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A-672-88
Public Service Alliance of Canada (Applicant) v.
Her Majesty the Queen in Right of Canada as represented by Treasury Board (Respondent)
INDEXED AS: PUBLIC SERVICE ALLIANCE OF CANADA V. CANADA (TREASURY BOARD)
Court of Appeal, Heald, Mahoney and Hugessen JJ.—Ottawa, September 22 and 27, 1988.
Public service — Jurisdiction — Application to review Public Service Staff Relations Board decision dismissing objection to jurisdiction — Respondent submitting statement of designated employees under s. 79(2) of Public Service Staff Relations Act twenty days after notice to bargain collectively given — Application allowed — Board of opinion conciliation process depending on government's duty to file statement and time limit for filing directory only — Word "shall" in provi sion rendering filing of statement imperative — Whether fur nishing list of proposed designated employees duty upon employer or power free to exercise or not — Public servants under Act having basic right to adhere to union of choice, bargain collectively and strike — S. 79 allowing employer to submit list within prescribed time and implying that in absence of timely submission, parties presumed to agree no designated employees in bargaining unit — If Board's position pushed to logical limit, employer could frustrate collective bargaining process by refusing to submit list of designated employees — If filing time inadequate, legislation could be amended.
Construction of statutes — S. 28 application reviewing Public Service Staff Relations Board's decision dismissing objection to jurisdiction — Board of opinion that although requirement to file statement of designated persons under s. 79(2) of Public Service Staff Relations Act mandatory, time limit for filing directory only — Board's interpretation con trary to object of Act guaranteeing public servants right to association, bargain collectively and strike — Interpretation faulty as could frustrate conciliation process should employer refuse to submit list.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28. Interpretation Act, R.S.C. 1970, c. 1-23, s. 28.
Public Service Staff Relations Act, R.S.C. 1970, c. P-35,
ss. 79(1),(2),(3),(4),(5), 101(1)(c).
CASES JUDICIALLY CONSIDERED
REFERRED TO:
Howard v. Bodington (1877), 2 P.D. 203 (Ct of Arches); Cullimore v. Lyme Regis Corporation, [1962] I Q.B. 718 (H.C.); Montreal Street Railway Company v. Norman- din, [1917] A.C. 170 (P.C.); Re Metropolitan Toronto Board of Police Commissioners and Metropolitan Toronto Police Association (Unit B) et al. (1973), 37 D.L.R. (3d) 487 (Ont. H.C.).
COUNSEL:
' Andrew J. Raven for applicant. Harvey Newman for respondent.
SOLICITORS:
Soloway, Wright, Houston, Greenberg, O'Grady, Morin, Ottawa, for applicant. Deputy Attorney General of Canada for respondent.
The following are the reasons for judgment rendered in English by
HUGESSEN J.: This section 28 application seeks to review and set aside a decision of the Public Service Staff Relations Board which dismissed an objection to jurisdiction taken by the applicant, the Public Service Alliance of Canada. That objection was based on the admitted fact that the employer had purported to furnish a statement of designated employees pursuant to subsection 79(2) of the Public Service Staff Relations Act' more than twenty days after notice to bargain collectively had been given. The relevant statutory provision is section 79 of the Act.
79. (I) Notwithstanding section 78, no conciliation board shall be established for the investigation and conciliation of a dispute in respect of a bargaining unit until the parties have agreed on or the Board has determined pursuant to this section the employees or classes of employees in the bargaining unit (hereinafter in this Act referred to as "designated employees") whose duties consist in whole or in part of duties the perform ance of which at any particular time or after any specified
1 R.S.C. 1970, c. P-35.
period of time is or will be necessary in the interest of the safety or security of the public.
(2) Within twenty days after notice to bargain collectively is given by either of the parties to collective bargaining, the employer shall furnish to the Board and the bargaining agent for the relevant bargaining unit a statement in writing of the employees or classes of employees in the bargaining unit who are considered by the employer to be designated employees.
(3) If no objection to the statement referred to in subsection (2) is filed with the Board by the bargaining agent within such time after the receipt thereof by the bargaining agent as the Board may prescribe, such statement shall be taken to be a statement of the employees or classes of employees in the bargaining unit who are agreed by the parties to be designated employees, but where an objection to such statement is filed with the Board by the bargaining agent within the time so prescribed, the Board, after considering the objection and affording each of the parties an opportunity to make represen tations, shall determine which of the employees or classes of employees in the bargaining unit are designated employees.
(4) A determination made by the Board pursuant to subsec tion (3) is final and conclusive for all purposes of this Act, and shall be communicated in writing by the Chairman to the parties as soon as possible after the making thereof.
(5) Within such time and in such manner as the Board may prescribe, all employees in a bargaining unit who are agreed by the parties or determined by the Board pursuant to this section to be designated employees shall be so informed by the Board.
For a clearer understanding of the problem it should be noted that the procedure for "designa- tion" of employees is applicable only to the "con- ciliation-strike" process of dispute resolution pro vided by the Act (the alternative is binding arbitration) and that the end result of that proce dure is to deprive a "designated" employee of the right to strike (see paragraph 101(1)(c)). Thus, while the process is obviously intended to be, as subsection 79(1) itself states, designed "in the interest of the safety or security of the public.", it represents a powerful arm in the hands of an employer facing collective bargaining and the possibility of a strike.
