Judgments

Decision Information

Decision Content

T-2645-85
Yvon R. H. Gingras (Plaintiff) v.
Her Majesty the Queen in Right of Canada (Defendant)
INDEXED AS: GINGRAS V. CANADA (T.D.)
Trial Division, Dubé J.—Montréal, November 28, 29, 1989; Ottawa, January 4, 1990.
Judicial review — Equitable remedies — Declarations — Purely administrative decision reviewable — Must be made strictly and within limits of purpose and spirit of statute — Decision to deny RCMP members bilingualism bonus based on non-civilian status not rationally connected to legislative objective of Official Languages Act — Decision-making authorities abusing power and exclusion illegal.
Official languages — Whether bilingualism bonus payable to plaintiff when member of RCMP and subsequently CSIS employee — Passing bilingualism tests — Occupying positions in Quebec designated bilingual — Denied bonus on grounds not included in employment benefits — Decision to exclude illegal — Reason for exclusion unrelated to legislative objec tive of Official Languages Act and policies on bilingualism.
RCMP — Member of RCMP denied bilingual bonus on basis of non-civilian status — Commissioner's reasons not justified and not determinative — RCMP employees part of Public Service by s. 2, P.S.S.R.A. and subject to Treasury Board as employer.
Security Intelligence — CSIS Director denying employees—including plaintiff former RCMP member—bilin- gual bonus — CSIS not subject to Treasury Board as separate employer under s. 2, P.S.S.R.A. — Bonus wrongly denied as CSIS bound by s. 9, Official Languages Act — No defence that plaintiff not paid bonus while with RCMP.
Human rights — Plaintiff member of RCMP and subse quently of CSIS — Denied bilingualism bonus — Illegal exclusionary decision based on non-civilian status — Whether discrimination within meaning of ss. 3, 7, 10 Human Rights Act or s. 15(1) Charter of Rights and Freedoms — Discrimi nation based on category of employment not prohibited ground under either Act.
This was an action for a declaratory judgment that the plaintiff was entitled to the bilingualism bonus created by the Treasury Board and the Public Service Commission in 1977.
The plaintiff, a member of the RCMP until 1984 and subsequently of the Canadian Security Intelligence Service ("the Service") until retirement in 1988, was never paid the bilingualism bonus on the ground that it was not included in his employment benefits. The plaintiff was bilingual, had passed all requisite tests for bilingualism and occupied positions in Quebec designated as bilingual.
Shortly after the Government introduced the bilingualism bonus, the Commissioner of the RCMP issued a directive to the effect that the new policy did not cover members of the RCMP, that it was not Treasury Board's intention to include them and that the Force would not be seeking authority from Treasury Board to pay such a bonus to its members. The policy of the Director of the Service was to pay the bilingual bonus to support staff but not to professionals.
The following issues had to be determined in this action: (1) Whether the appropriate decision-making authorities abused their power and acted illegally by excluding the plaintiff from receipt of the bonus; (2) Whether, as a result of the decision to exclude the plaintiff, there was discrimination based on nation al or ethnic origin pursuant to sections 3, 7, 10 of the Human Rights Act or subsection 15(1) of the Canadian Charter of Rights and Freedoms; (3) What period of prescription applied herein?
Held, the action should be allowed.
(1) The exclusion of RCMP and CSIS members from pay ment of the bonus was illegal. Only Treasury Board with respect to the RCMP and the Director of the Service with regard to CSIS members had the power to grant or deny the bilingualism bonus. All employees of the RCMP are covered by the definition of "Public Service" in section 2 of the Public Service Staff Relations Act and, as included in Part I of Schedule I, are subject to Treasury Board's powers as their employer, which powers include the determination of working conditions, salary and other financial compensation pursuant to section 5, and subsections 7(1) and 7(9) of the Financial Administration Act. The powers given to the Commissioner under section 5 of the Royal Canadian Mounted Police Act do not authorize determination of compensation. Under section 2 of the Public Service Staff Relations Act, the Service is by definition a separate employer. By section 8 of the Canadian Security Intelligence Service Act, the Director of the Service has the same powers over CSIS employees as has Treasury Board over Public Service employees.
A discretionary administrative decision is reviewable and must be made strictly and within the limits of the purpose and spirit of the statute. The object of the administrative act was to implement policies of general application on bilingualism in order to promote the objectives of the Official Languages Act within the Public Service. The bilingualism bonus was a policy adopted to comply with section 9 of the Official Languages Act. The express exclusions as confirmed by the Statement of Policies are rationally connected to the financial administration of bilingual policy in the Public Service as the persons excluded from receipt of the bonus are part-time or temporary or
appointed by the Governor in Council. Members of the RCMP do not, however, hold this type of employment. Their exclusion, based on their non-civilian status, was a reason unrelated to policies on bilingualism. There is no rational connection be tween this exclusion and the objective sought.
The Director of the Service, although not governed by the Treasury Board bilingual policies, has a duty under section 9 of the Official Languages Act to introduce bilingual policies. The Director's reasons do not meet the criteria of legality according to the case law. The argument that subsection 66(2) of the Canadian Security Intelligence Service Act is an impediment to giving the plaintiff the bonus because he did not receive it when with the RCMP is wrong. Subsection 66(2) determines the minimum benefits of entitlement when transferring. Any vested right would continue.
(2) There had been no infringement of sections 3, 7 or 10 of the Human Rights Act or of subsection 15(1) of the Charter. Discrimination based on category of employment is not a prohibited ground of discrimination under either Act.
(3) Since the plaintiff's engagement was contractual in nature and performed in Quebec, the five-year prescription period under article 2260(6) of the Civil Code applies and the plaintiff loses his right of action to recover the bonus for 1976 to 1979. The plaintiff's right to the bonus stands for the years 1980 to 1988, the action having been commenced in 1985.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44], s. 15.
Canadian Human Rights Act, S.C. 1976-77, c. 33, ss. 3, 7, 10.
Canadian Human Rights Act, R.S.C., 1985, c. H-6. Canadian Security Intelligence Service Act, S.C. 1984, c.
21, ss. 8(1), 66(1),(2), 93, 94.
Canadian Security Intelligence Service Act, R.S.C., 1985, c. C-23.
Civil Code of Lower Canada, art. 2260(6).
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 38(1).
Federal Court Act, R.S.C., 1985, c. F-7, s. 39(1). Financial Administration Act, R.S.C. 1970, c. F-10, ss. 5(1), 6, 7(1),(9).
Financial Administration Act, R.S.C., 1985, c. F-11. Official Languages Act, R.S.C. 1970, c. O-2, ss. 8(1), 9. Official Languages Act, R.S.C., 1985, c. O-3.
Ontario Limitations Act, R.S.O. 1980, c. 240, s. 45 ( 1 )(g).
Penitentiary Act, R.S.C. 1970, c. P-6, s. 5(2).
Public Service Employment Act, R.S.C. 1970, c. P-32, ss. 2(1), 24.
Public Service Employment Act, R.S.C., 1985, c. P-33. Public Service Staff Relations Act, R.S.C. 1970, c. P-35, s. 2, Schedule I.
Public Service Staff Relations Act, R.S.C., 1985, c. P-35. Public Service Terms and Conditions of Employment Regulations, SOR/67-118.
Royal Canadian Mounted Police Act, R.S.C. 1970, c. R-9, ss. 5, 6(3), 7(1), 13, 21, 22.
Royal Canadian Mounted Police Act, R.S.C., 1985, c. R-10.
CASES JUDICIALLY CONSIDERED
APPLIED:
Morin v. National SHU Review Committee, [1985] 1 F.C. 3; (1985), 20 C.C.C. (3d) 123; 46 C.R. (3d) 238; 60 N.R. 121 (C.A.); Roncarelli v. Duplessis, [1959] S.C.R. 121; (1959), 16 D.L.R. (2d) 689; Delanoy v. Public Service Commission Appeal Board, [1977] 1 F.C. 562; (1976), 13 N.R. 341 (C.A.); Prince George (City of) v. Payne, [1978] 1 S.C.R. 458; (1977), 75 D.L.R. (3d); [1977] 4 W.W.R. 275; 2 M.P.L.R. 162; 15 N.R. 386; R v Secretary of State for the Home Dept. ex p. Khan, [1985] 1 All ER 40 (C.A.); R. v. Turpin, [1989] 1 S.C.R. 1296; (1989), 48 C.C.C. (3d) 8; 69 C.R. (3d) 97; 96 N.R. 115.
DISTINGUISHED:
Bolling v: Public Service Staff Relations Board, [1978] 1 F.C. 85; (1977), 77 D.L.R. (3d) 318 (C.A.).
CONSIDERED:
Montréal (City of) v. Arcade Amusements Inc. et al., [1985] 1 S.C.R. 368; (1985), 14 D.L.R. (4th) 161; 29 M.P.L.R. 220; 58 N.R. 339; Re Multi-Malls Inc. et al. and Minister of Transportation and Communications et al. (1976), 14 O.R. (2d) 49; 73 D.L.R. (3d) 18 (C.A.); Andrews v. Law Society of British Columbia, [1989] 1 S.C.R. 143; (1989), 56 D.L.R. (4th) 1; 91 N.R. 255; Reference Re Workers' Compensation Act, 1983, (Nfld.), [1989] 1 S.C.R. 922; (1989), 96 N.R. 227.
