calculates interest on the principal amount owed from the mid-point in the period over which the liability accrued to the date on which it was actually paid. That is consistent with Hallowell (Supra) and Gingell (Supra). The Employer’s calculation would under- compensate the Griever because it calculates interest only fromtheend of the period over which liability accrued and only on one-half of the amount of the liability. This would be an incorrect application of Hallowell and Gingell. As a result, the Griever was entitled to the payment of $444.27 in interest. Since the Board has received with regret advice that the Griever has passed away, this amount should be paid to his estate. . . . . 3 The Vice-Chairman accepts full responsibility and apologizes to the parties for the delay in the issuing of this Award since the receipt of the parties’ written submissions. Dated this 18th day of J”lY t 1986 Dean J.R.S..Prichard, Vice-Chairman W. Walsh, Member &$j& J+i$& A.G. Stap efon, Member