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A-327-82
The Queen for the Treasury Board (Applicant)
V.
France Thibault (Respondent)
and
Public Service Alliance of Canada and Public Service Staff Relations Board (Mis- en- cause)
Court of Appeal, Pratte, Ryan and Le Dain JJ.— Ottawa, February 9 and March 14, 1983.
Judicial review — Applications to review — Public Service — Application to review and set aside Adjudicator's decision upholding grievance decision that respondent entitled to retroactive pay increases and increments as though contin uously employed — Respondent's employment as Public Ser vice casual employee interrupted for few days — Questions arose as to whether respondent entitled to retroactive pay increases provided for by subsequent collective agreement and as to date of respondent's appointment to position for purpose of determining pay increment date — Adjudicator upheld grievance decision that respondent to be treated as if contin uously employed — Collective agreement provided that "terms and conditions governing the application of pay ... are not affected by this Agreement" — Applicant maintained that collective agreement therefore subject to Retroactive Remu neration Regulations which deny retroactive pay increases approved by Governor in Council or Treasury Board to employees who ceased- to be employed during retroactive period — Respondent relied on definition of "continuous employment" in collective agreement and on ss. 1(1)(b) and 3(f) of Public Service Terms and Conditions of Employment Regu lations to support contention of continuous employment to answer second question relating to date of appointment Application allowed with respect to part of Adjudicator's decision relating to pay increments, but dismissed with respect to decision on retroactive pay increases — Retroactive Remu neration Regulations do not apply to interpretation of collec tive agreements, but only to pay increases approved by Gover nor in Council or Treasury Board — Since collective agreement provision concerning pay increments does not use expression "continuous employment", definition of expression not applicable — Respondent appointed to position when rehired after few days unemployment — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28 — Public Service Staff Relations Act, R.S.C. 1970, c. P-35, ss. 54, 91 — Public Service Employment Act, R.S.C. 1970, c. P-32, ss. 24, 25 — Retroactive Remuneration Regulations, C.R.C., c. 344, ss. 3, 4 — Public Service Terms and Conditions of Employment Regulations, SOR/67-118, ss. 2(l)(b),(r), 3(f).
COUNSEL:
Pierre Hamel for applicant. Robert Côté for respondent.
SOLICITORS:
Deputy Attorney General of Canada for applicant.
Gowling & Henderson, Ottawa, for respond ent.
The following is the English version of the reasons for judgment rendered by
PRATTE J.: Applicant is requesting that a deci sion of an Adjudicator upholding a grievance that respondent had referred to adjudication under sec tion 91 of the Public Service Staff Relations Act, R.S.C. 1970, c. P-35, be set aside under section 28 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10.
At the time of the adjudication respondent was a casual employee of the Canada Employment and Immigration Commission. She had begun working there on May 15, 1979, the date on which she had been hired for a "specified period" pursuant to sections 24 and 25 of the Public Service Employ ment Act, R.S.C. 1970, c. P-32. When it expired respondent's employment was extended to July 31, 1980. Respondent then remained unemployed for a few days. On August 6, 1980 she was rehired once again, however, as a casual employee and for a specified period. This further employment was extended when it expired with the result that respondent was still working for the Canada Employment and Immigration Commission long after a new collective agreement was signed, on October 17, 1980, establishing the work terms and conditions of employees in the bargaining unit to which respondent belonged. This agreement pro vided for pay increases retroactive to November 12, 1979; it also contained clauses respecting "pay increments" which provided that such increments were to be paid to employees in respondent's situa tion fifty-two weeks after they were appointed to a position in the bargaining unit. In applying these clauses of the agreement to respondent, the employer was of the view that she was not entitled to the retroactive pay increase for the period prior
to August 6, 1980, the date on which she was rehired after a few days unemployment; it was also of the view that "the pay increment" to which respondent was entitled should be calculated as if she had been appointed to the position she held on August 6, 1980 and not previously.
Respondent submitted a grievance against this decision by the employer. She maintained she was entitled to the retroactive pay increase and to the pay increment as though she had been employed continuously since May 15, 1979, without regard to the fact that she had been without employment from July 31 to August 6, 1980 and had been rehired on this latter date. It was this grievance that was upheld by the decision a quo, which affirmed that respondent was entitled both to the retroactive pay increase and to the pay increment as though she had worked without interruption since May 15, 1979. Applicant maintained that both parts of this decision, concerning the retroac tive increase and the pay increment respectively, were unfounded.