REFERRED TO:
Reference as to the Validity of the Regulations in rela tion to Chemicals, [1943] S.C.R. 1; [1943] 1 D.L.R. 248; (1943), 79 C.C.C. 1; Oakwood Development Ltd. v. Rural Municipality of St. François Xavier, [1985] 2 S.C.R. 164; (1985), 20 D.L.R. (4th) 641; [1985] 6 W.W.R. 147; 36 Man. R. (2d) 215; 18 Admin. L.R. 59; 31 M.P.L.R. 1; 61 N.R. 321; 37 R.P.R. 101; Vanguard
Coatings and Chemicals Ltd. v. M.N.R., [1987] 1 F.C. 367; (1986), 7 F.T.R. 11 (T.D.); Public Service Alliance (Can.) v. Deans and Canada (Treasury Board) (1988), 19 F.T.R. 97 (F.C.T.D.); Association des gens de l'Air du Québec v. The Honourable Otto Lang, [ 1977] 2 F.C. 22; (1977), 76 D.L.R. (3d) 455 (T.D.); affd [1978] 2 F.C. 371; (1978), 89 D.L.R. (3d) 495; 22 N.R. 328 (C.A.); Secretary of State for Education and Science v. Tame- side Metropolitan Borough Council, [1977] A.C. 1014 (H.L.); Laker Airways Ltd v Department of Trade, [1977] 2 All ER 182 (C.A.); Bullion v. The Queen et al., [1980] 2 S.C.R. 578; Re Doctors Hospital and Minister of Health et al. (1976), 12 O.R. (2d) 164; 68 D.L.R. (3d) 220; 1 C.P.C. 232 (Div. Ct.); Maple Lodge Farms Ltd. v. Government of Canada, [1982] 2 S.C.R. 2; (1982) 137 D.L.R. (3d) 558; 44 N.R. 354; The Way Biblical Research and Teaching Ministry of Canada v. Canada Employment and Immigration Commission, [1983] 1 F.C. 467 (T.D.); Fountainhead Fun Centres Ltd. c. Mon- tréal (Ville de), [1981] C.A. 468; (1981), 128 D.L.R. (3d) 579 (Qué.); Kruse v. Johnson, [1898] 2 Q.B. 91 (Div. Ct.); Re Liverpool Taxi Owners' Association, [1972] 2 All ER 589 (C.A.); O'Reilly v Mackman, [1982] 3 All ER 1124 (H.L.); A-G of Hong Kong v Ng Yuen Shiu, [1983] 2 All ER 346 (P.C.); Brossard (Town) v. Quebec (Commission des droits de la personne), [1988] 2 S.C.R. 279; (1988), 53 D.L.R. (4th) 609; 88 N.R. 321; Ford v. Quebec (Attorney General), [1988] 2 S.C.R. 712; Stoffman v. Vancouver General Hospital (1988), 49 D.L.R. (4th) 727; [1988] 2 W.W.R. 708; (1988), 21 B.C.L.R. (2d) 165 (C.A.); R. v. Hayden (1983), 3 D.L.R. (4th) 361; [1983] 6 W.W.R. 655; 23 Man. R. (2d) 315; 8 C.C.C. (3d) 33; 36 C.R. (3d) 187 (C.A.); Tétreault-Gadoury v. Canada (Canada Employ ment and Immigration Commission), [1989] 2 F.C. 245; (1988), 53 D.L.R. (4th) 384; 88 N.R. 6 (C.A.); Orphans v. Queen Mary's College (1I85), 62 N.R. 243 (H.L.); Veysey v. Canada (Correctional Service), [1990] 1 F.C. 321 (T.D.); Long v. Canada (Treasury Board) (1989), 27 F.T.R. 269 (F.C.T.D.); Evans v. Canada (T-1414-86, Dubé J., order dated 13/4/87, not reported); Phillips v. The Queen, [1977] 1 F.C. 756 (T.D.).
AUTHORS CITED
Falconbridge, John Delatre. Essays on the Conflict of Laws, 2nd ed. Toronto: Canada Law Book Co. Ltd., 1954.
Garant, Patrice. Droit administratif, 2nd ed. Montréal: Editions Yvon Blais, 1985.
Evans, J. M. et al. Administrative Law: Cases, Texts and Materials, 3rd ed. Toronto: Emond Montgomery Publi cations Ltd., 1989.
Martineau, Pierre. La Prescription. Montréal: Les Presses de l'Université de Montréal, 1977.
Pépin, Gilles and Ouellette, Yves. Principes de Conten- tieux Administratif, 2nd ed. Cowansville (Québec): Editions Yvon Blais, 1982.
Pigeon, Louis-Philippe. Rédaction et interprétation des lois. Québec: Éditeur officiel, 1978.
COUNSEL:
Julius H. Grey for plaintiff. Raymond Piché for defendant.
SOLICITORS:
Grey, Casgrain, Montréal, for plaintiff.
Deputy Attorney General of Canada for defendant.
The following are the reasons for judgment rendered in English by
DUBÉ J.: By this action the plaintiff is seeking a declaratory judgment that he is entitled to the bilingualism bonus created by the Treasury Board and the Public Service Commission in 1977.
1. Relevant facts
The plaintiff was a member of the Royal Canadian Mounted Police ("the RCMP") from August 16, 1962 to July 15, 1984, and on that date he transferred to the Canadian Security Intelli gence Service ("the Service"). He retired on December 2, 1988. The plaintiff is bilingual and passed all the tests necessary to establish his bilin- gualism. He held positions in Quebec designated as bilingual. He was never paid the bonus on the ground that his employment had never included the bilingualism bonus under the Royal Canadian Mounted Police Act, [R.S.C. 1970, c. R-9] and the Canadian Security Intelligence Service Act, [S.C. 1984, c. 21].
2. Plaintiff's arguments
Counsel for the plaintiff alleged that the exclu sion of RCMP members and professionals working for the Service is discrimination, first, because it creates a distinction which is illegal under the rules of administrative law, and second, because it infringes the rights of such persons under sections 7 and 10 of the Canadian Human Rights Act,' and since 1985, under section 15 of the Canadian Charter of Rights and Freedoms [being Part I of the Constitution Act, 1982, Schedule B,
1 S.C. 1976-77, c. 33 (R.S.C., 1985, c. H-6).
Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44]].
3. Exclusion decisions
To begin with, it is not easy to determine who made the exclusion decisions. Was it the Governor in Council, the Treasury Board or first the RCMP Commissioner and later the Director of the Ser vice? Before unravelling the overlapping of the relevant legislation and the tangle of applicable directives and circulars, I feel it is appropriate to cite a passage from a directive of Commissioner R. H. Simmonds dated December 9, 1977, addressed to division commanding officers and dealing with official languages. It is important to emphasize that this directive was issued soon after the revised policy on official languages of the Government of Canada introducing the bonus in question was released by the Treasury Board and the Public Service Commission:
4. One of the major elements of the revised policies is the payment of the Bilingualism Bonus, retroactive to 1 November 1976, to all Public Servants meeting the language requirements of identified bilingual positions. While the Revised Official Languages Policies contain authority to pay this bonus to Public Servants, that authority does not extend to members of the Force, the Canadian Forces and certain Crown Corpora tions and Agencies, nor is it Treasury Board's intention that it apply to them. Action is already being taken to pay the bonus to Public Servants working in the Force. However, the Force will not be seeking authority from Treasury Board to pay the bonus to members, for several reasons:
(a) members of other police forces in Canada do not receive a bilingual bonus and as pay research and negotiation for members of the Force is related to the police community, our equation must be with them,
(b) in a cohesive organization such as the Force, the pay ment of such a bonus would become a divisive element as it would create situations in which members of equal rank and responsibility working side by side could receive differing remuneration because one or several of them had either the good fortune to grow up in a milieu which was favourable to learning the second official language or had the equally good fortune to learn it at public expense.
I will examine below the two reasons given by the Commissioner for depriving his men of the bilingualism bonus. For the moment, I simply wish to draw attention to his statement that the new policy on bilingualism did not cover members of the RCMP, that it was not Treasury Board's
intention to include them and that "the Force will not be seeking authority from Treasury Board to pay the bonus to members".
The Director of the Service, for his part, set out his policy on the matter in a letter to counsel for the plaintiff on March 5, 1985. He noted that in the case of the Service, Treasury Board is not the employer, and that it was he as Director who decided that the bilingualism bonus would be paid to support staff but not to professionals. He added that when the plaintiff was employed by the RCMP, he was not entitled to the bonus and that subsection 66(2) of the Canadian Security Intelli gence Service Act provides that members of the Force who become employees of the Service con tinue to have employment benefits equivalent to those of the positions they were holding.
4. Applicable legislation
The allegations put forward by the two parties during the hearing concerned the effects of various legislation dealing with the federal Public Service 2 in general, the RCMP and the Service in particu lar, specifically with respect to the plaintiff's status and rights.