The Board framed the issue before it in these terms:
Simply put, the question is whether the requirement in subsec tion 79(2) of the Act relating to the filing of a statement "Within twenty days after notice to bargain collectively..." has been given is mandatory or merely directory.
With respect, I think this misstates the question. There can be little doubt in my mind that the word "shall" as used in subsection 79(2) was intended to be imperative: that is its ordinary dictionary mean ing as well as the meaning dictated by statute (see Interpretation Act, 2 section 28). The word appears five other times in section 79, each of them clearly imperative, and there is a strong presumption that it should bear the same meaning in subsection (2). The real problem, as it seems to me, is to know whether the furnishing of a list of proposed desig nated employees is a duty cast upon the employer or simply a power which it is free to exercise or not as it sees fit. If it is the former, the rule seems to be that the failure to perform the duty within the time or in the manner provided should not be held to deprive other interests of their rights. 3 Put in the concrete terms of this case, if the government had a duty to designate employees, its failure to do so timely must not adversely affect the safety and security of the public.
If, on the other hand, subsection 79(2) is viewed as simply facultative, the power given must be exercised in the manner and time stated or not at all.
The Board was clearly of the opinion that the government was under a duty to act under subsec tion 79(2). It said:
The safety or security of the public should not be jeopardized by a neglect on the part of the Employer to propose designated employees within exactly the stated period of twenty days.
As part of its rationale, the Board quoted with approval from its own earlier decision in the case of Her Majesty in right of Canada as represented by the Treasury Board and Federal Government Dockyard Trades and Labour Council East (Board file 181-2-162):
2 R.S.C. 1970, c. I-23.
3 See Howard v. Bodington (1877), 2 P.D. 203 (Ct of Arches); Cullimore v. Lyme Regis Corporation, [1962] 1 Q.B. 718 (H.C.); Montreal Street Railway Company v. Normandin, [1917] A.C. 170 (P.C.); Re Metropolitan Toronto Board of Police Commissioners and Metropolitan Toronto Police Asso ciation (Unit B) et al. (1973), 37 D.L.R. (3d) 487 (Ont. H.C.).
The Board finds that the the (sic) time limit specified in subsection 79(2) is directory only. Although the wording is prima facie mandatory, when it is read in the context of the Act as a whole it is apparent that it was not intended to be construed as mandatory. The purpose of section 79 is to ensure that the safety or security of the public is maintained during a strike. Subsection 79(2) should not be interpreted in such a way as to defeat this purpose by reason only of the failure of the employer to adhere strictly to the specified time limit.
We would point out that should the Board accept that the time limit set out in subsection 79(2) of the Act is mandatory and that the Employer is precluded from proposing any person for designation under section 79, it would have the effect of barring the establishment of a conciliation board. To be more specific, subsection 79(1) specifies that no conciliation board shall be established for the investigation and conciliation of a dispute "until the parties have agreed on or the Board has determined pursuant to this section" the employees or classes of employees the performance of whose duties are necessary for the safety or security of the public. In essence the position of the Bargaining Agent is that the failure of the Employer to file the required statement in writing within the time limit specified in subsec tion 79(2) constitutes an agreement between the parties that there are no such employees in the bargaining unit. The language of section 79 does not support that position. Rather, should the Employer not be allowed to file the "statement in writing" contemplated by subsection 79(2) the agreement be tween the parties contemplated therein simply cannot transpire. The result would be a statement (sic) in the designation proce dure provided for in section 79, which as already has been stated, would prevent the establishment of a conciliation board.
This reasoning gives me great difficulty. While the government's duty to act in the public interest cannot be doubted, that interest extends well beyond matters of safety or security. It must also include, as a reading of the Act as a whole makes clear, the right of public servants to adhere to the union of their choice, to bargain collectively, and ultimately to strike. Certainly the Act casts no specific duty on the employer to designate employees in every case while its obligations to bargain in good faith and not to interfere with the employees' right of association are set out very clearly.
I find the reasoning in the second paragraph quoted above particularly troubling. It seems to be based on the hypothesis that in every bargaining unit of the public service of Canada there must be at least one employee who is essential to public safety or security; I have difficulty relating that hypothesis to the world of reality. Furthermore, if the Board's proposition were pushed to its logical limit, the employer could frustrate the conciliation
process, and thereby the whole machinery for col lective bargaining, by the simple expedient of refusing to submit a list of designated employees. It seems to me to be far more reasonable to read section 79 as allowing the employer to submit a list within the time prescribed and implying that, in the absence of a timely submission, the parties are presumed to have agreed that there are to be no designated employees within the relevant bargain ing unit. Such a reading seems to me to be more in keeping with the scheme of the Act as a whole and with the general context of labour relations law and practice in Canada today.
One further point. This is apparently a test case. I am astonished to learn that the situation here is not unique. At the time of the hearing before the Board, there were nineteen pending instances where the employer had failed to comply with the time limit in subsection 79(2). It may be that this is due to simple negligence or it may be that it is an indication that the time provided is too short; if the latter is the case, the remedy lies in amending the legislation, not in interpreting it in a manner which does violence to the language. It is to be noted that no attempt was made by the employer to justify the late filing and I accordingly do not exclude the possibility that the Board could, in a proper case and for good cause shown, relieve the government from the consequences of its default.
I would allow the section 28 application, set aside the impugned decision and return the matter to the Board for redetermination in accordance with these reasons.
HEALD J.: I agree. MAHONEY J.: I agree.
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