The union filed a grievance alleging the employer violated the collective agreement by failing to offer overtime to Tier 3 employees.
At step 1 of the grievance procedure, the employer acknowledged the error and committed to posting overtime for both classifications in the future, but declined to pay the requested compensation.
The union advanced the grievance to step 2, where the employer denied the grievance, stating it was unfeasible for Tier 3 employees to perform the work.
The union raised a preliminary issue, arguing the step 1 response was a binding concession on liability.
The arbitrator agreed, finding the employer's step 1 response was a clear and unequivocal admission of a breach, leaving only the issue of remedy to be determined.