To understand the context, one must read to gether the Public Service Staff Relations Act, 3 the Public Service Employment Act, 4 the Financial Administration Act, 5 the Royal Canadian Mount ed Police Act 6 and the Canadian Security Intelli gence Service Act.' To this already long list I would add the Official Languages Act, 8 the State ment of Policies on Official Languages in the Public Service and circular 1977-46 issued by the
2 Now known in French as "administration publique fédérale".
3 R.S.C. 1970, c. P-35 (R.S.C., 1985, c. P-35). ° R.S.C. 1970, c. P-32 (R.S.C., 1985, c. P-33).
5 R.S.C. 1970, c. F-10 (R.S.C., 1985, c. F-11).
6 R.S.C. 1970, c. R-9 (R.S.C., 1985, c. R-10). ' S.C. 1984, c. 21 (R.S.C., 1985, c. C-23). R.S.C. 1970, c. O-2 (R.S.C., 1985, c. O-3).
Treasury Board and the Public Service Commis sion in September 1977. 9
After carefully reviewing each of these statutes in light of the arguments made by both parties, I have concluded that the provisions required to resolve the matter can usefully be stated and analysed as follows.
First, section 2 of the Public Service Staff Relations Act defines most of the terms relevant to the case. That section provides: 10
2. In this Act
"Public Service" means the several positions in or under any department or other portion of the public service of Canada specified from time to time in Schedule I;
"employee" means a person employed in the Public Service, other than
(e) a person who is a member or special constable of the Royal Canadian Mounted Police or who is employed by that Force under terms and conditions substantially the same as those of a member thereof,
"employer" means Her Majesty in right of Canada as repre sented by,
(a) in the case of any portion of the public service of Canada specified in Part I of Schedule I, the Treasury Board, and
(b) in the case of any portion of the public service of Canada specified in Part II of Schedule I, the separate employer concerned; [My emphasis.]
Section 93 of the Canadian Security Intelli gence Service Act added the following paragraph to the exclusions in the definition of "employee":
2....
(e.l) an employee of the Canadian Security Intelligence Service who is not within the occupational category described as administrative support, [My emphasis.]
Schedule I, referred to by these definitions, lists the portions of the public service for which the Treasury Board, in Part I, or the body itself, in Part I1, is the employer. The RCMP is listed in
9 I refer to the legislation in effect at the time covered by the application; counsel referred instead to the current versions.
1 " The alphabetical order has been adjusted.
Part I, and the Service is one of the bodies desig nated in Part II as being a separate employer."
Counsel for the defendant argued that under paragraph (e), supra, of the exclusions from the definition of "employee", the Treasury Board was not acting as the plaintiffs employer when he was with the RCMP That is not my view. On the other hand, it was common ground that after he was transferred to the Service he became an employee of the latter, a separate employer.
I note in particular that neither paragraph (a) of the definition of "employer" nor the list in Part I of Schedule I appears to make any distinction between the civilian and non-civilian employees of the RCMP Further, the aforementioned definition of "employer" clearly states "any portion" of the bodies specified in Part I of Schedule I has the Treasury Board as its employer.
In my view the exclusion of non-civilian, non- unionized members of the RCMP for the purposes of application of the general provisions of the Public Service Staff Relations Act is solely and specifically related to the purpose of that Act, namely setting out collective labour relations in the Public Service. This exclusion does not have the effect of placing these members of the RCMP outside the definition of "public service".
Furthermore, in my opinion my conclusion does not go against the judgment of the Federal Court of Appeal in Bolling v. Public Service Staff Rela tions Board.' 2 In that case the Court held, in circumstances very different from those at bar, that members of the Canadian Armed Forces were not covered by the definition of "Public Service" in the Public Service Staff Relations Act. Unlike the RCMP, the armed forces are not one of the bodies listed in Schedule I of that Act.
The definition of "Public Service" in subsection 2(1) of the Public Service Employment Act refers to the aforementioned definition in the Public Service Staff Relations Act. The definition of
" S. 94, Canadian Security Intelligence Service Act.
12 [1 978 ] 1 F.C. 85; (1977), 77 D.L.R. (3d) 318 (C.A.).
"employee", on the other hand, is different and reads as follows:
2. (1) ... In this Act
"employee" means a person employed in that part of the Public Service to which the Commission has the exclusive right and authority to appoint persons; [My emphasis]
This definition excludes the plaintiff, whose appointment was the responsibility first of the RCMP Commissioner 13 and secondly of the Direc tor of the Service, 14 and not the Public Service Commission.
However, I do not consider that this exclusion affects his belonging to the Public Service as defined in the Public Service Staff Relations Act. As can be seen from the two foregoing definitions, it is clear that the scope of the terms "public service" and "Public Service" vary depending on the Acts and their specific purposes. Accordingly, exclusion for the purposes of one or other statute does not alter the fact that the plaintiff is still covered by Part I of Schedule I of the Public Service Staff Relations Act.
In addition, the Financial Administration Act sets out the responsibilities, duties and powers of the Treasury Board with respect to members of the public service. Subection 5(1) defines the general responsibilities as follows:
5. (1) The Treasury Board may act for the Queen's Privy Council for Canada on all matters relating to
(a) general administrative policy in the public service of Canada;
(b) the organization of the public service or any portion thereof, and the determination and control of establishments therein;
(e) personnel management in the public service, including the determination of terms and conditions of employment of persons employed therein; and
(/) such other matters as may be referred to it by the Governor in Council.
13 Subs. 7(1), Royal Canadian Mounted Police Act.
14 Subs. 8(1), Canadian Security Intelligence Service Act.
The powers and functions are more specifically indicated in subsection 7(1), which provides in part:
7. (1) Subject to the provisions of any enactment respecting the powers and functions of a separate employer but notwith standing any other provision contained in any enactment, the Treasury Board may, in the exercise of its responsibilities in relation to personnel management including its responsibilities in relation to employer and employee relations in the public service, and without limiting the generality of sections 5 and 6,
(a) determine the manpower requirements of the public service and provide for the allocation and effective utilization of manpower resources within the public service;
(b) determine requirements for the training and develop ment of personnel in the public service and fix the terms on which such training and development may be carried out;
(c) provide for the classification of positions and employees in the public service;
(d) determine and regulate the pay to which persons employed in the public service are entitled for services ren dered, the hours of work and leave of such persons and any matters related thereto;
(e) provide for the awards that may be made to persons employed in the public service for outstanding performance of their duties, for other meritorious achievement in relation to those duties and for inventions or practical suggestions for improvements;
(i) provide for such other matters, including terms and conditions of employment not otherwise specifically provided for in this subsection, as the Treasury Board considers neces sary for effective personnel management in the public ser vice. [My emphasis.]
Subsection 7(9) provides that, for the purposes
of this section:
7....
(9) In this section
"public service" has the meaning given the expression "Public Service" in the Public Service Staff Relations Act, and includes any portion of the public service of Canada desig nated by the Governor in Council as part of the public service for the purposes of this section;
If my interpretation that all employees of the RCMP are covered by the definition of "Public Service" in the Public Service Staff Relations Act is correct, it follows that they are also covered by the Board's powers respecting the public service. Accordingly, in my opinion while the plaintiff was a member of the RCMP he was an employee of the Treasury Board, which could determine his working conditions, salary and other financial compensation.
Further, if it were needed, section 22 of the Royal Canadian Mounted Police Act provides a second statutory authority expressly conferring on the Board the power to determine the compensa tion to be paid to the RCMP:
22. (1) The Treasury Board shall establish the pay and allowances to be paid to the members of the force.
Contrary to the arguments of the defendant, I do not consider that this provision is essential to establish that the Board was the plaintiffs employ er: similar provisions exist in other statutes affect ing bodies listed in Part I of Schedule I of the Public Service Staff Relations Act 15 in which the employer is already identified as being the Trea sury Board.
Subsection 8(1) of the Canadian Security Intel ligence Service Act gives the Director of the Ser vice powers over his employees in all respects similar to those of the Treasury Board over other Public Service employees:
8. (1) Notwithstanding the Financial Administration Act and the Public Service Employment Act, the Director has exclusive authority to appoint employees and, in relation to the personnel management of employees, other than persons attached or seconded to the Service as employees,
(a) to provide for the terms and conditions of their employ ment; and
(b) subject to the regulations,
(i) to exercise the powers and perform the duties and functions of the Treasury Board relating to personnel management under the Financial Administration Act, and
(ii) to exercise the powers and perform the duties and functions assigned to the Public Service Commission by or pursuant to the Public Service Employment Act. [My emphasis.]
I do not subscribe to the argument of counsel for the plaintiff that this exception does not extend to compensation: there is neither ambiguity nor scope for interpretation in this provision, which is with out any question the type of exception expressly allowed for in the introductory paragraph of sub section 7(1) of the Financial Administration Act, cited above.
The exercise of the Director's power is however limited by section 66 of the Canadian Security
15 E.g. Penitentiary Act, R.S.C. 1970, c. P-6, subs. 5(2).
Intelligence Service Act, a transitional provision of the Act creating the Service, which states:
66. (1) Subject to subsection (5),
(a) all officers and members of the Force, and
(b) all persons appointed or employed under the Public Service Employment Act
assigned to the security service immediately prior to the coming into force of this section become employees of the Service on the coming into force of this section.
(2) Every person mentioned in subsection (1) continues, on the coming into force of this section, to have employment benefits equivalent to those that the person had immediately prior thereto, until such time as those benefits are modified pursuant to a collective agreement or, in the case of persons not represented by a bargaining agent, by the Service. [My emphasis.]
