Arbitrator Daniel Randazzo has awarded wage increases and amended overtime provisions for employees of Ontario Health / Trillium Gift of Life Network (the Employer), following an interest arbitration with the Service Employees International Union Local 1 Canada (the Union).
The ruling affects approximately 126 unionized employees involved in organ and tissue donation and transplantation services across Ontario — but came with dissents from both the union and the employer nominees on the panel.
Background
The Union was certified on March 28, 2017, and the first collective agreement expired on Sept. 30, 2021. Unable to reach a renewal agreement, the parties proceeded to interest arbitration under the Hospital Labour Disputes Arbitration Act (HLDAA). The arbitration board, chaired by Daniel Randazzo with nominees Irv Kleiner for the Employer and Wassim Garzouzi for the Union, was tasked with settling the outstanding terms of the collective agreement.
Key issues
The primary issues in dispute were wage increases, overtime provisions, shift premiums, and other compensation-related matters. The Union sought wage increases of 4.75% effective Oct. 1, 2021, and 5% effective Oct. 1, 2022, aligning with recent settlements in the hospital sector. The Employer proposed more modest increases of 1.5% and 2.5%, referencing settlements in the Ontario Public Service.
A significant point of contention was the appropriate comparator group for determining fair compensation. The Union argued that the Employer, recognized as a “hospital” under HLDAA, should be compared to other hospital sector employers. The Employer contended that it should not be directly compared to hospitals despite the earlier agreement, suggesting alignment with the Ontario Public Service instead.
Board’s decision
After considering the submissions, the arbitration board concluded that “the appropriate comparators will be found in the health care sector,” which includes hospitals, long-term care facilities, and public health providers. Acknowledging the unique nature of the Employer’s services in organ and tissue transplantation, the board aimed to replicate an outcome reflective of free collective bargaining.
The board awarded the following wage increases:
- Year 1: 3% effective October 1, 2021
- Year 2: 4% effective October 1, 2022
These increases were deemed to “best represent the result the parties would have achieved in free collective bargaining,” considering the economic conditions and settlements within the broader health care sector.
Overtime provisions
The Union proposed significant changes to the overtime calculations, seeking to lower the thresholds for overtime eligibility. The Employer opposed these changes, citing operational challenges and the unique scheduling requirements of the organization.
The board made two amendments to the overtime provisions:
- Inclusion of Temporary Part-Time Employees: Article 16.07(d) was amended to read: “The parties agree that part-time and casual, and temporary employees who work part-time will earn overtime at the rate of one and one half (1 ½) their regular rate of pay or hourly equivalent for all hours the employee works with the Employer’s permission, after forty-four hours in a week.”
- Change in Overtime Threshold for Full-Time Employees: Article 16.07(c) was amended to state: “The parties agree that full-time employees and temporary employees who work full-time shall earn overtime at the rate of one and a half (1 ½) times their regular rate of pay or hourly equivalent, for all hours employees work with the employer’s permission over seventy-five (75) hours bi-weekly.”
These changes reduce the overtime threshold for full-time employees from 225 hours in a six-week rotation to 75 hours bi-weekly, aligning overtime eligibility more closely with standard practices in the health care sector.
Shift premiums
The board also ordered increases to shift premiums, effective from the date of the award:
- Evening Shift Premium: Increased by $0.50 per hour
- Weekend Shift Premium: Increased by $0.66 per hour
Other proposals
The Union had prioritized introducing language regarding time off between shifts, citing health and safety concerns. The board acknowledged the importance of rest periods but refrained from making changes without further discussions, suggesting the issue be addressed in future bargaining sessions.
All other outstanding proposals were denied, and the board remains seized regarding the implementation of the award.
Dissents from nominees
Both nominees on the arbitration board issued dissents, highlighting the ongoing tensions between the parties.
Union nominee’s dissent
Garzouzi, the Union nominee, dissented on the basis that the Employer reneged on its earlier agreement recognizing itself as a hospital under HLDAA. Garzouzi stated: “The Employer walked away from its settlement with the Union, where it had acknowledged that the Hospital Labour Disputes Arbitration Act applied.” The Union nominee expressed disappointment that the award fell short, particularly in wage increases, compared to settlements in the hospital sector where workers secured increases of 14.25% over four years.
Employer nominee’s partial dissent
Kleiner, the Employer nominee, vehemently disagreed with the changes to the overtime provisions. He argued that the six-week averaging system for assessing overtime eligibility was a term “agreed upon by the parties who are in the best position to understand the nature of the Employer’s operation and the requisite scheduling requirements.” Kleiner contended that altering the overtime calculations without proper consideration would lead to conflicting provisions in the collective agreement and impose unintended costs on the Employer.
Conclusion
Given that the term of the collective agreement is from October 1, 2021, to September 30, 2023, the parties are expected to enter into new negotiations imminently. Issues such as rest periods between shifts and other outstanding matters are likely to be at the forefront of upcoming discussions.
For more information, see Ontario Health / Trillium Gift of Life Network v Service Employees International Union Local 1 Canada, 2024 CanLII 106828 (ON LA).
