The union filed a policy grievance alleging that the employer was obligated under the collective agreement to pay the newly introduced Ontario Health Premium on behalf of bargaining unit members.
The union argued that the collective agreement's promise to provide OHIP coverage 'at no premium cost' required the employer to cover the new levy.
The arbitrator dismissed the grievance, finding that while the Ontario Health Premium is materially similar to the former OHIP premium, the specific language of the collective agreement, which was amended following the introduction of the Employer Health Tax Act, limited the employer's payment obligation to the Employer Health Tax.