An arbitrator has clarified the application of premium duplication clauses in a collective agreement between the Canadian Union of Public Employees (CUPE) and Unity Health Toronto, a health network comprised of Providence Healthcare, St. Joseph’s Health Centre and St. Michael’s Hospital.
The ruling determined that while employees cannot receive overtime premiums and shift/weekend premiums for the same hours worked, they are entitled to receive pay for working on a holiday in addition to shift/weekend premiums for those hours.
The case revolved around several grievances filed by CUPE Local 5441 challenging the employer’s interpretation of Article 15.03 of the collective agreement, which addresses overtime premiums and prohibits duplication and pyramiding of premiums.
At the outset of the hearing, the employer noted objections regarding timeliness and form but agreed to defer them pending the arbitrator’s decision on the interpretation issues. Both parties also reserved the right to rely on past practice as an aid to interpretation.
Key issues
The main issues before arbitrator Jesse Kugler were:
- Whether Article 15.03 prevents employees from receiving overtime premiums and shift/weekend premiums for the same hours worked.
- Whether the same clause prohibits employees from receiving pay for working on a holiday and shift/weekend premiums for the same hours worked.
Union’s position
The union argued that the language of the collective agreement is clear and unambiguous, asserting that employees are entitled to receive both forms of payment if they meet the individual conditions for each. The union contended that “clear language is required to deprive access to such benefits concurrently and that there is no such language in the collective agreement.”
Regarding Article 15.03, the union interpreted the clause as prohibiting only the duplication of “overtime premium” with another overtime premium and “other premiums” with other premiums, but not the concurrent payment of overtime and shift/weekend premiums or pay for working on a holiday and shift/weekend premiums.
Employer’s position
The employer maintained that Article 15.03 prohibits any overlapping payments, regardless of their purpose, for the same hours worked. It argued that the claim to overlapping overtime premiums and shift/weekend premiums, as well as pay for working on a holiday and shift/weekend premiums, is barred by the prohibition against duplication in Article 15.03.
Arbitrator’s decision
After reviewing the collective agreement and relevant jurisprudence, arbitrator Kugler found that Article 15.03 prohibits the concurrent payment of overtime premiums and shift/weekend premiums for the same hours worked. However, it does not prevent employees from receiving pay for working on a holiday alongside shift/weekend premiums for those hours.
“The prohibition against duplication in Article 15.03 prohibits overlapping premium payments for the same hours worked,” Kugler stated. “Because, under the terms of the collective agreement, shift premiums, weekend premiums, and overtime are forms of ‘premiums,’ their concurrent payment for the same hours worked is prohibited.”
However, he differentiated pay for working on a holiday from premiums: “I find that pay for working on a holiday is not a form of premium under the collective agreement.”
Next steps
The arbitrator directed the parties to contact his office within 30 days if they wish to rely on past practice or if the employer intends to pursue its preliminary objections to the grievances. “If neither party seeks to do so within that timeframe, the issue of remedy is remitted to the parties as requested,” Kugler stated.
He also noted that he remains seized with respect to all issues yet to be determined and with respect to any issue arising from the interpretation or administration of the award.
For more information, see Canadian Union of Public Employees, Local 5441 v Unity Health Toronto, 2024 CanLII 114136 (ON LA).