The underlined words read as follows in the French version:
66....
(2) Le paragraphe (I) ne porte pas atteinte à l'équivalence des avantages attachés aux postes des personnes qu'il vise ... [My emphasis.]
Accordingly, after the end of 1984 the authority of the Service as a separate employer, with respect to everything affecting the plaintiff's compensa tion, took the place of that formerly held by Treasury Board, subject to subsection 66(2) above. The plaintiff therefore took with him to the Ser vice the same benefits he had with the RCMP.
On the other hand the authority of the RCMP Commissioner is not as wide as that of the Direc tor of the Service. Apart from the power to appoint members other than officers of the Force,- 16 it is described in general terms in sections 5 and 21 of the Royal Canadian Mounted Police Act, which provide:
5. The Governor in Council may appoint an officer to be known as the Commissioner of the Royal Canadian Mounted Police who, under the direction of the Minister, has the control and management of the force and all matters connected therewith.
21. (1) The Governor in Council may make regulations for the organization, training, discipline, efficiency, administration and good government of the force and generally for carrying the purposes and provisions of this Act into effect.
16 The Governor in Council appoints officers: subs. 6(3).
(2) Subject to this Act and the regulations made under subsection (1), the Commissioner may make rules, to be known as standing orders, for the organization, training, discipline, efficiency, administration and good government of the force.
As I see it, this power conferred on the Commis sioner to make "standing orders" does not author ize him to determine the compensation of RCMP members, as that matter is within the exclusive jurisdiction of the Treasury Board.
This brief review of the complex statutory rela tionships between the various bodies and institu tions of the public service leads me to conclude that only the Treasury Board, and subsequently the Director of the Service, held decision-making authority over the plaintiff's compensation, includ ing the power to grant or deny the bilingualism bonus.
5. Bilingualism bonus
The bilingualism bonus was part of the policies adopted by the Public Service to comply with the duties imposed in section 9 of the Official Lan guages Act, which reads as follows:
9. (1) Every department and agency of the Government of Canada and every judicial, quasi-judicial or administrative body or Crown corporation established by or pursuant to an Act of the Parliament of Canada has the duty to ensure that within the National Capital Region, at the place of its head or central office in Canada if outside the National Capital Region, and at each of its principal offices in a federal bilingual district established under this Act, members of the public can obtain available services from and can communicate with it in both official languages.
(2) Every department and agency of the Government of Canada and every judicial, quasi-judicial or administrative body or Crown corporation established by or pursuant to an Act of the Parliament of Canada has, in addition to but without derogating from the duty imposed upon it by subsection (1), the duty to ensure, to the extent that it is feasible for it to do so, that members of the public in locations other than those referred to in that subsection, where there is a significant demand therefor by such persons, can obtain available services from and can communicate with it in both official languages.
As we have seen, the bilingualism bonus in its present form was not introduced until 1977, when a sweeping review of bilingualism policies in the Public Service was jointly undertaken by the Trea sury Board and the Public Service Commission. The bilingualism bonus is dealt with in the State ment of Policies on Official Languages published
by the Treasury Board and the Public Service Commission in September 1977. The following paragraph indicates which employees are eligible for the bonus:
The Bilingualism Bonus shall be payable to all eligible employees for whom the Treasury Board is the Employer and Government-in-Council appointments when such employees occupy positions which have been designated as bilingual and the employee has been certified by the Public Service Commis sion as meeting the established language proficiency require ments for the position.'? [My emphasis.]
In circular 1977-46 issued on September 30, 1977, which summarizes the gist of the aforemen tioned Statement, its application is defined as follows:
This circular applies to all departments and agencies listed in Part I of Schedule I of the Public Service Staff Relations Act. It also applies to those corporations included in schedules "B" and "C" of the Financial Administration Act. [My emphasis.]
So then, prima facie the plaintiff, who held a position designated as bilingual and whose employ er was the Treasury Board, was entitled to the bilingualism bonus while he was a member of the RCMP, unless he had been excluded expressly or by necessary implication by a competent authority.
The exceptions to the application of the policy on the bilingualism bonus are listed in the State ment of official languages policies. I quote in full (at pages 144-145):
Notwithstanding Section (1), the Bilingualism Bonus shall not be payable to:
(a) Employees in the Translation Group except for those whose positions have been designated as bilingual for reasons other than in respect of the performance or supervision of duties specified in the inclusion section of the Translation Group definition;
(b) employees who are to continue to receive the frozen ST pay differential, under conditions as specified in paragraph 15 of this Policy section;
(c) persons appointed by the Governor-in-Council at the SX 4 or equivalent salary level and above;
(d) a person who falls under one of the following in that he
or she is
(i) a person locally engaged outside Canada;
' 7 Official Languages in the Public Service of Canada, A Statement of Policies, September 1977, policy IV.19, p. 144.
(ii) a person whose compensation for the performance of the regular duties of the position or office consists of fees of office, or is related to the revenue of the office in which the person is engaged;
(iii) a person not ordinarily required to work more than one-third of the normal period for persons doing similar work;
(iv) a person employed on a casual or temporary basis unless such person has been so appointed for a period of more than six months;
(v) a person under a professional or personal service contract.
As can be seen, these exceptions do not include the RCMP and no subsequent amendment applied directly to the non-civilian members of the RCMP (In 1978, persons appointed by the Governor in Council were made ineligible for the bonus, but this change did not affect members of the RCMP other than officers.) Are such members excluded by necessary implication as a consequence of the revision of the aforesaid legislation? I feel I have shown that this was not the case.
As a separate employer, the Service is not sub ject to Treasury Board policies. The policy on the bilingualism bonus adopted by the Director of the Service is thus separate from that already con sidered. In the Service the plaintiff is expressly excluded, as indicated by the letter from the Direc tor cited at the start of these reasons and by section 12 of chapter 11.4 on Pay and Benefits, an extract from the internal policies of the Service. That section reads as follows:
12. The provision of the bonus is restricted to qualified employees, occupying designated positions in the Administra tive Support Category.
Are these exclusions, implied on the part of the Treasury Board and expressed on the part of the Director of the Service, illegal or discriminatory as counsel for the plaintiff contends?
6. Illegality of exclusions
As mentioned at the outset, counsel for the plaintiff first argued that the distinction brought about the exclusion authorized first by the Trea sury Board and secondly by the Director of the Service, is illegal in terms of the fundamental principles of administrative law. He cited in sup port of this proposition a judgment of the Supreme Court of Canada, Montréal (City of) v. Arcade
Amusements Inc. et al., 1 S which dealt with a municipal by-law applying to amusement equip ment and halls and excluding young persons under eighteen years of age. The Court had to decide ,whether this by-law was discriminatory. Beetz J. said in this regard (at page 404):
The rule that the power to make by-laws does not include that of enacting discriminatory provisions unless the enabling legislation provides the contrary has been observed from time immemorial in British and Canadian public law.
At page 406 he cited with approval a comment by Louis-Philippe Pigeon J. 19 based on a rule stated in Kruse v. Johnson: 2°
[TRANSLATION] Another important observation has to be made regarding the regulatory power. It is the following: the power to make regulations does not include a power to adopt discriminatory provisions. In other words, unless the legislation authorizing it states the contrary a regulation must apply to everyone in the same way. If the intent is to make a distinction, this must be stated. One of the interesting decisions on this point is Rex v. Paulowich, [1940] 1 W.W.R. 537; and there are many others.
And finally, at page 413:
It must be held that, in the absence of express provisions to the contrary or implicit delegation by necessary inference, the sovereign legislator has reserved to itself the important power of limiting the rights and freedoms of individuals in accordance with such fine distinctions. The principle transcends the limits of administrative and municipal law. It is a principle of funda mental freedom.
Counsel for the defendant argued that a distinc tion should be drawn between an administrative decision and the type of by-law at issue in Arcade Amusements. The only written evidence of a deci sion by the Treasury Board filed at the hearing is the aforementioned directive of the Commissioner. In my opinion, whatever form the directive takes, the decision must meet certain criteria of legality, as no discretionary power is absolute. 21 Moreover, every administrative act derives its legal authority
's [1985] 1 S.C.R. 368; (1985), 14 D.L.R. (4th) 161; 29 M.P.L.R. 220; 58 N.R. 339.
19 Rédaction et interprétation des lois, 1978, at p. 34.
20 [1898] 2 Q.B. 91 (Div. Ct.).
21 Garant, P. Droit administratif, 2nd ed. Montréal, Éditions Yvan Blais, 1985, pp. 257-258; Pépin and Ouellette, Principes de Contentieux Administratif, 2nd ed. Cowansville, Éditions Yvon Blais, 1982, pp. 263-264; Roncarelli v. Duplessis, [1959] S.C.R. 121; (1959), 16 D.L.R. (2d) 689, at p. 140 S.C.R.
solely from legislation. 22
What must be recognized, in my view, is that the wide powers of the Treasury Board 23 allow it to define the application of and exclusions from its own policies, so long as it acts within its jurisdic tion, and remains subject to possible challenges by affected individuals. As an example, I refer to the Regulations respecting the Terms and Conditions of Employment in Certain Parts of the Public Service, 24 where the application is defined as follows:
Schedule A
1. The several positions in or under
(a) the departments named in Schedule A to the Financial Administration Act; and
(b) the portions of the public service of Canada named in Part I of Schedule 1 to the Public Service Staff Relations Act;
to which the Public Service Commission has the exclusive right and authority to appoint persons. [My emphasis.]
