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A-647-80
Pioneer Grain Company Limited (Applicant)
v.
David Kraus (Respondent)
Court of Appeal, Thurlow C.J., Heald J. and Maguire D.J.—Regina, March 19; Ottawa, April 24, 1981.
Judicial review — Labour relations — Application for judicial review and to set aside an order made by Adjudicator appointed to adjudicate upon the complaint of respondent against applicant for terminating his employment — The order requires applicant to reinstate respondent and pay him compensation — Whether or not Court has jurisdiction to entertain the application — Respondent was temporarily laid off for a brief period each winter — Whether or not employ ment of respondent was continuous for twelve months within the meaning of subs. 61.5(1) of the Canada Labour Code — Whether Adjudicator acted beyond or without jurisdiction in failing to calculate the monetary loss of respondent — Application dismissed — Canada Labour Code, R.S.C. 1970, c. L-1, s. 61.5(1),(6),(7),(8),(9),(I0),(11), as amended — Feder al Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 28, 122(1).
This is an application to review and to set aside an order made by the Adjudicator appointed pursuant to section - 61.5 of the Canada Labour Code. The Adjudicator found that the respondent's dismissal was unjust and ordered the applicant to reinstate the respondent and to pay him compensation equiva lent to an amount that he would have been paid if he had not been dismissed. The applicant submitted that the Adjudicator did not have jurisdiction to hear the matter because the employment of the respondent had not been continuous for twelve consecutive months within the meaning of subsection 61.5(1) of the Code. The respondent was "laid off work" from December 21, 1979 to January 7, 1980. It further submitted that the Adjudicator acted beyond his jurisdiction in failing to calculate the monetary loss of the respondent in accordance with legal principles. The Attorney General of Canada brought a motion to quash the application on the ground that the Court was without jurisdiction. The first question is whether the Court has jurisdiction to entertain this application in view of subsection 61.5(10) of the Code. The second question is wheth er the respondent's employment had been continuous for twelve months. The third question is whether the Adjudicator acted without jurisdiction in failing to calculate the monetary loss of the respondent.
Held, the motion to quash fails and the application for review is dismissed. The Court has jurisdiction, notwithstand ing subsection 61.5(10) of the Code, to entertain an application under section 28 of the Federal Court Act to review an Adjudicator's decision on the ground that he never had jurisdic tion or that he exceeded or failed to exercise jurisdiction that he did have. When there is no specific reference to section 28 in the privative provision, section 28 overrides privative provisions enacted after the enactment of the Federal Court Act as well as privative provisions existing when section 28 was passed. Sub section 61.5(10) should be read subject to the overriding effect
of section 28 of the Act. It is the responsibility of an applicant for review to put before the Court the evidentiary material necessary to support his position. The most telling evidence before the Court of the situation was the applicant's statement that Kraus was "laid off work" from December 21, 1979 to January 7, 1980. This is at least consistent with the continu ance of the employment relationship during the period and suggests that the arrangement was that work was to be resumed by the employee when the period came to an end. Moreover, it was not described as a lay off because of lack of work or the discontinuance of a function. The applicant's objection, there fore fails. The order, though it does not state a precise amount to be paid, does not exceed the authority of the Adjudicator. Nor does it exceed the gross loss that the respondent may have sustained. It is obvious that he lost his pay. There is no justification for interfering with the Adjudicator's order.
Attorney General of Canada v. Public Service Staff Rela tions Board [1977] 2 F.C. 663, referred to. Howarth v. National Parole Board [1976] 1 S.C.R. 453, referred to. Minister of National Revenue v. MacDonald [1977] 2 F.C. 189, referred to. Northern Telecom Ltd. v. Com munications Workers of Canada [1980] 1 S.C.R. 115, referred to. Red Deer College v. Michaels [1976] 2 S.C.R. 324, referred to. Commonwealth of Puerto Rico v. Her- nandez [1975] 1 S.C.R. 228 applied.
APPLICATION for judicial review. COUNSEL:
D. K. MacPherson, Q.C. and L. B. LeBlanc
for applicant.
M. F. Mulatz for respondent.
L. P. MacLean for Attorney General of
Canada.
SOLICITORS:
MacPherson, Leslie & Tyerman, Regina, for applicant.
Busch & Heinricks, Swift Current, for respondent.
Deputy Attorney General of Canada for Attorney General of Canada.
