Judgments

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T-2346-88
Gilles Jourdain (Plaintiff)
v.
The Queen in Right of Canada Represented by the Treasury Board (Defendant)
INDEXED AS: JOURDAIN V. CANADA (TREASURY BOARD) (T.D.)
Trial Division, Teitelbaum J.—Montréal, June 20; Ottawa, August 21, 1989.
Public Service Jurisdiction Application for declara tion policy banning smoking in workplace outside Treasury Board's jurisdiction Health and safety "pith and sub stance" of smoking policy Treasury Board having authority under both 1970 and 1985 Financial Administration Acts to set policy of reasonable conditions of workplace, particularly when involving public interest in health and safety Also within authority as employer unless issue inserted into collec tive agreement Smoking policy rule of conduct of internal nature made pursuant to general power of control Applica tion dismissed.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canada Labour Code, R.S.C. 1970, c. L-1.
Financial Administration Act, R.S.C. 1970, c. F-10, ss.
5(1), 7(1)(J),(g) (rep. by S.C. 1984, c. 39, s. 41),(i). Financial Administration Act, R.S.C., 1985, c. F-11, ss.
7(I), 11(2).
CASES JUDICIALLY CONSIDERED
APPLIED:
Associated Bakery Stores Inc. c. Comité paritaire de livraison de pain de la région de Montréal, [1976] C.A. 481 (Que).
AUTHORS CITED
Dussault, R. and Borgeat, L. Administrative Law: A Treatise, vol. 1, 2nd ed. Toronto: Carswell, 1985.
COUNSEL:
Denis Sauvé and Pierre Deschamps for plaintiff.
Raymond Piché and Pascale Lagacé for defendant.
SOLICITORS:
Denis Sauvé, Montréal, for plaintiff.
Deputy Attorney General of Canada for
defendant.
The following are the reasons for judgment rendered in English by
TEITELBAUM J.: The plaintiff, Gilles Jourdain, hereinafter referred to as Jourdain, is a federal civil servant who is a long-time smoker. He is seeking, in the present proceedings, a declaration that the defendant's, Her Majesty the Queen represented by the Treasury Board, smoking policy is illegal.
In the statement of claim, filed by Jourdain into the Federal Court Registry, Jourdain asks in para graphs 19(2) and (3) for a declaration that the policy adopted by the Treasury Board, hereinafter referred to as the Board, on August 12, 1987 was ultra vires of the jurisdiction of the Board and that the defendant be ordered to pay to Jourdain a sum of $500 representing exemplary damages.
Soon after the commencement of the hearing, counsel for Jourdain informed me that he no longer is making a claim for exemplary damages, the only issue remaining is the request by Jourdain for a declaration that the smoking policy issued by the Board on August 12, 1987 is invalid as being outside the Board's powers. All other conclusions in the statement of claim, except for costs, are withdrawn by Jourdain.
Neither party presented witnesses. The facts, agreed to, by the plaintiff and the defendant are that:
a) Jourdain is a member of the federal civil service since September 1, 1985;
b) Jourdain is a smoker;
c) The Board adopted a smoking policy on August 12, 1987 (806374) and a revised policy on October 4, 1988.
Jourdain alleges, in his statement of claim, that the Board's policy of August 12, 1987 (806374) seeks to prohibit smoking in the workplace as of January 1, 1989, that this August 12, 1987 policy was replaced on October 4, 1988 by a revised version and that both policies were adopted pursu-
ant to section 7 of the Financial Administration Act, R.S.C. 1970, c. F-10, (Act). Jourdain further alleges that when the Board adopted policy no. 806374 on August 12, 1987, it had no authority to do so as there was nothing to be found in section 7 of the Act authorizing the adoption of such a smoking policy.
The defendant, in its statement of defence, denies the above allegations of Jourdain. The defendant alleges that the Board as employer has the power, right and authority to adopt the smok ing policy in issue, that is, the Board, as employer has the right, power and authority to prohibit smoking in the workplace during the normal course of work and to impose, if it so desires, sanctions when that policy is contravened.
Plaintiff's Submission
On August 12, 1987, the Treasury Board adopt ed a Public Service Smoking Policy whereby it was to be forbidden as of January 1, 1989, to smoke tobacco products in the workplace. Plaintiff sub mits that this policy was adopted by the Board pursuant to section 7 of the Financial Administra tion Act, R.S.C. 1970, c. F-10 and more particu larly paragraph 7(1)(g):
7. (1) Subject to the provisions of any enactment respecting the powers and functions of a separate employer but notwith standing any other provision contained in any enactment, the Treasury Board may, in the exercise of its responsibilities in relation to personnel management including its responsibilities in relation to employer and employee relations in the public service, and without limiting the generality of sections 5 and 6,
(g) establish and provide for the application of standards governing physical working conditions of, and for the health and safety of, persons employed in the public service;
In the August 12, 1987 policy statement it states as the policy:
Smoking of tobacco or other products will be banned in all Public Service workplaces by January 1, 1989.
