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eLaw - Labour and Employment Law Update

March 2014 - No. 11
ISSN 1927-9019
In This Issue
Union Interests Trump Privacy Rights Again
Utilization of MTS Pension Surplus to be Negotiated: SCC
Retirement Savings Not Intended to Subsidize Wrongful Dismissal: SCC
Avoiding Undue Interference in the Operations of International Organizations: SCC
Civil Action to Recover Holiday Pay Dismissed: MBQB
Extrinsic Evidence Limited on Judicial Review: MBQB
Recommeded Reading
Spring CPD: LSM

Union Interests Trump Privacy Rights Again

 

A Public Service Labour Relations Board decision requiring an employer to provide home contact information to the union about bargaining unit members (including those declining union membership) was reasonable according to the Supreme Court in Bernard v. Canada (Attorney General), 2014 SCC 13, because the union needed the information to carry out its representational duties. "At the same time, however, the union must ensure that the information is kept secure and is used only for representational purposes," said the court. This article from The Court analyzes the decision.

Utilization of MTS Pension Surplus to be Negotiated: SCC

 

The "new" MTS employee pension plan (put in place when MTS was privatized in 1997) contravened the Act and memorandum of agreement governing the privatization according to the Supreme Court in Telecommunications Employees Association of Manitoba Inc. v. Manitoba Telecom Services Inc., 2014 SCC 11, by violating the s.15(2) requirement that any new plan must provide equivalent "value" (which the court interpreted to include both in the benefits paid to plan members and in the funding mechanism used to produce the benefits). The 43 million dollar plan surplus, which had been funded solely by employees, was no longer accessible to members under the new plan, and this violated the equivalency requirement. The court reinstated the trial judge's remedial order for the parties to negotiate utilization of the funds and arrive at a mutually agreeable implementation process.

Retirement Savings Not Intended to Subsidize Wrongful Dismissal: SCC

 

Employee pension payments should generally not reduce the damages otherwise payable for wrongful dismissal according to a majority of the Supreme Court in IBM Canada Limited v. Waterman, 2013 SCC 70. They are a form of deferred compensation for the employee's service, not an indemnity for wage loss due to termination, said the court. Although the court doesn't expressly rule out employment contracts which provide for pension plan deductions, employers will find it tricky to draft and enforce such provisions following this decision. This Inhouse article discusses the decision.

Avoiding Undue Interference in the Operations of International Organizations: SCC

 

In Amaratunga v. Northwest Atlantic Fisheries Organization, 2013 SCC 66, the Supreme Court found that an international organization was immune from the wrongful dismissal claim of a long time senior employee. The fact that the appellant was left with no forum in which to air his grievances and seek a remedy was unfortunate, said the court, but "to allow employment-related claims of senior officials to proceed in Canadian courts would constitute undue interference with NAFO's autonomy in performing its functions and would amount to submitting its managerial operations to the oversight of its host state's institutions." (paras. 63 and 57)

Civil Action to Recover Holiday Pay Dismissed: MBQB

 

A 12-year contract employee whose contracts did not specify entitlement to general holiday pay was precluded from pursuing more than the 22 month statutory entitlement under The Employment Standards Code in Rivard v. The Assiniboine Credit Union Limited, 2014 MBQB 30. Following the British Columbia Court of Appeal decision in Macaraeg v. E Care Contact Centers Ltd., 2008 BCCA 182, the court found that there was no cause of action at common law to enforce the statutorily conferred right to general holiday pay, as the statute provides for effective enforcement of that right.

Extrinsic Evidence Limited on Judicial Review: MBQB

 

The court overturned a master's decision ordering the Manitoba Human Rights Commission to produce its investigator's file concerning a workplace sexual harassment claim in Jewish Community Campus of Winnipeg Inc. v. Metaser et al., 2013 MBQB 303. The court found that on a judicial review of a specialized tribunal, evidence extrinsic to the record of the proceeding may be introduced only in very limited situations, such as where necessary to prove error going to jurisdiction which cannot be proved on the record or where the record is inadequate to establish procedural unfairness. In this case, the employer was unable to identify any documents which would prove its wide ranging claims of bias, procedural unfairness and errors of law amounting to loss of jurisdiction.

Recommended Reading

 

  • Alcohol and Drug Testing: Where Are We Now? - this Davis LLP paper examines the current scope of alcohol and drug testing in Canada and provides a broad overview of the approaches taken in these cases. It concludes with a summary of what factors make for fair policy implementation.
  • These recent articles also review the most significant labour and employment developments of 2013:
  • U.S. Labour Laws More Protective Than Canadian? - this Slaw post references a US decision which highlights the difference in Canadian and US labour law on the issue of reinstatement. The US court ordered reinstatement of several employees who had been fired for criticizing their employer on Facebook, something the author argues would not happen in Canada.
  • Employment Law Updates for 2014 - this Slaw post discusses proposed amendments to the Ontario Employment Standards Act (Bill 21, at third reading and Bill 146, introduced in December). Some of the changes are intended to bring the provincial legislation in line with changes made last year to the federal Employment Insurance Act and the Canada Labour Code.

Spring CPD: LSM

 

In the next session in the Leadership Skills series, Generational Diversity: Maximize Performance Throughout Your Organization, participants will explore ways to re-frame perceptions about generational differences and learn how to adapt their leadership styles to maximize organizational performance. It takes place March 14, 2014, from 9:00 a.m. to 3:00 p.m. at the Law Society classroom. Presenter Judy Mathieson will also host the final session in the series, Presenting With Confidence on May 29, 2014. Register for more than one session and save money.

 

New Manitoba Private Sector Privacy Legislation (Bill 211) - On September 13, 2013, Bill 211, The Personal Information Protection and Identity Theft Prevention Act (PIPITPA) received royal assent, making Manitoba the fourth Canadian province to enact general private sector privacy protection legislation. Subject to specified exemptions, Bill 211 will apply to all organizations that operate in Manitoba and that collect, use and disclose personal information (including personal employee information). Join privacy law expert Brian Bowman at this webinar presentation on March 27, 2014, for a practical discussion of what you need to know about the new regime.

 

Things you Need to Know About Wrongful Dismissal - Join Robin Kersey and Jeff Palamar for a lively webinar discussion on what you need to know to advise employers and employees in wrongful dismissal cases. The webinar takes place from 12:00 noon to 1:00 p.m. on April 8, 2014. Discounts are available for group registrants.

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