The following are the reasons for judgment rendered in English by
THURLOW C.J.: This is an application under section 28 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, to review and set aside "the decision or order made by Robert W. Mitchell on September 8, 1980 as adjudicator appointed pur suant to Section 61.5 of the Canada Labour Code to hear and adjudicate upon the complaint of David Kraus under the said section 61.5 with
respect to the termination of his employment by Pioneer Grain Company Limited". The decision holds that the dismissal of Kraus by the applicant, Pioneer Grain Company Limited, was unjust and the order requires the company to reinstate him and pay him compensation equivalent to the remu neration that, but for the dismissal, would have been paid to him during the period from March 21, 1980 (the date of his dismissal), until his reinstatement.
Provisions for the making of such an order by an adjudicator are found in Division V.7 of the Canada Labour Code, R.S.C. 1970, c. L-1, as amended, entitled "Unjust Dismissal". They were enacted along with other amendments to the Code by chapter 27 of the Statutes of Canada 1977- 1978, assented to April 20, 1978, and were pro claimed in effect September 1, 1978. The object of the Division is to provide a new means of redress for persons to whom it applies who have been dismissed from their employment. The scope of the Division's application appears from the first three subsections. They provide:
61.5 (1) Subject to subsections (2) and (3), any person
(a) who has completed twelve consecutive months of contin uous employment by an employer, and
(b) who is not a member of a group of employees subject to a collective agreement
may make a complaint in writing to an inspector if he has been dismissed and if he considers his dismissal to be unjust.
(2) A complaint under subsection (1) shall be made no later than thirty days from the date on which the person making the complaint was dismissed or such further period of time from that date as the Minister may authorize where the Minister is satisfied that justice would be served by so authorizing.
(3) No complaint shall be considered under this section in respect of a person
(a) who has been laid off because of lack of work or because of the discontinuance of a function; or
(b) in any case where a procedure for redress has been provided elsewhere in or under this or any other Act of Parliament.
In subsection (6) provision is made for the appointment of an adjudicator whose authority is defined in subsections (7),(8) and (9) as follows:
(7) An adjudicator to whom a complaint has been referred under subsection (6)
(a) shall consider the complaint within such time as the Governor in Council may by regulation prescribe;
(b) shall determine his own procedure, but shall give full opportunity to the parties to the complaint to present evi dence and make submissions to him and shall consider the information relating to the complaint referred to him under subsection (6); and
(c) has, in relation to any complaint before him, the powers conferred on the Canada Labour Relations Board, in relation to any proceeding before the Board, by paragraphs 118(a), (b) and (c).
(8) An adjudicator to whom a complaint has been referred under subsection (6) shall consider whether the dismissal of the person who made the complaint was unjust and shall render a decision thereon and send a copy of the decision with the reasons therefor to each party and to the Minister.
(9) Where an adjudicator decides pursuant to subsection (8) that a person has been unjustly dismissed, he may, by order, require the employer who dismissed him to
(a) pay the person compensation not exceeding the amount of money that is equivalent to the remuneration that would, but for the dismissal, have been paid by the employer to the person;
(b) reinstate the person in his employ; and
(c) do any other like thing that it is equitable to require the employer to do in order to remedy or counteract any conse quence of the dismissal.
Subsections (10) and (11) further provide:
(10) Every order of an adjudicator appointed under subsec tion (6) is final and shall not be questioned or reviewed in any court.
(1 1) No order shall be made, process entered or proceeding taken in any court, whether by way of injunction, certiorari, prohibition, quo warranto or otherwise, to question, review, prohibit or restrain an adjudicator in any of his proceedings under this section.
There are also provisions for enforcement of the adjudicator's order by the Federal Court and for preserving other civil remedies the dismissed person may have.
Before proceeding to hear the merits of the section 28 application, the Court heard a motion under Rule 1100 made on behalf of the Attorney General of Canada for an order quashing the application on the ground that, having regard to subsection 61.5(10), the Court is without jurisdic tion to entertain it. The submission made was that while the decision of such an adjudicator is one that but for subsection 61.5(10) would be subject to review under section 28 of the Federal Court Act and while such privative clauses are always subject to close scrutiny, the language of subsec tion 61.5(10) is broad and clear enough to oust jurisdiction to review under section 28 of the Fed-
eral Court Act. In support of his submission, coun sel pointed out that subsection 61.5(10) is part of new legislation passed after the enactment of sec tion 28 of the Federal Court Act and that the same chapter 27 includes a new subsection 122(1), applicable to decisions of the Canada Labour Relations Board which specifically excepts from its privative effect applications under paragraph 28(1)(a) of the Federal Court Act. However, I did not understand counsel to go so far as to submit that any order an adjudicator might purport to make on a matter not properly falling within sub section 61.5(1) or going beyond his authority under subsection 61.5(9) would be exempted by subsection 61.5 (10) from review under section 28 of the Federal Court Act.
