April 12, 2012
41.4.41
Background
The employee grieved the Employer's refusal to reimburse relocation expenses in accordance with sections 8 and 8.5 of the NJC Relocation Directive as well as the failure to provide adequate information pertaining to relocation and the resulting prejudice.
Bargaining Agent Presentation
The Bargaining Agent representative indicated that the grievor suffered a financial loss following relocation as a result of the Directive's failure to recognize provincial laws preventing the severance of agricultural land.
Provincial laws precluded the grievor from disposing of the home at origin separately from the grievor's land. The Department's refusal to provide relocation assistance beyond the sale of the home and 4 acres of land resulted in the grievor accepting an offer of purchase far below the market value of the entire property. The residence at origin and 4 acres of land were appraised at $117,000 however the listed property includes a wood lot with an estimated market value of $50,000 or no less than $35,000. The home and property were listed at $169,000 though an offer of $125,000 was ultimately accepted on February 18, 2010.
The Bargaining Agent representative noted that the grievor was not advised prior to the acceptance of the position of the limitations of reimbursement under the Directive. Had the grievor been aware of the financial consequences of the relocation, the grievor likely would not have accepted the offer. The representative further noted the significant delay in the processing of the grievor's relocation file.
The grievor should be reimbursed relocation costs associated with the sale of the entire property per sections 8.3 Home Sale Assistance, 8.5 Lot Size and 8.9 Legal Fees of the Directive. Section 8.3 Home Sale Assistance provides for the compensation of the difference between the appraised value of the home at origin and its sale price up to $15,000. The grievor is entitled to legal fees of 5% amounting to $8000 (home and 4 acres + minimum market value of the wood lot) and taxes.
The Bargaining Agent representative stated that the present application of the Directive does not take into account the unique situations faced by employees living in rural areas. The representative noted that the current interpretation is inequitable.
Departmental Presentation
The Departmental representative submitted that the grievor is not eligible for additional reimbursement or assistance under the Directive. The Directive must be read as a whole. Although section 8.3 Home Sale Assistance does provide for up to $15,000 under the core fund it also states that there is no Home Equity Assistance. Therefore the grievor is not entitled to these funds.
In addition, section 8.5 Lot Size clearly limits reimbursement of expenses to 4 acres which was confirmed with the Treasury Board Secretariat.
It was further noted that the grievor was informed of the Directive via a letter of offer. The letter also referred to a contact person within the Department. The grievor had a responsibility to become familiar with the Directive, a view which was supported in the decision in NJC grievance file number 41.4.24.
Executive Committee Decision
The Executive Committee considered and agreed with the report of the Relocation Committee which concluded that the employee was treated within the intent of the NJC Relocation Directive. It was agreed that employees have a responsibility to familiarize themselves with the Directive. Although the property in question was appraised at $117,000 and listed for $169,000, nothing prevented the grievor from selling it at a higher price. Had the property sold at a higher price, the grievor would still only be reimbursed for costs/expenses to the maximum allowable under the Directive (4 acres). As such, the grievance was denied.