Voluntary severance program not discriminatory: Arbitrator

Labatt's incentive payment calculated from earnings of last day worked, which was lower for workers on LTD
By Jeffrey R. Smith
|Canadian Employment Law Today|Last Updated: 10/15/2014

A voluntary retirement incentive did not discriminate against disabled employees by calculating their payment based on what they earned when they worked rather than the current wages for their positions, an arbitrator has ruled.

Pay rates for Labatt Breweries employees were set in collective agreements — in each new agreement, wages were set at a higher rate than in the previous one. There were no wage progressions — each employee received the set wages in the collective agreement until the next agreement. The collective agreement allowed for higher wages for “seniority employees” and as a result did not guarantee the same pay for everyone for the same work.