I do not think the re-enactment of subsection 122(1) or its mention of review under section 28 of the Federal Court Act has any effect on the interpretation of subsection 61.5(10). The provi sion was not new. It merely replaced an earlier privative provision which also excepted review under section 28 and its effect, as I read it, is simply to limit the grounds for such a review to those set out in paragraph 28(1)(a) that is to say: failure to observe a principle of natural justice or otherwise acting beyond or refusing to exercise jurisdiction. Subsection 61.5(10) is new and is in a new Division of the Code. It must be interpreted on its own and must be given its effect without reference to subsection 122(1).
I should say at this point that it seems clear that if any jurisdiction at all exists to review the deci sion of an adjudicator under Division V.7 of the Code, it is this Court on an application under section 28 that has the jurisdiction. Jurisdiction of superior provincial courts is, I think, transferred by section 18 of the Federal Court Act to the Trial Division of the Federal Court and as such a deci sion is obviously one of a judicial nature, the jurisdiction of the Trial Division is in turn superseded by the opening words of section 28, which give the Court of Appeal jurisdiction to review.
In Attorney General of Canada v. Public Ser-
vice Staff Relations Board', all three members of the Court expressed the view that the effect of the opening words of section 28 was to override priva- tive clauses in effect, when the Federal Court Act was passed. The Court thus decided the question left open by Pigeon J. when he said in Howarth v. National Parole Board 2 :
Because, in my view, s. 28.1 of the Federal Court Act is inapplicable due to the nature of the decision under consider ation, it is unnecessary to consider whether the opening words "Notwithstanding s. 18 or the provisions of any other Act" exclude the application of a provision such as s. 23 of the Parole Act or whether they refer only to provisions of the same kind as s. 18 of the Federal Court Act, that is a provision conferring jurisdiction to some court or tribunal. It is apparent that if those opening words are construed as nullifying every provision restricting or denying the judicial review of decisions of federal boards not coming within the stated exception, this means that beyond a transfer of jurisdiction an important change in the substantive law has been effected. On this point, I am expressing no opinion any more than on the question whether, notwithstanding s. 23 of the Parole Act, some remedy before the Trial Division of the Federal Court is open in a case like this.
In the Public Service Staff Relations Board case, Le Dain J. went on to question whether a privative clause not dissimilar to subsection 61.5(10) even if enacted after the Federal Court Act would be effective to prevent review under section 28.
In an earlier case, M.N.R. v. MacDonald', two members of the Court had held that a somewhat different provision in the Unemployment Insur ance Act, 1971, S.C. 1970-71-72, c. 48, which had been enacted after the Federal Court Act was ineffective to prevent review under section 28. None of these cases, however, provides an answer to the present problem.
As I see it, there are two questions involved in the argument on the motion to quash. The first is whether there is any jurisdiction at all to review the decision and order. If the answer is affirma tive, the motion must fail. But in that event, there is the further question which may arise on the
' [1977] 2 F.C. 663.
2 [1976] 1 S.C.R. 453 at page 475.
3 [1977] 2 F.C. 189.
argument of the application whether the review that is open to the Court must be confined to grounds going to the jurisdiction of the adjudicator or may be entertained on any other of the grounds set out in section 28.
On the first question, 1 think there is no reason to doubt that, the Court has jurisdiction, notwith standing subsection 61.5(10), to entertain an application under section 28 to review an adjudica tor's decision on grounds that he never had juris diction or that he exceeded or failed to exercise jurisdiction that he did have. That is the tradition al attitude of the courts to provisions such as subsection 61.5(10). Thus, in Commonwealth of Puerto Rico v. Hernandez 4 , Pigeon J. said at page 236:
Supervisory jurisdiction is a common law remedy which can only be excluded by explicit enactment. It is unnecessary to review the cases dealing with privative clauses which have always held them ineffective as against jurisdictional defects.
In my opinion, therefore, the motion to quash fails and should be dismissed. The second question raised in the argument on it arises and is dealt with later in these reasons.
The applicant's principal point as to the Adjudicator's jurisdiction was that because of what was referred to as a "cold weather lay off" between December 15 and 21, 1979 and January 7, 1980 the employment of Kraus by the applicant had not been "continuous", within the meaning of subsection 61.5(1), for twelve consecutive months and accordingly Division V.7 did not apply to permit him to prosecute his complaint. On this issue, Kraus' complaint asserted that:
After spending 6 1 / 2 years with Pioneer Grain Company Lim ited as a repairman and subforeman, 1 believe that I was unjustly dismissed due to events that took place at Shawnavon on March 21, 1980.