1. The retroactive pay increase
The clauses of the collective agreement signed on October 17, 1980 that deal with this matter are contained in Article 27 and in Appendix "B". The first two clauses of Article 27 read as follows:
27.01 Except as provided in this Article, the terms and condi tions governing the application of pay to employees are not affected by this Agreement.
27.02 An employee is entitled to be paid for services rendered at:
(a) the pay specified in Appendix "B" for the classification of the position to which he is appointed ....
Appendix "B" of the agreement contains a list of the rates of pay payable to the various categories of employee. Three rates are provided for each category, the first to take effect on November 12, 1979 and the other two on dates subsequent to the signing of the agreement.
If we consider only clause 27.02 of the agree ment, it seems clear that respondent is entitled to the retroactive pay increase provided for regardless
of the fact that she was not employed from July 31 to August 6, 1980. She is not, of course, entitled to any pay for the time during which she did not work, but there is nothing in clause 27.02 to indicate that the fact she ceased to be employed for a few days means that she loses the retroactive pay increase to which she would otherwise be entitled for the period during which she worked before ceasing to be employed.
The only argument relied on by counsel for the applicant in favour of a contrary conclusion is based on clause 27.01 of the agreement, which he maintained had the effect of making the payment of the retroactive pay increases provided for in the agreement subject to the rules set out in sections 3 and 4 of the Retroactive Remuneration Regula tions, Regulations made by the Governor in Coun cil under Appropriation Act No. 5, 1963, S.C. 1963, c. 42 (Schedule B, Vote No. 71a) which can now be found in chapter 344 of the 1978 Con solidated Regulations of Canada. These Regula tions provide that where the Governor in Council or Treasury Board approves a retroactive pay increase, an employee who has ceased to be employed during the retroactive period may not, as a general rule, receive the increase for the time during which he was employed before ceasing to be employed. It follows, according to counsel for the applicant, that respondent, who was without employment from July 31 to August 6, 1980, is not entitled to the retroactive pay increase for the time during which she worked before August 6, 1980.
This argument would be difficult to refute if counsel for the applicant were correct in affirming that the effect of the clauses of the collective agreement respecting the retroactive pay increase was governed by the provisions of sections 3 and 4 of the Retroactive Remuneration Regulations. However, this affirmation seems incorrect to me. These Regulations provide that the Governor in Council and Treasury Board may approve retroac tive pay increases and they specify who, as a general rule, is to benefit from any increases thus approved. These Regulations, in my view, apply only to pay increases that have been approved pursuant to the Regulations. They do not apply to
increases provided for in a collective agreement that Treasury Board has entered into pursuant to its authority under section 54 of the Public Service Staff Relations Act. In other words, the Regula tions prescribe the effect of approval of a retroac tive pay increase by the Governor in Council or Treasury Board, they do not in any way govern the interpretation or effect of a collective agreement providing for such increases. It is true that clause 27.01 of the agreement provides that "the terms and conditions governing the application of pay to employees are not affected by this Agreement" except to the extent that Article 27 provides other wise. However, the rules or terms and conditions prescribed by the Retroactive Remuneration Regulations are not, in my view, "terms and con ditions governing the application of pay to employees."
For these reasons I would dismiss the applica tion to the extent it impugns the first part of the Adjudicator's decision respecting the retroactive pay increase.
2. The pay increment
Clause 27.08 of the agreement states how the period after which employees are entitled to a pay increment is to be calculated. It reads as follows:
27.08 Subject to clause 27.07, the pay increment date for an employee, appointed to a position in the bargaining unit on promotion, demotion or from outside the Public Service after March 4, 1976, shall be the first Monday following the pay increment period listed below as calculated from the date of the promotion, demotion or appointment from outside the Public Service. Subject to clause 27.07, the pay increment periods listed below will continue to apply to employees appointed prior to March 4, 1976.
