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Industrial Relations in Canada

Industrial Relations in Canada

Legislative Changes from September 1, 2006 to December 5, 2006*

Nova Scotia: An Act to Amend Chapter 475 of the Revised Statutes, 1989, the Trade Union Act; Bill 219; Assented to December 8, 2005

Bill 219 has made a number of amendments to the Trade Union Act. Unless otherwise indicated, these amendments came into force on October 1, 2006.

The most important amendments include the following measures:

·      To establish an expedited grievance arbitration procedure that will be applicable not only to disputes between the parties to collective agreements under the Trade Union Act, but also to rights disputes under the Civil Service Collective Bargaining Act, the Corrections Act, or the Highway Workers Collective Bargaining Act.

·      To provide that an application for expedited arbitration with respect to a dispute arising out of a collective agreement may be made by either party when the grievance procedure under the collective agreement has been exhausted, five months or more have passed since the dispute was referred to arbitration, and no hearings have commenced.

·      To add a provision respecting a duty of fair representation for trade unions and persons acting on their behalf, whose bargaining rights have been acquired under the Trade Union Act, the Civil Service Collective Bargaining Act, the Corrections Act or the Highway Workers Collective Bargaining Act with respect to an employee's rights under a collective agreement.

·      To allow complaints to the Labour Relations Board respecting alleged breaches of the duty of fair representation and to make applicable certain conditions for presenting a complaint (e.g., using any available trade union’s internal grievance/appeal procedure, and presenting the complaint within certain time limits).

·      To provide that the Board may refuse to hear complaints about alleged breaches of the duty of fair representation if it considers them frivolous or otherwise not worthy of a hearing.

·      To establish a procedure for appointing a review officer to inquire into a complaint concerning a trade union’s duty of fair representation. The review officer will have the power to dismiss the complaint or attempt to effect a settlement. In the latter case, if a settlement is not possible, he/she will refer the complaint to the Board.

·      To allow the Board to order a trade union to rectify a breach of the duty of fair representation.

·      To provide that the provisions dealing with the trade unions’ duty of fair representation of employees and the expedited grievance arbitration procedure do not apply in the construction industry.

·      To permit the appointment of more than one Vice-chairman of the Board.

·      To authorize the Chairman of the Board or a Vice-chairman to sit alone to hear a matter with respect to an uncontested application or question, or a complaint concerning a trade union’s duty of fair representation. When doing so, the Chairman or a Vice-chairman may exercise all the powers of the Board. (This amendment will come into force on October 1, 2007, upon proclamation by the government.)

Ontario: the Public Service of Ontario Statute Law Amendment Act, 2006; Bill 158; first reading November 2, 2006

Bill 158 would make a number of amendments to legislation governing employment in the public service of Ontario. Among other things, it would repeal the Public Service Act and replace it, in part, with the Public Service of OntarioAct, 2006 (PSOA). The PSOA would clarify the roles and responsibilities of the Public Service Commission and certain senior officials in administering the public service. It would also establish a human resources management framework for employment by the Crown. In particular, it would empower the Management Board of Cabinet to issue directives that determine classes of positions, duties and qualifications of positions, salary and wage ranges, remuneration including benefits, and other terms and conditions of employment for public servants.[1]

Moreover, the PSOA would contain provisions to facilitate disclosures of wrongdoing in the public service and protect “whistleblowers” from acts of reprisal.[2] (Legislation to add similar provisions into the Public Service Act was adopted in 1993; however, these provisions were never proclaimed into force). In addition, the PSOA would set forth the rights and obligations of public servants with respect to ethical conduct, conflicts of interest and political activity.

Part II of the Public Service Act relates to collective bargaining rights of members of the Ontario Provincial Police.  Bill 158 would replace Part II with a separate Act, the OntarioProvincial Police Collective Bargaining Act, 2006. Part II would essentially be reproduced in the new Act; however, two amendments should be mentioned. First, the Minister of Government Services or another designated minister would be responsible for implementing, by order, collective bargaining agreements and awards made in accordance with the PSOA, approved decisions of the Ontario Provincial Police Negotiating Committee[3] and decisions of arbitration boards. Currently under the Public Service Act, the Lieutenant Governor in Council is responsible for implementing such agreements, awards and decisions. In addition, Bill 158 would provide that the Lieutenant Governor in Council has the sole authority to make regulations that prescribe rules of procedure for proceedings before the Negotiating Committee. Presently, the Commission may make such regulations, subject to the Lieutenant Governor in Council’s approval.   

