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A-753-88
Attorney General of Canada (Applicant)
v.
Edward Pearce (Respondent)
INDEXED AS: CANADA (ATTORNEY GENERAL) V. PEARCE (CA.)
Court of Appeal, Pratte, Mahoney and Desjardins JJ.A.—Ottawa, March 16 and April 3, 1989.
Public service — Selection process — Merit principle Employee temporarily assigned to position subsequently suc cessful candidate in competition to permanently staff position — Public Service Appeal Board allowing appeal from pro posed appointment — Board correctly holding merit principle compromised when temporary assignment in combination with selection process conferring unfair advantage — Although Board erred in holding temporary assignment required to be based on merit, not ground to set aside decision.
This was an application to set aside the Public Service Appeal Board's decision allowing an appeal from a proposed appointment. An employee who had been temporarily assigned to a position was the successful candidate in the subsequent competition to permanently staff the position. The proposed appointment was appealed on the ground that there was an element of preselection. The Appeal Board held that the merit principle had been compromised, since it was not clear that it had been applied in making the temporary assignment.
Held (Pratte J.A. dissenting), the application should be dismissed.
Per Mahoney J.A. (Desjardins J.A. concurring): The Board correctly held that a temporary assignment in combination with a selection process that gave an unfair advantage to the candi date assigned to the position could compromise application of the merit principle. The conclusion that in the particular cir cumstances the merit principle had been compromised was a finding of fact which was open to the Board to make. Although the Board erred in law in holding that the assignment had to be made on the basis of merit, since the temporary assignment was not an appointment within the contemplation of the Public Service Employment Act, section 10, its decision was not subject to being set aside on a section 28 application based on the second ground.
Per Pratte J.A. (dissenting): The Board erred in considering the basis of the temporary assignment on an appeal from the proposed permanent appointment. If the temporary assignment was an appointment it had to have been made on the basis of merit, and as it had been made without competition it could be challenged under the Public Service Employment Act, section 21. Such an appeal would be distinct from an appeal against the permanent appointment. A Board established to rule on an
appeal against a permanent appointment is not entitled to determine the validity of the temporary assignment that preceded that appointment. Any advantage gained by the tem porary assignment was irrelevant to the Board's decision as to whether the competition violated the merit principle. If the temporary assignment was not an appointment, it was not subject to the merit principle and it did not-matter whether the assignment was part of the selection process.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED:
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28. Public Service Employment Act, R.S.C. 1970, c. P-32, ss. 10, 21.
CASE JUDICIALLY CONSIDERED
CONSIDERED:
Doré v. Canada, [1987] 2 S.C.R. 503. COUNSEL:
Yvonne E. Milosevic and M. Turgeon for
applicant.
Andrew J. Raven for respondent.
SOLICITORS:
Deputy Attorney General of Canada for applicant.
Soloway, Wright, Houston, Greenberg,
O'Grady, Morin, Ottawa, for respondent.
The following are the reasons for judgment rendered in English by
PRATTE J.A. (dissenting): This section 28 [Fed- eral Court Act, R.S.C. 1970 (2nd Supp.), c. 10] application is directed against a decision of a board established by the Public Service Commis sion allowing an appeal brought by the respondent under section 21 of the Public Service Employ ment Act [R.S.C. 1970, c. P-321.
In 1987, a position of Investigations/Concilia- tion Officer (PE-04) with the Investigations Direc torate of the Public Service Commission in Van- couver, B.C., became vacant. Soon afterwards, steps were taken to fill that position temporarily until a competition was held. In late June, one Mrs. Scholefield was given that temporary assign-
ment. This, apparently, was not considered by the Commission to be an "appointment" within the meaning of the Public Service Employment Act since none of the requirements of the Act relating to appointments were complied with. For instance, no public notice was ever given and the criteria according to which Mrs. Scholefield was deter mined to be qualified for that assignment are unknown. The Board stated in its decision that Mrs. Scholefield had been "chosen to assume those duties on a `secondment' basis" and this, according to the Board, "meant that she would perform the duties that she was able to perform and receive training to perform additional duties as she became familiar with the demands of the position."'
