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A-206-90
Attorney General of Canada (Applicant)
v.
Public Service Alliance of Canada (Respondent)
INDEXED AS: CANADA (ATTORNEY GENERAL) V. PUBLIC SER VICE ALLIANCE OF CANADA (CA.)
Court of Appeal, Pratte, Heald and Mahoney JJ.A.—Ottawa, October 23 and November 27, 1990.
Public Service — Jurisdiction — Whether PSSRB having jurisdiction to entertain reference pursuant to PSSRA, s. 99 concerning contracting out of data capture function resulting in loss of employment for indeterminate employees — Board ruling Work Force Adjustment Policy and collective agree
ment violated S. 99 permitting reference to enforce obliga tion arising out of collective agreement when not obligation "enforcement of which may be the subject of a grievance of an employee in the bargaining unit to which the agreement ... applies" — Employee right to grieve provided in s. 91 Whether obligations arising out of collective agreement enforceable by individual — Whether obligations enforceable by union or employer mutually exclusive — Discussion of policy grievance".
Public Service — Labour relations — Government policy to substantially reduce size of Public Service — Collective agree ment incorporating Work Force Adjustment Policy whereby employer to review and terminate contracting out to facilitate redeployment of indeterminate employees whose services no longer required because of lack of work or discontinuance of function — Inconsistent with creation of surplus or laid-off personnel by contracting out jobs that they have been doing — PSSRB correctly declaring violation of Policy and collective agreement.
This was an application to set aside a declaration of the Public Service Staff Relations Board on a reference pursuant to Public Service Staff Relations Act, section 99. The collective agreement between Treasury Board and the respondent (which represented data processors employed by the Department of National Revenue, Customs and Excise) incorporated the Work Force Adjustment Policy, which provided for the rede ployment and retraining of indeterminate employees laid off pursuant to Public Service Employment Act, section 29. In 1985, after the Government announced its decision to reduce the size of the Public Service, the Department began contract ing out the work done by data capture employees. The Board held that this contracting out violated the Work Force Adjust ment Policy, and therefore the collective agreement. It held that the grievance was a policy, rather than an individual grievance and as such belonged to the bargaining agent. The
issues were whether the Board had jurisdiction to deal with the reference, and if so, whether it erred in law in concluding as it did. Section 99 provides that a reference may be made to the Board to enforce an obligation arising out of a collective agreement provided that it "is not one the enforcement of which may be the subject of a grievance of an employee in the bargaining unit to which the agreement ... applies". The applicant's submission was that the question could not be referred to the Board because it related to an obligation the enforcement of which might be the subject of grievances by employees. The respondent argued that it was attempting to enforce the employer's obligation not to contract out work done by its employees, an obligation which was owed to the union rather than to the employees and which could only be enforced by the union. Subsection 91(1) gives an employee the right to grieve the interpretation or application of a collective agreement.
Held (Pratte J.A. dissenting): the application should be dismissed.
Per Mahoney J.A. (Heald J.A. concurring): The Board had jurisdiction to deal with the issue in the reference. Use of the term "policy grievance" was unfortunate as that term is not known to the Act. Unlike cases where there was unilateral adoption of a policy which might breach the rights of an employee under the collective agreement, the policy herein was mutually agreed to and the dispute did not concern its applica tion to individual employees but rather the right of the employ er to contract out services performed by members of the bargaining unit. The issue went beyond the obligation owed to an individual employee and had to do with the very existence and raison d'être of the bargaining agent. It has been recog nized that some questions might be subject of individual griev ance or reference. The nature of the relief sought is relevant to whether the proceeding should be characterized as being the enforcement of an obligation "which may be the subject of a grievance of an employee". Some of the affected employees, certainly some who were laid off, probably had a right person ally to grieve on the basis of the alleged obligation not to contract out.
