Drywall Acoustic Lathing and Insulation Local 675, United Brotherhood of Carpenters and Joiners of America v. Eastpark Interiors, 2000 CanLII 6640

1588-00-G Drywall Acoustic Lathing and Insulation Local 675, United Brotherhood of Carpenters and Joiners of America, Applicant v. Eastpark Interiors (Joe Montesano and Carmine Fantauzzi operating as), Responding Party.

BEFORE: Inge M. Stamp, Vice-Chair, and Board Members G. Pickell and G. McMenemy.

DECISION OF THE BOARD; September 12, 2000

1. This is a referral of a grievance to the Board for determination under section 133 of the Labour Relations Act, 1995, S.O. 1995, c. 1, (the “Act”). The referral was made on August 29, 2000. The accompanying Certificate of Delivery (Form A-86) states that the responding party was served on August 29, 2000 by the applicant having delivered a copy of the necessary documents required by Rule 155 of the Board’s Rules of Procedure to the responding party by giving them to Purolator Courier on August 28, 2000 who assured the applicant that they would be delivered on August 29, 2000 by no later than 5:00 p.m. The Registrar sent the Confirmation of Filing of a Referral of Grievance to Arbitration (Form B-67) to the responding party by courier on August 30, 2000 at the address provided for the responding party in the application, 25 Egan Crescent, Bolton, Ontario L7E 5W5.

2. As of the date of this decision, the responding party has not filed a Request for Hearing and Notice of Intent to Defend/Participate (Form A-87). The Board’s Rules of Procedure explicitly stipulate the consequences of failing to comply with the filing requirements contained in the Rules.

3. Section 133 of the Act provides, in part:

“(7) The Board is not required to hold a hearing if the responding party does not file any material.

(8) If the Board does not hold a hearing in the circumstances described in subsection (7), the Board may determine the matter with reference only to the material filed by the party referring the grievance.

(9) If the Board accepts the referral, the Board has exclusive jurisdiction to hear and determine the difference or allegation raised in the grievance referred to it, including any question as to whether the matter is arbitrable, and subsections 48(10) and (12) to (20) apply with necessary modifications to the Board and to the enforcement of the decision of the Board.”

4. In addition, the Chair of the Board has the authority to make rules to give effect to the various statutory powers conferred upon the Board. Section 110(17) of the Act provides:

“The chair may make rules governing the Board’s practice and procedure and the exercise of its powers and prescribing such forms as the chair considers advisable.”

5. Furthermore, the Board has very wide powers to require a party to provide particulars, documents, and any other information the Board deems necessary. (See sections 111(2)(a) and (b) of the Act.)

6. The Board’s Rules in respect of section 133 proceedings place a substantial burden on the applicant. As well as filing certain material with the Board, the applicant must provide to the responding party:

7. A copy of the application

8. A copy of the Notice of grievance referral.

9. A blank copy of the Request for Hearing and Notice of Intent to Defend (Form A-87, i.e. the form the responding party requires to file its response.

10. A blank response form for the responding party’s use.

11. A copy of the Board’s Rules with respect to section 133 referrals (i.e. Part VIII of the Rules, being Rules 143-163) and Information Bulletin No. 20 which provides the responding party with further information about the process involved in a section 133 application (including the consequences of default).

12. The only thing a responding party must do to avoid default proceedings is to complete the Form A-87 supplied by the applicant and deliver it to the Board and the applicant within five days of the date of the Board’s Confirmation of Filing (Form B-67). Form A-87 requires little more than the responding party’s name and address and an assertion that the responding party wishes to defend against the grievance referral. The substance of that defence is contained in the response which is not due until 9:30 a.m. on the day set for hearing.

13. The Board’s Rules require quick responses from responding parties in many sorts of applications. In an application for certification, for example, a responding employer (who is often unfamiliar with proceedings under the Act) must respond within two days after the application was served on it. In a section 133 proceeding, the responding party has some relationship with the applicant and therefore should have some understanding of the contractual and statutory context in which a grievance referral arises. In any event, the Form B-67 faxed to the responding party contains the following warning in bold print:

“The failure to file a timely Request in the way required by the Board’s Rules of Procedure may result in the referral being decided without a hearing and without further notice to the defaulting party.”

