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A-254-81
The Queen in right of Canada as represented by the Treasury Board (Applicant)
v.
Canadian Air Traffic Control Association (Respondent)
Court of Appeal, Heald, Urie and Le Dain JJ.— Ottawa, September 21 and October 14, 1981.
Judicial review — Labour relations — Application to review and set aside the decision of the Public Service Staff Relations Board that Treasury Board, as employer of respondent's mem bers, contravened s. 51 of the Public Service Staff Relations Act — Section 51 provides that any term or condition of employment which may be embodied in a collective agreement and that was in force on the day the notice to bargain was given, shall remain in force — Voluntary overtime policy altered by the employer who imposed compulsory overtime after notice to bargain collectively was given by the respondent to the employer — Whether policy a term or condition of employment in force when notice to bargain was given — Public Service Staff Relations Act, R.S.C. 1970, c. P-35, ss. 2, 18, 51, 57(3) — Canada Labour Code, R.S.C. 1970, c. L-1, s. 148(6) — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28.
This is an application to review and set aside a decision of the Public Service Staff Relations Board holding that Treasury Board, as the employer of the respondent's members, contra vened section 51 of the Public Service Staff Relations Act by altering a term or condition of employment after notice to bargain collectively was given by the respondent to the employ er. At the date of the notice to bargain and prior thereto, there existed a voluntary overtime policy arrived at through consulta tion between the employer and the respondent Association for the benefit of air traffic controllers at the Montreal Control Centre. After notice to bargain was given, however, the employer altered the policy and imposed compulsory overtime. Applicant argues that under the provisions of the collective agreement dealing with overtime, the right of the employer to determine the overtime work requirements continues after notice to bargain has been given as the voluntary overtime policy was not a term or condition of employment in force at the time the notice to bargain was given although it was capable of being so, which capability could only become enforceable if the parties agreed in writing to amend the collective agreement.
Held, (Heald J. dissenting) the application is dismissed. The narrow view that the words "in force" in the context of the wording of section 51 mean "enforceable in law" cannot be adopted. They mean "in place", "existing", "operating" or some word or words of similar import. One of the incidents in the employer-employee relationship existing immediately prior to the notice, though not embodied in the collective agreement,
was the mutual understanding that the right of the employer to require overtime work within the limits specified in the collec tive agreement, had been modified to permit the employees to refuse to do so. While that might not have been a right or privilege which could have been enforced as part of the collec tive agreement, it certainly was one which existed or was "in force" when the freeze imposed by section 51 came into play.
Per Heald J. dissenting: "Force" when speaking of a law means "binding power, validity". Thus, it cannot be concluded that the provisions dealing with overtime as embodied in the collective agreement were capable of amendment by the simple expedient of an oral arrangement whereby the employer had allowed the employees to refuse overtime. It seems that the parties, in entering into the collective agreement contemplated that any amendment thereto should be by way of a formal amendment to that agreement. Since that was not done in this case, the conditions of employment in force on the critical date, in so far as overtime is concerned, are those contained in the articles of the agreement dealing with overtime. Furthermore, pursuant to section 2 of the Public Service Staff Relations Act, a collective agreement must be in writing. It thus follows that section 57(3) of the Act necessarily implies that any amend ment to a written collective agreement must also be in writing.
Le Syndicat catholique des employés de magasins de Québec Inc. v. La Compagnie Paquet Ltée [1959] S.C.R. 206, referred to.
APPLICATION for judicial review. COUNSEL:
Robert Cousineau for applicant.
J. Nelligan, Q.C. for respondent.
J. E. McCormick for the Public Service Staff
Relations Board.
SOLICITORS:
Deputy Attorney General of Canada for applicant.
Nelligan/Power, Ottawa, for respondent. Public Service Staff Relations Board Legal Services, Ottawa, for the Public Service Staff Relations Board.