The Board correctly held that the employer's conduct was contrary to both the letter and spirit of the Work Force Adjustment Policy. The Policy does not prohibit contracting out but contemplates that, to facilitate redeployment of "affect- ed", "surplus", or "laid-off" personnel, the employer will review and terminate its use of contracted services. That requirement is inconsistent with the creation of "affected", "surplus", or "laid-off' personnel, by contracting out the very jobs that they have been doing. By definition, a "Work Force Adjustment" occurs when management decides that indetermi nate employees will no longer be required because of "lack of work" or a "discontinuance of a function". The services of an employee whose job has been contracted out are not required only because the job has been contracted out, not because of
lack of work or the discontinuance of a function. The work remains to be done and the function continues.
Per Pratte J.A. (dissenting): The matter referred to the .Board could not be the subject of a reference under section 99. Sections 91 and 99 distinguish two kinds of obligations that may arise out of collective agreements: those that may be enforced by an individual employee filing a grievance and those that may be enforced by the union or employer by way of reference. The two classes of obligations are mutually exclusive. To classify such obligations it must be determined in whose favour each one is stipulated. The obligation sought to be enforced was not to contract out services so as to cause prejudice to indeterminate employees. It was for the benefit of those employees who alone are entitled to grieve if the employer violates that undertaking.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Federal Court Act, R.S.C., 1985, c. F-7, s. 28.
Public Service Employment Act, R.S.C., 1985, c. P-33,
s. 29.
Public Service Staff Relations Act, R.S.C. 1970, c. P-35
(as am. by S.C. 1974-75-76, c. 67, s: 27), s. 98. '
Public Service Staff Relations Act, R.S.C., 1985, c. P-35,
ss. 91(1), 99.
CASES JUDICIALLY CONSIDERED
APPLIED:
Canadian Air Traffic Control Association v. The Queen, [1985] 2 F.C. 84; (1985), 85 CLLC, 14,106; 57 N.R. 351 (C.A.). ,
DISTINGUISHED:
Professional Institute of the Public Service v. Canada, A-64-90, Hugessen J.A., judgment dated 27/9/90, F.C.A., not yet reported.
CONSIDERED:
Queen (The) v. Lavoie, [1978] 1 F.C. 778; (1977), 18 N.R. 521 (C.A.).
REFERRED TO:
American Farm Bureau Federation v. Canadian Import Tribunal [National Corn Growers Assn. v. Canada (Import Tribunal)], [1990] 2 S.C.R. 1324; Gloin v. Attorney General of Canada, [1978] 2 F.C. 307; (1977), 20 N.R. 475 (C.A.).
COUNSEL:
Harvey A. Newman and Ronald N. Snyder for applicant.
Andrew J. Raven and Dianne Nicholas for respondent.
SOLICITORS:
Deputy Attorney General of Canada for
applicant.
Soloway, Wright, 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., 1985, c. F-7] application seeks to set aside a decision of the Public Service Staff Relations Board on a reference made by the respondent pursuant to section 98 [R.S.C. 1970, c. P-35 (as am. by S.C. 1974-75-76, c. 67, s. 27)] (now section 99) of the Public Service Staff Rela tions Act [R.S.C., 1985, c. P-35].'
The respondent was the bargaining agent for all employees of the Treasury Board in the Data Processing (DA) bargaining unit, a bargaining unit that included the employees performing data capture functions for the Department of National Revenue, Customs and Excise. The respondent and Treasury Board entered into a collective agree ment in respect of that bargaining unit for a period ending on June 30, 1988, which contained a clause (article M-37.03(28)) providing that the "Work
' This section reads thus:
99. (1) Where the employer and a bargaining agent have executed a collective agreement or are bound by an arbitral award and the employer or the bargaining agent seeks to enforce an obligation that is alleged to arise out of the agreement or award, and the obligation, if any, is not one the enforcement of which may be the subject of a grievance of an employee in the bargaining unit to which the agreement or award applies, either the employer or the bargaining agent may, in the prescribed manner, refer the matter to the Board.
(2) Where a matter is referred to the Board pursuant to subsection (1), the Board shall hear and determine whether there is an obligation as alleged and whether, if there is, there has been a failure to observe or to carry out the obligation.
