On June 22, 2010, the first scheduled day of interest arbitration in front of Arbitrator Brian Keller, the employer raised an objection to the arbitrator hearing the merits of the parties’ proposals. Its objection was similar to one that it had successfully pursued during the last re‑opener in front of Arbitrator Bastien. In the last re-opener Arbitrator Bastian had ruled that the arbitration hearing could not proceed until after the national grievances that impacted the financial cap had been resolved.

In front of Arbitrator Keller, the Union argued that Arbitrator Bastian’s decision was not relevant as the fact situations between the previous re-opener and this one were different. In the previous re-opener the employer had stated at the beginning of negotiations that there was no money available from the financial cap for either 2008 or 2009. Faced with this assertion the Union had argued in front of Arbitrator Bastian that he could first deal with non-monetary issues and subsequently deal with monetary issues once the parties knew whether there would be additional funds available as a result of arbitration decisions concerning the national grievances. However, in this re-opener, the employer had indicated in its initial presentation to the Union that notwithstanding the unresolved national grievances there was $15 million available from the financial cap for 2010 and an additional $18.6 million from the cap for 2011. While reserving the right to verify that the expenditure of these amounts would ultimately result in all $652 million of the financial cap being allocated during the life of the collective agreement, the Union had indicated that it was prepared to negotiate, and if need be arbitrate, on the basis of these amounts.

In a recently received decision, Arbitrator Keller has rejected the employer’s argument. He did so for a number of reasons, but essentially found that the interest arbitration could proceed on the basis of the parties understanding of the amount of financial cap money available for 2010 and 2011 and because any additional financial cap money resulting from the arbitration of the national grievances could be allocated through a process enshrined in the collective agreement or through an agreement between the parties.

Negotiating Committee Continuing Its Preparation for Arbitration

Now that the arbitrator has rejected the employer’s attempt to delay the arbitration the Negotiating Committee expects the employer to begin addressing the concerns of the membership in a realistic and sensible manner. The arbitrator had previously provided the dates of August 17 & 18, 2010 and those dates can now be used to begin the arbitration of the merits of the parties’ proposals. To that end the Union’s Negotiating Committee will shortly return to Ottawa to complete the preparation of the presentation of the Union’s demands and its response to the employer proposals.

Membership Must Stay Active

With the merits of the Union’s demands shortly to be arbitrated it is important that the membership continue to show the employer that they both support the demands being made by the Negotiating Committee on their behalf and are opposed to many of the proposals being made by the employer. This support can be shown by staying informed of the issues that are being dealt with by the parties and by regularly showing the employer, through collective actions, that the membership needs and expects significant improvements in the collective agreement.