In the said document, found under Tab 1 of the book filed herein "Lois Règlements et Politiques", it states under Authority, in section 1.4:
The Public Service Smoking Policy is authorized pursuant to Section 7 of the Financial Administration Act, and has been approved by the Treasury Board under TB Minute No. 806374 of August 12, 1987.
On October 4, 1988 a revised policy was adopt ed whereby it was intended to promote a safe and healthy work environment free, to the extent possi ble, of tobacco smoke. Under Policy Objective, it states:
The intent of this policy is to promote a safe and healthy work environment for employees in the Public Service, free, to the extent possible, of tobacco smoke.
Plaintiff submits that it would appear that the revised policy adopted by the Treasury Board was pursuant to section 7 of the Financial Administra tion Act, R.S.C., 1985, c. F-11. This section of the 1985 R.S.C. Act is not the same as section 7 of the Financial Administration Act R.S.C. 1970, c. F-10:
7. (1) The Treasury Board may act for the Queen's Privy Council for Canada on all matters relating to
(a) general administrative policy in the public service of Canada;
(b) the organization of the public service or any portion thereof, and the determination and control of establishments therein;
(c) financial management, including estimates, expenditures, financial commitments, accounts, fees or charges for the provision of services or the use of facilities, rentals, licences, leases, revenues from the disposition of property, and proce dures by which departments manage, record and account for revenues received or receivable from any source whatever;
(d) the review of annual and longer term expenditure plans and programs of the various departments of Government, and the determination of priorities with respect thereto;
(e) personnel management in the public service of Canada, including the determination of the terms and conditions of employment of persons employed therein; and
(/) such other matters as may be referred to it by the Governor in Council.
Plaintiff submits that both policies adopted by the Treasury Board are illegal. Plaintiff submits that the Treasury Board did not have, pursuant to section 7 of the Financial Administration Act, R.S.C. 1970, c. F-10, the authority to adopt the initial policy as the only subsection upon which the Treasury Board could have derived authority for this policy was paragraph 7(1)(g) which was repealed in 1986 [S.C. 1984, c. 39, s. 41]. Plaintiff states that as regards the revised policy, he believes that it was adopted pursuant to the au-
thority given to the Board by subsection 7(1) of the Financial Administration Act, R.S.C., 1985, c. F-11 which section reproduces subsection 5(1) of the R.S.C. 1970 Act which states: (see above subsection 7(1) of R.S.C., 1985 Act).
The 1985 Revised Statutes of Canada only became effective on December 12, 1988 indicating, according to plaintiff, that on October 4, 1988 when the revised policy was made, the Treasury Board had no authority to make such a revised policy.
Plaintiff submits that the authority to adopt the August 12, 1987 policy had to come from para graph 7(1)(g) of the 1970 R.S.C. Financial Administration Act dealing with health and safety. Plaintiff believes it could not have come from the "general" clauses found in this section. Plaintiff, furthermore, states that in the Treasury Board's deliberations, it seems to expressly recognize that the Board had paragraph 7(1)(g) in mind when adopting the policy of August 12, 1987.
Nothing was shown to me in the policy paper to indicate this. There is reference made in section 1.7 of the 1987 policy paper to "local safety and health committee", in section 2.1.1 "department's safety and health committees", section 2.1.4 "the local safety and health committee or representa tive" but nothing that would indicate that the policy is being made for safety and health reasons. It may be possible to make such an assumption but, in this case, no evidence was submitted that smoking is a health hazard.
Plaintiff further submits that Parliament abol ished paragraph 7(1)(g) in the context of a reform of the Canada Labour Code [R.S.C. 1970, c. L-1]. Plaintiff submits that in taking away the power of health and safety from the Treasury Board, Parlia ment meant to place it in the Labour Code as, I assume, to become an issue for bargaining. Now that the health and safety clause is part of the Canada Labour Code, plaintiff submits that the Treasury Board cannot deal with the subject- matter.
Plaintiff submits that the Treasury Board cannot now say it has a general power to adopt a smoking policy. Parliament had given the Board a very specific power to deal with health and safety issues (paragraph 7(1)(g)) and then, in 1986, took it away. Since the Treasury Board lost its author ity to deal with safety and health issues, it cannot now attempt to deal with a health and safety issue by stating it has ancillary powers and thus make a policy specifically dealing with a health and safety issue.
Defendant's Submission
Defendant states that plaintiff assumes that the smoking policy has to do with health and safety. Defendant denies this and states the only reason for the policy is nothing more or less than to stop smoking in the workplace. Defendant cites the case of Associated Bakery Stores Inc. c. Comité pari- taire de livraison de pain de la région de Mont- réal, [1976] C.A. 481, (Que.) at page 484 for the proposition that one has to look to the pith and substance of the policy to find its object:
[TRANSLATION] I fully agree with the appellant's proposition that one must look to the essence (pith and substance) of a statute in order to determine its object.
