Union, employer, benefits trustee bicker over LTD payments

Trust argued it wasn’t bound by any arbitration decisions
|Canadian Labour Reporter|Last Updated: 03/04/2019

An employee, who worked for Kone Canada in British Columbia, was disabled for three years, but a dispute arose over who should cover his long-term disability (LTD) benefits.

Paul Schwagly was off work from Oct. 9, 2012, to Oct. 9, 2015, and was denied LTD payments. The union, International Union of Elevator Constructors (IUEC), Local 82 grieved the decision on May 23, 2013, after Sun Life Insurance refused to pay LTD benefits to Schwagly.

The grievance also named the National Elevator and Escalator Association (NEEA), which was an elevator industry representative body that included Kone and Otis, Schindler and Thyssenkrupp as members. All companies were parties to the Canadian Elevator Industry Welfare Plan, which was managed by an independent board of trustees, which was also part of the grievance.