Says grievance arbitrable as unlawful 'contracting in' can arise even without express prohibition in collective agreement
When a utility company staffed its newly built control room through a chain of related entities and a freshly incorporated contractor, it set the stage for a dispute over who truly employs those workers.
In a preliminary award dated April 1, 2026, Arbitrator Deanna Webb ruled the Power Workers' Union's grievance against Milton Hydro Distribution (MHDI) arbitrable, finding that unlawful "contracting in" can arise even absent an express prohibition in a collective agreement.
Milton Hydro Distribution owns an Electrical Distribution Control Room in Milton, Ontario, the daytime management of which had long been subcontracted to offsite third parties. A 2021 strategic review produced a business case recommending an in-house 24/7/365 control room staffed with six staff and a supervisor.
After the union grieved a 2022 job posting for in-house control room operators and withdrew that grievance in June 2024, MHDI launched a request for proposals. The contract went to MEGS, a related entity, which subcontracted the work to Concentric Ltd., incorporated on July 31, 2024, by Daniel Kavanaugh, who had allegedly worked as a Systems Operator Specialist for Oakville Hydro while it was contracted by MHDI.
The union filed its grievance on February 13, 2025, alleging MHDI hired "contract employees" who ought to be recognized as MHDI employees under the collective...
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