Canadian National Railway (CN) has been ordered to reinstate a long-time conductor who was terminated for breaching a continuing employment contract related to his substance abuse disorder.
The ruling was handed down by an arbitrator in a case between CN and the Teamsters Canada Rail Conference (TCRC) concerning the dismissal of conductor J.G., who has been diagnosed with substance abuse disorder, a recognized disability under the Canadian Human Rights Act.
The arbitrator’s decision found that while he had breached his employment contract by consuming alcohol and failing to comply with mandatory random drug tests, the railway company had not reached the point of undue hardship in accommodating his addiction.
Background
J.G., who had worked for CN for about 13 years, was dismissed from his position in December 2023 after failing to comply with the conditions of a Continuing Employment Contract (CEC) and a Relapse Prevention Agreement (RPA). The agreements, which he signed in 2022 and 2023, required him to abstain from drugs and alcohol and to submit to random testing as part of his recovery from substance abuse disorder.
The events leading to his termination began in September 2023 when J.G. missed two scheduled occupational health appointments, which he later explained was due to being out of town on a moose hunting trip. During the same period, J.G. relapsed, consuming alcohol and driving under the influence, which resulted in a car accident. He pleaded guilty to impaired driving and received a $1,500 fine along with a one-year suspension of his driver’s license.
Following these incidents, CN conducted an investigation and concluded that J.G. had violated the terms of his employment agreement, leading to his dismissal. The company argued that it had made several attempts to accommodate his substance abuse disorder but could no longer do so due to safety concerns in his safety-sensitive role.
Union’s position
The TCRC, representing J.G., contended that CN’s actions were not in compliance with the collective agreement, arbitral jurisprudence, and the Canada Labour Code. The union emphasized that his substance abuse disorder is a recognized disability under Canadian law and argued that his dismissal was discriminatory.
The union acknowledged that J.G. had relapsed but highlighted his ongoing efforts to recover, noting that he had entered an intensive 12-month residential rehabilitation program. At the time of the arbitration hearing, J.G. was seven months into the program and had been sober since the fall of 2023. The union requested that the arbitrator reinstate him on conditions deemed appropriate and substitute his termination with a suspension for the time he had already served.
CN’s position
CN argued that J.G. had been given multiple opportunities to comply with the terms of his employment agreements but had failed to do so. The company pointed to his relapse and missed appointments as evidence of non-compliance and emphasized that the safety-sensitive nature of his job made it impossible to accommodate him further.
CN also cited the fact that he had breached both his RPA and CEC agreements, which the company had put in place to monitor and support his recovery.
CN further argued that last-chance agreements, such as the ones signed by J.G., should not be overturned when the terms are clearly breached. The company noted that J.G. had shown no remorse during its investigation and that his termination was justified given his failure to meet the conditions set out in the agreements.
Arbitrator’s ruling
The arbitrator found that while CN had provided significant accommodations to J.G., the company had not yet reached the point of undue hardship in its duty to accommodate his addiction. The ruling noted that drug addiction is a recognized illness under Canadian human rights legislation and that employers are obligated to accommodate such disabilities up to the point of undue hardship.
“Both legislation in Canada, such as the Canadian Human Rights [Act], and an extensive body of arbitral jurisprudence, clearly recognize that alcoholism and drug addiction are a form of illness, and are to be treated as such,” the arbitrator wrote. “The jurisprudence indicates that relapses are part of the illness.”
The arbitrator concluded that while J.G. had breached the terms of his employment agreements, his efforts to overcome his addiction — particularly his participation in the rehabilitation program — warranted another opportunity for accommodation. The ruling directed CN and the union to negotiate a new CEC, which would extend for five years and require Gillis to adhere to strict conditions, including random testing and continued sobriety.
“Given this finding that the grievor has breached both the RPA and the CEC, an analysis is now necessary of the human rights obligations of the Parties,” the arbitrator stated.
The ruling also granted the union’s request that J.G. be entitled to short-term disability benefits for the period he was held out of service, given his recognized disability.
Moving forward
The arbitrator’s decision reinstates J.G. to his position without loss of seniority but makes it clear that any future breach of the new employment contract would result in termination. “It should be clearly understood that any further breach will presumptively constitute undue hardship to the company, and termination will therefore be appropriate,” the arbitrator wrote.
The ruling provides a window for J.G. to continue his recovery while maintaining employment, but places significant responsibility on him to comply with the terms of the new agreement. For CN, the case underscores the challenges of managing employees with substance abuse disorders, particularly in safety-sensitive roles where accommodation must be balanced with public and workplace safety concerns.
For more information, see Canadian National Railway Company v Teamsters Canada Rail Conference, 2024 CanLII 87128 (CA LA).
