Dispute centred over what was negotiated during collective bargaining
A union filed a grievance after it said pay stubs did not fully reflect when employees worked inside a grocery company’s freezer.
Teamsters union took offence with Western Grocers over what used to be considered strictly premium pay turned into regular salary to reflect working in the cold conditions, but the hours worked were not honoured as such by the company.
A 2009 collective agreement indicated workers at the Calgary warehouse were to be paid a premium of $0.65 per hour for working inside the freezer. An additional $1.35 per hour was to be paid to employees who met a weekly productivity expectation.
In 2010, the company decided to discontinue the expectation of productivity and simply pay workers $2 extra per hour for any work in the freezer: “All full-time posted freezer employees shall receive $2 per hour added to their regular hourly rate.”
But the next sentence in the article reflected premium shift pay: “Employees temporarily assigned to work in the freezer shall receive the freezer premium as per current practice.”
Western Grocers did not fully consider a distinction between regular and premium pay in calculating overtime, sick leave, holiday pay and vacation pay. So the union grieved the practice in 2014, after a worker took a closer look at his pay stub.
Preston Quintin regularly worked in the freezer and in Jan. 8, 2014, met with the employer during joint labour-management to discuss hours he had worked, saying he achieved the extra $2 per hour in 2013, but it was not reflected in the extra calculations.
Darren Melnechenko, union representative, discussed the issue with Chris Dusky, who represented the employer during contract talks. Dusky promised to clear up the issue with Quintin’s pay.
However, Dusky testified he did not agree to fix the issue, but that he would pass on the information back to Lee Jones, senior director, labour relations. Dusky left the company shortly thereafter and the issue with Quintin was not addressed.
Quintin’s pay stub continued to reflect the problem, but it wasn’t noticed because he didn’t closely study subsequent pay stubs. On Oct. 3, 2014, Teamsters filed a grievance.
During negotiations that eventually produced a 2013 to 2016 collective agreement, John Taylor, Teamsters’ chief negotiator during bargaining talks, said he proposed the premium wording change so that the $2 would become permanently attached to the work, effectively giving workers a raise.
However, the company disagreed the wording should indicate a permanent change and instead said it should just be a continuation of the pay as premium only.
Negotiators for the company had a hazy recollection of the initial talks about the premium, and said there were no examples of how the pay would be applied during negotiations.
As to whether or not the new agreed-upon rate would be used to calculate overtime, sick leave, holiday pay and vacation pay, both sides had different recollections on this matter.
Jones testified Western Grocers never would have agreed to what the union later said was agreed upon.
In its submission, the company argued the contract wording constituted a continuation of the previous contract’s language about premiums, not regular hourly rate because the salary grids were not amended to reflect the extra $2.
“I have concluded that the interpretation advanced by the union is to be preferred to the interpretation advanced by the employer. I am satisfied that an objective reading of article 8.05 in concert with other relevant provisions leads to a conclusion that the additional $2 compensation for full-time posted freezer employees is intended to be included in their overtime and other payments,” said arbitrator Allen Ponak.
“Accordingly, on a plain reading of article 8.05 and in the context of other provisions in the contract, I am satisfied that the correct interpretation is that advanced by the union: freezer pay for full-time posted freezer employees is not a premium,” said Ponak.
He ordered the grievance upheld but affected employees would only receive compensation based on work 30 days prior to the filing of the grievance.
Reference: Western Grocers and Teamsters Local 987. Allen Ponak — arbitrator. Craig Neuman for the employer. Clayton Cook for the employee. Sept. 21, 2016