In the case at bar, the Board did not limit the application of its bilingualism policies by proceed ing in this way. It chose instead to exclude certain persons, or certain groups, from entitlement to the bilingualism bonus, though the program was essen tial to the working out of its policies. The RCMP has never been a group expressly excluded from those policies.
The question therefore is whether the Board enjoys a discretion such that it can with impunity ignore its own policies and impose an "unofficial" exclusion, which was never stated in the policy. In other words, did the Board abuse its powers and so act illegally?
The Director of the Service, for his part, has the same powers as the Board and is subject to the same rules governing their exercise: it must be
22 Garant, P., op. cit., pp. 261-262; Reference as to the Validity of the Regulations in relation to Chemicals, [1943] S.C.R. 1; [1943] I D.L.R. 248; (1943), 79 C.C.C. 1, at p. 13 S.C.R.
23 In addition to those already noted, there are the regulatory powers listed in s. 6 of the Financial Administration Act.
24 SOR/67-1 18; TB 665757, Public Service Terms and Con ditions of Employment Regulations (now c. 2-1, vol. 8, Person nel Management Manual, Treasury Board Secretariat, p. A69*).
determined in his case whether the adoption of an express exclusion policy in the Service was also an abuse of his power and so an illegal act.
The courts have held that the exercise of a discretionary power by an administrative authority is not beyond the scope of judicial review. 25
In Morin v. National SHU Review Committee 26 the Federal Court of Appeal, citing English law which is the source for most of the basic rules in administrative law, summarized the applicable principles as follows (at pages 18-19):
... judicial review of purely administrative action is limited, but clearly does exist. The landmark case in this area of administrative law is Padfield and Others v. Minister of Agriculture, Fisheries and Food, [1968] A.C. 997 (H.L.). In that case the House of Lords held that the Minister's discretion as to whether to appoint a committee to investigate complaints was not unfettered, and that the reasons he had given for his refusal showed that he had acted ultra vires, by taking into account factors that were legally irrelevant and by using his power in a way calculated to frustrate the policy of the legislation in question. Four of the five members of the House of Lords went so far as to say that even if the Minister had given no reasons for his decision, once a prima facie case of misuse of power had been established, it would have been open to the Court to infer in any event that he had acted unlawfully.
Lord Upjohn, in the majority, perhaps most clearly expressed the law with respect to judicial review (at page 1058):
So it is clear that the Minister has a discretion and the real question for this House to consider is how far that discretion is subject to judicial control.
Unlawful behaviour by the Minister may be stated with sufficient accuracy for the purposes of the present appeal (and here I adopt the classification of Lord Parker C.J., in the Divisional Court): (a) by an outright refusal to consider the relevant matter, or (b) by misdirecting himself in point of
25 Oakwood Development Ltd. v. Rural Municipality of St. François Xavier, [1985] 2 S.C.R. 164; (1985), 20 D.L.R. (4th) 641; [1985] 6 W.W.R. 147; 36 Man. R. (2d) 215; 18 Admin. L.R. 59; 31 M.P.L.R. 1; 61 N.R. 321; 37 R.P.R. 101 at p. 174 S.C.R.; Vanguard Coatings and Chemicals Ltd. v. M.N.R., [1987] 1 F.C. 367; (1986), 7 F.T.R. 11 (T.D.), at p. 377 F.C.; Public Service Alliance (Can.) v. Deans and Canada (Treasury Board) (1988), 19 F.T.R. 97 (F.C.T.D.), at p. 99; Association des gens de l'Air du Québec Inc. v. The Honourable Otto Lang, [1977] 2 F.C. 22; (1977), 76 D.L.R. (3d) 455 (T.D.), at p. 38 F.C., affd [1978] 2 F.C. 371; (1978), 89 D.L.R. (3d) 495; 22 N.R. 328 (C.A.).
26 [1985] 1 F.C. 3; (1985), 20 C.C.C. (3d) 123; 46 C.R. (3d) 238; 60 N.R. 121 (C.A.).
law, or (c) by taking into account some wholly irrelevant or extraneous consideration, or (d) by wholly omitting to take into account a relevant consideration. [My emphasis.]
Canadian courts at all levels have repeatedly reaffirmed the interdependent criteria set forth in Padfield. 27 Like the House of Lords, they also have concluded that an administrative authority misuses its power when it acts for improper ends, other than those specified in the Act, 28 or based on wrong principles or with reference to factors unrelated to the law and irrelevant, 29 by failing to take relevant factors into account 30 or in an arbi trary, unreasonable or discriminatory manner. 31
In the case at bar I must determine whether the
exclusionary decisions made by the Treasury Board and the Director of the Service were vitiat ed in this way. In my opinion the criteria listed above are based essentially on the idea that a discretionary administrative decision must be made strictly within the limits of the purpose and spirit of the statute. As Rand J. said in Roncarelli
v. Duplessis 32 (at page 140):
27 See also Secretary of State for Education and Science v. Tameside Metropolitan Borough Council, [1977] A.C. 1014 (H.L.); Laker Airways Ltd v Department of Trade, [1977] 2 All ER 182 (C.A.).
28 Roncarelli v. Duplessis, supra, footnote 21; Bullion v. The Queen et al., [1980] 2 S.C.R. 578, at p. 580; Prince George (City of) v. Payne, [1978] 1 S.C.R. 458; (1977), 75 D.L.R. (3d); [1977] 4 W.W.R. 275; 2 M.P.L.R. 162; 15 N.R. 386, at p. 463 S.C.R.; Delany v. Public Service Commission Appeal Board, [1977] 1 F.C. 562; (1976), 13 N.R. 341 (C.A.), at p. 568 F.C.; Re Doctors Hospital and Minister of Health et al. (1976), 12 O.R. (2d) 164; 68 D.L.R. (3d) 220; 1 C.P.C. 232 (Div. Ct.), at pp. 174-176 O.R.
29 Maple Lodge Farms Ltd. v. Government of Canada, [1982] 2 S.C.R. 2; (1982) 137 D.L.R. (3d) 558; 44 N.R. 354, at p. 7 S.C.R.; The Way Biblical Research and Teaching Ministry of Canada v. Canada Employment and Immigration Commission, [1983] 1 F.C. 467 (T.D.), at pp. 470-481; Re Multi-Malls Inc. et al. and Minister of Transportation and Communications et al. (1976), 14 O.R. (2d) 49; 73 D.L.R. (3d) 18 (C.A.), at pp. 62-64 O.R.
3° Oakwood Development Ltd. v. Rural Municipality of St. François Xavier, supra, footnote 25, at p. 174.
31 Bullion v. The Queen et al., supra, footnote 28; Fountain head Fun Centres Ltd. c. Montréal (Ville de), [1981] C.A. 468; (1981), 128 D.L.R. (3d) 579 (Qué.), at pp. 485-486 C.A.
32 Supra, footnote 21.
A decision to deny or cancel such a privilege lies within the "discretion" of the Commission; but that means that decision is to be based upon a weighing of considerations pertinent to the object of the administration.
In public regulation of this sort there is no such thing as absolute and untrammelled "discretion", that is that action can be taken on any ground or for any reason that can be suggested to the mind of the administrator; no legislative Act can, without express language, be taken to contemplate an unlimited arbi trary power exercisable for any purpose, however capricious or irrelevant, regardless of the nature or purpose of the statute .... "Discretion" necessarily implies good faith in discharging public duty; there is always a perspective within which a statute is intended to operate. [My emphasis.]
I have already observed that the documentary evidence of the Board's decision is limited to the "explanations" of Commissioner Simmonds con tained in the Directive of December 1977.
According to the undisputed testimony of Mr. Gaston Guénette, an officer responsible for official languages policies with the Treasury Board Secretariat, there was no Order in Council direct ing that non-civilian members of the RCMP be excluded from payment of the bonus: the decision was made by Cabinet and communicated to the RCMP by the Board. This witness also said that he had seen in the Board's files notes to the effect that Commissioner Simmonds had indicated he did not wish to pay the bonus to his members. In fact, the reasons given by the Commissioner in support of the non-payment leave little doubt in this regard.
The courts have also held that a decision made at the instance of a third party is invalid. 33 Was the Board's decision influenced by the opinions, fears or pressure of the Commissioner? In view of Mr. Guénette's testimony, it is reasonable to sup pose that the Commissioner did in fact participate in the decision at issue. This however is only one of the factors to be considered in determining wheth er the decision was based on considerations rele vant to the purpose of the administrative act in the sense mentioned in Roncarelli, supra.
33 Roncarelli v. Duplessis, supra, footnote 21; Re Multi- Malls Inc. et al. and Minister of Transportation and Com munications et al., supra, footnote 29.
The object of the administrative act in the instant case (framed in accordance with the powers conferred by the Financial Administration Act) was to implement policies of general applica tion on bilingualism in order to promote the objec tives of the Official Languages Act within the Public Service. From an administrative standpoint section 9 of that Act, cited above, dealing with the expansion of bilingualism, authorized the develop ment of such policies and the bonus was a part of that.