(3) The Board shall hear and determine any matter referred to it pursuant to subsection (1) as though the matter were a grievance, and subsection 96(2) and sections 97 and 98 apply to the hearing and determination of that matter.
Force Adjustment Policy" approved by Treasury Board was to form part of the collective agree ment. That policy is, in effect, a set of directives to be applied by the various departments, the Trea sury Board and the Public Service Commission for the purpose of ensuring that indeterminate employees in the Public Service that are laid off pursuant to section 29 of the Public Service Employment Act [R.S.C., 1985, c. P-33] 2 are treated fairly and are given a reasonable opportu nity to continue their careers by being redeployed in other positions in the Public Service.
In 1985, after the Government had announced its decision to decrease the size of the Public Service by some 15,000 person years within the next five years, the Department of National Reve nue notified its employees that, in accordance with that policy, it intended to reduce its personnel by contracting out the work done by its data capture employees who, as a consequence, would have to be laid off pursuant to section 29 of the Public Service Employment Act. Early in 1987, the Department entered into a contract with an independent contractor, Automation Centre of Ottawa Ltd., which agreed to perform the work then done by the data capture employees of the Department. At the end of 1987, the contractor's employees had replaced those of the Department, the vast majority of whom had been redeployed to other positions in the Public Service.
On December 22, 1988, the respondent filed a reference pursuant to what is now section 99 of the
2 That provision reads as follows:
29. (1) Where the services of an employee are no longer required because of lack of work or because of the discon tinuance of a function, the deputy head, in accordance with the regulations of the Commission, may lay off the employee.
(2) An employee ceases to be an employee when the employee is laid off pursuant to subsection (1).
(3) Notwithstanding anything in this Act, the Commis sion shall, within such period and in such order as it may determine, consider a lay-off for appointment, without com petition and, subject to sections 30 and 39, in priority to all other persons, to any position in the Public Service for which, in the: opinion of the Commission, the lay-off is qualified.
(4) Notwithstanding subsection (2), a lay-off is entitled, during such period as the Commission may determine for any case or class of cases, to enter any competition for which the lay-off would have been eligible had he not been laid off.
Public Service Staff Relations Act alleging that the Department, in contracting out the work done by its data capture employees, had contravened the Work Force Adjustment Policy. It was the respondent's contention that, under the policy, the Department was prohibited from contracting out its services if such action resulted in indeterminate employees being "affected", "surplus" or "laid off" within the meaning of the policy.'
The applicant first raised a preliminary objec tion to that reference and argued that the Board had no jurisdiction in the matter since the question referred to the Board by the respondent could not, under section 99, be the subject of a reference. That objection was dismissed by the Board in a decision dated June 23, 1989. In its final decision, pronounced on March 13, 1990, the Board ruled in favour of the respondent: it determined and declared that, in contracting out the work done by its data capture employees, the Department had violated the Work Force Adjustment Policy and, thereby, the collective agreement.
The applicant attacks this decision on two grounds, namely, that the Board had no jurisdic tion in the matter and that, in any event, the decision under attack is founded on a misinterpre tation of the Work Force Adjustment Policy.
3 The policy defines these expressions as follows:
AFFECTED EMPLOYEES: Indeterminate employees whose ser vices will no longer be required because of WORK FORCE ADJUSTMENT situations.
WORK FORCE ADJUSTMENT: A situation which occurs when a deputy head or DELEGATED OFFICER decides that the services of one or more indeterminate employees will no longer be required beyond a specified date because of lack of work or because of the discontinuance of a function ....
SURPLUS EMPLOYEE: An indeterminate employee who has been declared surplus.
SURPLUS PRIORITY: An administrative priority accorded by the PSC to 'SURPLUS EMPLOYEES to permit them to be appointed to other positions in the Public Service without competition or right of appeal.
LAY-OFF: Termination of employment under Section 29 of the Public Service Employment Act.
