Date: 20100706
Docket: T-832-09
Citation: 2010 FC 728
Ottawa, Ontario,
July 6, 2010
PRESENT: The
Honourable Mr. Justice Mandamin
BETWEEN:
ATTORNEY GENERAL OF CANADA
Applicant
and
THE PROFESSIONAL INSTITUTE OF
THE
PUBLIC SERVICE OF CANADA
Respondent
REASONS FOR JUDGMENT AND JUDGMENT
[1]
The Attorney General of Canada applies for
judicial review of an arbitral award issued April 22, 2009 by an arbitration
board (the Board) convened pursuant to the Public Service Labour Relations
Act, (2003, c. 22, s. 2) (the PSLRA) to arbitrate certain collective
bargaining issues between the federal government and the public service.
[2]
The Attorney General makes this application on
behalf of the Treasury Board of Canada (the Applicant or the Employer) which
had been engaged in labour negotiations with the Professional Institute of the
Public Service of Canada (the Respondent or the Institute). The Institute is
the certified bargaining agent for the public service employees belonging to the
Architecture, Engineering and Land Survey (NR) Group. After several negotiation
sessions, the Institute submitted a request for arbitration. The Chair of the
Public Service Labour Relations Board convened a three person arbitration board
with Philip Chodos as chair.
[3]
The Board conducted arbitration hearings on
February 16th and 18th of 2009. In its April 22, 2009
decision, the Board decided the collective agreement should include Article
21.02 requiring the Employer reimburse NR Group employees’ professional
membership fees where eligibility for membership is required to qualify for a
position but membership is not an ongoing requirement for employment in the
position.
[4]
In the interim, on March 12, 2009, the Expenditure
Restraint Act S.C. 2009, c. 2, Part 10 (ERA)
came into force. This legislation sets out the maximum salary increase and
restricts “additional remuneration” for public servants.
[5]
The Applicant submits the Board exceeded its
authority in deciding the collective agreement should include a provision that
requires payments contrary to the ERA and seeks an order setting aside
that portion of the Board’s arbitral award relating to reimbursement of
membership fees as set out in Article 21.02.
[6]
I have concluded that this application should be
dismissed for the reasons that follow.
Facts
[7]
The Board was established pursuant to subsection
137(1) of the PSLRA by the Chair of the Public Service Labour Relations
Board to deal with items in dispute between the Employer and the Institute.
[8]
The previous collective agreement between the
Treasury Board and the NR Group provided:
21.01 The Employer shall reimburse an employee for payment of
membership or registration fees to an organization or governing body where
membership is a requirement for the continuation of the performance of the
duties of the employee’s position.
This provision is
continued in the collective agreement between the employer and the NR Group and
is not at issue.
[9]
The Institute submitted for arbitration the
reimbursement of membership fees where eligibility for membership is required
to qualify for a position but membership is not an ongoing requirement for
employment in the position.
[10]
During arbitration hearings in February 2009,
the Board was made aware of the impending Budget Implementation Act,
2009, Bill C-10, which contained both the Public Sector Equitable
Compensation Act and, relevant to this proceeding, the ERA. In light
of the imminent coming into law of Bill C-10, the Institute accepted certain
pay proposals by the Employer and the proposed duration of the renewed
collective agreement thereby removing these matters from arbitration. Bill C-10
received Royal Assent on March 12, 2009.
[11]
The ERA provides that no collective
agreement may provide for additional remuneration for the restraint period.
Additional remuneration was defined as: “any allowance, bonus, differential or
premium or any payment to employees that is similar to any of those payments”.
[12]
The Board issued its arbitration decision on
April 22, 2009. It determined, among other things, that:
The collective
agreement shall contain a new provision (Article 21.02), which shall read as
follows:
21.02 When the payment of such fees is not a requirement for
the continuation of the performance of the duties of an employee’s position,
but eligibility for membership in an organization or governing body is
a qualification specified in the Standards for Selection and Assessment for
the NR Group, the Employer shall reimburse the employee upon receipt of
proof of payment, for the employee’s annual membership fees paid to one
organization or governing body. Reimbursement covered by the Article does
not include arrears of previous years’ dues. (emphasis added)
Issues
[13]
The issues in this judicial review application
are several:
a.