Defendant submits that the smoking policy is not just a question of health and safety but of many factors, including financial. As counsel sub mits, it could be to cut costs of painting walls because of the smoke, of replacing carpets because of holes in the carpets caused by burning cigarettes or it may have to do with productivity.
Defendant further submits that even if the policy deals only with health and safety, the Trea sury Board would have the authority to make such a policy because it is the Treasury Board who is the employer and is responsible to administer all ministries of the Government. The Board, it is submitted, pursuant to the present (new) subsec tion 7(1) or old subsection 5(1) has all the inher ent powers of an employer. Defendant states sub section 7(1) (new) gives the Treasury Board all the powers of an employer. Subsection 11(2) (new) enumerates that power:
11. ...
(2) Subject to the provisions of any enactment respecting the powers and functions of a separate employer but notwithstand ing any other provision contained in any enactment, the Trea sury Board may, in the exercise of its responsibilities in relation to personnel management including its responsibilities in rela tion to employer and employee relations in the public service, and without limiting the generality of sections 7 to 10,
(a) determine the requirements of the public service with respect to human resources and provide for the allocation and effective utilization of human resources within the public service;
(b) determine requirements for the training and develop ment of personnel in the public service and fix the terms on which such training and development may be carried out;
(c) provide for the classification of positions and employees in the public service;
(d) determine and regulate the pay to which persons employed in the public service are entitled for services ren dered, the hours of work and leave of those persons and any matters related thereto;
(e) provide for the awards that may be made to persons employed in the public service for outstanding performance of their duties, for other meritorious achievement in relation to those duties and for inventions or practical suggestions for improvements;
(/) establish standards of discipline in the public service and prescribe the financial and other penalties, including suspen sion and discharge, that may be applied for breaches of discipline or misconduct, and the circumstances and manner in which and the authority by which or whom those penalties may be applied or may be varied or rescinded in whole or in part;
(g) establish and provide for the application of standards governing physical working conditions of, and for the health and safety of, persons employed in the public service;
(h) determine and regulate the payments that may be made to persons employed in the public service by way of reim bursement for travel or other expenses and by way of allow ances in respect of expenses and conditions arising out of their employment; and
(i) provide for such other matters, including terms and conditions of employment not otherwise specifically provided for in this subsection, as the Treasury Board considers neces sary for effective personnel management in the public service.
It must be recalled that the "new" Financial Administration Act, R.S.C., 1985, c. F-11 was not in effect when the revised policy was made by the Board. It is not enough, even by implication, to say that even if the new version of the Act had not come into force, when the revised policy was made by the Board, it would be a waste not to adopt the revised policy as the new version of the Act is now in effect. I am satisfied that the Board, on October 4, 1988, could not rely, for authority, on an Act,
the Financial Administration Act, R.S.C., 1985, c. F-11, that had not yet come into effect.
Defendant further submits that the Treasury Board as an employer has the right to ban smoking and set up sanctions if the ban is not followed by the employees.
Conclusion
I have grave doubts that the smoking policy is not about health and safety. The Treasury Board and before the Treasury Board, ministers in charge of their departments never, before August 1987 issued a policy on the issue of smoking in the workplace. I am satisfied that this was not done because, going back a number of years, smoking was not considered as necessarily being a hazard ous habit. Although no evidence was put before me as to the hazards of smoking or of inhaling second hand smoke, I believe I can take judicial notice that there exists some evidence of the possible hazardous effects of smoking and of inhaling tobacco smoke. Notwithstanding defendant's sub mission that the policy has little or nothing to do with health and safety, I am satisfied that the "pith and substance" of the policy is the health and safety of federal public servants and of persons dealing with public servants.
As an employer, I am satisfied that the Treasury Board has the authority, both under the old and new Act to set a policy of reasonable conditions of the workplace particularly when it involves the public interest in health and safety. An employer alone has the authority to decide on the reasonable conditions of the workplace unless the issue of these reasonable conditions becomes a matter inserted into an agreement between the representa tives of the public service and the Treasury Board.
It would appear that the Board has the power to make the policy pursuant to section 7 of the old Act, particularly paragraphs 7(1)(f) and 7(1)(i).
In conclusion, I am satisfied that, as an employ er, the Treasury Board has the authority to estab lish, in the interest of its work force, policies involving the issue of smoking. It is a rule of conduct of an internal nature made pursuant to a general power of control (Dussault R. and Borgeat L. Administrative Law:• A Treatise, vol. 1, 2nd ed., Toronto: Carswell, 1985).
The policy adopted by the Treasury Board on August 12, 1987 and revised on October 4, 1988 is valid.
Costs in favour of defendant.
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