The following are the reasons for judgment rendered in English by
HEALD J. (dissenting): I have perused the rea sons for judgment herein of my brother Urie J. but, with deference, do not share his view that, on the facts here present, the Public Service Staff Relations Board correctly applied section 51 of the Public Service Staff Relations Act, R.S.C. 1970, c. P-35. Section 51 reads as follows:
51. Where notice to bargain collectively has been given, any term or condition of employment applicable to the employees in the bargaining unit in respect of which the notice was given that may be embodied in a collective agreement and that was in force on the day the notice was given, shall remain in force and shall be observed by the employer, the bargaining agent for the bargaining unit and the employees in the bargaining unit, except as otherwise provided by any agreement in that behalf that may be entered into by the employer and the bargaining agent, until such time as
(a) in the case of a bargaining unit for which the process for resolution of a dispute is by the referral thereof to arbitration,
(i) a collective agreement has been entered into by the parties and no request for arbitration in respect of that term or condition of employment, or in respect of any term or condition of employment proposed to be substituted therefor, has been made in the manner and within the time prescribed therefor by this Act, or
(ii) a request for arbitration in respect of that term or condition of employment, or in respect of any term or condition of employment proposed to be substituted there- for, has been made in accordance with this Act and a collective agreement has been entered into or an arbitral award has been rendered in respect thereof; and
(b) in the case of a bargaining unit for which the process for resolution of a dispute is by the referral thereof to a concilia tion board,
(i) a collective agreement has been entered into by the parties,
(ii) a conciliation board has been established in accordance with this Act and seven days have elapsed from the receipt by the Chairman of the report of the conciliation board, or
(iii) a request for the establishment of a conciliation board has been made in accordance with this Act and the Chairman has notified the parties pursuant to section 78 of his intention not to establish such a board.
The relevant and determining facts of this case are accurately summarized in the reasons of my broth er Urie J. and need not be repeated. The central issue is, in my view, the meaning of the words ".. . any term or condition of employment ... that may be embodied in a collective agreement and that was in force on the day the notice was given, ..." [the added emphasis is mine] as those words are used in section 51 supra. In construing the words "in force" Urie J. rejected the applicant's submis sion that the proper meaning in the context of section 51 was "enforceable in law." In his view, those words in section 51 should be construed so as to mean "in place", "existing", "operating" or "some word or words of similar import." On this
basis, it was his opinion that the mutual under standing between the employer and its employees permitting the employees to refuse to work over time, while not being a right or privilege which was enforceable as part of the collective agree ment, was, nevertheless, a right or privilege which "existed" and was thus "in force" when the freeze imposed by section 51 came into play.
I do not concur in that approach to the matter. The Shorter Oxford English Dictionary states that "force" when speaking of a law means "Bind- ing power, validity". Applying that definition to the facts of this case, I cannot conclude that the provisions dealing with overtime as embodied in the collective agreement (articles 15.01, 15.03 and 15.04) were capable of amendment by the simple expedient of an oral arrangement whereby the employer had allowed the employees to refuse overtime. It seems to me that the parties, in enter ing into the collective agreement, contemplated that any amendment thereto should be by way of a formal amendment to that agreement. Since that was not done in this case, it is my opinion that the conditions of employment in force on the critical date, in so far as overtime is concerned, are those contained in articles 15.01, 15.03 and 15.04. In the case of Le Syndicat catholique des employés de magasins de Québec Inc. v. La Compagnie Paquet Ltée', Judson J. writing the judgment of the majority of the Court, expressed the view that when a collective agreement becomes operative, "There is no room left for private negotiation between employer and employee" so as to retain particular benefits relating to conditions of employment for a particular employee. It is my opinion that when section 51 refers to conditions of employment, the necessary implication from the language used is that it is intended to refer to the conditions of employment as set out in the collec tive agreement. This becomes even clearer, in my view, when the terminology of section 51 supra is compared with a similar provision in the Canada Labour Code, R.S.C. 1970, c. L-1. That section is paragraph 148(b) in Part V, Division IV, of the Code and provides:
148. Where notice to bargain collectively has been given under this Part,
I [1959] S.C.R. 206 at page 212.
(b) the employer shall not alter the rates of pay or any other term or condition of employment or any right or privilege of the employees in the bargaining unit, or any right or privilege of the bargaining agent, until the requirements of paragraphs 180(1)(a) to (d) have been met, unless the bargaining agent consents to the alteration of such a term or condition, or such a right or privilege.
Thus, in the Canada Labour Code, the words "in force" do not appear in relation to terms or condi tions of employment. The Canada Labour Code appears to freeze all terms or conditions of employment, not just those "in force", i.e. those detailed in the collective agreement. If Parliament had intended to freeze all terms or conditions of employment in section 51, it could easily have adopted language identical or similar to that used in the Canada Labour Code.
My brother Urie J. also characterized the policy of voluntary overtime as being an unwritten amendment to article 15 of the collective agree ment. With respect, I am unable to agree, having regard to the provisions of the Public Service Staff Relations Act. In section 2 of the Act, "collective agreement" means ".. . an agreement in writing entered into under this Act between the employer, on the one hand, and a bargaining agent, on the other hand, containing provisions respecting terms and conditions of employment and related mat ters;" [emphasis mine]. Thus, under the Act, a collective agreement must be in writing. Likewise, in my view, subsection (3) of section 57 of the Act which permits "amendment or revision of any provision of a collective agreement ..." necessarily implies that any amendment to a written collective agreement must also be in writing.