The applicant's jurisdictional argument is based on subsection 99(1) of the Public Service Staff Relations Act which clearly provides that a refer ence may be made to the Board for the purpose of enforcing an obligation arising out of a collective agreement only when the obligation in question "is not one the enforcement of which may be the subject of a grievance of an employee in the bargaining unit to which the agreement ... applies". In this case, says the applicant, the ques tion that the respondent referred to the Board could not be the subject of a reference because it related to an obligation the enforcement of which might be the subject of grievances by the employees concerned. The position of the respond ent on this point is that, by its reference, it was seeking to enforce the employer's obligation not to contract out work done by its employees, an obli gation which was owed to the union rather than to the employees and which, as a consequence, could only be enforced by the union itself. Moreover, according to the respondent, many of the employees concerned in this case might not have filed grievances since, having ceased to be employees, they had thereby lost the right to grieve.
Under subsection 99(1), a reference may be made to the Board for the purpose of enforcing an obligation arising out of a collective agreement provided that obligation "is not one the enforce ment of which may be the subject of a grievance of an employee". On the other hand, subsection 91(1) gives the right to file a grievance to the employee who feels aggrieved by the interpretation or application, in his respect, of the collective agree ment. These provisions make a clear distinction between two kinds of obligations that may arise out of collective agreements: those that may be enforced at the suit of an individual employee by filing a grievance and those that may be enforced at the request of the union or the employer by way of reference under subsection 99(1). These two classes of obligations are mutually exclusive since, under subsection 99(1), the enforcement of an obligation may not be the subject of a reference if it may be the subject of a grievance. All the obligations arising out of a collective agreement must, therefore, be classified in one or the other of these two categories. Common sense requires that
this classification be made by determining in whose favour each one of those obligations is stipulated.
In order to resolve the "jurisdictional" question raised by the applicant, it is therefore necessary to specify the, real nature of the obligation that the respondent was seeking to enforce by its reference since,, without knowing what that obligation was, it is impossible to. say whether it was stipulated in favour of the union or the individual employees. That obligation was allegedly created by section 5.1. of the Work Force Adjustment Policy. That section enumerates the responsibilities of the Department in a work force adjustment situation:
5.1 Departments shall:
5.1.2 review their use of employees appointed for specified periods (term employees) and their use of contracted services and should terminate them where such action would facili tate the REDEPLOYMENT of AFFECTED EMPLOYEES, SUR PLUS EMPLOYEES, OR LAID-OFF PERSONS;
The respondent reads this clause as imposing on the departments the firm obligation, in a "work force adjustment situation", to terminate contract for services when this action would facilitate the redeployment of "affected employees", "surplus employees" or. "laid-off persons". It logically fol lows, according to the respondent, that the depart ments also have the obligation not to contract out services if, as a result of the contracting out, a work force adjustment situation would be created necessitating the redeployment of indeterminate employees. Otherwise, a department would have, on the one hand, the right, to contract out services so as to create a work force adjustment situation and, on the other hand, the obligation to terminate the contract creating that situation.
If the obligation' here in question were merely the employer's obligation not to contract out any services, it would clearly be an obligation stipulat ed in favour of the union since it would be impos sible to determine who, among the employees, could be the beneficiary of such a promise. But such is' not the situation. The obligation that the respondent is seeking to enforce, assuming its existence, is the obligation ' not to contract out services so as to cause prejudice to indeterminate
employees. That obligation was clearly incurred for the sole benefit of those employees. It is there fore normal that these employees, and only they, be entitled to grieve if the employer violates that undertaking.
The respondent's argument that many of the employees affected by the contracting out would not be entitled to grieve because they ceased, as a consequence of the contracting out, to be employees, has, in my view, no merit. It is now established that an employee cannot be deprived of the right to grieve by a lay-off. 4
I am therefore of opinion that the matter that the respondent referred to the Board could not be the subject of a reference under subsection 99(1) of the Public Service Staff Relations Act.
I would set aside the decision under attack.
* * *
The following are the reasons for judgment rendered in English by
MAHONEY J.A.: I have had the opportunity to read in draft the reasons for judgment prepared by my brother Pratte. I find myself in respectful disagreement.
