The union filed a policy grievance and an individual grievance alleging the employer failed to comply with its obligations to make reasonable efforts regarding continuing employment when it divested social housing functions to municipalities.
The union argued that under paragraph 5(1)(a) of Appendix 'A' of the collective agreement, affected employees should have been offered jobs with the new employer at no less than 85% of their salary.
The employer argued that paragraph 5(1)(a) only applied to transfers by request for proposal (RFP) or tender, which did not occur here as the transfer was by operation of law under the Social Housing Reform Act, 2000.
The arbitrator agreed with the employer, finding that the mandatory obligation in paragraph 5(1)(a) only arises in circumstances of an RFP/tender process.
The grievance on this point was dismissed, but the employer remained subject to the general reasonable efforts obligation in paragraph 1.