FPSLREB Decisions

Jurisdiction - Conflict of interest - employer raised preliminary objection to jurisdiction of the adjudicator on the ground that grievance did not fall within either paragraph 92(1)(a) or 92(1)(b) of the Public Service Staff Relations Act - grievors abandoned their reliance on paragraph 92(1)(b) of the Act and sought to rely on paragraph 92(1)(a) of the Act - adjudicator concluded that he had jurisdiction under that paragraph and that it was not necessary for the grievors to specify in their grievance which provision of the collective agreement they were relying upon provided the employer was not misled - jurisdiction taken - grievors were tax auditors who on their own time were shareholders and directors of a corporation which became involved in an ultimately unsuccessful attempt to develop a golf course - in 1990, grievor Skinner made a Confidential Report wherein he disclosed to employer his involvement as a director and minor shareholder of corporation - employer indicated that it had no problem with grievor's involvement as director and shareholder of corporation based on the information he had disclosed but that he should keep employer informed if circumstances changed - also employer cautioned grievor not to involve himself in bookkeeping or accounting for the corporation - grievors were careful to abide by the employer's admonition - it was subsequent to this that grievor Fraser became involved in the corporation and that corporation became involved in the attempt to develop the golf course - Skinner made no additional disclosure to the employer and Fraser made no disclosure to the employer at all relying on the employer's response to Skinner's original disclosure - employer became aware of extent of grievors' involvement in the corporation and the nature of the business in which it was engaged following the publication of a newspaper article thereon - at employer's request grievors filed Confidential Reports setting out their involvement in the corporation and its attempt to develop the golf course - employer directed grievors to cease being officers and directors of the corporation and to divest themselves of their shares in the corporation as their involvement therein, in the employer's opinion, placed them in a potential conflict of interest - grievors began to divest themselves of their interest in the corporation - attempt to develop the golf course failed - nonetheless employer insisted that grievors continue with their action to divest - relevant provision of collective agreement provided that, "unless otherwise specified by the employer as being in an area that could represent a conflict of interest, employees shall not be restricted in engaging in other employment outside the hours they are required to work for the employer" - evidence established that employer had specified in a document entitled Supplementary Compliance Measures that employees were prohibited from engaging in the marketing of real estate - adjudicator concluded that employer had "otherwise specified" in relation to the sale of real estate - therefore grievors were in a conflict of interest up to the moment that they ceased to be involved in the real estate project of the golf course development but not thereafter - employer violated relevant provision of the collective agreement by persisting in ordering them to cease being directors and officers of the corporation and to divest themselves of theirs shares in the corporation thereafter. Grievances allowed in part.