This conclusion as to the object of the adminis trative act is confirmed by the September 1977 Statement of Policies mentioned above, in which the Treasury Board and the Public Service Com mission defined the official languages policies as follows (at pages 1 and 2):
1. Canadians should be able to communicate with, and to obtain services from the federal institutions of government in the official language of their choice and arrangements should be made to this effect wherever there is sufficient demand for it.
2. Subject to the previous principle, Canadians of the two official language groups should have equitable opportunities for employment and a career in the federal institutions of govern ment and to carry out their work in the official language of their choice.
3. The two official language groups should participate equit ably in the federal institutions of government.
In order to meet these three objectives, certain policy guidelines must be established to indicate under what circumstances either one, or both, official languages will be used by the Public Service. The guidelines for language used with respect to service to the public are derived from the provisions of the Official Languages Act.
That is the context in which the bilingualism bonus was created.
In Delanoy v. Public Service Commission Appeal Board, 34 the Federal Court of Appeal had to determine whether a requirement set by the Commission was related to selection by merit, a fundamental principle in the Public Service Employment Act. The Court said the following (at page 568):
34 Supra, footnote 28; see also Bullion v. The Queen et al., supra, footnote 28, at p. 580.
The Commission has, of course, a discretion in the prescription of standards, but every standard prescribed must relate to the purpose to be served, otherwise it is not a selection standard within the meaning of the section.
It is really not possible to perceive a rational link between the so called basic requirement involved in this case and selection according to merit of the candidate for appointment best qualified to fill the advertised position. [My emphasis.]
In Prince George (City of) v. Payne 35 the Supreme Court of Canada quashed the decision of a municipality to withhold a licence from the applicant, when he met all the criteria for its issuance, because he wanted to operate a business thought to be undesirable. In this regard Dickson J. [as he then was] said (at page 463):
The discretion contained in s. 455, wide as it is, must be exercised judicially. It is not a judicial exercise of discretion to rest decision upon an extraneous ground.
In light of these principles, and after review, I consider that the express exclusions from the pay ment of the bilingualism bonus listed in the afore mentioned Statement of Policies 36 are rationally connected to effective financial administration of the bilingualism policy in the public service: the categories and persons expressly excluded hold either temporary or part-time employment or employment appointment to which is by the Gov ernor in Council.
However, the non-civilian members of the RCMP do not hold this type of employment: their exclusion apparently results only from their non- civilian status.
This in my opinion is a reason unrelated to the policies on bilingualism, having regard to the application of the latter as defined by Treasury Board itself. I can see no rational connection be tween this exclusion and the objective sought, namely the promotion of bilingualism in the feder al public service.
Indeed, as the RCMP is a national institution the non-civilian members of which are the most visible and most involved with the public, the
35 Supra, footnote 28.
36 I also have in mind the exclusions added subsequently and contained in c. 5, vol. 5 of the Treasury Board Secretariat Personnel Management Manual.
exclusion of such members seems to run complete ly contrary to the governmental purpose, which is to provide a bilingual face and bilingual services to the people of Canada.
Counsel for the defendant maintained that the exclusion of these RCMP non-unionized members from payment of the bonus follows from the fact that the bonus was negotiated between the Trea sury Board and the Public Service Alliance and is part of the umbrella agreement. 37
I do not subscribe to this argument. As we have seen, when it introduced policies on bilingualism the Treasury Board did not limit their application to the unionized personnel of agencies listed in Part I of Schedule I of the Public Service Staff Relations Act. In any case, such a limitation would have been unthinkable. Similarly, excluding such personnel from payment of the bonus because they lacked union accreditation would be contrary to the governmental objective and irrational in terms of that objective. Logically, I do not see how inclusion of the bonus in a collective agreement inevitably excludes payment of it to persons not covered by the agreement under a general policy.
7. Commissioner's two reasons for exclusion
It is not clear to what extent the aforementioned reasons, indicated in the directive of Commissioner Simmonds, originated with the Treasury Board. Counsel for the defendant submitted that they were only personal opinions of the Commissioner. However, these reasons were not contradicted in evidence and for the purposes of a complete anal ysis they must be considered. In my view, they do not fall outside the ambit of the principles stated above regarding "non-civilian" and "non-union" criteria.
It will be recalled that the Commissioner gave two reasons. The first, that other police forces in Canada were not receiving such a bonus, merits little consideration: the RCMP is the only police force that operates nationally. The fact that a similar policy did not exist in the provinces is in my opinion completely unrelated and irrelevant to the question of federal bilingualism.
37 Clause M-37.03(11).
The second reason, that such a bonus would cause dissension between ranks, is even less per suasive. Like all bonuses, that for bilingualism is paid to those who deserve it. It is an incentive designed to encourage bilingualism: those who do not want to take part in the program have only themselves to blame. Further, the RCMP Director of Official Languages 38 readily conceded that the RCMP awards bonuses to its members in other areas, to reward outstanding service or as compen sation for assignments to remote locations and so on. Those who do not receive such bonuses are in no position to complain.
No other justification for excluding members of the RCMP from payment of the bilingualism bonus was entered in evidence. Accordingly, the exclusion decision made by the Treasury Board seems to me to be totally without foundation and to have been based on factors completely unrelated to the matter, including the two reasons of the Commissioner mentioned above. I consider that this decision was vitiated within the meaning of the criteria listed earlier. Thus, in my opinion the exclusion of the plaintiff from payment of the bilingualism bonus, when he met all the eligibility criteria set by the Treasury Board itself, was illegal.
8. Legitimate expectations frustrated
Another aspect of the Board's decision calls for brief comment: it is the fact that by excluding the plaintiff and his colleagues from payment of the bilingualism bonus in late 1977 the Board did not observe its own bilingualism policy introduced shortly before.
In issuing its bilingualism policy the Treasury Board and the Public Service Commission set out an elaborate code on the use of official languages in departments and other agencies of the public service. Clearly, this detailed code did not establish merely indicative rules, but rather normative rules which were to be observed not only by depart ments, public servants and other public service
Sri The present Commissioner himself was summoned by sub poena at the plaintiff's request. As he was not in the country, he was replaced by Director Roy Berlinguette.
employees to whom they applied, but also by their authors themselves.
The Board and the Commission could have defined the application of the bilingualism policy in accordance with a wider and more flexible formula, thereby giving themselves some room for manoeuvre to exercise their discretion in specific cases. In defining the application as covering all the departments and agencies listed in Part I of Schedule I of the Public Service Staff Relations Act, they created a legitimate expectation by per sons affected that the policy would be observed.
As Professor Janisch recently pointed out: 39
... it is repugnant to our notions of decency in government that when there has been a degree of reliance placed on internal rules, the government may ignore them and resile on any expectation it may have raised. As we have already seen, legitimate expectation is an important source of procedural rights and there are indications that it will be extended to include substantive rights.
The leading case on legitimate expectations cited by Janisch is a judgment of the British Court of Appeal, R v Secretary of State for the Home Dept. ex p. Khan. 40 In that case, the Minister had published a circular setting out criteria and proce dures governing the admission of children to Brit- ain for adoption. However, in ruling on an adop tion application the Minister failed to consider these criteria and applied others, to the detriment of the applicant. Following earlier decisions of English higher courts, 41 Lord Parker said the fol
lowing (at page 48):
I have no doubt that the Home Office letter afforded the applicant a reasonable expectation that the procedures it set out, which were just as certain in their terms as the question and answer in Mr. Ng's case, would be followed, that if the result of the implementation of those procedures satisfied the Secretary of State of the four matters mentioned a temporary entry clearance certificate would be granted and that the
39 Evans, J. M. et al. Administrative Law: Cases, Texts and Materials, 3rd ed., Toronto: Emond Montgomery Publications Ltd., 1989, p. 793.
4° [1985] 1 All ER 40 (C.A.).
41 Re Liverpool Taxi Owners' Association, [1972] 2 All ER 589 (CA.); O'Reilly v Mackman, [1982] 3 All ER 1124 (H.L.); A-G of Hong Kong v Ng Yuen Shiu, [1983] 2 All ER 346 (P.C.).
ultimate fate of the child would then be decided by the adoption court of this country.
The Secretary of State is, of course, at liberty to change the policy but in my view, vis-à-vis the recipient of such a letter, a new policy can only be implemented after such recipient has been given a full and serious consideration whether there is some overriding public interest which justifies a departure from the procedures stated in the letter. [My emphasis.]
In that case Lord Dunn considered the scope of the Secretary of State's discretion as follows (at page 52):
Counsel for the Secretary of State submitted that there were no statutory provisions or rules, that the Secretary of State had an unfettered discretion, and that he was entitled to take into account a pre-eminent policy considerati o n ... .
If the Home Secretary had done no more than to state that it was a matter for his discretion whether or not the child could be brought here for adoption, I should find great force in that submission. But the Home Secretary did not do that. He caused the circular letter in common form to be sent to all applicants setting out the four criteria to be satisfied before leave could be given. Thereby, in my judgment, he in effect made his own rules, and stated those matters which he regarded as relevant and would consider in reaching his decision.