The applicant's reply dated May 12, 1980 addressed to Labour Canada stated in its final paragraph:
Please record that Mr. David Kraus was laid off work from December 21, 1979 to January 7, 1980.
There is no transcript before the Court of the proceedings before the Adjudicator. Nor have his handwritten notes of the evidence given been for warded to the Court by him or included in the
4 [1975] 1 S.C.R. 228.
record. The only additional material the Court has on the issue is what appears from the Adjudica tor's reasons for decision and it was on the basis of that alone that the matter was argued on behalf of the applicant. Kraus who appeared without coun sel did not argue on that basis. He sought to state his own version of the facts but was not permitted to do so. I should note that the hearing proceeded, notwithstanding his not being represented by coun sel, because of his expressed wish that it proceed without adjournment.
Under the Rules and Practice of this Court, it is the responsibility of an applicant for review under section 28 to put before the Court the evidentiary material necessary to support his position 5 . As no motion was made to have the Adjudicator's notes of evidence made part of the record or to vary the case by adding evidence on this issue, the Court is in much the same position as it was on the consti tutional question in Northern Telecom Ltd. v. Communications Workers of Canada (supra). Nevertheless, the Court must, as it seems to me, proceed to reach its conclusion on such materials as it has, scanty as they may be. The story appears from the reasons for decision, as follows:
David Kraus has made a complaint under Section 61.5 of the Canada Labour Code, in respect of his dismissal from employ ment by Pioneer Grain Company Limited, (hereinafter called "Pioneer"). The basis of his complaint is that he considers his dismissal to be unjust.
Efforts to settle the complaint were unsuccessful and, pursu ant to Subsection (6) of Section 61.5, the Minister of Labour has appointed me an adjudicator to hear and adjudicate upon Mr. Kraus' complaint.
I met with Mr. Kraus and representatives of Pioneer Grain Company Limited in Swift Current on August 8, 1980. Both sides presented evidence to me and made submissions respect ing the complaint. Both parties agreed that I was properly appointed as an adjudicator under Section 61.5 and that I had
5 See Northern Telecom Ltd. v. Communications Workers of Canada [1980] 1 S.C.R. 115 per Dickson J., at page 130: The Federal Court of Appeal appears to have treated the jurisdictional issue in this case as one of judicial review of an administrative board which has taken jurisdiction in an administrative sense. On this view, quite clearly, the onus would rest upon the applicant for judicial review and not, by implication, upon the Union.
jurisdiction under that Section to deal with the complaint. Pioneer also agreed that Kraus was an employee at the time of his termination and that his employment had been terminated.
It is important to note that the admission of Pioneer Grain Company Limited that I had jurisdiction to adjudicate Mr. Kraus' complaint is qualified to the extent that it argued that Kraus was not entitled to the benefit of the Section in that he had not completed twelve consecutive months of continuous employment prior to his dismissal.
Kraus was employed as a construction worker on the con struction maintenance crew of the employer. He began working for the employer in 1973 and was so employed until the date of his dismissal.
The evidence is that workers in the construction maintenance crew are laid off during the period between about December 15 and December 21 in each year, and are called back sometime between early January and late February or early March. This is referred to by the employer as "cold weather lay off". When the employees leave in December they are paid vacation pay earned up to that date. When they resume work they begin to earn vacation pay again. They are never granted a paid vaca tion as such.
Kraus was off work on "cold weather lay off' for a period commencing between December 15 and 21 of 1979 and ending when he was called back to work on January 7, 1980.
Pioneer argues that this lay off operates to interrupt the continuity of employment of Kraus. The Governor in Council is authorized under other divisions of Part III of the Canada Labour Code to make regulations defining the absences from employment that are deemed not to have interrupted continuity of employment. This regulation making power is given, for example, in Division V.3 (Individual Terminations of Employ ment) and Division V.4 (Severance Pay). Regulations have been passed with respect to these Divisions which make it clear that, in certain circumstances, a lay off is not to be considered to have interrupted continuity of employment. Mr. Proctor points out that under Division V.7, while the Governor in Council has the power to make a regulation to similar effect, none has been made.
This seems to me to be a good point, at least up to a point. However, it does not assist Pioneer in the circumstances of this case. The evidence is clear that Kraus' employment since the beginning has followed the same pattern. He ends his year around mid-December and receives his holiday pay. He is called back early the following year. In fact, he has been called back in early January. This break in employment is one which is experienced by all of the construction employees. I am unable to accept that this is a break in employment which disentitles the construction employees of Pioneer Grain Company Limited in general and Kraus in particular from the benefits of Division V.7. The employment of Kraus must be regarded as continuous within the meaning of the legislation.