PAY INCREMENT PERIODS
Level Full-Time Employees
CR-1 26 weeks
CR-2 to CR-7 (inclusive) 52 weeks
It is common ground that, pursuant to this clause, respondent was entitled to a pay increment on the first Monday following a fifty-two-week period from the day on which she was appointed to a position in the bargaining unit. The only question
to be resolved concerns the date to be regarded, for purposes of clause 27.08, as the date on which respondent was so appointed. Is it, as respondent maintained, May 15, 1979, the date on which she was first hired to work for the Canada Employ ment and Immigration Commission, or is it, as applicant maintained, August 6, 1980, the date on which she was rehired to work for the Commission after a few days of unemployment?
Counsel for the respondent recognized, if I understood him correctly, that in the case of a person who has been employed in the Public Ser vice discontinuously, the terms of clause 27.08 must be interpreted as referring in general to the date on which that person was most recently appointed to a position in the bargaining unit. He maintained that this should not be so in the case of respondent because the latter, despite the fact she was not employed in the Public Service from July 31 to August 6, 1980, should nevertheless be regarded as having been employed continuously from May 15, 1979, pursuant to the definitions of "continuous employment" contained in paragraph 2.01(e) of the collective agreement applicable in the case at bar and in paragraphs 2(1)(b) and 3(f) of the Public Service Terms and Conditions of Employment Regulations, SOR/67-118.
Paragraph 2.01(e) of the collective agreement reads as follows:
2.01 For the purpose of this Agreement:
(e) "continuous employment" has the same meaning as in the existing rules and regulations of the Employer on the date of the signing of this Agreement;
Paragraphs 2(1)(b) and 3(f) of the Public Service Terms and Conditions of Employment Regula tions read as follows *:
2. (1) In these Regulations,
(b) "continuous employment" means continuous employment in Schedule A Service;
* [See Personnel Management Manual, Vol. 8, "Compensa- tion", Appendix A, being TB 665757, issued by the Treasury Board of Canada on March 2, 1967—Ed.]
3. For the purposes of these Regulations ...
(f) during any relevant period, a person performing duties of a casual nature, ceases to be employed in Schedule A Ser vice for any reason other than dismissal, discharge, release or declaration that he has abandoned his position, and has again become employed therein after a period of not more than five working days from the day on which he so ceased to be employed, his employment in the position held by him before he so ceased to be employed and in the position to which he is appointed shall constitute continuous employment.
The expression "Schedule A Service" is defined in paragraph 2(1)(r) of the Regulations and it is common ground that respondent was employed in such service. It is also common ground that respondent was a casual employee who lost her employment on July 31, 1980 and became employed again on August 6, 1980 after a period of three working days (August 1, 4 and 5). It follows that for purposes of the Public Service Terms and Conditions of Employment Regula tions, respondent's employment, despite the fact it was interrupted from July 31 to August 6, 1980, is deemed to have been continuous. Counsel for the respondent maintained that it also follows that respondent's employment is deemed to have been continuous for purposes of the collective agree ment since paragraph 2.01(e) of the agreement provides that "For the purpose of this Agreement" the expression "continuous employment" has the same meaning as in the employer's regulations. He concluded from this that the date on which respondent was appointed to a position in the bargaining unit is the date on which she was first hired, that is, May 15, 1979.
In reply to this argument counsel for the appli cant stated that paragraph 2.01(e) of the agree ment merely contained a definition of "continuous employment" and that although reference should therefore be made to this paragraph in interpreting clauses of the agreement in which the expression "continuous employment" is used, it should not be relied on in interpreting those which, like clause 27.08, do not use that expression.
I find this reply satisfactory. The issue here is not whether respondent's employment should be regarded as continuous; rather we must determine
when she was appointed to the position she occu pies in the bargaining unit. It seems certain to me that this appointment was made on August 6, 1980, and I do not see how this fact can be ignored solely on the ground that for certain purposes (such as the calculation of paid vacation leave), respondent's employment before July 31 and after August 6, 1980 is regarded as continuous employment.
On this second point it therefore seems to me that the Adjudicator erred in deciding as he did.
For these reasons I would grant the application, quash that part of the decision a quo that relates to the pay increment and refer the matter back to the Adjudicator so that he may decide it on the basis that for purposes of clause 27.08, respondent should be regarded as having been appointed to her position and as having entered the Public Service on August 6, 1980.
RYAN J.: I concur. LE DAIN J.: I concur.
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