The categories of unreasonableness are not closed, and in my judgment an unfair action can seldom be a reasonable one. The cases cited by Parker LJ show that the Home Secretary is under a duty to act fairly, and I agree that what happened in this case was not only unfair but unreasonable. Although the circular letter did not create an estoppel, the Home Secretary set out therein for the benefit of applicants the matters to be taken into consideration, and then reached his decision on a consideration which on his own showing was irrelevant. In so doing in my judgment he misdirected himself according to his own criteria and acted unreasonably. [My emphasis.]
Similarly, I consider to be unjustified the fact that the Treasury Board (apparently acting on a recommendation by the Commissioner) took the liberty of ignoring its own bilingualism policy and introducing considerations unrelated to that policy into its decision to exclude the non-civilian mem bers of the RCMP from payment of the bonus.
9. Director's exclusion decision
I now turn to the decision of the Director of the Service. As a separate employer the Service is not governed by the Treasury Board's bilingualism policies. Under section 9 of the Official Languages Act, however, the Director had a duty to introduce
bilingualism policies within the Service. This is what he did, exercising the powers conferred on him by subsection 8(1) of the Act creating the Service; and, like the Treasury Board, the exercise of the Director's discretion regarding these policies had to meet the same criteria already considered in relation to the Board's decision.
It is useful to cite the Director's letter of March 1985, in which the reasons for excluding Service employees (other than those in the administrative support category) from payment of the bonus are set out as follows:
Generally speaking, I, as the Director, exercise all of the powers and perform all of the duties and functions of both the Treasury Board relating to personnel management under the Financial Administration Act and the Public Service Commis sion by or pursuant to the Public Service Employment Act.
As the Director of CSIS, I have decided that the bilingual bonus will be provided to qualified employees occupying desig nated positions in the Administrative Support Category of CSIS. Treasury Board has also identified excluded groups who do not receive the bilingual bonus. The Treasury Board policy on the bilingualism bonus applies only to those departments, agencies and crown corporations listed in Part I, Schedule I of the Public Service Staff Relations Act, and Canada Post and the National Research Council. The Service, of course is not listed in Part I of Schedule I, but rather in Part II.
As your client, Mr. Gingras, occupies a position at a profes sional level within CSIS, he does not qualify for the bilingual bonus in his present capacity.
In the period immediately preceding the creation of the Service in July 1984, while your client was still a member of the RCMP, he was not entitled to a bilingual bonus under the Force's official languages policy. Subsection 66(2) of the CSIS Act provides that persons in your client's situation should have employment benefits in the Service equivalent to those that the person had had immediately prior to the coming into force of the legislation until such time as those benefits are modified, in his case, by the Service. [My emphasis.]
I think it is clear in light of this passage that the Director's decision was prompted primarily by the already existing Treasury Board policy excluding non-civilian members of the RCMP from payment of the bonus. As we know, a large number of those members were assigned to the Service when it was
created.
I must repeat that a discretionary body has to exercise its own discretion independently, in accordance with the purpose and spirit of its en abling Act: a discretionary decision which slavishly follows the policies of other agencies does not constitute such an exercise.
In Re Multi-Malls Inc. et al. and Minister of Transportation, 42 the Ontario Court of Appeal had to determine whether a decision of the Minis ter to refuse to issue a licence was made in accord ance with the "policy concerns" of the Act creat ing the Ministry. The Court held (at pages 62-64 O.R.):
I am of opinion that the Minister of Transportation and Communications allowed himself to be influenced by extrane ous, irrelevant and collateral considerations which should not have influenced him in the exercise of his discretion to refuse the entrance permit. It seems clear that the purpose of the Act in general is not to ensure proper land use planning but generally to control traffic.
Thus it seems to me that the respondent Minister failed to exclude from his consideration a matter which is clearly not related to the policy or objects of the Public Transportation and Highway Improvement Act. I would go further and say that it is clear, on the overwhelming balance of probability, that the refusal of the entrance permit, apparently based on a planning consideration, was really a yielding to the mounting pressure for preserving the inner core of the Town of Tillson- burg....
Hypothetically, it is possible to imagine a situa tion in which the decision made by one agency in accordance with that of another could be con sistent with the policies of both. On the other hand, that does not appear to be the case here. This is instead the blind perpetuation of a pre existing decision, regardless of its merits in abso lute terms or its connection with the objective sought by bilingualism policies in general.
The exclusionary decision of the Director may have resulted from his own determination that it would be proper to make a distinction between support staff and other Service employees on other grounds; but these other grounds remain unknown and were not indicated in his letter.
I therefore consider that the reasons which were the only ones given by the Director of the Service
42 Supra, note 29.
do not meet the criteria of legality set by the case law cited above. The plaintiff's exclusion from payment of the bonus was therefore illegal.
A final important comment on the Director's letter concerns its allegation that subsection 66(2) of the Canadian Security Intelligence Service Act was a legal impediment to payment of the bonus after the plaintiff was transferred to the Service. According to his interpretation, the plaintiff's exclusion while he was a member of the RCMP was conclusive as to the benefits he was entitled to as a Service employee, since the latter should not be more than equivalent to the former.
In my view this interpretation is clearly wrong. Subsection 66(2) determines the minimum ben efits to which the plaintiff was entitled when he was transferred and ensures that those benefits will continue. It is not a ceiling. In other words, the Director was in no way bound by the exclusion affecting members of the RCMP Such a conclu sion in fact to some extent constituted a refusal to exercise the wide powers conferred on the Director by subsection 8(1), supra. Further, as I have already found that the plaintiff was entitled to the bonus when he was with the RCMP, I must logi cally conclude that this vested right continued in effect when the plaintiff moved from the RCMP to the Service.
In conclusion, I consider that the exclusions effected both by the Treasury Board for the RCMP and by the Director for the Service were illegal. The plaintiff was entitled to payment of the bonus from the time it was introduced in 1977.
10. Allegation of discrimination based on Charter
I now turn to the plaintiff's second argument that the distinction resulting from the decisions of the Treasury Board and the Director of the Service creates a discrimination based on national or ethnic origin contrary to sections 3, 7 and 10 of the Canadian Human Rights Act and, since April 1985, subsection 15(1) of the Canadian Charter of Rights and Freedoms.
These provisions read as follows: 43
3. For all purposes of this Act, race, national or ethnic origin, colour, religion, age, sex, marital status, conviction for which a pardon has been granted and, in matters relating to employment, physical handicap, are prohibited grounds of discrimination.
7. It is a discriminatory practice, directly or indirectly,
(a) to refuse to employ or continue to employ any individual, or
(b) in the course of employment, to differentiate adversely in relation to an employee,
on a prohibited ground of discrimination.
10. It is a discriminatory practice for an employer or an employee organization
(a) to establish or pursue a policy or practice, or
(b) to enter into an agreement affecting recruitment, refer ral, hiring, promotion, training, apprenticeship, transfer or any other matter relating to employment or prospective employment,
that deprives or tends to deprive an individual or class of individuals of any employment opportunities on a prohibited ground of discrimination.
15. (1) Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.
Statistical evidence provided by the defendant at the hearing showed that the francophone members of the RCMP and francophone professionals with the Service holding positions designated as bilin gual are almost three times as numerous as anglo- phone members and anglophone professionals holding such positions. It is thus clear that the impact of exclusion from payment of the bonus affects bilingual francophones three times as much as their bilingual anglophone colleagues.
43 I quote ss. 3, 7 and 10 of the original Act (S.C. 1976-77, c. 33), amended by ss. 2, 3 and 5 of S.C. 1980-81-82-83, c. 143. The amendments are not relevant here.
With supporting authority, 44 counsel for the plaintiff alleged that it is the consequences of the disputed practice rather than the intention of the offender which is conclusive of the existence of discrimination: according to this argument, it fol lows that though anglophone members and profes sionals are not paid the bonus in the same way as francophones, the latter suffer a more severe impact and thus discrimination based on national or ethnic origin.
In my opinion, however, the only question that must be asked is whether the alleged discrimina tion is based on national or ethnic origin or instead is a consequence of the category of employment held by the individual. In my view, it is based on the category of employment.
The category or type of employment is not "a prohibited ground of discrimination" within the meaning of the Canadian Human Rights Act nor a ground of discrimination "enumerated" in subsec tion 15(1) of the Canadian Charter of Rights and Freedoms. I also do not believe that it is a ground of discrimination "analogous" to those enumerated in the latter provision.