I have thus concluded, for the foregoing reasons, that the Board erred in law in deciding that by changing its policy regarding overtime, the employer contravened section 51 of the Public Service Staff Relations Act. I would therefore allow the section 28 application and set aside the decision dated May 4, 1981 of David H. Kates, the Deputy Chairman of the Public Service Staff Relations Board.
The following are the reasons for judgment rendered in English by
URIE J.: This is a section 28 application to review and set aside a decision of the Public Service Staff Relations Board made pursuant to section 18 of the Public Service Staff Relations Act, R.S.C. 1970, c. P-35 (the Act) after a hearing arising from a complaint alleging that the Trea sury Board as the employer of the members of the respondent, contrary to section 51 of the Act, altered a term or condition of employment. While counsel said that an agreed statement of facts had been filed at the hearing before the Board it does not appear in the record in this Court so that the factual background leading to the allegation is derived from the reasons of the Board and the memoranda of fact and law filed by the parties. That background may be briefly summarized in the following way.
Notice to bargain with respect to the existing collective agreement between the respondent and the Treasury Board which was due to expire on December 31, 1980, was given by the respondent on October 6, 1980. Since that date no new collec tive agreement has been entered into and no report of a conciliation board has been issued. Thus, the parties to the agreement were and are still at the bargaining stage. It was agreed that until March 6, 1981 the policy relating to overtime work at the Montreal Control Centre had been that it was not compulsory to accept overtime duty. That policy had, apparently, been arrived at through consulta tion between the parties.
On March 6, 1981 the employer issued the following directive in respect of the policy permit ting controllers scheduled to work overtime to cancel or refuse such duty.
Effective immediately upon issuance on March 6, 1981, in order to meet our operational needs, it has become imperative to impose compulsory overtime. Refusal to work any scheduled overtime will be considered to be in contravention to interlocu tory injunction T-4640-80 issued by the Federal Court of Canada dated October 9, 1980.
Unit policy P7905-AI is amended herewith in so far as over time is concerned.
Unit Policy P7905-AI reads as follows:
MONTREAL AREA CONTROL CENTRE
UNIT POLICY P7905-AI
Subject—Cancellation of shifts
A shift cancellation (for both regular and overtime shifts), for any reason, must be made one (1) hour at the latest prior to the commencement of a 7 or 8 hour shift, and four (4) hours at the latest prior to the commencement of any other shift.
It is to be noted that in all cases a written explanation, by way of a letter or on the appropriate government form, may be required by the Supervisor.
Telephone calls on this subject shall be directed to the Supervisor.
Clearly that document does not itself implement the policy of voluntary overtime arrived at through the consultative process but merely sets forth the procedure to be followed in the event that a con troller scheduled or requested to work overtime wishes to opt out of the assignment. The record before us discloses no other document setting forth the voluntary overtime policy. It does, however, lend confirmation to the statement of the Adjudicator that the parties agreed that "as a matter of policy arrived at through consultation between the parties there was no compulsory over time with respect to air traffic controllers operat ing out of the Montreal Control Centre ...".
The memorandum of March 6, 1981 was pre cipitated, apparently, by the receipt by the employer of notifications from forty air traffic controllers employed at the Montreal Control Centre indicating their refusal to work overtime. Those notifications had in turn resulted from the employer's advice to the bargaining agent on March 2, 1981 that certain changes in the work schedules proposed by the agent during consulta tions had been rejected. The reaction by the employer to the refusals to work overtime was the posting of the March 6, 1981 memorandum.
After efforts to resolve the dispute as to the scheduling of overtime had failed, proceedings were instituted by the employer in the Trial Divi sion resulting in two orders requiring some 54 air traffic controllers to appear on April 21, 1981 to show cause why they should not be found in contempt of an injunction order issued by Walsh J. in the Trial Division on October 9, 1980 [[1981] 2
F.C. 12]. On April 28, 1981 on the return of the show cause orders, Addy J., apparently as a result of a preliminary objection, concluded that the change of policy with respect to overtime was not in contravention of section 51 of the Act.
On April 14, 1981 an application was made to the Board by the respondent herein, pursuant to section 18 of the Act for an order finding that the employer's change of policy contravened section 51 of the Act and that the compulsory overtime policy be rescinded. That application was heard by the Vice-Chairman of the Board sitting alone. His decision was rendered on May 4, 1981 wherein he held that the section 18 application was well founded and thus that the employer had indeed contravened the provisions of section 51. It will be noted that the Board interpreted section 51 in a manner completely opposite to Addy J., on a date subsequent to that upon which he rendered his decision. The Vice-Chairman's decision was reviewed by a different panel of the Board on two occasions arising, first, as a result of an application pursuant to section 18 of the Act for compliance with the order and, secondly, as a result of an application pursuant to section 25 of the Act for a review of the order for compliance. The Vice- Chairman's decision was, in effect, upheld and a compliance order was granted and the subsequent application for a review of that order was rejected.
