Unionized Workers and LTD: Grievance or Lawsuit?
Unionized workers often assume their union will take care of any disputes that arise with long-term disability (LTD) claims. While unions play a critical role in protecting workers’ rights, the reality is that the grievance process may not always be the best or only option when it comes to LTD disputes. Understanding whether you must go through grievance arbitration or whether you can pursue a lawsuit is crucial—and the choice can dramatically affect your outcome.
Coverage During a Strike or Lockout
When unionized employees go on strike or are locked out, their long-term disability (LTD) coverage may suspended because they’re no longer considered “actively employed” and premiums often stop being paid. Most LTD policies require continuous premium contributions and define coverage as applying only while the employee is performing regular duties. Without a negotiated benefit continuation agreement, coverage typically lapses within 30 to 60 days of a work stoppage.
If you become disabled during a strike or lockout, you may have no LTD protection until you return to active employment. However, if you were already receiving LTD before the strike, those benefits should continue. To avoid gaps, unions can arrange to keep paying premiums through strike funds or employer agreements. Employees should always confirm in writing whether their coverage continues during labour disruptions. If your LTD claim is denied or questioned due to a strike or lockout, it’s essential to get legal advice quickly — coverage disputes in these situations can often be challenged successfully.
Grievance Arbitration
In many unionized workplaces, disputes with the employer go through the grievance process. This process, guided by the collective agreement, is intended to resolve conflicts between the employer and employees. However, when the dispute involves LTD, things become more complex, as the insurer—not the employer—is often the real decision-maker.
Grievance arbitration can be slow, highly procedural, and often results in “all-or-nothing” outcomes. Additionally, the union must balance your claim with the collective interests of other members, meaning your personal priorities may not always be front and centre. Whether or not your claim is governed by a grievance procedure is determined with reference to the language of your collective bargaining agreement and requires the expertise of a lawyer to review the proper forum and your rights. Don’t assume that the insurer nor your union are correct in the direction they are providing.
Lawsuits Against Insurers
In some cases, unionized workers can sue the insurance company directly for wrongful denial of LTD benefits. This option can provide significant advantages:
Individual focus – The lawsuit is about your claim—not broader union concerns.
Tailored remedies – Courts can order payment of arrears, reinstatement of benefits, damages for bad faith, and costs.
Settlement potential – Lawsuits allow for mediation and negotiated settlements, often leading to more practical and timely resolutions.
Dedicated advocate – A lawyer is dedicated solely to you, whereas a union representative may be balancing competing pressures.
Why Legal Advice is Essential
Whether you must go through grievance arbitration or can pursue a lawsuit depends on your collective agreement and the wording of your LTD policy. Missteps can waste valuable time and harm your case. That’s why unionized workers need early, individualized legal advice before relying exclusively on their union.
How Bradley Legal Can Help
We advise unionized workers on the best path forward, whether that means working with the union in arbitration or pursuing a lawsuit against the insurer. Our role is to ensure your rights are protected and your benefits are secured with your personal interests—not collective priorities—in mind.
If your LTD claim has been denied, or if you are unsure whether you’re limited to a grievance, contact Bradley Legal at (416) 729-7795 or visit bradleylegal.ca for a consultation.
