In Rayonier v. Unifor, Locals 256 and 89 (the “Decision”) the long-term disability (“LTD”) coverage provided by Rayonier (the “Employer”) under the parties’ collective agreement was challenged by Unifor, Locals 256 and 89 (the “Union”) on the basis that by ceasing LTD coverage for employees aged 65 and older, the Employer was discriminating against employees on the basis of age. The Union further argued that provisions under the Human Rights Code (Ontario)(“HRC”), the Employment Standards Act (Ontario) and the Benefit Plans regulations thereunder (“ESA”) – which exclude age-based distinctions under the terms of certain benefit plans for employees aged 65 and older from the prohibitions on age-based discrimination under the HRC and ESA – violate section 15(1) of the Canadian Charter of Rights and Freedoms (the “Charter”). Section 15(1) of the Charter provides that every individual is equal before and under the law, including the right to the equal protection and equal benefit of the law without discrimination based on age.
Arbitrator Knopf found that because LTD coverage terminated when active employees reached the age of 65, leaving them without a benefit available to younger workers, this differential treatment amounted to prima facie discrimination under section 15(1) of the Charter. However, it was ultimately found that the age-based restriction under the LTD plan incorporated into the parties’ collective agreement was justified under section 1 of the Charter, which...
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