What is the applicable standard of review?
b.
Is the Applicant precluded from advancing an
argument that Article 21.02 on reimbursement of membership fees is prohibited
by ERA since it did not raise this issue before the Board?
c.
Did the Board commit a reviewable error in
ordering the inclusion of Article 21.02 requiring reimbursement of membership
fees in the collective agreement?
Legislation
[14]
The Board was established by the Chair of the
Public Service Labour Relations Board to determine matters in dispute between
the Employer and the Institute in the course of collective bargaining. The
applicable legislation is the PSLRA and the ERA, in particular:
Public Service Labour Relations Act, 2003, c. 22, s. 2.
|
137. (1) On receiving a request for
arbitration, the Chairperson must establish an arbitration board for
arbitration of the matters in dispute.
(2) The Chairperson may delay
establishing an arbitration board until he or she is satisfied that the party
making the request has bargained sufficiently and seriously with respect to
the matters in dispute.
…
146. (1) Except as otherwise provided in
this Part, the arbitration board may determine its own procedure, including
the date, time and place of its proceedings, but both parties must be given a
full opportunity to present evidence and make representations.
…
148. In the conduct of its proceedings
and in making an arbitral award, the arbitration board must take into account
the following factors, in addition to any other factors that it considers
relevant:
(a) the necessity of attracting competent
persons to, and retaining them in, the public service in order to meet the
needs of Canadians;
(b) the necessity of offering
compensation and other terms and conditions of employment in the public
service that are comparable to those of employees in similar occupations in
the private and public sectors, including any geographic, industrial or other
variations that the arbitration board considers relevant;
(c) the need to maintain appropriate
relationships with respect to compensation and other terms and conditions of
employment as between different classification levels within an occupation
and as between occupations in the public service;
(d) the need to establish compensation
and other terms and conditions of employment that are fair and reasonable in
relation to the qualifications required, the work performed, the
responsibility assumed and the nature of the services rendered; and
(e) the state of the Canadian economy and
the Government of Canada’s fiscal circumstances.
|
137. (1) Sur réception de la demande
d’arbitrage, le président établit un conseil chargé de l’arbitrage du
différend.
(2) Le président peut attendre, avant de
donner suite à la demande d’arbitrage, d’être convaincu que le demandeur a
négocié suffisamment et sérieusement en ce qui touche le différend visé par
celle-ci.
…
146. (1) Sauf disposition contraire de
la présente partie, le conseil d’arbitrage peut fixer ses modalités de
fonctionnement, notamment la date, l’heure et le lieu de ses séances, en
donnant toutefois aux parties l’occasion de présenter leurs éléments de
preuve et leurs observations.
…
148. Dans la conduite de ses séances et
dans la prise de ses décisions, le conseil d’arbitrage prend en considération
les facteurs qui, à son avis, sont pertinents et notamment :
a) la nécessité d’attirer au sein de la
fonction publique des personnes ayant les compétences voulues et de les y
maintenir afin de répondre aux besoins des Canadiens;
b) la nécessité d’offrir au sein de la
fonction publique une rémunération et d’autres conditions d’emploi
comparables à celles des personnes qui occupent des postes analogues dans les
secteurs privé et public, notamment les différences d’ordre géographique,
industriel et autre qu’il juge importantes;
c) la nécessité de maintenir des rapports
convenables, quant à la rémunération et aux autres conditions d’emploi, entre
les divers échelons au sein d’une même profession et entre les diverses
professions au sein de la fonction publique;
d) la nécessité d’établir une
rémunération et d’autres conditions d’emploi justes et raisonnables compte
tenu des qualifications requises, du travail accompli, de la responsabilité
assumée et de la nature des services rendus;
e) l’état de l’économie canadienne et la
situation fiscale du gouvernement du Canada.
|
Expenditure
Restraint Act, 2009, c. 2, s. 393.
|
2. The
following definitions apply in this Act.