Shortly after Mrs. Scholefield's temporary assignment, notice was given that a competition would be held to fill the position on a permanent basis. The closing date for the receipt of applica tions was October 5, 1987, and those who took part in that competition were assessed by a selec tion board primarily on the basis of their answers to a series of preset questions during individual interviews. Among the 14 participants were the respondent and Mrs. Scholefield who was ulti mately chosen as the best qualified candidate. The respondent appealed against her proposed appoint ment pursuant to section 21 of the Public Service Employment Act. One of his grounds of appeal was stated in the following terms in his notice of appeal:
An element of preselection took place as the successful candi date Mrs. W. Scholefield was on assignment to the position for several months prior to the selection board ....
The Appeal Board allowed the appeal on that ground for reasons stated in the following passages of its decision:
I see the principle of making selections for appointment on the basis of merit, the cornerstone of the system of promotion
In order to fully understand certain of the passages of the Board's decision, it is necessary to know that, at approximately the same time, an employee from the Department of National Health and Welfare was also seconded to the Investigations Directorate so that she could receive training as an Investiga- tions/Conciliation Officer. This fact is not otherwise relevant to the issues to be decided in this case.
in the Public Service, as a daily working principle and not one that operates in a vacuum separate from the working environ ment. By that I mean that the merit principle is not suddenly pulled out of a hat when a notice of competition is posted and locked away in a cupboard once an eligible list is established. It is a principle which should be acknowledged when staffing actions are taken to address operational problems. Operational problems are not always resolved by making indeterminate appointments. Sometimes they are resolved by acting appoint ments or by appointments made for training purposes allowing persons to develop skills not specifically required for the performance of the position that an employee occupies but for a position to which an employee might aspire. In such cases, the merit principle cannot simply be ignored. The merit principle has application in the broad area of personal development for promotion. That is not to say that I see the merit principle demanding that all employees have exactly the same opportu nity for development and promotion. Luck and happenstance are facts of life. The merit principle is therefore not always compromised by advantages gained by "being in the right place at the right time". Whether the merit principle has been applied in a given case must obviously be determined on the facts of the case itself.
In this case, 1 am of the view that the opportunities afforded to the trainees and Mrs. Scholefield in particular go beyond luck and happenstance. Consequently, I am of the view that the principle of making selections for appointment on the basis of merit can be seen to have been compromised ....
In the circumstances of this case, I find it difficult to convince myself when the task of selecting someone for appointment actually began and actually finished. The notice of competition certainly did not start the search for someone to carry out the duties of the position of Investigations/Concilia- tion Officer. The search was started when the operational requirements demanded attention and when the opportunity to create training assignments was identified. The search was limited to a small group of known employees. The ultimate selections were not shown to have been made on the basis of merit. The employees selected were invited to perform what duties of the position they could and trained to perform addi tional duties. Then a notice of competition was prepared and distributed and other persons invited to apply for appointment. Candidates were required to respond to a series of preset questions. It might well be that it was not necessary to perform the duties of the position in order to be able to successfully respond to those questions. However, a review of the questions leads me to believe that actually having performed the duties would allow a person the opportunity to respond to those questions more completely than someone who had not per formed the duties ....
... In the circumstances, it is difficult to know the extent to which the opportunity given to the two trainees resulted in the selection of one of them for appointment. Had the merit principle been applied in making the selections for training, I could accept the contention that the selection for appointment
could be seen to have been based on merit in as much as the most meritorious trainee had developed her skills to good advantage. However, since it is not clear that the merit princi ple was applied when the search to identify someone for appointment began in the first instance, I cannot conclude whether the person selected for appointment from among those who responded to the notice of competition was indeed the best qualified or whether the specific training that she had received simply allowed her to better answer a series of questions related to duties she had been allowed to perform under direction. In other words, the validity of the responses to a series of preset questions as a basis for evaluating the real value of the candi dates' qualifications is a contentious issue in the circumstances of this case.
