Award Number 00-005

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Award Date: 2000-03-10
Arbitrator: Knopf, P.
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Municipality: Kingsville
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Region: South West
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Classifications: Supplementary Awards, Severance Pay
Grievor: S/Sgt Holt
Appearances: P. Dunnion, for the Association
P.F. Milloy, for the Employer
Length of Award:4 pp
Collective Agreements Cit.
Statutory Cit.


Supplementary Awards   Arbitration pursuant to Section 40 of Police Services Act – Parties unable to agree on amount of severance owing to Staff Sergeant – Assessment of economic loss must encompass loss of employment as police officer under collective agreement and must reflect years of service.

Severance Pay   Calculation – Section 40 - Supplementary award concerning amount of severance owing upon disbandment – Grievor Staff Sergeant with over 26 years of service who retired at age 52 only because of disbandment – Severance arrangements in other jurisdictions reached through collective bargaining or interest arbitration not persuasive – Town’s civilian redundant exit provision relevant – Grievor awarded one month’s salary for every year of Seniority – Interest not awarded.

Award #

This award was supplementary to an award dated May 3, 1999 (see # 99-008). Pursuant to section 40 of the Police Services Act, the arbitration dealt with severance matters arising out of the disbandment of the Kingsville police force. The parties were unable to agree on the amount of severance owing to Staff Sergeant Holt.

At the time of disbandment S/Sgt Holt was 52 years of age and had over 26 years of service. But for the disbandment, he would not have retired. In assessing the amount of severance the Arbitrator invoked the principles of reasonable notice and compensation for "obvious and forseeable economic consequences" of termination [Orillia, # 97-0015]. She noted that economic loss must be assessed with reference to years of service and must reflect loss of employment as a police officer under a collective agreement.

The Association asked for 36 months of salary plus interest. The Board submitted that 9 months of salary was appropriate, subject to deduction of OMERS pension earnings. The Board argued that a section 40 arbitrator had no jurisdiction to award interest.

The Arbitrator found that severance arrangements in other jurisdictions, reached through collective bargaining or interest arbitration, were not persuasive. This was a rights arbitration, and protection from economic loss, not comparability, was the governing principle. However, the Town of Kingsville's civilian redundant exit provision was relevant. That program provided $500 per year of service to a maximum of $5,000, plus 3 weeks salary for each year of service to a maximum of 52 weeks, with no deduction for pension earnings. The Arbitrator determined that the appropriate severance for S/Sgt Holt was one month's wages for every year of seniority, without deduction of pension monies. Without deciding whether she had jurisdiction to award interest, the Arbitrator declined to award it in this case.

Authorities Cited

* Orillia Police Association and Orillia Police Services Board (Jackson) June 12, 1997 [# 97-0015]
* Kingsville Police Services Board and Chief N. Kuipers (Knopf) November 15, 1999 [# 99-019]

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