“additional
remuneration” means any allowance, bonus, differential or premium or any
payment to employees that is similar to any of those payments.
…
6.
Subject to the other provisions of this Act, the right to bargain
collectively under the Canada Labour Code, the Parliamentary Employment and
Staff Relations Act and the Public Service Labour Relations Act is continued.
…
11. In
the event of a conflict between a provision of this Act and a provision of
any other Act of Parliament, including a provision in Part X of the Financial
Administration Act, the provision of this Act prevails to the extent of the
conflict, unless the other Act expressly declares that it or any of its
provisions apply despite this Act.
…
24. No
collective agreement that is entered into, or arbitral award that is made,
after the day on which this Act comes into force may provide, for any period
that begins during the restraint period, for any increase to the amount or
rate of any additional remuneration that applied to the employees governed by
the collective agreement or the arbitral award immediately before the
collective agreement, or the arbitral award, as the case may be, becomes
effective.
…
27. No
collective agreement that is entered into, or arbitral award that is made,
after the day on which this Act comes into force may provide, for any period
that begins during the restraint period, for any additional remuneration that
is new in relation to the additional remuneration that applied to the
employees governed by the collective agreement or the arbitral award
immediately before the collective agreement or the arbitral award, as the
case may be, becomes effective.
…
56. Any
provision of any collective agreement that is entered into — or of any
arbitral award that is made, or of any terms and conditions of employment
that are established — after the day on which this Act comes into force that
is inconsistent with this Act is of no effect.
|
2. Les
définitions qui suivent s’appliquent à la présente loi.
«
rémunération additionnelle » Allocation, boni, prime ou autre paiement
semblable à l’un ou l’autre de ceux-ci versés aux employés.
…
6. Sous
réserve des autres dispositions de la présente loi, est maintenu le droit de
négocier collectivement sous le régime du Code canadien du travail, de la Loi
sur les relations de travail au Parlement et de la Loi sur les relations de
travail dans la fonction publique.
…
11. Les
dispositions de la présente loi l’emportent sur les dispositions
incompatibles de toute autre loi fédérale, y compris celles de la partie X de
la Loi sur la gestion des finances publiques, sauf dérogation expresse des
dispositions de l’autre loi.
…
24.
Aucune convention collective conclue — ou décision arbitrale rendue — après
la date d’entrée en vigueur de la présente loi ne peut, à l’égard de toute
période commençant au cours de la période de contrôle, prévoir une
augmentation des montants ou des taux de toute rémunération additionnelle
applicable, avant la prise d’effet de la convention ou de la décision, aux
employés régis par celle-ci.
…
27.
Aucune convention collective conclue — ou décision arbitrale rendue — après
la date d’entrée en vigueur de la présente loi ne peut, à l’égard de toute
période commençant au cours de la période de contrôle, prévoir de
rémunération additionnelle qui est nouvelle par rapport à celle applicable,
avant la prise d’effet de la convention ou de la décision, aux employés régis
par celle-ci.
…
56. Est
inopérante toute disposition d’une convention collective conclue — ou d’une
décision arbitrale rendue ou de conditions d’emploi établies — après l’entrée
en vigueur de la présente loi et incompatible avec celle-ci.
|
Standard of Review
[15]
Both Applicant and Respondent rely on the
Supreme Court of Canada’s decision in Dunsmuir v. New Brunswick, 2008 SCC 9 (Dunsmuir).
[16]
The Applicant submits the appropriate standard
of review in this case is correctness.
[17]
In its standard of review analysis, the
Applicant concedes an arbitration board is specialized in settling labour
disputes and fashioning arbitral awards and their findings and remedial orders
should be accorded deference. However, the Applicant also submits the purpose
of an arbitration board is to assist the parties in concluding collective
agreements and only decide outstanding issues. It argues this limits the
board’s specialized role, function and expertise.