To summarize my views, I believe that the principle of making selections for appointment on the basis of merit would be ill-served if the proposed appointment was allowed to stand. The procedures followed in this case honor that principle more in illusion than reality and I therefore allow the appeal against the proposed appointment.
As I read that decision, it does not rest on the finding that the competition which led to Mrs. Scholefield's proposed appointment was designed not to estblish the merits of the various candidates for the position but, rather, to determine who among them had the most practical experience in that position. Indeed, the reasons given by the Board make that clear since they indicate that the decision would have been different if Mrs. Schole- field had acquired her practical experience in cir cumstances that did not lead the Board to think that she owed that experience to the employer's favouritism.
The decision, as I read it, is based on three propositions:
(a) Mrs. Scholefield's temporary assignment had to be made on the basis of merit because "the merit principle has application in the broad area of personal development for promotion";
(b) the respondent's appeal to the Board was directed against a selection process that included Mrs. Scholefield's temporary assignment so that it was the duty of the Board to determine wheth er that assignment had been made on the basis of merit; and
(c) the fact that Mrs. Scholefield's temporary assignment had not been based on merit tainted the competition that led to her proposed perma-
nent appointment since her temporary assign ment had given her an advantage over the other candidates in the competition.
In my view, those propositions are inaccurate. The so-called "merit principle" is a compendious reference to the rule stated in section 10 of the Public Service Employment Act. A mere reading of that section shows that it applies only to "appointments ... within the Public Service". It does not apply to temporary assignments that are not appointments within the meaning of the Act. 2 If, therefore, Mrs. Scholefield's temporary assign ment was not an "appointment", it was not subject to the merit principle and, consequently, it did not matter whether or not that assignment was part of the selection process that the Appeal Board had to examine.
If, however, the temporary assignment was an appointment, it followed that it was required to be made on the basis of merit and, as it had been made without a competition, that it could be chal lenged by way of an appeal under section 21 of the Public Service Employment Act if the appeal was brought by a "person whose opportunity for advancement, in the opinion of the Commission, ha[d] been prejudicially affected" by the assign ment. Such an appeal against the temporary assignment would, of course, be different from any appeal brought against the permanent appoint ment. In fact, there would be no relationship be tween those appeals save that the making of a valid permanent appointment would render moot and academic the appeal against the temporary assignment. Therefore, a board established by the Commission to rule on an appeal against a perma nent appointment is not entitled to determine the validity of the temporary assignment that preceded that appointment.
Finally, the fact that Mrs. Scholefield's tempo rary assignment may have given her an advantage over the other candidates was not relevant to the determination that the Board had to make. The Board had to decide whether the competition which resulted in Mrs. Scholefield's proposed
2 All temporary assignments are not appointments: Doré v. Canada, [1987] 2 S.C.R. 503, at p. 511.
appointment violated the merit principle; it could not inquire into the circumstances in which the various candidates had acquired their respective merits.
I would allow the application, set aside the decision of the Board and refer the matter back to it for decision on the basis that the manner in which Mrs. Scholefield was temporarily assigned or seconded to the position of Investigations/Con- ciliation Officer (PE-04) with the Investigations Directorate of the Public Service Commission in Vancouver must not be taken into consideration in determining whether her subsequent proposed appointment to that same position violated the merit principle.
* * *
The following are the reasons for judgment rendered in English by
MAHONEY J.A. This application under section 28 of the Federal Court Act seeks to set aside a decision of an Appeal Board which, pursuant to section 21 of the Public Service Employment Act, allowed the respondent's appeal against the deci sion to appoint Wendy Scholefield to the position of Investigations/Conciliation Officer in the Inves tigations Directorate of the Public Service Com mission in its Vancouver office. The incumbent in the position resigned early in 1987 and, on May 5, the office requested a replacement. In late June, the office recognized an operational need to have the work of the position done. Mrs. Scholefield, employed in another position in the office, was assigned to do the work in late June or early July. One of the difficulties encountered during argu ment of this application arose out of the Appeal Board's use of the terms "assignment", "second- ment" and "acting appointment" interchangeably. As counsel and the Court agreed, Mrs. Schole- field's occupation of the position was by virtue of an assignment. Notice of a competition was pub lished with a closing date of October 5. Mrs. Scholefield entered and, on October 26, was among the eight candidates deemed qualified by the Selection Board. The Selection Board had not, at that time, assessed the candidates as to discre tion and initiative, which were to be assessed on the basis of information gathered through refer ence checks. It was, however, satisfied that the four top-rated candidates could not be replaced by
the bottom four so it directed reference checks only as to the top four. After the reference checks, Mrs. Scholefield was identified as the top-ranked candidate and, following an "enhanced reliability check", her appointment was proposed. The respondent appealed.