If Bill 158 is passed, the Public Service of OntarioAct, 2006 and the OntarioProvincial Police Collective Bargaining Act, 2006 will come into force on a date, or dates, to be proclaimed by the government.

Successor Rights

Bill 158 would also provide for “successor rights” in the event of a transfer of an undertaking from one employer to another, where the transfer involves Crown employees. These amendments would come into force on the date of Royal Assent.

Under the Labour Relations Act, 1995 (LRA) of Ontario, where an employer who is bound by a collective agreement sells[4] its business,[5] the purchaser of the business becomes a party to the agreement and is bound by it. If the employer sells its business while an application for certification or termination of bargaining rights is before the Ontario Labour Relations Board, the purchaser is considered to be the employer for the purposes of the application. Moreover, if a trade union or council of trade unions is, at the time of sale, certified as the bargaining agent or has given notice to bargain for or renew a collective agreement, then it continues to be the bargaining agent for the employees in the ‘like’ bargaining unit employed by the successor. It is, accordingly, entitled to give notice to the successor employer to bargain for or renew a collective agreement, whichever is applicable. However, the Board may, in the circumstances defined by the LRA, exempt a person to whom a business was sold from these obligations.[6] 

Proposed amendments to the Crown Employees’ Collective Bargaining Act, 1993

The Crown Employees’ Collective Bargaining Act, 1993 governs the collective bargaining rights of most Crown employees.[7] Under the Act, these employees and the Crown are excluded from the application of the provisions of the LRA pertaining to successor rights.

However, Bill 158 would repeal this exclusion. It would further stipulate that these provisions of the LRA apply in the case of a transfer[8] of an undertaking[9] from one employer to another, where the employees of at least one of them are Crown employees.

Proposed amendments to the Public Sector Labour Relations Transition Act, 1997

Comparable amendments would also be made to the Public Sector Labour Relations Transition Act, 1997 (PSLRTA). The PSLRTA provides for the resolution of labour relations issues resulting from municipal amalgamations, changes affecting school boards, hospital restructuring and similar events. It stipulates that the successor rights provisions of the LRA do not apply to such an event or to an event covered by the Local Health System Integration Act, 2006.[10] Bill 158 would amend the PSLRTA to provide that where the Crown becomes a successor employer as a result of such an event, it is subject to the successor rights provisions of the LRA. 

It should be noted that the PSLRTA also contains provisions on successor rights and obligations.[11] However, Crown employees are excluded from these provisions. Bill 158 would repeal the exclusions in order to protect such employees in the event of a transfer to an employer other than the Crown. Therefore, a private-sector employer would have successsor obligations towards former Crown employees, in accordance with the provisions of the PSLRTA.[12]

To summarize, the Crown would have successor obligations in accordance with the provisions of the LRA. All other employers would have successor obligations in accordance with the PSLRTA, including with respect to former Crown employees. It should be emphasized that these amendments would only apply to events covered by the PSLRTA and the Local Health System Integration Act, 2006.

Finally, this Bill would amend provisions relating to employee seniority following an event covered by the PSLRTA. Employees of a predecessor must be accorded seniority for their prior employment following an event in accordance with the provisions of the PSLRTA. Under the current legislation, however, separate rules for employees of Crown predecessor employers may be prescribed by regulation. Bill 158 would repeal this exception.

 

 

* This report is based on bills, official gazettes and other pertinent documents received between September 1, 2006and December 5, 2006.

 

Prepared by:

Labour Law Analysis
International and Intergovernmental Labour Affairs
Labour Branch
Human Resources and Social Development Canada



[1]Currently, the Public Service Commission is responsible for evaluating and classifying positions. It may also recommend to the lieutenant-governor in council salary ranges for each position, except with respect to a previously established classification for which a salary range is determined through collective bargaining (ss. 4(a)-(b) of the Public Service Act).