[18]
The Applicant submits the substantive issue
raised requires an analysis and interpretation of the ERA, a matter in
which the Board has no expertise. Since the question before the Board deals
with legislation outside the Board’s normal area of expertise, it requires
review on a standard of correctness.
[19]
The Respondent argues the proper standard of
review in this case is reasonableness.
[20]
The Respondent points to the Board’s decision as
one made by a highly specialized tribunal in the area of labour relations and
collective bargaining. It submits that where an arbitration board interprets
its own or related statutes a deferential standard of reasonableness is
appropriate.
[21]
In Dunsmuir, the Supreme Court takes a
robust view of jurisdiction. True jurisdiction questions arise “where the
tribunal must explicitly determine whether its statutory grant of power gives
it the authority to decide a particular matter. The tribunal must interpret the
grant of authority correctly or its action will be found to be ultra vires
or to constitute a wrongful decline of jurisdiction.” Dunsmuir, para.
59.
[22]
It must be remembered that Dunsmuir was a
case concerning an arbitrator decision under the New
Brunswick Public Service Labour Relations Act
R.S. N.B. 1973 c. P-25. Applying a standard of review analysis, the Supreme
Court considered as relevant factors the presence of a privative clause, the
nature of the regime and legislative purpose, the nature of the legal question
at issue, and the expertise of the tribunal. The arbitrator’s decision
was protected by a privative clause; he was presumed to have expertise in
interpreting the enabling statute; and he had to decide a question of law but
not one of central importance to the legal system. The Supreme Court concluded
that decision should be reviewed on the standard of reasonableness. It went on
to hold the adjudicator’s interpretation of the relevant statutory provisions
was unreasonable.
[23]
In Public Service Alliance of Canada v.
Canadian Federal Pilots Association and Attorney General of Canada, 2009
FCA 223 at paras. 30 – 34. (PSA), Mr. Justice Evans for the majority of
the Federal Court of Appeal noted that a tribunal may exceed its jurisdiction
in one of two ways. First, a tribunal will act beyond its jurisdiction if it
errs on a question of law where the standard of review is correctness. Second,
a tribunal may err in its interpretation of a “mere” question of law where the
standard of review is reasonableness.
[24]
Justice Evans was of the view that a
standard of review analysis was required when a tribunal is said to have
misinterpreted a provision of its enabling statute.
[25]
The Board is an ad hoc tribunal appointed by the
Chair of the PSLRB to arbitrate issues concerning collective bargaining between
Treasury Board and the Institute. The intent of Part 1 of the PSLRA and
the provisions concerning the Board’s function is resolution of collective
bargaining issues in order to achieve collective agreement. As the Supreme
Court in Dunsmuir stated: “The PSLRA establishes a time- and
cost-effective method of resolving employment disputes.” para. 69 Although the
Supreme Court was considering the role of an arbitrator under New Brunswick legislation, the same may be
said of the federal PSLRA in respect of labour arbitration boards.
[26]
While there is no express privative clause for
section 137(1) PSLRA arbitration boards, the Board is a specialized
tribunal with expertise in labour relations and collective bargaining. The
parties raised no issues with respect to the Board’s expertise. Certainly, the PSLRA
mandates a role supporting the presumption it possesses such expertise.
Therefore, its decisions would be due a degree of deference on review.
[27]
Justice Iacobucci held that an administrative
tribunal could consider statutes external to its governing legislation. He
wrote in Canadian Broadcasting Corp. v. Canada (Labour Relations Board), [1995] 1
S.C.R. 157 (CBC) at para. 48:
As a general rule, I accept the proposition that curial deference
need not be shown to an administrative tribunal in its interpretation of a
general public statute other than its constituting legislation, although I
would leave open the possibility that, in cases where the external statute is
linked to the tribunal's mandate and is frequently encountered by it, a measure
of deference may be appropriate. However, this does not mean that every time
an administrative tribunal encounters an external statute in the course of its
determination, the decision as a whole becomes open to review on a standard of
correctness. If that were the case, it would substantially expand the scope
of reviewability of administrative decisions, and unjustifiably so. Moreover,
it should be noted that the privative clause did not incorporate the error of
law grounds, s. 18.1(4)(c) of the Federal Court Act, R.S.C., 1985, c. F-7 (as
amended by S.C. 1990, c. 8, s. 5). This tends to indicate that some level of
deference should be provided. (emphasis added)
[28]
A labour arbitration board’s interpretation of
outside legislation will warrant deference “where the external statute is
intimately connected with the mandate of the tribunal and is encountered
frequently as a result”, Toronto Board of Education v. Ontario Secondary School Teachers’ Federation,
District 15, [1997]