I therefore find that Kraus has completed more than twelve consecutive months of continuous employment by Pioneer and, accordingly, is entitled to press a complaint under Division V.7.
From this it appears that the only feature of the situation that might deprive Kraus' employment of the requisite continuity, and in consequence the Adjudicator of jurisdiction, was what the Adjudicator described with respect to the period between December 15 and 21, 1979 and ending January 7, 1980 as having been referred to by the employer as "cold weather lay off'. Nowhere are the terms of the employment detailed. Nowhere is there any indication of the relationship between the employer and the employee during the period covered by what is referred to as "cold weather lay off". The most telling evidence before the Court of the situation is the applicant's statement in its letter of May 12, 1980 that Kraus was "laid off work" from December 21, 1979 to January 7, 1980. This is at least consistent with the continu ance of the employment relationship during the period and suggests that the arrangement was that work was to be resumed by the employee when the period came to an end. Nothing in what is related in the decision is inconsistent with such a conclu sion. Moreover, it is not described as a lay off because of lack of work or the discontinuance of a function. See subsection 61.5(3).
In these circumstances, I am not persuaded either that the employment relationship did not continue during the period when Kraus was "laid off work" or that the Adjudicator's conclusion that the employment of Kraus must be regarded as "continuous" within the legislation, was erroneous. The applicant's objection, therefore, fails.
The other point on the merits raised by counsel for the applicant was that the Adjudicator acted beyond or without jurisdiction in failing to calcu late the monetary loss of Kraus in accordance with legal principles. The submission is based on an affidavit which states that there was no evidence given by either Kraus or the applicant on the point. This, as it seems to me, is not a point that goes to the jurisdiction of the Adjudicator but is one that would be excluded from review by subsec tion 61.5(10) if the jurisdiction of the Court is limited to review on questions of jurisdiction. The question, therefore, arises as to whether the juris diction of the Court under section 28 of the Feder al Court Act to review the Adjudicator's decision in accordance with paragraphs (b) and (c) of
subsection 28(1) has been abrogated by subsection 61.5(10) of the Code.
I am inclined to the view that subsection 61.5(10) does not abrogate the Court's jurisdic tion. Having regard to the ruling of the Court in Attorney General of Canada v. Public Service Staff Relations Board (supra), that the opening words of section 28 are effective to override priva- tive clauses existing when the Federal Court Act was passed, as well as to the presumption that Parliament does not intend to take away the super visory jurisdiction of superior courts, it seems to me that when there is no specific reference to section 28 in the privative provision, there is as much reason to hold that section 28 overrides privative provisions enacted after the enactment of the Federal Court Act as there is for holding that section 28 overrides privative provisions existing when section 28 was passed.
Moreover, it seems to me unlikely that Parlia ment intended that a temporary tribunal constitut ed under subsection 61.5(6) should be above the law and immune from supervision by any superior court in its exercise of the authority conferred on it. Such a result does not follow if subsection 61.5(10) is read, as I think it should be, as subject to the overriding effect of section 28 of the Federal Court Act.
I turn therefore to the merits of the point raised. What the Adjudicator was authorized by subsec tion 61.5(9) to do was, inter alia, to require the employer to pay the dismissed employee compen sation "not exceeding the amount of money that is equivalent to the remuneration that would, but for the dismissal, have been paid by the employer to the person".
What the Adjudicator ordered the applicant to do was, inter alia, to pay Kraus "compensation equivalent to the remuneration that, but for the dismissal, would have been paid to him during the period from March 21, 1980 until his reinstate ment."
The order, therefore, though it does not state a precise amount to be paid, does not exceed the authority of the Adjudicator. Nor does it exceed the gross amount that Kraus might have earned or
the gross loss he may have sustained. It is obvious that he lost his pay. What might have come to him to reduce that loss or what opportunities, if any, he may have had but did not take to mitigate his loss do not appear from the record. All that is before the Court on the point is an affidavit stating that there was no evidence before the Adjudicator as to the amount of Kraus' pay, or that he suffered monetary loss or whether he was otherwise employed or received income during the period following the termination of his employment. In my view, the fact that Kraus lost his pay, whatever the amount of it may have been, is an obvious inference from what is before the Court and it rested on the applicant to show if it could that Kraus was otherwise employed or earned income in the material period of time or failed to take reasonable action to mitigate his loss 6 . As there was no evidence to that effect, there is in my opinion no justification for interfering with the Adjudicator's order.
I would dismiss the application
* * *
HEALD J.: I concur.
* * *
MAGUIRE D.J.: I concur.
6 See Red Deer College v. Michaels [1976] 2 S.C.R. 324 per Laskin C.J.C. at page 331.
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