Judgments

Decision Information

Decision Content

A-358-83
Gilles Goulet (Applicant) v.
Canada Employment and Immigration Commis sion, Léo Lavigne, Chairman of the Board of Referees, Denise Gagnon, Member of the Board of Referees and Madeleine Brosseau, Member of the Board of Referees (Respondents)
and
Deputy Attorney General of Canada (Mis -en- cause)
Court of Appeal, Pratte, Marceau and Hugessen JJ.—Montreal, October 4; Ottawa, October 26, 1983.
Unemployment insurance — Application to review decision of Board of Referees upholding Unemployment Insurance Commission's imposition of six-week disqualification period — Applicant locked out in June — Work stoppage ending November — Applicant not recalled because of alleged mis conduct during dispute against employer — S. 41 Unemploy ment Insurance Act, 1971 providing claimant disqualified from receiving benefits if losing employment by reason of own misconduct — S. 43(1) imposing maximum disqualification period of six weeks — Applicant alleging lost employment when work stoppage began — Applicant also submitting s. 59 Unemployment Insurance Regulations barring application of s. 41 — S. 59 providing employment terminating more than 13 weeks prior to claim for benefits not employment for purposes of s. 41 of Act — Application allowed — S. 41(1) imposing exception to general rule and must be strictly interpreted — Cannot lose what do not have — Applicant losing employment as result of work stoppage attributable to labour dispute — S. 44(1) providing "claimant who has lost his employment by reason of a stoppage of work attributable to a labour dispute" applies — Dissenting opinion that "lost his employment" having different meanings in ss. 41 and 44 and application should be dismissed — Unemployment Insurance Act, 1971, S.C. 1970-71-72, c. 48, ss. 2(1)(n) (as am. by S.C. 1976-77, c. 54, s. 26(7)), 17 (as am. by S.C. 1978-79, c. 7, s. 4), 41(1),(2), 43 (as am. by S.C. 1974-75-76, c. 80, s. 16; S.0 1976-77, c. 54, s. 42), 44(1), 94 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28 — Unemployment Insurance Regulations, C.R.C., c. 1576, s. 59(1).
COUNSEL:
R. Cousineau and G. Campeau for applicant. G. Leblanc and C. Bureau for respondents.
SOLICITORS:
Campeau & Cousineau, Montreal, for appli cant.
Department of Justice, Montreal, for respondents.
The following is the English version of the reasons for judgment rendered by
MARCEAU J. (dissenting): This application made in accordance with section 28 of the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] seeks to set aside a decision rendered by a Board of Referees sitting pursuant to section 94 of the Unemployment Insurance Act, 1971, S.C. 1970- 71-72, c. 48.
The facts which gave rise to the decision a quo are straightforward and clear. On June 19, 1982 the directors of David Biscuits Inc. of Montreal, when negotiations for the conclusion of a new collective agreement with their employees broke down, ordered that their plant be closed, and thus ordered a lock-out which the employees quickly followed by a strike vote. The work stoppage con tinued for over five months, as it was not until November 22 that the parties were finally able to arrive at a settlement. The plant immediately reo pened and work gradually resumed. There was no question of continuing operations at the same pace as before the work stoppage, first because of the time of year, traditionally less active, and second because of an adverse economic climate; recall lists accordingly had to be prepared in accordance with the plant's needs and the seniority rights of employees, and in the end several employees were not recalled. However, of the employees not recalled once operations were back to normal, five had been disqualified by the company's managers on a ground other than the lack of work. They were laid off for good and dismissed because of their actions during the dispute (they had appar ently thrown "Molotov cocktails" at the company's building). Applicant was one of the five employees.
The Commission officer responsible for consid ering applicant's application for benefits felt that this was a case to which section 41 of the Act
applied, and he issued a six-week disqualification notice in respect of applicant. Subsection (1) of section 41 of the Act provides that: "A claimant is disqualified from receiving benefits under this Part if he lost his employment by reason of his own misconduct or if he voluntarily left his employ ment without just cause", a disqualification which subsection 43(1) [as am. by S.C. 1974-75-76, c. SO, s. 16] fixes at a maximum of six weeks.
Applicant objected to imposition of this dis qualification and appealed to a Board of Referees. His position was that, as he had ceased to work when the plant was closed down on June 18, and his application for benefits was not submitted by him until November 3, subsection 59(1) of the [Unemployment Insurance] Regulations [C.R.C., c. 1576] adopted pursuant to the Act was a bar to any application of subsection 41(1) of the Act, since the provision which it contains reads as follows:
59. (I) Employment of a claimant that terminates more than 13 weeks prior to the time his claim for benefit is made is not employment for the purposes of section 41 of the Act.
