B.B. Fisher

The grievor, a bus driver with 16 years of service, was terminated for writing a threatening letter to a female co-worker after she left a bus dirty.

The union grieved the discharge, arguing that the penalty was too harsh and proposing a last chance agreement, citing the grievor's history of depression.

The arbitrator upheld the termination, noting the premeditated nature of the written threat, the grievor's prior discipline for similar threatening behavior, and the lack of medical evidence to support a likelihood of rehabilitation or reduced risk of future violence.

The grievance was dismissed.

The grievor was reinstated with back pay after a wrongful dismissal, receiving four years of income in a single lump sum.

This resulted in a significantly higher tax burden than if the income had been earned over the four years.

The union sought additional compensation to cover this extra tax, plus a 'gross up' to account for the tax payable on the additional compensation itself.

The Grievance Settlement Board allowed the claim, applying the 'make whole' principle of contract damages.

The Board held that the increased tax burden was a reasonably foreseeable consequence of the employer's breach and ordered the employer to compensate the grievor for the tax differential, grossed up.