The Union filed a policy grievance alleging the Employer violated the collective agreement by paying eligible employees a $400 lump sum clothing allowance less statutory deductions, rather than a net payment of $400.
The Union argued the language was clear or, alternatively, latently ambiguous, relying on extrinsic evidence of negotiating history.
The arbitrator held that the clear language of the collective agreement required a gross payment of $400, noting that the Employer's statutory obligation to remit tax did not alter its compliance with the provision.
The grievance was dismissed.