The Board refused to accept applicant's argu ments, and this is the decision a quo.
Applicant maintained that the Board erred in its interpretation of subsection 59(1) of the Regula tions as well as in its [TRANSLATION] "interpreta- tion of the concept of 'loss of employment' used in section 41 of the Act". His argument was still that over thirteen weeks had elapsed between the time when he ceased working (June 17, 1982) and that when he filed his application for benefits (Novem- ber 3, 1982). Besides, he added he [TRANSLA- TION] "could not lose his employment with David Biscuits in November 1982, since he had been unemployed since June 17, 1982 as the result of a labour dispute", a statement which he said he based directly on the wording of subsection (1) of section 44 of the Act, which states:
44. (1) A claimant who has lost his employment by reason of a stoppage of work attributable to a labour dispute at the factory, workshop or other premises at which he was employed is not entitled to receive benefit until
(a) the termination of the stoppage of work,
(b) he becomes bona fide employed elsewhere in the occupa tion that he usually follows, or
(c) he has become regularly engaged in some other
occupation,
whichever event first occurs.
As may be seen, applicant challenges the validi ty of the Board's decision by appealing to the actual wording used in the provisions of the Act and Regulations which, in his opinion, are at issue, namely those of subsections 41(1) and 44(1) of the Act and 59 (1) of the Regulations.
I think that subsection 59(1) of the Regulations must quickly be eliminated from the discussion. Applicant started with the proposition that, within the meaning of the Act, he lost his employment on June 17 and could not lose it again. If he is right, he has no need to rely on any exceptional provision to protect himself from the application of section 41 of the Act. In fact, applicant weakens his case by citing 59(1), since this leads to an admission on his part that his being laid off was in some way connected with his misconduct, which would necessarily mean that he would have to use a date subsequent to June 15, and this is in direct contradiction with the starting point of his argu ment, unless the consequences of his misconduct are to be given retroactive effect, which is quite inconceivable.
In fact, it is only the use of this very expression "lost his employment" in sections 41 and 44 that enables applicant to give his argument a strong appearance of plausibility, by proclaiming that he could not lose what he had already lost. How is it that these provisions lend plausibility to applicant's arguments? Because, of course, one is inclined to assume that the expression "lost his employment" is used in the same way in both subsections 41(1) and 44(1). This is a normal reaction, but with respect for those who take a different view, I feel it must be revised, for I think the expression clearly has not been used in the same way in the two subsections.
Two points indicate that the words "lost his employment" do not have the same meaning in both provisions. The first is straightforward. Section 41 expressly distinguishes someone who has "lost his employment" from someone who has "voluntarily left", thereby limiting the scope of the phrase to a forced departure, a lay-off. Section 44 speaks of someone who loses his employment by reason of a work stoppage attributable to a labour dispute, covering both the case of a strike voted on by employees and of a lock-out ordered by the employer.
The second point is less easy, because it requires some analysis of the provision, but in my opinion it is still conclusive. The loss of employment involved in section 41 is loss of employment which "quali- fied" the insured to receive benefits, since the section imposes a disqualification: the insured will be denied benefits to which he would otherwise have been entitled. As we know, in order to be entitled to benefits, an insured must have had "an interruption of earnings from employment" (sec- tion 17 of the Act [as am. by S.C. 1978-79, c. 7, s. 4] ), an expression which refers essentially (para- graph 2(1)(n)) to: "that interruption that occurs in the earnings of an insured person when after a period of employment with an employer the insured person has a lay-off or separation from that employment". In 1977 the words "or a reduc tion in his hours of work for that employer result ing in a prescribed reduction in earnings" (S.C. 1976-77, c. 54, s. 26(7)) were added to this basic definition, but the principle that an interruption of earnings, complete or partial, must be final in order to qualify an insured remains the same. It follows from this that the loss of employment under section 41 is necessarily a final loss of employment. On the other hand, the loss of employment referred to in section 44 is essentially a temporary loss of employment, since it results strictly from a work stoppage attributable to a labour dispute, and will end as such at the end of
the work stoppage at the latest. The section does not speak of a disqualification but of the individual being not entitled, because it concerns a loss which in itself does not qualify him for benefits: the employee does not cease to be employed by the employer and the employer-employee relationship has not been dissolved. Furthermore, while section 44 clearly states that one of the conditions of eligibility for benefits is not being unemployed because of a labour dispute, it should be noted that it was adopted, judging from its structure, solely in order to determine the extent of the disentitlement period, that is, the period during which the insured will be presumed to be unemployed because of a labour dispute for the purposes of the Act.