This application is entirely concerned with whether, in the circumstances, the merit principle mandated by section 10 of the Public Service Employment Act was duly observed in the process that let to Mrs. Scholefield's selection for appoint ment to the position to which she had been assigned.
10. Appointments to or from within the Public Service shall be based on selection according to merit, as determined by the Commission, and shall be made by the Commission, at the request of the deputy head concerned, by competition or by such other process of personnel selection designed to establish the merit of candidates as the Commission considers is in the best interests of the Public Service.
Mr. Justice Pratte has quoted extensively from Appeal Board's decision. It is unnecessary for me to repeat that. My appreciation of the bases for the decision is somewhat different from his. As I read it, the Appeal Board reached its conclusion on two discrete bases: firstly, that the merit principle applied to the assignment of Mrs. Scholefield to the position because "the merit principle has application in the broad area of personal [sic] development for promotion" and, secondly, that the advantage given Mrs. Scholefield in the com petition by the combination of her assignment and the nature of the questions posed by the Selection Board compromised the merit principle.
I agree with Mr. Justice Pratte that the Appeal Board erred in law in holding that Mrs. Schole- field's assignment had to be made on the basis of merit. The assignment was not an appointment within the contemplation of section 10. However, I am also of the view that the decision, based on the second ground, is not subject to be set aside on a section 28 application.
In Doré v. Canada, [1987] 2 S.C.R. 503, at page 511, Le Dain J., for the Court, said:
The ultimate issue in the appeal is whether the assignment of the mis en cause on a temporary basis to the position of supervisor of the reception and inquiries section, pending the classification of the position, was an appointment to the posi tion within the meaning of s. 21 of the Public Service Employ ment Act. On this issue, I am of the view that while it must be possible for the administration to assign a person in the Public Service to new functions on a temporary basis without giving rise to the application of the merit principle and the right of appeal, that reasonable flexibility should no longer be available where, as in the present case, the assignment is permitted to become one of such significant and indefinite duration as may be presumed to place the occupant of the position at a distinct advantage in any subsequent selection process. In my opinion the assignment of the mis en cause to the position of supervisor of the reception and inquiries section on a full-time basis for some nine months had acquired that character when the appel lant's appeal was heard by the appeal board in November, 1984. 1 am, therefore, of the opinion that there was an appoint ment of the mis en cause to a position within the meaning of s. 21 of the Public Service Employment Act and that since, on the admission of the Department, the appointment was not based on selection according to merit, as required by s. 10 of the Act, the appeal board properly revoked the appointment.
That is not, in my respectful opinion, authority, as the applicant has argued, for the proposition that the only circumstance associated with an assign ment which can offend the merit principle is if it persists for so long as to become an appointment. It seems to me that other circumstances taken together with an assignment may equally offend the merit principle. The merit principle requires the appointment of the candidate best qualified to fill a position. That is not necessarily the candidate best informed about it.
The Appeal Board did not err in law in conclud ing that an assignment in combination with a selection process that gave an unfair advantage to the candidate assigned to the position could com promise application of the merit principle. The conclusion that the assignment in combination with the preset questions asked by the Selection Board had that result in the present instance was a finding of fact which cannot be said to have been erroneous as contemplated by section 28 of the Federal Court Act.
I would dismiss this section 28 application. DESJARDINS J.A.: I agree.
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