9. The Board’s Rules deal specifically with the consequences of failing to file the Form A-87. Rules 160 to 162, which are part of the Rules package delivered to the responding party by the applicant, provide as follows:

“160. If a responding party does not deliver and file a “Request for Hearing and Notice of Intent to Defend” (Form A-87) in the way required by these rules, he or she may automatically be deemed to have accepted all of the facts stated in the application, and the Board may cancel a hearing (if one is scheduled), and decide the case (or part of the case) upon the material before it without further notice.

161. Where the facts stated in the application are deemed to be true and the Board considers that it can make a finding of liability, but cannot determine the question of damages, the Board may decide the liability issue under Rule 160 and leave the damages issue to be determined at an oral hearing.

162. Where the Board decides or has decided a case (or part of a case) under Rule 160, the responding party may not file a Request or a response, or take any other step in connection with the application, other than a reconsideration application, except with the permission of the Board.”

163. Accordingly, we shall proceed on the basis that all of the allegations of fact set out in the referral to the Board and in the grievance material have been accepted by the responding party and therefore can be relied on by the Board in making a determination of this matter. The Board therefore finds that:

(a) the responding party is bound by the provincial collective agreement between the Carpenters’ Employer Bargaining Agency and the United Brotherhood of Carpenters and Joiners of America effective May 1, 1998 and expiring April 30, 2001 (the “Provincial Collective Agreement”) by virtue of having executed a voluntary recognition agreement with the Ontario Provincial District Council, United Brotherhood of Carpenters and Joiners of America dated April 10, 1997;

(b) the responding party has made late payments of contributions and deductions to the applicant six or more times within a 12 month period;

(c) Article 9.10 of the Provincial Collective Agreement provides:

“Where the Trustees deem an employer to be a repeated delinquent in forwarding or delivering contributions and/or deductions, the employer shall post a bond or certified cheque in an amount to be determined by the Trustees and not to exceed the sum of fifty thousand dollars ($50,000.00) for each trust fund and/or plan to which the em0ployer is required to make contributions, deductions or payment, such sums to be held in trust by the Trustees for a period to be determined by the Trustees.”;

(d) the trustees of the fringe benefit funds established under Article 9 of the Provincial Collective Agreement have deemed the responding party to be a delinquent employer and have determined that the responding party post a bond in the amount of $50,000;

(e) the solicitors for the applicant by letter dated July 13, 2000 requested that the responding party post a $50,000.00 bond within 10 days of the date of that letter and that the responding party has failed to do so;

(f) the responding party violated Article 9.10 of the Provincial Collective Agreement by failing to post a bond in the amount of $50,000.00 when it was requested to do.

11. Counsel for the applicant sought, among other things, an order directing the responding party to post a bond from a corporation approved as a guarantee company under the Guarantee Companies Securities Act, (the “GCSA”). The GCSA was repealed in 1997. See section 43(1)4 of the Red Tape Reduction Act (Ministry of Finance), 1997, S. O. 1997, c. 19. Insurance companies licensed under the Insurance Act, R. S. O. 1990, c. I. 8 may issue the kind of bond contemplated by the applicant. Therefore, the order requested by the applicant will make reference to the Insurance Act rather than the GCSA.

12. In view of the Board’s findings in paragraph 10 above, the Board therefore:

(a) declares that the responding party is bound by the provincial collective agreement between The Carpenters’ Employer Bargaining Agency and The United Brotherhood of Carpenters and Joiners of America effective May 1, 1998 and expiring April 30, 2001 (the “Provincial Collective Agreement”);

(b) declares that the responding party violated Article 9.10 of the Provincial Collective Agreement;

(c) directs the responding party to deliver to the trustees a certified cheque or bond issued by an insurer licensed under the Insurance Act, R. S. O. 1990, c. I. 8 to write surety and fidelity insurance in the amount of $50,000 to be held in trust by the trustees;

(d) directs the responding party to pay forthwith to the applicant costs (including reimbursement of fees) in the amount of $664.00.

13. The hearing scheduled for September 22, 2000 is hereby cancelled.

“Inge M. Stamp”

for the Board