Thus, the phrase "lost his employment" is not used in the same sense in sections 44 and 41, and it cannot be said, solely on the basis of the legisla tion, that section 44 automatically excludes any possible application of section 41. Why would this be the case? What could rationally support the argument that someone who has lost his employ ment temporarily because of a labour dispute could then no longer finally lose it at the end of the dispute as a result of his own misconduct? Clearly, there would not seem to be any reason. If an employee who is on strike acts in such a way as to authorize the employer to prohibit him from returning to work, once the dispute is at an end, why would he be exempt from the penalty imposed on anyone who becomes unemployed, not despite his best efforts, but on the contrary through his own fault?
I cannot think that for the purposes of giving effect to the Unemployment Insurance Act, 1971, applicant and his four companions, who were struck from the recall lists because of reprehen sible behaviour, should be treated exactly the same way as individuals who were not recalled to work solely because there was no longer any work for them to do. I consider that for both groups, the end of the work stoppage was the starting point for the final loss of employment that caused the inter ruption of earnings on which the qualification for benefits is based under the Act, and this is the relevant time for the application, if appropriate, of section 41.
Accordingly, I do not feel that the Board of Referees erred in maintaining the six-week dis qualification imposed on applicant under sections 41 and 43 of the Act. This application for review made against their decision is without foundation and I would dismiss it.
* * *
The following is the English version of the reasons for judgment rendered by
HUGESSEN J.: This is an application in accord ance with section 28, from a decision of a board of referees established pursuant to the Unemploy ment Insurance Act, 1971.
Applicant was employed by the company David Biscuits. On June 19, 1982, the employer ordered a lock-out, so that applicant's last working day was June 17, 1982. The dispute dragged on and employees only began returning to work gradually between November 22 and 29, 1982. However, applicant was not called back: the employer refused to re-hire him because of certain allega tions of criminal offences committed by him against the employer and its property during the dispute. He applied for unemployment insurance benefits, but respondent Commission imposed on him a six-week disqualification pursuant to section 41 and section 43 of the Act. His appeal to the Board of Referees was dismissed: hence this application in accordance with section 28 of the Federal Court Act.
Subsection 41(1) of the Unemployment Insur ance Act, 1971 reads as follows:
41. (1) A claimant is disqualified from receiving benefits under this Part if he lost his employment by reason of his own misconduct or if he voluntarily left his employment without just cause. [My emphasis.]
This subsection, which by its very wording imposes an exception to the general rule, must be strictly interpreted.
With respect, it appears to me that the Commis sion and the Board of Referees erred in law. In their view, applicant lost his employment by reason of his own misconduct. This loss allegedly occurred in November, when his employer refused to re-hire him. You cannot lose what you do not have. At the time that employees returned to work in November 1982, applicant had already lost his
employment within the meaning of the Act as a result of the lock-out. This can be seen merely by reading the introductory portion of subsection 44(1):
44. (1) A claimant who has lost his employment by reason of a stoppage of work attributable to a labour dispute .... [My emphasis.]
There is no doubt in the case at bar that there was a labour dispute at David Biscuits from June 19, 1982 onwards. That accordingly is when appli cant lost his employment; as he did not resume it when the dispute was over, in November, he then became eligible within the meaning of the Act, without having to undergo a disqualification period.
At the hearing, respondents cited subsection (2) of section 41, which reads as follows:
41....
(2) For the purposes of this section, loss of employment within the meaning of subsection (1) does not include loss of employment on account of membership in, or lawful activity connected with any association, organization or union of work ers. [My emphasis.]
This subsection does not help in solving the case at bar. The wording itself indicates that it only applies to the loss of employment mentioned in subsection (1) of the section, that is a loss of employment by reason of the employee's miscon duct. In other words, all that subsection 41(2) provides is that participation in a lawful activity of a union cannot constitute misconduct within the meaning of the Act. In the case of applicant, he lost his employment at the time of the lock-out in June 1982, and there was no question of miscon duct on his part at that time. Once it had been lost, this employment was never recovered and applicant could not lose it a second time, for misconduct or any other cause.
I would accordingly allow the application, set aside the decision of the Board of Referees and refer the case back to it to be again decided on the assumption that applicant did not lose his employ ment by reason of his own misconduct.
PRATTE J.: I concur.
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