1 S.C.R. 487. This direction has application in this proceeding.
[29]
The newly enacted ERA is not the Board’s
home statute but deals extensively with collective bargaining matters. The
impending legislation was the subject of submissions with respect to other
matters before the Board. While the ERA is recently enacted and would
not yet be frequently encountered, the legislation is replete with references
to ‘arbitral awards’ ‘collective agreements’, ‘rates of pay’, and ‘additional
remuneration’, all of which is the subject matter of the Board’s labour
relations knowledge and expertise.
[30]
In Attorney-General of Canada v. The Professional Institute
of the Public Service of Canada, 2010 FC 578 (PIPSC), Madam
Justice Tremblay-Lamer held that a decision by an arbitration board not to
consider ERA required review on a standard of correctness. Here, the
issues are materially different. In the former, the arbitration board refused
to consider submissions concerning ERA’s applicability. In the latter,
while no objection to reimbursement as eventually expressed in Article 21.02
had been raised, there is no evidence the Board refused to consider the ERA
when considering Article 21.02.
[31]
The Board was clearly aware of Bill C-10. The
subject came up in the course of the February hearings and the legislation came
into effect the following month. The Board made express reference to being
advised of the imminent coming into law of Bill C-10 and, given its presumed
knowledge and expertise in collective bargaining matters, the Board would be
aware of the included ERA legislation once it was proclaimed.
[32]
In PSA, Justice Evans stated:
To conclude, in order to establish that the Board has exceeded its
jurisdiction by misinterpreting a provision in its enabling statute, which
neither raises a question of law of central importance to the legal system nor
demarcates its authority vis-à-vis another tribunal, an applicant must demonstrate
that the Board's interpretation was unreasonable. para. 50
[33]
The question before the Board and now before the
Court is whether Article 21.02 offends the provisions of the ERA as
being “additional remuneration” which is prohibited. This is a question of law
which turns on interpretation of the language in the legislation. The nature of
the legal question is not one of centralized importance to the legal system.
[34]
Further, the Board had before it the issue of
reimbursement in question here. That issue was not removed by agreement between
the parties before hand nor does the ERA assign such questions to
another tribunal. It was left to the Board to consider the definition of
“additional remuneration” and sections 24 and 27 in the ERA as it
impacts on the reimbursement issue in question.
[35]
I conclude the standard of review is
reasonableness. Accordingly, the question is whether the Board’s decision to
include Article 21.02 as an arbitral award was unreasonable.
Analysis
Is the Applicant precluded from
advancing an argument that the provision on reimbursement of registration fees
since it did not raise the issue before the Board?
[36]
This application for judicial review raises a
unique issue. The Applicant did not take issue with respect to Article 21.02
reimbursement of membership fees in its submissions before the Board but seeks
to raise them now.
[37]
Parties before a tribunal cannot hold on to or
discover new submissions to argue on judicial review. In the accepted course of
analysis, this Court must first decide if there is a legitimate challenge to
the Board’s jurisdiction to decide what it did. Otherwise, the arguments raised
by the Applicant, which may be valid, cannot be raised at this point because
they were not raised before the Board, Toussaint v. Canada (Labour Relations
Board), [1993] F.C.J. No. 616 (F.C.A.) at page 399.
[38]
The Applicant submits this Court can
review this decision if the Board acted outside its jurisdiction. Crevier v. A.G. (Quebec)
et al., [1981] 2 S.C.R.
220 at page 236; Shubenacadie, para. 41.
