An arbitrator has ruled that Canadian Pacific Kansas City Railway’s dismissal of a worker for leaving company property early and inaccurately reporting his work hours was excessive, ordering his reinstatement with a suspension instead. It pointed to a similar offence by a colleague that resulted in 10-day suspension in reducing the punishment.
The decision marks a significant victory for the Teamsters Canada Rail Conference, which argued the worker had not committed an offence severe enough to warrant termination.
M.N., a yard helper with two years of seniority at CPKC, was dismissed in September 2023 after an investigation revealed he left work early on Aug. 23, 2023. According to CPKC, he left 35 minutes before the end of his shift without informing management and subsequently claimed a full day’s pay, violating the company’s Honour System Manual. The Honour System places responsibility for accurate payroll reporting on employees.
The union representing M.N., Teamsters Canada Rail Conference, argued that he had not taken a required 30-minute lunch break, which he believed allowed him to leave early while still claiming a full shift. M.N. also testified that he attempted to contact management before leaving but was unsuccessful.
A co-worker, who engaged in the same conduct, received only a 10-day suspension. The union contended that this discrepancy in discipline was unjust.
Arbitrator Cameron’s ruling agreed with the union’s assessment, noting that while M.N.’s actions did breach company policy, the punishment of dismissal was disproportionate. “The identical violation resulted in a huge disparity of discipline,” the arbitrator wrote, referencing the lighter suspension given to the colleague.
Cameron also cited M.N.’s candid admission during the investigation and his efforts to contact management as mitigating factors. “This is not a matter of outright time theft,” Cameron noted, distinguishing the case from others involving more serious infractions of the Honour System. However, he emphasized the importance of trust in the employer-employee relationship, acknowledging that M.N.’s decision to leave early without permission was problematic.
CPKC maintained that the dismissal was justified based on his previous disciplinary record. M.N. had two prior infractions in 2021 and 2022, which included a 20-day suspension (later reduced to 15 demerits) and a 30-day suspension. CPKC argued that this latest incident was a “culminating incident” that warranted termination.
The company highlighted the seriousness of Honour System violations in its submissions, referencing earlier arbitration cases where breaches of trust in timekeeping were deemed grounds for dismissal. Despite this, Cameron found that M.N.’s case did not rise to the level of termination, noting that his colleague’s 10-day suspension for the same infraction served as a reasonable benchmark for discipline.
In his decision, Cameron also pointed out that CPKC’s actions in this case were not consistent with general labour relations principles. “General labour relations principles of discipline require like violations to be disciplined in a similar manner,” he wrote, referencing earlier jurisprudence that called for consistency in punishment for the same offence.
While the arbitrator did not completely absolve M.N. of responsibility, he ruled that a 15-day suspension was a more appropriate penalty for the violation. “Taking into account the above factors and jurisprudence, I find that a 15-day suspension is appropriate,” the ruling stated.
As a result of the decision, M.N. is to be reinstated without loss of seniority and will be compensated for lost wages, except for the period covered by the 15-day suspension.
For more information, see Canadian Pacific Kansas City Railway v Teamsters Canada Rail Conference, 2024 CanLII 87122 (CA LA).
