The Canada Industrial Relations Board has declined to deal with the issue of the liability of a successor union for cancellation fees for arbitrators when it changes its approach to handling grievances.
In reasons for decision issued on September 27, 2012 and published this week (2012 CIRB 657) a panel of three vice-chairs addressed a claim by the union that had represented security guards at Pearson International Airport (Canadian Airport Workers Union) that its successor union, IAMAW, should be responsible for the cancellation fees that resulted from a change in strategy in how to address a grievance backlog.
The Board noted (and it was not in dispute) that the successor union had the right to change its approach to grievances. The Board concluded (at para. 21):
In the Board’s view, the issue raised by the CAWU is a matter of contract law, and does not fall within the purview of the Board’s authority under the Code. While the IAMAW and Garda were entitled to cancel the arbitration hearings (and indeed, the CAWU and Garda would have been equally entitled to cancel those hearings, for example, in the event of a settlement or withdrawal), the question of who should bear the cost consequences of the cancellation is not a matter of labour law. While the Board may have opinions on the subject, it has no authority or jurisdiction to make the order sought by the CAWU.
The reasons do not state how much money is owing. We also don’t know whether the CAWU will continue to refuse to pay the cancellation fees. It is therefore difficult to predict whether this issue will find its way to the courts.