For the moment I will not comment on the failure of the Board to follow the construction given section 51 of the Act by Addy J. This section 28 application is to review the Board's decision and the result of this Court's judgment will, of course, bind not only the Board but also the Trial Division, as Mr. Justice Addy correctly observed when the Board's decisions were called to his attention, subject always to a successful appeal therefrom.
Section 18 and the relevant portion of section 51 read as follows:
18. The Board shall administer this Act and shall exercise such powers and perform such duties as are conferred or imposed upon it by, or as may be incidental to the attainment
of the objects of, this Act including, without restricting the generality of the foregoing, the making of orders requiring compliance with this Act, with any regulation made hereunder or with any decision made in respect of a matter coming before it.
51. Where notice to bargain collectively has been given, any term or condition of employment applicable to the employees in the bargaining unit in respect of which the notice was given that may be embodied in a collective agreement and that was in force on the day the notice was given, shall remain in force and shall be observed by the employer, the bargaining agent for the bargaining unit and the employees in the bargaining unit, except as otherwise provided by any agreement in that behalf that may be entered into by the employer and the bargaining agent, until such time as
(b) in the case of a bargaining unit for which the process for resolution of a dispute is by the referral thereof to a concilia tion board,
(i) a collective agreement has been entered into by the parties,
(ii) a conciliation board has been established in accordance with this Act and seven days have elapsed from the receipt by the Chairman of the report of the conciliation board, or
(iii) a request for the establishment of a conciliation board has been made in accordance with this Act and the Chairman has notified the parties pursuant to section 78 of his intention not to establish such a board.
The collective agreement between the parties deals with overtime. Articles 15.01, 15.03 and 15.04 are the relevant clauses for purposes of these reasons for judgment and they read as follows:
15.01 Time worked by an employee in excess or outside of his scheduled hours of work shall be considered as overtime.
15.03 The Employer will endeavour to keep overtime work to a minimum and shall assign overtime equitably among employees who are qualified to perform the work that is required at the location concerned.
15.04 Except in an emergency, no operating employee shall work more than twelve (12) consecutive hours or more than nine (9) consecutive days.
Counsel for the applicant argued that article 15 contains the terms and conditions of employment relating to overtime that were in force when the notice to bargain was given. That being so, he said, the article discloses that overtime work require ments are for the employer to determine and the right to make that determination continues after the notice to bargain has been given irrespective of the fact that a policy existed at that date by which
the employer had, prior thereto, permitted the employees to refuse an assignment or request to work overtime. According to him such a policy was not a term or condition of employment in force at the time notice to bargain was given, although, he conceded, it was capable of being so. That capabil ity, in his submission, could only become enforce able if the parties formally, in writing, agreed to amend the collective agreement to reflect the retraction from the employer's untrammelled right to determine overtime work requirements. Since such an amendment had not been agreed to the voluntary overtime policy was not a term or condi tion of employment and thus was not subject to the so-called "freeze" imposed by section 51.
With respect, I am unable to agree with these submissions. There is no doubt that the policy of permitting air traffic controllers to refuse to work overtime is one which might have been or "may be" in the future, embodied in a collective agree ment. I take it that the words "may be embodied" as they appear in section 51 mean that the term or condition of employment is "capable of being embodied" in the agreement. There is equally no question, as I see it, that the policy, so long as it subsisted, constituted, or resulted in, a term or condition of employment. Undoubtedly during the term of the agreement that policy which was, in effect, an unwritten amendment to article 15 could have been rescinded by the employer. (I leave aside the question of whether the bargaining agent or the employees must be consulted before such a rescission.) However, at the time that notice to bargain was given no such rescission had been made and the policy, which, as I have said, effec tively provided one of the terms or conditions of employment, was "in force" at that time.
I am, moreover, unable to adopt the narrow view that the words "in force" in the context of the wording of section 51 mean "enforceable in law". They mean, in my opinion, "in place", "existing", "operating" or some word or words of similar import. Adoption of the view espoused by the applicant would, it seems to me, run counter to the apparent purpose of section 51 which is that, after the notice to bargain, the employer-employee rela tionship existing immediately prior to the notice, in so far as terms or conditions of employment are concerned, should be preserved. One of the inci-
dents in that relationship, though not embodied in the collective agreement, was the mutual under standing that the right of the employer to require overtime work within the limits specified in the collective agreement, had been modified to permit the employees to refuse to do so. While that might not have been a right or privilege which could have been enforced as part of the collective agreement it certainly was one which existed or, in the words of the section, was "in force" when the freeze imposed by section 51 came into play.
