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A-689-75
Attorney General of Canada (Applicant) v.
Public Service Staff Relations Board (Respond- ent)
Court of Appeal, Heald, Urie and Ryan JJ.— Ottawa, May 11 and 12, 1976.
Judicial review—Public Service—Employee rejected during probationary period—Commencing grievance, claiming dis missal disciplinary and no reasons given—Employer objecting to jurisdiction of adjudicator under section 91 of Public Service Staff Relations Act, claiming rejection not a discipli nary discharge—Adjudicator allowing grievance—Public Ser vice Staff Relations Board finding adjudicator had not erred in law or exceeded jurisdiction—Applicant seeking judicial review—Public Service Employment Act, R.S.C. 1970, c. P-32, s. 28—Public Service Staff Relations Act, R.S.C. 1970, c. P-35, s. 91.
One "J", a public servant, was rejected during his probation ary period under section 28(3) of the Public Service Employ ment Act. He instituted a grievance, claiming he had been dismissed without reasons and that the dismissal was actually disciplinary. The employer responded at each level of grievance by stating that the discharge was not disciplinary, but was a rejection during probation under section 28. The grievance was finally referred to an adjudicator under section 91 of the Public Service Staff Relations Act. The employer objected to the jurisdiction of the adjudicator, arguing that as a rejection during probation, the dismissal was not the proper subject matter of a reference under section 91. The adjudicator held that the rejection constituted a disciplinary discharge, thus giving him jurisdiction, and went on to hear the case on the merits. He allowed the grievance, and ordered reinstatement. The employer then referred the question to the Public Service Staff Relations Board which found that the adjudicator had not erred in law or in jurisdiction. This application resulted, and applicant continued to rely on the argument that since the employer had characterized the dismissal as a rejection for cause, this was sufficient for section 28(3) and (4) of the Public Service Employment Act to apply and to oust the jurisdiction of an adjudicator under section 91(1)(b) of the Public Service Staff Relations Act and that an adjudicator cannot inquire into a particular case to determine whether the employer's action was a rejection for cause or a disciplinary discharge.
Held, allowing the appeal, the decision of the Board is set aside. Applicant's submission is answered by the Cutter Laboratories case ([1976] 1 F.C. 446) where, concerning the duty of a tribunal faced with a question as to its jurisdiction, it
was stated that, generally, a tribunal must take a position, even though it cannot make a binding decision, as to whether or not it has jurisdiction. Here, on the evidence, the decision cannot stand. The letters to J and the Public Service Commission are clear and unequivocal statements of rejection for cause within the meaning of section 28(3) and (4) of the Public Service Employment Act, and the evidence shows that J gave his employer cause for complaint. The Board followed the Fardella case ([1974] 2 F.C. 465), however, it is distinguishable on its facts which do not clearly point to rejection, as in the present situation. Where there has been a rejection, it cannot be classified as a dismissal in order to create jurisdiction under section 91 of the Public Service Staff Relations Act. The conduct here complained of is typical of behaviour which would justify rejection during probation; it might also be grounds for dismissal but clearly, the intention was to reject. Nor was it a disciplinary action camouflaged as a rejection. Such'could only be the case where no bona fide and valid grounds for rejection existed. As to whether action to separate an employee from his employment that is, in form, under one authority can be treated as having been taken under another authority, for the adjudica tor to have jurisdiction under section 91(1)(b) on these facts, it would be necessary for the section to have included words to the effect of "a rejection for cause during the probationary period". The whole intent of section 28 of the Public Service Employment Act is to enable the employer to assess an employee's suitability. If, at any time, the employee is found unsuitable, he can be rejected without redress through adjudi cation. To hold that a probationary employee acquires vested rights to adjudication is to ignore the plain meaning of both sections 28 and 91. While J had the right to grieve under section 90 of the Public Service Staff Relations Act, the right to section 91 adjudication is restricted to grievors coming within the four corners of section 91(1).
Cutter Laboratories International v. Anti-dumping Tri bunal [1976] 1 F.C. 446, followed. Fardella v. The Queen [1974] 2 F.C. 465, distinguished. Bell Canada v. Office and Professional Employees' International Union [1974] S.C.R. 335, applied.
APPLICATION for judicial review. COUNSEL:
P. J. Evraire for applicant.
M. W. Wright, Q.C., 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
HEALD J.: This is a section 28 application to review and set aside a decision of the Public Service Staff Relations Board rendered on Novem- ber 7, 1975, with respect to an adjudication heard by Mr. J. F. W. Weatherhill, concerning an employee, one Roland B. Jacmain.