[39]
The true difficulty here is that at the time of
submissions to the Board, Bill C-10 had not yet been passed into law. The
parties and the Board were aware the legislation was imminent. This is not the
same as being in effect. The other ERA matters at issue before the Board
were dealt with by agreement between the parties and removed from the Board’s
purview. The parties had not agreed on the proposal for reimbursement of
membership fees and that issue remained before the Board.
[40]
Since the ERA was not yet in force, the
Applicant could not make submissions on the ERA’s application in the
February 2009 hearing in respect of the Article 21.02 proposal for
reimbursement of membership fees. At best such submissions would be merely
anticipatory.
[41]
The Board issued its arbitration award on April
22, 2009 after the ERA came into effect. The legislation, on its face,
has application to the collective agreement under arbitration. The parties
could not now expressly contract out or waive the application of the
legislation once the ERA was proclaimed.
[42]
In this unique circumstance, I find that the
Applicant may raise an issue about the applicability of the ERA to the
arbitral award requiring reimbursement of membership fees set out in Article
21.02. The Applicant is limited to the issue of the application and effect of
the ERA on Article 21.02 since the Applicant did not object to the
provision on economic or other grounds before the Board.
Did the Board commit a reviewable error
in ordering the inclusion of Article 21.02 requiring reimbursement of
membership fees in the collective agreement?
[43]
The Applicant had submitted that the term
“additional remuneration” was not merely limited to allowances, bonuses,
differentials or premiums – but any other payment that is similar to those. The
benefit provided for by Article 21.02 was a new benefit that was not found in
the previous collective agreement.
[44]
The Applicant submits that the question is
whether or not the benefit accorded by Article 21.02 was “additional
remuneration” as defined in the ERA. The definition of “additional
remuneration” includes the words “any payment to employees that is similar to
any of those payments”. The Applicant submits payment of Article 21.02
membership fees were not previously required and must be considered a new
payment that falls within the definition of a bonus of payment similar to a
bonus.
[45]
Further, the Applicant submits the thrust of
the ERA legislation was to prohibit additional public service
expenditures and the membership fees constitute additional public service
funding. The Applicant submits that the reimbursement
of membership fees in Article 21.02 is a payment ‘similar to a bonus’, as it
represents a payment made in addition to the employee’s salary or wages.” The
Article applies to those employees for whom the payment of membership fees is
not a requirement of employment, and thus “confer[s] a benefit or advantage to
the employee.” Thus considering a reimbursement of such a payment as
“additional remuneration” is consistent with the intent of Parliament and the
legislative scheme of the ERA.
[46]
The Applicant refers to law dictionaries which
define bonus as:
The Dictionary
of Canadian Law, 2nd ed.
1.
Gratuity; premium
2.
2. “…[M]ay be a mere gift or gratuity as a
gesture of goodwill, and not enforceable. Or it may be something which an
employee is entitled to on the happening of a condition precedent and is
enforceable when the condition is fulfilled. But in both cases is it something
in addition to or in excess of what has been ordinarily received.
Black’s Law
Dictionary, 8th ed.
1.
A premium in addition to what is due or
expected<year-en-end bonus>. In the employment context, workers’
bonuses are not a gift or gratuity; they are paid for services or on consideration
in addition to or in excess of the compensation that would ordinarily be
given…”(emphasis added)
[47]
The difficulty with resorting to law
dictionaries is that they often take their definitions from the context of
jurisprudence. The quote from the Dictionary of Canadian Law is taken from Minister
of National Revenue v. Great Western Garment Co., [1948] 1 D.L.R.
225 at 233. The word ‘bonus’ in the Wartime Salaries Order was undefined and
the presiding judge consulted both the Webster’s International Dictionary and
the Oxford Concise Dictionary before referring to case law for the proposition
that a bonus was an “addition to wages” which he found to be applicable. The
definition in Blacks Law Dictionary 8th ed. relies on American case
law which is somewhat far afield. Legal dictionaries are helpful when drawn
from cases more on point.
