Landmark ruling awards compensatory, aggravated and punitive damages for flawed staffing
A federal labour tribunal has ruled that biased hiring decisions carry a price. In a February 27, 2026 decision written by Board Member Guy Giguère of the Federal Public Sector Labour Relations and Employment Board, Transport Canada was ordered to pay Stéphanie Harnois compensatory, aggravated, and punitive damages. The ruling followed a separate August 2, 2024 decision (2024 FPSLREB 106) in which the Board found the department had "flagrantly abused its authority" during a 2016 internal staffing process for a PM-04 intelligence analyst, operational support position. The 2026 decision marks the first time the Board awarded damages when a complainant was qualified and had a high probability of appointment.
Harnois competed in an external process for the analyst position in 2014, was deemed qualified, and received a formal offer in August 2015 with a September 15 start date, but it was withdrawn on August 27, 2015, solely due to budget constraints. Her name remained in the still-valid qualified pool.
Rather than drawing from it in 2016, acting manager Mr. Bertrand launched a new internal process restricted to the National Capital Region, adding two qualifications including "teamwork." In June 2016, Harnois was told she would not need to take the exam given her 2015 qualification status, but in September she was notified of an error and required to sit a written exam for both new qualifications. She passed in October 2016 but was not informed her supervisory references would be used to assess "teamwork."
On December 6, 2016, she was told she had not met the teamwork requirement. The Board found Bertrand's explanation "not credible since the 'effective interpersonal relationships' qualification already covered relationships with co-workers," concluding the selection board had acted in bad faith and with bias against her.
When bias follows you through the door
The consequences extended well beyond 2016. In 2018, Harnois applied for a regional inspector of transportation safety (TI-06) position in Dorval and received an indeterminate offer, which was then withdrawn.
The manager cited a lack of "team spirit." The Board found that explanation "echoes word for word the unfavourable assessment used to deem her unqualified in the process at issue."
She gave up her dream of working in aviation. She did not return to Transport Canada until August 28, 2023, when she began working as a regional marine-transportation inspector at the TI-06 level.
The dollar value of bad faith
The Board estimated a 75% probability that Harnois would have been appointed. That figure was based on the fact that she had already been formally offered the job in 2015 and a start date was set, that the operational need to staff the position remained in 2016, and that even after two analyst appointments were posted on January 3, 2017, Bertrand was still recruiting on GCconnex days later on January 9 because the 24/7 shift schedule made retention difficult and candidates frequently withdrew.
The Board awarded $10,000 in aggravated damages for harm to her health, morale, diminished opportunities for advancement, and the impact on her professional reputation. It awarded $6,000 in punitive damages. The complainant had originally sought $30,000 in total damages, which the Board divided into three categories: compensatory damages for a lost opportunity, aggravated damages for pain and suffering, and punitive damages. Compensatory damages, reflecting the 75% probability, are to be calculated by the respondent within 60 days based on shift premiums and overtime under the collective agreement between the Treasury Board and Public Service Alliance of Canada for the PA group. Under clauses 27.01 and 27.02, a $2-per-hour premium applies to hours worked between 4 p.m. and 8 a.m. and on weekends.
The Board grounded its ruling in the Public Service Commission's April 1, 2016 appointment policy and the Public Service Employment Act: "candidates have the right to be treated with respect by subdelegated managers and to have internal appointment processes conducted fairly, transparently, and in good faith."