Jacmain had been an employee with the Depart ment of National Revenue, Taxation, prior to entering a competition with the Office of the Commissioner of Official Languages. On May 16, 1973, Jacmain was appointed to the Complaints Branch of the Commissioner of Official Lan guages as an AS 7.
By letter dated February 25, 1974, the Commis sioner of Official Languages notified Jacmain that he was to be rejected during his probationary period pursuant to the provisions of subsection 28(3) of the Public Service Employment Act, R.S.C. 1970, c. P-32'. In that letter, the Commis sioner said, inter alia:
You will remember that on October 23rd, 1973 I informed you orally of this intention.
Said letter made no reference to any other ground for rejecting Jacmain. On the same date, and, to
' 28. (1) An employee shall be considered to be on probation from the date of his appointment until the end of such period as the Commission may establish for any employee or class of employees.
(2) Where an appointment is made from within the Public Service, the deputy head may, if he considers it appropriate in any case, reduce or waive the probationary period.
(3) The deputy head may, at any time during the probation ary period, give notice to the employee and to the Commission that he intends to reject the employee for cause at the end of such notice period as the Commission may establish for any employee or class of employees and, unless the Commission appoints the employee to another position in the Public Service before the end of the notice period applicable in the case of the employee, he ceases to be an employee at the end of that period.
(4) Where a deputy head gives notice that he intends to reject an employee for cause pursuant to subsection (3) he shall furnish to the Commission his reasons therefor.
comply with the provisions of subsection 28(4), the Commissioner wrote to the Public Service Com mission as follows:
Re: Roland Jacmain
Pursuant to section 28(3) and (4) of the Public Service Employment Act, I hereby give you notice of my intention to reject the above named employee for cause.
During the probationary period I have found that Mr. Jac- main was not able to fulfil a function in this office to my satisfaction.
I am enclosing a copy of the notice sent to him today.
It is not contested that the notice of rejection of February 25, 1974 was within Jacmain's proba tionary period.
On February 26, 1974, Jacmain instituted a grievance on the basis that he was, in fact, being dismissed from his position with no reasons having been given and stating that subject action by his employer was "in truth, a disciplinary dismissal". At each level, the employer answered the griev ance by saying that Jacmain's discharge was not disciplinary, but was, rather, a rejection during probation pursuant to section 28 of the Public Service Employment Act (supra). Jacmain's griev ance was finally referred to adjudication under section 91 of the Public Service Staff Relations Act, R.S.C. 1970, c. 1 3 -35 2 .
2 91. (1) Where an employee has presented a grievance up to and including the final level in the grievance process with respect to
(a) the interpretation or application in respect of him of a provision of a collective agreement or an arbitral award, or
(b) disciplinary action resulting in discharge, suspension or a financial penalty,
and his grievance has not been dealt with to his satisfaction, he may refer the grievance to adjudication.
(2) Where a grievance that may be presented by an employee to adjudication is a grievance relating to the interpre tation or application in respect of him of a provision of a collective agreement or an arbitral award, the employee is not entitled to refer the grievance to adjudication unless the bar gaining agent for the bargaining unit to which the collective agreement or arbitral award applies signifies in prescribed manner
(a) its approval of the reference of the grievance to adjudica tion; and
(b) its willingness to represent the employee in the adjudica tion proceedings.
Before the adjudicator, the employer's counsel objected to the jurisdiction of the adjudicator to hear the reference under said section 91 on the basis that the action taken with respect to Jacmain was not a disciplinary discharge, but merely a rejection of an employee during his probationary period pursuant to section 28 of the Public Service Employment Act (supra) and thus could not be the subject matter of a reference under said section 91.
After considering the submissions of the parties and after reviewing the evidence before him, the adjudicator, by a decision dated August 1, 1974, concluded that the employer's rejection of Jacmain constituted a disciplinary discharge thus clothing him with jurisdiction under section 91 to hear the grievance on its merits. After holding a hearing on the merits, and by a decision dated January 31, 1975, the adjudicator held that there had been insufficient reason for Jacmain's discharge and accordingly allowed his grievance, and ordered reinstatement in his position and reimbursement for his loss of earnings.
On April 10, 1975, the employer referred to the Public Service Staff Relations Board the question of the jurisdiction of the adjudicator to hear Jac- main's reference under section 91 of the Public Service Staff Relations Act. By decision dated November 7, 1975, said Board held, inter alia:
a) the Adjudicator had not erred in law or exceeded his jurisdiction by agreeing to hear the case notwithstanding that Mr. Jacmain was on probation at the time his employment was terminated or that he purportedly had been rejected under subsection 28(3) of the Public Service Employment Act;
b) the Adjudicator had not erred in law or jurisdiction when, having concluded that the reasons for dismissing Mr. Jac- main were of a disciplinary nature, he heard the case as a grievance under section 91 of the Public Service Staff Rela tions Act;
c) on the basis of the evidence and reasoning in the Adjudicator's decision of January 31, 1975, the Adjudicator had not erred in law in concluding that Mr. Jacmain had not been rejected during his probationary period and had been discharged without sufficient reason.