[48]
In PIPSC Justice Tremblay-Lamer undertook
an analysis of whether the membership fees fell within the definition of
“additional remuneration” in ERA. She stated:
[22] The definition of “additional remuneration” in that statute is
not closed and extends not only to specific categories of payments but also to
payments “similar to” (my emphasis) these categories. Both the word
“similar” and the ejusdem generis maxim of interpretation suggest that
to constitute “additional remuneration” within the meaning of section 2 of the ERA,
a payment “must be of the same general nature or character as” those enumerated
in that provision (Gurniak v. Nordquist, 2003 SCC 59, [2003] 2 S.C.R. 652
at par. 31 (emphasis in the original); Ruth Sullivan, Sullivan on the
construction of 10 Statutes, 5th ed. (Markham, Ont.:
LexisNexis, 2008) at 231). In my opinion, the payment stipulated by the
membership fees article is not of the same general nature or character as an
allowance, bonus, differential or premium.
[23] It is not similar to an “allowance.” The Canadian Oxford
Dictionary defines this term broadly, as “an amount or sum given to a
person, esp[ecially] for a stated purpose.” However, it’s well known legal
meaning is somewhat narrower; an allowance is a payment the amount of which is
arbitrarily predetermined and for the use of which the recipient need not
account (Canada (Attorney General) v. MacDonald (1994), 94 D.T.C. 6262
(F.C.A.)). To receive a payment under the Registration Fee Article, an employee
does in fact need to account for the registration fees paid, and cannot receive
more than what he or she has paid out.
[24] The payment pursuant to the Registration Fee Article is also
not similar to a “bonus,” which, according to the Canadian Oxford Dictionary,
is either “an unsought or unexpected extra benefit,” or “an amount of money
given in addition to normal pay, in recognition of exceptional performance or
as a supplement at Christmas etc.” The first definition is not relevant in the
context of this case: a benefit stipulated in a collective agreement is
obviously not “unsought or unexpected.” The second definition is also
inapplicable here. The payment by the employer of an employee’s professional
membership fees has nothing to do with the employee’s performance (all the more
so when the professional membership is not seen as necessary to the employer),
and yet is not a mere gift such as a “Christmas bonus.”
[25] Further, the payment pursuant to the Registration Fees Article
is in no way similar to a differential, which the Canadian Oxford Dictionary
defines as “a difference in wage or salary between industries or categories
of employees in the same industry.”
[26] Nor is it, finally, similar to a premium, which is, according
to the same source, “a sum added to … wages, … a bonus” or “a reward or prize.”
As explained above, the Membership fees article does not create a bonus; nor
does constitute a reward for anything.
[27] The payment pursuant to the Registration Fee Article is,
rather, a reimbursement. A reimbursement is different from the classes of
payment discussed above, which all represent additions to an employee’s basic
pay. It is, according to the Canadian Oxford Dictionary, a “repay[ment]”
of expenses incurred by a person. The fact that the Membership fees article
uses the terms “reimbursement” and “reimburse,” while not determinative,
suggests that an employee will have to demonstrate that he or she has in fact
paid professional fees before being compensated for such a payment; and
compensation is a repayment of the amount paid out by the employee on account
of such fees, albeit it only up to a stipulated maximum. A reimbursement is a
well-known and distinct type of payment, and had Parliament intended it to be
covered by the Membership fees article, it could easily have said so. It did
not.
[49]
Justice Tremblay-Lamer succinctly addressed the
Applicant’s submissions based on the law dictionary definitions, she stated at
para. 24, which I repeat:
The first definition is not relevant in the context of this case: a
benefit stipulated in a collective agreement is obviously not “unsought or
unexpected.” The second definition is also inapplicable here. The payment by
the employer of an employee’s professional membership fees has nothing to do
with the employee’s performance (all the more so when the professional
membership is not seen as necessary to the employer), and yet is not a mere gift
such as a “Christmas bonus.”