This section 28 application is brought in respect of a decision of the Public Service Staff Relations Board made on a reference under section 99 of the Public Service Staff Relations Act, R.S.C., 1985, c. P-35. The issues are, firstly, whether the Board had jurisdiction to deal with the reference at all and, secondly, if so, whether it erred in law in concluding that the employer had violated the collective agreement by contracting out certain functions theretofore performed by members of the bargaining unit. The background facts are not in dispute.
On November 4, 1984, the Government of Canada announced a policy objective of reducing
4 See: Queen (The) v. Lavoie, [1978] 1 F.C. 778 (C.A.), and Gloin v. Attorney General of Canada, [1978] 2 F.C. 307 (C.A.).
the size of the Public Service. Effective April 18, 1985, the Work Force Adjustment Policy agreed upon by the National Joint Council of the Public Service was approved by Treasury Board. In his May, 1985 budget, the Minister of Finance called for a reduction of 15,000 person years from the Public Service over a five—year period. The Work Force Adjustment Policy was incorporated in a Master Agreement between Treasury Board and the Public Service Alliance of Canada with a stated expiry date of June 30, 1988. The Master Agreement formed part of the collective agree ment governing the employment of data processors employed by the Department of National Reve nue, Customs and Excise, at all relevant times. Among its initiatives to reduce person years, that Department contracted out the work performed by over 270 data processors employed at various loca tions throughout Canada.
The Work Force Adjustment Policy contained the following relevant provisions:
3. POLICY
It is the policy of the Treasury Board that indeterminate employees whose services will no longer be required because of lack of work or the discontinuance of a function and who are suitable for an appointment shall, as far as is practicable, be redeployed to positions in the Public Service which are or which become vacant and for which they are qualified in the opinion of the PSC or for which they would be able to qualify with RETRAINING under specified conditions (see Section 8).
5.1.2 Departments shall review their use of employees appointed for specified periods (term employees) and their use of contracted services and should terminate them where such action would facilitate the REDEPLOYMENT Of AFFECT ED EMPLOYEES, SURPLUS EMPLOYEES, or LAID-OFF PER SONS.
6.1 ... To minimize the impact of a MAJOR WORK FORCE ADJUSTMENT situation on the AFFECTED EMPLOYEES, it is imperative that a human resource plan be established as early as possible ....
6.2 Factors to consider in developing a human resource plan include, but are not restricted to, the following:
(d) placement possibilities through the termination of specified period appointments and/or contracts for services; 5
The policy sets forth, inter alia, the following definitions:
(Continued on next page)
Subsection 99(1) of the Public Service Staff Relations Act provides:
99. (1) Where the employer and a bargaining agent have executed a collective agreement or are bound by an arbitral award and the employer or the bargaining agent seeks to enforce an obligation that is alleged to arise out of the agree ment or award, and the obligation, if any, is not one the enforcement of which may be the subject of a grievance of an employee in the bargaining unit to which the agreement or award applies, either the employer or the bargaining agent may, in the prescribed manner, refer the matter to the Board.
My emphasis. The provision must be read with subsection 91(1), which vests an employee with the right to grieve.
91. (1) Where any employee feels aggrieved
(a) by the interpretation or application, in respect of the employee, of
(i) a provision of a statute, or of a regulation, by-law, direction or other instrument made or issued by the employer, dealing with terms and conditions of employ ment, or
(ii) a provision of a collective agreement or an arbitral award, or
(b) as a result of any occurrence or matter affecting the terms and conditions of employment of the employee, other than a provision described in subparagraph (a)(i) or (ii),
in respect of which no administrative procedure for redress is provided in or under an Act of Parliament, the employee is entitled, subject to subsection (2), to present the grievance at each of the levels, up to and including the final level, in the grievance process provided for by this Act.
(Continued from previous page)
AFFECTED EMPLOYEES: Indeterminate employees whose ser vices will no longer be required because of WORK FORCE ADJUSTMENT situations.
