Union sought $500,000 in punitive damages
After the provincial government announced a closure of the Saskatchewan Transportation Company (STC) in 2017, it didn’t provide 16 weeks of notice to its employees, ruled an arbitrator.
On March 22, 2017, during the provincial budget speech, the government said all operations would cease by May 31, 2017.
However, not all employees were terminated on that day, as STC needed extra time to wind down its operations. Some workers were provided the option to bump other employees, but instead resigned.
A total of 95 employees were laid off because of the shutdown.
The system operated in 253 communities in the province, and maintained three terminals in Regina, Saskatoon and Prince Albert.
The union, the Amalgamated Transit Union (ATU), Local 1374, grieved the decision on April 17. “Section 212 of the Canada Labour Code requires the company to give notice to the minister of labour of a layoff of more than 50 employees in a four-week period. Section 214 and following sections require the establishment of a joint-planning committee to address the decision of the company to lay off its employees. These sections of the Labour code have been violated by the company,” read the grievance.
ATU asked for $500,000 in punitive damages, in addition to providing the proper notice period for the STC workers.
“Any employer who terminates, either simultaneously or within any period not exceeding four weeks, the employment of a group of 50 or more employees employed by the employer within a particular industrial establishment shall give notice to the minister, in writing, of his intention to so terminate at least 16 weeks before the date of termination of the employment of the employee in the group whose employment is first to be terminated,” said the Canada Labour Code.
However, the employer argued that this did not apply because the STC operated through three terminals and none of them employed 50 employees. The union countered and argued STC operated as a single “industrial establishment” that was governed by a single set of about 130 HR policies, for example.
Arbitrator William Hood rejected the argument of the employer. “Damages for the violation of section 212 of the code are awarded to the union in an amount equal to pay in lieu of notice on the basis of wages and other benefits for the 95 affected employees for the period of 16 weeks, less the period for which notice was provided, being the period from April 11 to June 1, 2017.”
As well, STC must “compensate each affected employee in the amount of $100 or $9,500 total for its failure to establish a joint-planning committee in contravention of section 214 of the code,” said Hood.
The employer did operate a unified business and it must therefore compensate workers. “The employer held itself out as operating one integrated entity, a bus system across Saskatchewan,” said Hood. “I have no hesitation in concluding that the employer was operating one industrial establishment within the meaning of the code.”
STC also argued that some employees — those who received notice offering them to bump less senior employees in a May 2 letter and subsequently resigned — lost all rights under the collective bargaining agreement.
“The employer says those employees who elect to resign and receive severance give up all employment rights. The right to be counted in the termination number is a right under the code. That right cannot be taken away,” said Hood.
“It offends logic to propose those who resigned did so voluntarily. A choice was a fallacy. STC was being wound down,” said Hood.
"There was no choice that avoided termination in these circumstances. Employees who resigned are to be counted in the termination number.”
Reference: Saskatchewan Transportation Company and Amalgamated Transit Union, Local 1374. William Hood — arbitrator. Eileen Libby for the employer. James Fyshe for the employee. April 27, 2018. 2018 CarswellNat 1948