[2]For further information on this topic, please refer to the document Legislative Changes Relating to Minimum Employment Standards, available on the following website:

http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/lp/spila/clli/dllc/01Developments_in_Labour_Legislation_in_Canada.shtml&hs=lzl

[3]The Ontario Provincial Police Negotiating Committee is established under Part II of the Public Service Act. It would be continued under the OntarioProvincial Police Collective Bargaining Act, 2006. It is composed of an equal number of representatives from the employees’ bargaining agent and the employer, plus one neutral chair. Among other things, the Committee is responsible for negotiating any matters that are put on its agenda pursuant to the legislation, including matters related to the following issues: the amendment or renewal of an agreement that may be the subject of bargaining; the making of a first agreement; or the interpretation or clarification of any clause in an agreement. Moreover, it may establish a binding arbitration procedure to deal with certain grievances concerning working conditions or terms of employment or grievances regarding the interpretation or clarification of any clause in an agreement.

In order to be implemented, decisions of the Ontario Provincial Police Negotiating Committee must be approved by a decision of the Board of Directors of the employees’ bargaining agent and, on the employer’s side, by a decision of the Management Board of Cabinet.

[4]The term “sells” includes leases, transfers and any other manner of disposition (s. 69 of the LRA).

[5]The term “business” includes any part of a business (s. 69 of the LRA).

[6]The Board may issue remedial orders upon the application of any interested person, trade union or council of trade unions made in accordance with the LRA.  In particular, it can terminate the bargaining rights of the trade union or council of trade unions where, in the Board’s opinion, the purchaser of the business has changed the character of the business so that it is  “substantially different” from the predecessor employer. The Board may also define the composition of the ‘like’ bargaining unit (with any modifications it considers necessary), or amend the definition of a bargaining unit as provided by a certificate or collective agreement. Moreover, where the purchaser has intermingled employees in the ‘like’ unit with employees of another of its businesses the Board may (among other things) declare that the purchaser is no longer bound by a collective agreement.  

Where an application has been made to the Board under these provisions, the employer is not required to bargain until the Board has disposed of the application and declared which trade union or council of trade unions, if any, has the right to bargain with the employer on behalf of the employees concerned. Before disposing of an application, the Board may make any inquiry or require the production of any evidence that it considers to be appropriate. In addition, it may require that any thing be done or that any representation votes be held as it considers appropriate (s. 69 of the LRA).

[7]Some employees of the Crown are excluded from the Act, including the following: members of the Ontario Provincial Police; architects, dentists, lawyers and physicians who are employed in their professional capacity; provincial judges, and employees who exercise managerial functions. (See s. 1(3) of the Act). 

[8]The term “transfer” would refer to a conveyance, disposition or sale (schedule D of Bill 158, s. 2).

[9]The term “undertaking” would refer to all or part of a business, enterprise, institution, program, project or work (schedule D of Bill 158, s. 2).

[10]The Local Health System Integration Act, 2006 is summarized on p. 36 of the Highlights of Major Developments in Labour Legislation, 2005-2006, available at

http://www.hrsdc.gc.ca/asp/gateway.asp?hr=/en/lp/spila/clli/dllc/17_2005_2006.shtml&hs=lzl

[11]The PSLTRA establishes, as of the changeover date for the event in question, ‘like’ bargaining units for employees of a predecessor employer who become employees of the successor employer. It also provides that, in most cases, the bargaining agent for the new bargaining unit is the bargaining agent that represented the employees when they were employed by the predecessor employer. Collective agreements for those employees are, in most cases, continued and, if they have expired, are deemed to be still be in effect.

The description of bargaining units may be confirmed or changed, either by agreement of the parties or by an order of the Ontario Labour Relations Board. If two or more bargaining agents represent employees in a bargaining unit, the bargaining agents may select one of them to represent the unit, or, at the request of the successor employer or a bargaining agent, the Board may by order appoint one of them. Before the Board makes such an order, it must hold a representation vote (except in specified circumstances) (ss. 14, 15, 18(4), and 19.1-24 of the PSLRTA).

[12]At the same time, Bill 158 also stipulates that the Crown cannot be considered a successor employer with respect to these provisions of the LRTTSP. Therefore, the Crown would only have successor obligations pursuant to the LRA (Schedule D to Bill 158, ss. 5(2) and 6(2)). 

     
   
Last modified :  2006-12-05 top Important Notices