SURPLUS EMPLOYEE: An indeterminate employee who has been declared surplus.
LAID-OFF PERSON: A person who has been laid-off pursuant to subsection 29(1) of the Public Service Employment Act.
REDEPLOYMENT: The appointment of an AFFECTED EMPLOYEE, a SURPLUS EMPLOYEE, or a LAID-OFF PERSON to a position for which he or she is QUALIFIED.
WORK FORCE ADJUSTMENT: A situation which occurs when a deputy head or DELEGATED OFFICER decides that the services of one or more indeterminate employees will no longer be required beyond a specified date because of lack of work or because of a discontinuance of a function. A major WORK FORCE ADJUSTMENT situation is one in which ten or more indeterminate employees in a department, in one or more locations, are affected at the same time.
The qualification of subsection 91(2) is not pertinent.
The reference was stated in the following terms:
6. On the basis of [paragraphs 5.1.2 and 6.2(d)], the Appli cant submits that the Respondent is prohibited from con tracting out services if such action would result in affected, surplus or laid off employees.
7. The above mentioned actions of the Respondent in con tracting out the duties of the data capture section resulted in several employees being "affected", "surplus" or "laid oft' as contemplated by the Workforce Adjustment Policy.
8. The Applicant submits, therefore, that the Respondent has acted in violation of the collective agreement and the provisions of the Workforce Adjustment Policy by adopting a course of action, that of contracting out data capture ser vices, which has resulted in affected, surplus and laid off employees.
Among the relief sought, and the only relief grant ed, was a declaration that the contracting out of the data capture function had violated the collec tive agreement.
The evidence was that, of 278 affected employees in the bargaining unit, 11 retired, 202 were redeployed, 56 took the cash-out option pro vided for in the Work Force Adjustment Policy and 9 were laid off; of the latter, 3 were laid off on an accelerated basis at their own request and 3 were redeployed after lay-off. Some of those employees had filed individual grievances pursuant to subsection 91(1). A number of those were put in evidence and were examined by the learned Vice- Chairman, who made the following, uncontested, finding of fact:
They are not precisely in connection with the above described obligation relating to contracting services as defined in the Policy. The employees merely say in their grievances that they have been given little or no training or retraining as provided in the policy or that they should not have been laid off. The grievances have to do, as argued by counsel for the bargaining agent, with the implementation of the policy and not the act of contracting out itself.
He concluded:
My conclusion is that the problem here is of a general nature and that the grievance here being definitely a policy griev ance as against an individual grievance, it belongs to the bargaining agent. The obligation was owed not to an individual employee but rather to the employees as a whole as represented by their bargaining agent. An employee may not have asked for the enforcement of the employer's obliga tion to "review the use of contracted services...". Such an obligation goes beyond the obligation owed to an individual employee and has to do with the bargaining agent and its very existence and raison d'être.
His use of the term "policy grievance" may have been unfortunate. In a subsequent decision of this Court, 6 Hugessen J.A., observed [at page 2]:
Counsel described the grievance as a "policy grievance" but that concept, however useful it may be, is not known to the Act.
On its plain meaning [subsection 99(1)] only allows a refer ence to the Board where the alleged breach of obligation could not be the subject of an individual grievance. In the present case the collective agreement imposes certain obligations on the employer to give vacations to its employees. Those obligations may be enforced by the employees affected, and only by them. There is not, as counsel suggested, some further obligation, to be implied from the Collective Agreement, prohibiting the employer from promulgating policies the application of which the bargaining agent considers would breach the obligations owed to the individual employees.
In my opinion, the present case is to be distin guished on its facts from that. Here, there is no question of the unilateral adoption of a policy which, if applied, might breach the rights of an individual employee under the collective agree ment. Rather, we have a policy, agreed upon by the employer and bargaining agent, and a dispute, not as to its application in respect of an individual employee as contemplated by subsection 91(1), but as to its application to the right of the employer to contract out the performance of services thereto- fore performed by members of the bargaining unit. I agree with the learned Vice-Chairman that the issue "goes beyond the obligation owed to an individual employee" and has to do with "the very existence and raison d'être" of the bargaining agent.