This section 28 application is to review and set aside that decision.
The principal submission of applicant's counsel before this Court was also the principal argument relied on in the three hearings before the adjudica tor, namely, that since the employer had charac terized the action here taken as rejection for cause, this was sufficient for section 28(3) and (4) of the Public Service Employment Act to apply and was also sufficient to oust the jurisdiction of an adjudicator under section 91(1)(b) of the Public Service Staff Relations Act, and that an adjudica tor was not entitled to inquire into the facts of a particular case to determine whether, in fact, the action taken by an employer in that case, was a rejection for cause or a disciplinary discharge. As indicated at the hearing, this submission is, in my opinion, fully answered by the decision of this Court in the case of Cutter Laboratories Interna tional v. Anti-dumping Tribunal 3 and more par ticularly by the comments of the Chief Justice at page 453 under the heading Appendix A which reads as follows:
At the risk of increasing, rather than decreasing, the confu sion that my reasons herein may create, I consider it worth while to comment, by way of an appendix, on the duty of a Tribunal faced with a question as to whether it has jurisdiction when it has no authority to make a binding determination on that question. In my view, speaking very generally, when such a question arises, a Tribunal must take a position, even though it cannot make a binding decision, on the question whether what it is being asked to decide is something that Parliament has given it authority to decide. It should not waste public monies, and put interested parties to incurring expenses, on an inquiry that it is satisfied is outside its jurisdiction. In order to reach a conclusion on such a question, it may, depending on the circum stances, have to hear evidence with regard thereto. If it con cludes that it has no jurisdiction and consequently refuses to proceed, a person who feels aggrieved by that conclusion has his remedy in mandamus. If it concludes that there is a sufficient probability that it has jurisdiction to warrant it proceeding and announces that it proposes to proceed, a person who feels aggrieved by that conclusion has his remedy in prohibition or a section 28 application in respect of the Tribu nal's ultimate decision depending on the circumstances. Com pare the Appendix to the Reasons given in the Danmor Shoe Co. case [1974] 1 F.C. 22.
Turning now to the evidence adduced before the adjudicator, after a careful review thereof, I have concluded that the Board's decision cannot be allowed to stand and that this section 28 applica tion must be granted. The letters of February 25, 1974 to Jacmain and to the Commission are clear and unequivocal in that they reject Jacmain for
3 [1976] 1 F.C. 446.
cause within the meaning of subsections 28(3) and (4) of the Public Service Employment Act (supra).
The evidence as to cause adduced before the adjudicator was, inter alia, to the effect that Jac- main made many complaints relating to the administration of the office, that he complained constantly, in an unpleasant manner, loudly and bitterly, that "it was Mr. Jacmain's attitude, as displayed in tactlessness and impoliteness, in out bursts and the slamming of doors, and in continual `jeremiads', that gave his employer cause for complaint."
The Board, after observing that the representa tions made by the parties in this case were basical ly the same as those placed before the Board in the Fardella case, purported to follow their decision in that and earlier cases and sustained the adjudica tor's view that, having found, in fact that the dismissal was a disciplinary discharge, the adjudicator had jurisdiction to deal with the griev ance under section 91 of the Public Service Staff Relations Act (supra). The - Board further observed that the Fardella case had been the subject of a section 28 application to the Federal Court of Appeal and referred to the judgment of Chief Justice Jackett in that case 4 . In that case, in discussing the question as to whether the applicant was dismissed or rejected, the Chief Justice stated at page 480:
While the question is not free from doubt on the material in this case, I am not prepared to disagree with the conclusion of the Adjudicator and of the Board that there was a dismissal. In coming to that conclusion, I do not wish to be taken as expressing an opinion that, where there has been, in fact, a rejection under section 5 or under section 28 of the Public Service Employment Act, it can be classified as a dismissal in order to create jurisdiction under section 91 of the Public Service Employment Act*. Insubordination during a probation ary period might well be "cause" for rejection, either of itself or taken with other matters, just as it might be ground for disciplinary action even during a probationary period. There should, however, be no room for doubt, if the matter is handled as it should be handled, as to which action has been taken. In this case, while there are references to rejection, I cannot find fault with the Adjudicator's finding that, on balance, the
4 [I974] 2 F.C. 465.
applicant was really dismissed for insubordination.