Since I have concluded that the Board on the facts of this case correctly applied section 51 and thus was entitled to direct the removal of the posted memorandum imposing compulsory over time, it is unnecessary for me to consider the respondent's alternative submission that the failure of the employer to consult the bargaining agent about contemplated changes in conditions of employment or working conditions not governed by the collective agreement, constituted a breach of article 24.01 of that agreement.
For all of the foregoing reasons I would dismiss the section 28 application.
Before leaving the matter, however, I feel it incumbent upon me to comment on the Board's refusal to follow Mr. Justice Addy's interpretation of the effect of section 51, of which interpretation and his ruling arising therefrom, the Board was aware or should have been aware on May 4, 1981 when the Vice-Chairman rendered his original decision. The second panel of the Board certainly was fully cognizant of it when it heard the applica tion for an order of compliance, the defence to which was based on Addy J.'s judgment. The same is true of the application for reconsideration of its decision on the application for compliance. Mr. Justice Addy, quite properly in my view, comment ed on the necessity, for the orderly functioning of the administration of justice, to avoid the "misun- derstanding and confusion which might arise from conflicting rulings or contradictory executory orders."
It is unnecessary for me to amplify these com ments. I content myself by saying simply that I agree with them and observe that, at least on the facts of this case, the Board was not entitled to
ignore Mr. Justice Addy's decision on the basis of the Board's conception of the circumstances under which the ruling was purportedly made. The fact that the Board's interpretation of the statute has been upheld by this Court does not detract from the importance of observing and following the decisions of supervising courts. In fact it demon strates the proper way to rectify perceived errors in rulings of those bodies.
* * *
The following are the reasons for judgment rendered in English by
LE DAIN J.: I have had the advantage of read ing the reasons of Mr. Justice Heald and Mr. Justice Urie. I agree with the conclusion reached by Mr. Justice Urie.
The purpose of section 51 of the Public Service Staff Relations Act is to maintain the status quo in respect of terms and conditions of employment while the parties are attempting to negotiate an agreement. It is a particular version of a provision generally found in labour relations legislation that is designed to promote orderly and fair collective bargaining. There must be some firm and stable frame of reference from which bargaining can proceed. The provision should not be given a nar rowly technical construction that would defeat its purpose.
Section 51 is directed to "any term or condition of employment applicable to the employees in the bargaining unit" at a given point of time. The term or condition must be one that may be embodied in a collective agreement, not necessarily one that is embodied in a collective agreement. And it must be "in force" at the time notice to bargain collec tively was given.
On the basis of the agreed statement of facts submitted to it by the parties and the testimony which it heard, the Board found as a fact in the present case that at the time the notice to bargain collectively was given there was a "policy" or "accommodation" arrived at through consultation between the parties under which "scheduled" over time and "call-in" overtime, as distinct from the request for overtime beyond an employee's shift contemplated by article 15.04 of the collective
agreement, were voluntary. There can be no doubt that the rule concerning overtime in these two cases, whether it be regarded as the product of agreement between the parties or of the exercise of the employer's management authority after con sultation, was a term or condition of employment applicable to the employees in the Montreal unit and it could have been embodied in a collective agreement. As long as it was the applicable rule it governed the relationship of the parties on this matter. While that policy applied an employee who refused a request for overtime could not be disciplined by the employer for such refusal. To that extent the policy was a measure of rights and obligations. It could have legal consequence. As such it must be considered, in my opinion, to have been "in force" within the meaning of section 51. The issue is not whether the policy could have been changed by the employer at any time, but for section 51. A purpose of section 51 is to prevent a unilateral change of terms and conditions of employment after notice to bargain collectively has been given. Indeed, there is no need for the provi sion with respect to terms and conditions of employment that are fixed by agreement during a certain period. The terms and conditions of employment applicable to employees in a unit include not only those fixed by express agreement of the parties but also those which may be imposed by the employer in the exercise of his management authority. Article 24.01 of the collective agree ment in this case recognizes the existence of the latter when it provides: "Wherever possible, the Employer shall consult with representatives of the Association, at the appropriate level, about con templated changes in conditions of employment or working conditions not governed by this Agree ment."
For these reasons I am of the opinion that the Board did not err in law in deciding as it did, and I would accordingly dismiss the section 28 applica tion.
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