In Andrews v. Law Society of British Columbia, McIntyre J. (dissenting as to the conclusion only) defined discrimination as follows (at pages 174-175):
I would say then that discrimination may be described as a distinction, whether intentional or not but based on grounds relating to personal characteristics of the individual or group, which has the effect of imposing burdens, obligations or disad vantages on such individual or group not imposed upon others, or which withholds or limits access to opportunities, benefits and advantages available to other members of society. Distinc-
44 Andrews v. Law Society of British Columbia, [1989] I S.C.R. 143; (1989), 56 D.L.R. (4th) 1; 91 N.R. 255; Brossard (Town) v. Quebec (Commission des droits de la personne), [1988] 2 S.C.R. 279; (1988), 53 D.L.R. (4th) 609; 88 N.R. 321; Ford v. Quebec (Attorney General), [1988] 2 S.C.R. 712; Stoffman v. Vancouver General Hospital (1988), 49 D.L.R. (4th) 727; [1988] 2 W.W.R. 708; (1988), 21 B.C.L.R. (2d) 165 (C.A.); leave to appeal to Supreme Court granted, [1988] I S.C.R. xiv; [1988]; 4 W.W.R. 1 xxii; R. v. Hayden (1983), 3 D.L.R. (4th) 361; [1983] 6 W.W.R. 655; 23 Man. R. (2d) 315; 8 C.C.C. (3d) 33; 36 C.R. (3d) 187 (C.A.); application for leave to appeal to the Supreme Court dismissed on December 19, 1983, [1983] 2 S.C.R. xi; (1983), 3 D.L.R. (4th) 361; 26 Man R. (2d) 318; 8 C.C.C. (3d) 33; Tétreault-Gadoury v. Canada (Canada Employment and Immigration Commission), [1989] 2 F.C. 245 (1988), 53 D.L.R. (4th) 384; 88 N.R. 6 (C.A.); on appeal to the Supreme Court, No. 21222; Orphans v. Queen Mary's College (1985), 62 N.R. 243 (H.L.).
tions based on personal characteristics attributed to an individual solely on the basis of association with a group will rarely escape the charge of discrimination, while those based on an individual's merits and capacities will rarely be so classed. [My emphasis.]
LaForest J., for his part, considered that in the circumstances citizenship was such a personal characteristic, and had several features in common with those listed in section 15. He said the follow ing (at page 195):
The characteristic of citizenship is one typically not within the control of the individual and, in this sense, is immutable. Citizenship is, at least temporarily, a characteristic of person- hood not alterable by conscious action and in some cases not alterable except on the basis of unacceptable costs. 45
In Reference Re Workers' Compensation Act, 1983 (Nfld.)" the Supreme Court of Canada held that a worker who was the victim of an accident and was deprived under a provincial statute of rights and actions against the employer to which he would otherwise have been entitled was not a victim of discrimination within the meaning of subsection 15(1). Speaking for the Court, LaFor- est J. said (at page 924):
The situation of the workers and dependents here is in no way analogous to those listed in s. 15(1), as a majority in Andrews stated was required to permit recourse to s. 15(1).
The conclusion was the same in R. v. Turpin, 47 where the Court had to decide whether a distinc tion in the Criminal Code giving certain accused persons in Alberta "favourable" treatment was discrimination against other accused persons in other provinces. In the view of Wilson J. this distinction did not contravene subsection 15(1). She said (at pages 1332-1333):
In my respectful view, it would be stretching the imagination to characterize persons accused of one of the crimes listed in s. 427 of the Criminal Code in all the provinces except Alberta as members of a "discrete and insular minority".... Differentiat ing for mode of trial purposes between those accused of s. 427 offences in Alberta and those accused of the same offences elsewhere in Canada would not, in my view, advance the purposes of s. 15 in remedying or preventing discrimination against groups suffering social, political and legal disadvantage in our society. A search for indicia of discrimination such as
45 On the criterion of immutability, see also Veysey v. Canada (Correctional Service), [1990] 1 F.C. 321 (T.D.).
46 [1989] 1 S.C.R. 922; (1989), 96 N.R. 227.
47 [1989] 1 S.C.R. 1296; (1989), 48 C.C.C. (3d) 8; 69 C.R. (3d) 97; 96 N.R. 115.
stereotyping, historical disadvantage or vulnerability to political and social prejudice would be fruitless in this case ... To recognize the claims of the appellants under s. 15 of the Charter would, in my respectful view, "overshoot the actual purpose of the right or freedom in question": see R. v. Big M Drug Mart Ltd., at p. 344. [My emphasis.]
Similarly, I do not consider that the category of employment, taking in on the one hand members of the RCMP and on the other professionals of the Service, is the type of "discrete and insular minori ty" protected in subsection 15(1) of the Canadian Charter of Rights and Freedoms. To conclude that it is would be to "overshoot the actual purpose" of this constitutional provision.
11. Prescription
The last point that must be resolved concerns the prescription applicable to the case at bar, the final argument raised by the defendant. There are two points to be considered: first, the basis of the plaintiffs action, and then the applicable law.
Is the action contractual or tortious in nature? I think I have already shown that the plaintiff's eligibility for the bilingualism bonus resulted from his employment as a member of the public service. His right is therefore based on his employment, or more specifically his contract of engagement.
In this regard I note that there is a distinction between the employment status of Public Service employees, as stated in section 24 of the Public Service Employment Act, and that governing members of the RCMP, specified in section 13 of the Royal Canadian Mounted Police Act. Those provisions read as follows:
24. The tenure of office of an employee is during the pleas ure of Her Majesty, subject to this and any other Act and the regulations thereunder and, unless some other period of employment is specified, for an indeterminate period.
13. (1) Officers of the force hold office during the pleasure of the Governor in Council.
(2) Unless appointed for temporary duty, every member other than an officer shall upon appointment sign articles of engagement for a term of service not exceeding five years, but any such member may be dismissed or discharged by the Commissioner at any time before the expiration of his term of engagement. [My emphasis.]
In my view the distinction is significant. Where as the courts have held that a member of the Public Service does not have a contract of employ ment because he holds his office during Her Majesty's pleasure, 48 no such qualification of their employment applies to members of the RCMP.
I therefore conclude that the plaintiff's engage ment was contractual in nature, that is under a contract not exceeding five years, which was renewable and was in fact renewed. The period of prescription governing contracts of employment is therefore applicable to the case at bar.
The starting point for prescription of any action in the Federal Court is subsection 38(1) (now subsection 39(1)) of the Federal Court Act, 49 which provides:
38. (I) Except as expressly provided by any other Act, the laws relating to prescription and the limitation of actions in force in any province between subject and subject apply to any proceedings in the Court in respect of any cause of action arising in such province, and a proceeding in the Court in respect of a cause of action arising otherwise than in a province shall be taken within and not after six years after the cause of action arose. [My emphasis.]
In the case at bar, while the plaintiff was hired in Ontario the contract was performed in Quebec.
In Essays on the Conflict of Laws, 5° Falcon- bridge comments as follows on the factors that should determine the law of contract in such a case (at pages 378-379):
As to the relative importance of the place of making, the place of performance and other circumstances, for the purpose of ascertaining the proper law of a contract, the following passage from the judgment in Lloyd v. Guibert ((1865), L.R. 1 Q.B. 115, at p. 122) is typical and is frequently quoted:
It is, however, generally agreed that the law of the place where the contract is made, is prima facie that which the parties intended, or ought to be presumed to have adopted as the footing upon which they dealt, and that such law ought therefore to prevail in the absence of circumstances indicat ing a different intention, as, for instance, that the contract is
48 Long v. Canada (Treasury Board) (1989), 27 F.T.R. 269 (F.C.T.D.); Evans v. Canada, T-1414-86, Dubé J., order dated 13/4/87, not reported; Phillips v. The Queen, [1977] 1 F.C. 756 (T.D.).
49 R.S.C. 1970 (2nd Supp.), c. 10 (R.S.C., 1985, c. F-7).
5° Toronto: Canada Law Book Co. Ltd., 1954.
to be entirely performed elsewhere, or that the subject- matter is immoveable property situate in another country, and so forth; which latter, though sometimes treated as distinct rules, appear more properly to be classed as excep tions to the more general one, by reason of the circumstances indicating an intention to be bound by a law different from that of the place where the contract is made; which intention is inferred from the subject-matter and from the surrounding circumstances, so far as they are relevant to construe and determine the character of the contract.
According to Westlake [Private International Law, 5th ed. 1912, at pp. 305-6], "it may probably be said with truth that the law by which to determine the intrinsic validity and effects of a contract will be selected in England on substantial con siderations, the preference being given to the country with which the transaction has the most real connection, and not to the law of the place of contract as such." [My emphasis.]
In my opinion it follows from the fact that the plaintiff's contract was performed almost entirely in Quebec that the law on prescription applicable in the circumstances is that of Quebec, and in particular article 2260(6) of the Civil Code of Lower Canada. That article provides that:
Art. 2260. The following actions are prescribed by five years:
6. For hire of labor, or for the price of manual, professional or intellectual work and materials furnished, saving the excep tions contained in the following articles; [My underlining.]
According to Martineau, 5' the precription enacted by article 2260(6) is that of the ordinary law on hire of labor, which makes no distinction between types of hiring of labor, and is indifferent to the nature of the work. The learned writer cites as an example that the following persons fall under this prescription (at page 294):
[TRANSLATION] ... public officials, officers and employees of the government;
(On the other hand if the law of the place of hiring were to apply the plaintiff would be in a better position, since the Ontario Limitations Act 52 prescribes a six-year period for an action under an ordinary contract, pursuant to paragraph 45(1)(g)).
51 La Prescription, Montréal: Les Presses de l'Université de Montréal, 1977, pp. 292-293.
52 R.S.O. 1980, c. 240.
Accordingly, as the action was brought in November 1985 the plaintiff has lost his right to the bilingualism bonus for 1976, 1977, 1978 and 1979 when he was employed by the RCMP. On the other hand, his right is confirmed for the years 1980 and subsequently, when he was employed by the RCMP and by the Service.
12. Conclusion
For these reasons, the action is allowed with costs. The Court finds that the plaintiff is entitled to the bilingualism bonus for the years 1980 to 1988 inclusive.
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