* [This is evidently a reference to the Public Service Staff Relations Act—Ed.]
In my opinion, the factual situation in the Far - della case (supra) was quite different from the factual situation in the case at bar. In Fardella (supra), the facts as found by the adjudicator are set out on pages 468-472 of the judgment of the Chief Justice. In my view, the facts in that case are not clear and unequivocal as they are in the case at bar. In Fardella (supra), it was far from clear that the applicant was being "rejected" rather than being discharged for disciplinary rea sons. While there was some indication originally that steps would be taken to reject Fardella on probation, subsequent events took place which were more consistent with a disciplinary discharge. That is not the situation in the case at bar where the two letters of February 25, 1974 clearly estab lish rejection during the probation period. I agree with the Chief Justice as quoted supra, that where, as in this case, there has been, in fact, a rejection under section 28 of the Public Service Employ ment Act, it cannot be classified as a dismissal in order to create jurisdiction under section 91 of the Public Service Staff Relations Act. I have no hesitation in expressing the view that the conduct complained of in this case is a classic example of behaviour which would justify rejection of an employee during a probation period (and this was conceded by the adjudicator—see Appeal Case, pages 70 and 73). It might also be ground for disciplinary action even during a probationary period. However, on the facts here present, it is clear that the employer intended to reject and did in fact reject during probation and was, in my view, quite entitled so to do. That being so, the adjudicator was without jurisdiction to consider the grievance under section 91 and erred in law in so doing.
Likewise, the Public Service Staff Relations Board erred indaw in approving of the adjudica tor's decision.
It is clear from the various reasons for decision of the adjudicator that he considered the action here taken by the employer to be disciplinary action camouflaged as rejection. However, the facts established before him make it quite clear that the employer had ample cause for rejection.
There could only be disciplinary action camou flaged as rejection in a case where no valid or bona fide grounds existed for rejection. By the adjudica tor's own admissions, that is not the factual situa tion in this case.
In considering whether action taken to separate an employee from his employment that is, in form, under one authority can be treated as having been taken under another authority, consideration must be given to the decision of the Supreme Court of Canada in Bell Canada v. Office and Professional Employees' International Unions. In that case, Bell Canada instituted a unilateral pension plan under which employees with 20 or more years of service and who had reached the age of 60 years "may, at the discretion of the Committee, be retired from active service (on a service pension)." One employee was retired from service pursuant to that plan and he submitted a grievance alleging that he had been "dismissed" without sufficient and reasonable cause contrary to the collective agreement which made no mention of the pension plan. The collective agreement provided for arbi tration in the event of "dismissal or suspension for sufficient and reasonable cause". The majority of the Supreme Court of Canada agreed with the position of the employer that since the action taken by the employer was not "dismissal" but "retirement", the grievance was not arbitrable. In delivering the majority judgment of the Court, Mr. Justice Judson said at page 340:
Article 8 of the collective agreement reading: "The Company may dismiss or suspend an employee for sufficient and reason able cause," cannot possibly be read as "dismiss, or suspend, or retire on pension." Until the words "retire on pension" appear in article 8 of the collective agreement, there can be no basis for the arbitrator's decision. Dismissal, suspension and retire ment on pension are three different and distinct concepts.
The result is that the arbitrator exceeded his powers.
In my opinion, the above rationale applies to the instant case. For the adjudicator to have jurisdic tion under section 91(1) (b) on the facts of this case, it would be necessary for that section to have included in it, the words: "a rejection for cause
5 [1974] S.C.R. 335.
during the probationary period" or words of like intent. Without words of that nature, the adjudica tor is without jurisdiction.
In my view, the whole intent of section 28 is to give the employer an opportunity to assess an employee's suitability for a position. If, at any time during that period, the employer concludes that the employee is not suitable, then the employer can reject him without the employee having the adjudi cation avenue of redress. To hold that a probation ary employee acquires vested rights to adjudica tion during his period of probation is to completely ignore the plain meaning of the words used in section 28 of the Public Service Employment Act and section 91 of the Public Service Staff Rela tions Act. Mr. Jacmain clearly had the right to grieve under section 90 of the Public Service Staff Relations Act. His grievance was considered and rejected. However, not all grievors under section 90 are entitled to adjudication under section 91. The right to adjudication is restricted to those grievors bringing themselves within the four cor ners of section 91(1) which, on the facts here present, Mr. Jacmain has not been successful in doing.
Accordingly, the section 28 application is allowed and the decision of the Public Service Staff Relations Board dated November 7, 1975 is set aside.
* * *
URIE J. concurred.
* * *
RYAN J. concurred.
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