The Hospital for Sick Children v. CUPE, Local 2816, 2026 CanLII 57034 (ON LA)
Paula Knopf, Arbitrator — June 10, 2026

The Hospital for Sick Children argued that two grievances had been settled even though the grievor later refused to sign the final revised minutes. Arbitrator Knopf agreed, finding that the Union and Employer had reached a binding settlement through offer and acceptance.

Background

The two grievances involved a 10-day suspension and an unjust discharge grievance. At the January 22, 2026 hearing, the parties used the day for mediation with the assistance of the arbitrator acting as mediator/arbitrator.

During mediation, the parties discussed settlement terms involving a monetary payment, with part allocated as taxable compensation and part as damages, in exchange for the grievor giving up any right to reinstatement. The Union later sent manually revised minutes of settlement signed by the grievor and Union representatives, but the document contained an inadvertent error in the payment language.

Within minutes, Union counsel advised Employer counsel that the revision contained an error and clarified the intended total settlement amount and allocation. The next day, the Employer sent updated minutes reflecting the clarified terms and stated that it accepted the Union’s offer.

The grievor refused to sign the updated minutes. The Employer brought a motion seeking a declaration that the grievances had been settled, while the Union argued that no binding settlement existed because final approval and signature by the grievor were still required.

Decision

The arbitrator found that the parties had reached a binding settlement. She accepted that a settlement under a collective agreement need not be in writing if the parties with authority to settle clearly and unconditionally agree on the terms.

The evidence showed that the Union’s counteroffer was understood by the parties, that the drafting error was caught and clarified quickly, and that the Employer accepted the clarified offer. Nothing in the submissions showed that the settlement was conditional on the grievor’s later signature.

The arbitrator also found that the Union advocates had authority to negotiate a binding settlement. The Union and Employer were the parties to the collective agreement, and the grievor had authorized the Union to present the counteroffer.

The arbitrator declared the grievances fully and finally resolved and declined to schedule a hearing on the merits. She also declared that the Employer was bound to pay the agreed upon amount.