6 Professional Institute of the Public Service v. Canada, not yet reported, decision rendered September 27, 1990, Court file no. A-64-90 (P.S.S.R.B. file no. 169-2-480).
The jurisdictional issue appears not to have been raised in Canadian Air Traffic Control Associa tion v. The Queen, [1985] 2 F.C. 84 (C.A.), which applied an earlier decision, Queen (The) v. Lavoie, [1978] 1 F.C. 778 (C.A.). Lavoie involved an individual grievance as to whether a former employee had a right to grieve his dismissal. CATCA was a reference concerned with the enti tlement of former employees to the retroactive benefits of a collective agreement concluded after their termination. The decision did, nevertheless, recognize that similar questions might be subject of individual grievance or reference. Heald J.A., observed, at page 91:
While the section of the Act in question in Lavoie was section [91], which confers the right to grieve personally upon an "employee", whereas in the case at bar, the authority to refer a matter to the Board is contained in section [99], the subject matter in each case is very similar, namely, the matter of an "employee" 's right to challenge a decision made affect ing his entitlement to benefits arising out of his employment relationship.
It seems to me that the nature of the relief sought is relevant to whether or not the proceeding should be characterized as being the enforcement of an obligation "which may be the subject of a grievance of an employee". In all likelihood, some of the 278 affected employees, certainly some who were laid off, had a right personally to grieve on the basis of the alleged obligation not to contract out. But what of those who had accepted the cash-out option? The bargaining agent had lost them as members as a direct result of the employ er's alleged' failure to observe that obligation. In my opinion, the Board had jurisdiction to deal with the issue as raised in the reference, namely, wheth er the provisions of the Work Force Adjustment Policy gave rise to a general obligation on the part of the employer not to contract out services if that would result in affected, surplus or laid-off employees.'
' In reaching this conclusion, I have not found it necessary to consider American Farm Bureau Federation v. Canadian Import Tribunal, a decision of the Supreme Court of Canada
(Continued on next page)
As to the substantive issue, the learned Vice- Chairman, after reciting at length from the Work Force Adjustment Policy and, in my view, correct ly analyzing it, concluded:
The employer had an obligation under the Policy to review and when possible terminate contracting out arrangements in order to ensure the continued employment of indeterminate employees within the Public Service. This it failed to do. It set out to reduce the number of indeterminate employees and contracted out the identical jobs being performed by the employees in order to do so.
That conclusion is amply supported by the evidence.
The entire thrust of the Work Force Adjustment Policy is that, in a work force adjustment situa tion, indeterminate employees whose services would no longer be required would, as far as practicable, be redeployed and, if necessary, retrained. The Policy does not prohibit contracting out but it does contemplate that, to facilitate redeployment of "affected", "surplus" or "laid- off" personnel, the employer will, inter alia, review and terminate its use of contracted services. That requirement is utterly inconsistent with an inten tion to permit the creation of "affected", "surplus" or "laid-off" personnel by contracting out the very jobs that they have been doing. By definition, a "Work Force Adjustment" occurs when manage ment decides that one or more indeterminate employees will no longer be required because of "lack of work" or "a discontinuance of a func tion". It cannot, in my view, be said that the services of an employee whose job has been con tracted out are not required because of lack of work or the discontinuance of a function. That employee is not required only because the job has been contracted out. The work remains to be done and the function continues. The Vice-Chairman did not err in his determination that the employ-
(Continued from previous page)
rendered November 8, 1990, [National Corn Growers Assn. v. Canada (Import Tribunal), [1990] 2 S.C.R. 1324] which was not, of course, subject of argument. It is, nevertheless, an emphatic reminder of the curial deference owed an "expert" tribunal in the interpretation of its constituting legislation.
er's conduct was contrary to both the letter and spirit of the Work Force Adjustment Policy.
I would dismiss this section 28 application. HEALD J.A.: I agree.
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