[50]
Justice Tremblay-Lamer concluded the
Registration Fee Article in that case did not offend the ERA prohibitions
against “additional remuneration”
[51]
The Applicant submits that Justice Tremblay-Lamer’s
reasons are not binding on the basis that neither stare decisis, nor
judicial comity apply given the wording of the arbitral awards are different. I
agree. Nevertheless I find Justice Tremblay-Lamer’s reasoning persuasive and I adopt
Justice Tremblay-Lamer’s reasoning as to the meaning of the term “additional
remuneration” having regard to the following additional considerations.
[52]
The modern principle of statutory interpretation
is that “the proper approach to interpretation … is to read the words in their
entire context and in their grammatical and ordinary sense harmoniously with
the scheme of the Act, the object of the Act and the intention of Parliament”
E. A. Driedger, Construction of Statutes (2nd e. 1983).
[53]
“Remunerate” is defined in the Canadian
Oxford Dictionary (2nd ed.). The essence of the definition is
payment for services or work. The definition is:
1. reward; pay
for services rendered. 2 serve as or provide recompense for (toil etc.) or to
(a person).
In this respect,
remuneration relates to the pay to employees in the NR Group. The “additional
remuneration” relates to that public service employee pay as well as Justice
Tremblay-Lamer’s reasons.
[54]
The ERA expressly provides:
6. Subject to
the other provisions of this Act, the right to bargain collectively under the
Canada Labour Code, the Parliamentary Employment and Staff Relations
Act, or the Public Service Labour Relations Act is continued.
(emphasis added)
[55]
The Board is required by s. 148 of the PSLRA to
consider, among other factors:
148. In the conduct of
its proceedings and in making an arbitral award, the arbitration board must
take into account the following factors, in addition to any other factors
that it considers relevant:
(a) the necessity of attracting competent persons
to, and retaining them in, the public service in order to meet the needs of
Canadians;
…
(d) the need to establish compensation and
other terms and conditions of employment that are fair and reasonable in
relation to the qualifications required, the work performed, the
responsibility assumed and the nature of the services rendered; and
(e) the state of the Canadian economy and the
Government of Canada's fiscal circumstances.
(emphasis added)
[56]
In response to questions put forth at the
hearing of this matter, I was advised by the Respondent that the qualifications
requirement referred to in Article 21.02 comes into play when an individual
applies within the NR Group for a position of employment, transfers to a
lateral position, relocates to another geographical location, or seeks
promotion. The Applicant did not take issue with this advice.
[57]
The thrust of the ERA legislation is
concerned with rates of pay and “additional remuneration”. It does not go so
far as to address “conditions of employment … in relation to the qualifications
required”. If that was so, Parliament would have articulated ERA’s
extension into the realm of the PSLRA by express statutory language.
[58]
Article 21.02 is concerned with reimbursement
of membership fees as they relate to the qualifications standard. It is not
concerned with remuneration. In my view, the term and expanded definition of
“additional remuneration” does not go so far as to prohibit reimbursement
relating to qualification standards that the Board is required to consider
under the PSLRA.
[59]
If there is any ambiguity in the meaning of the
phrase “additional remuneration”, I would adopt Justice Hansen’s observation in
Professional Institute of the Public Service of Canada v. Canada (Treasury
Board), [1984] F.C. J. No. 523 (F.C.T.D) where she stated:
In addition, I
think this is a case where, if a statute is ambiguous, it should be interpreted
in favour of the individuals governed thereby. p. 8
[60]
Finally, while the Board did not give reasons
for including Article 21.02, I do not find it is required to do so since no
objection was raised at the hearing. To provide reasons for each finding would
undermine the arbitration process’ mandated goal of being “time- and
cost-effective method of resolving employment disputes.”
[61]
Given the foregoing, I conclude that the Board’s
inclusion of Article 21.02 as an arbitral award concerning reimbursement of
membership fees is reasonable.
Conclusion
[62]
The application for judicial review is
dismissed.
[63]
Costs are awarded to the Respondent.
JUDGMENT
THIS COURT
ORDERS AND ADJUDGES that:
1.
This application for judicial review is dismissed.
2.
Costs are awarded to the Respondent.
“Leonard S. Mandamin”