The review also identified investigations where Undertakings were used when other administrative actions would have been more appropriate. The two (2) vetted circumstances below are provided as examples of their inappropriate use. a Subject 1 A salesperson had allowed his salesperson licence to lapse on four occasions: January 1St May 19th 2011, January 1St January 20th 2012. January 1st 2013 June 6?h 2013 and January 1St 2014 April 2014. Result: Undertaking entered with $400.00 assessed as investigation costs. 0 Subject 2 A salesperson had allowed his salesperson licence to lapse on eight occasions: May 21St June 30th 2002, June 30?h November 10th 2003, November 30th 2005 October 19?? 2006, November 30th December 19?h 2007 and December 1St 2008 January 27th 2009. The salesperson attended an Administrative Hearing on December 16th 2009 that resulted in a ?warning letter" being issued by AMVIC. The salesperson continued to allow his licence to lapse: December 1st 2010 March 10th 2011, December 1St 2011 December 19th 2011 and December 1St 2012 December 20th 2012. Result: Undertaking entered with $400.00 assessed as investigation costs. The history of Subject 2 clearly illustrates that he had not ceased the contraventions, especially taking into account his attendance at an administrative hearing resulting in the issuance of a warning letter. He then continues to contravene the requirements of the regulations on three more occasions prior to this administrative action being initiated. The issuance of an Undertaking to Subject 2, taking into account the previous administrative action and coupled with the requirements contained within Section 152 of the Fair Trading Act, is inappropriate in this instance. The imposition of other administrative actions should have been considered such as the imposition of an administrative penalty. Page 35 of 49 DETERMINATIONS: 1) It was determined from a review of the AMVIC website that AMVIC does maintain a public record of Undertakings and is in compliance with Section 152(2) of the Fair Trading Act. 2) It was determined during a review of undertaking files that there is often not a consistent assignment of investigative costs based on a current hourly rate as approved by the Director. This was evident in reviewing files that were over 2 inches thick as a result of a investigation that resulted in the same assessment of costs as a single page advertisement. This observation was reinforced a number of times during the investigator interviews. 3) It was determined through confirmation of the AMVIC Organizational Chart that the Executive Director does have the ultimate authority over all aspects of AMVIC operations and staff. AMVIC Investigative staff in both Calgary and Edmonton confirmed that the Executive Director either himself or through the Senior Manager of Investigations has direct involvement in the direction, assignment, process or recommendations in investigations, inspections or licensing. One would not expect to find an indication or evidence of this behaviour in an investigative body with sworn Peace Officers. 4) It was determined that in addition to the above roles and responsibilities of the Executive Director of by virtue of the authority under the Fair Trading Act, the Director (as delegated) is responsible for the independent and objective review of all matters, the conducting of hearings and the assessment of penalties arising from any and all administrative actions associated with AMVIC. This places the Executive Director in obvious conflict in simultaneously being involved in the investigation and subsequent hearing of the same matters. RECOMMENDATION 20: That Service Alberta and AMVIC undertake immediate measures to actually and perceptually separate the roles of Executive Director of AMVIC and those of the Director (as delegated) under the Fair Trading Act. The current reality of the overlap in roles completely prohibits the adherence to the principles of natural justice, and the principles of non-bias. RECOMMENDATION 21: That AMVIC immediately follow the guidance of and be in full compliance with all policy related to Undertakings as set forth in the AMVIC Administrative Action Policy. RECOMMENDATION 22: That the Executive Director ceases any active roles in the conduct of investigations that would give rise to actual and/or perceived bias of the overall investigation. Page 36 of 49 5.0 INTERVIEWS WITH STAFF AND MANAGEMENT Fourteen (14) interviews were conducted with AMVIC Investigators and Team Leaders in Calgary and Edmonton. The investigator/Team Leader interviews were conducted between September 22nd and September 30th 2014. Two (2) interviews were conducted on October 6th 2014 with a Team Leader and then a member of the Management Team, which brought the total to sixteen (16) interviews. It was found that there were no significant variations in what was expressed. This enabled the responses from both sets on interviews to be grouped together and also aided in providing anonymity. it was also of interest that there were in fact no contrary positions or opinions on any single matter. What was found was that the information provided during the interviews was essentially different examples of the same behaviour or occurrences. While some different individuals provided different emphasis on some areas, they were consistent and surprisingly easy to group together. A detailed breakdown of individual responses and direct quotes was conducted and recorded to arrive at a generalized conclusion; but which can be directly supported on an interview by interview basis. There were in fact overriding themes that can be presented without the need to make this section overbearing in terms of length and repetitiveness; which was felt to be the appropriate manner in which to proceed within this section of the review. The interviews consisted of eight (8) questions that were all asked and presented in the same manner. The questions were pre-approved by Service Alberta Executive Management members and had been provided in advance to the AMVIC Executive Director prior to commencement of the interviews. The interview content was confined to the same eight (8) questions and only expanded upon when the responses required clarification or additional information to facilitate complete understanding on the part of the interviewers. Page 37 of 49 5.1 INTERVIEW RESPONSES 1) Past Law Enforcement Training and/or Experience? University Degree 1 College Law Enforcement Diploma - 2 Police experience 6 Police Civilian Member 2 Police Auxiliary Volunteer 2 Trade Licence 5 Community Peace Officer Experience 3 The total exceeds fourteen as some individuals qualified for more than one category Fourteen (14) of the sixteen (16) have attended the SOLGPS Peace Officer Course or have been ?grandfathered? on the basis of previous Police Officer status and training. 2) How would you define the term ?reasonable 8- probable grounds?? An accepted definition (as provided for by the Courts) is ?a set of facts and provable circumstances relating to an incident that when given to a reasonably prudent man, would lead that man to form the belief that the incident did in all likelihood occur? Of the sixteen (16) interviews, only five (5) of the responses reasonably reflected the stated definition. One response stated formed an opinion that something has occurred? while one other stated ?It?s a reasonable suspicion. The informed use of ?reasonable and probable grounds" is of paramount importance as both Provincial Statute and the Criminal Code of Canada require that a Peace Officer must have formed these grounds prior to the laying of charges. Investigators must possess this most basic and important understanding in order to properly, ethically and lawfully execute the requirements of law enforcement. 3) What are ?the principles of natural justice?? The definition, as articulated by the Supreme Court of Canada in the case of Baker v. Canada (Minister of Citizenship immigration) 2 S.C.R. 817 is: ?that the accused is made fully aware of both the nature of the accusation and the evidence or statements that have been made affecting him. The accused must have the opportunity to face his accuser and be permitted to correct or rebut the accusations by presenting any evidence to the contrary that he believes relevant. The decision affecting the rights, interests or privileges of the accused must be made using a fair, impartial and open process, appropriate to the statutory, institutional and social context of the decision.? Page 38 of 49 The contents of "natural justice" formulate the fundamental basis of Canadian law and Justice Administration. It is of critical importance that everyone involved in the due process of law, whether a Peace Officer on the street or the Chief Justice of the Supreme Court of Canada be fully aware of and committed to these principles. Twelve (12) responses referenced investigative fairness, unbiased adjudication and due process of law. One (1) response was ?it?s an evolution of law from British law. Other responses were - "letting things go where they go they are what they are. . ..it?s coming up with reasonable and probable grounds without interference? and never understood the term I guess it?s a vague concept of doing the right thing the right way. Three (3) individuals felt that it was essentially related to the principle of ?what goes around comes around?. 4) Overall, how would you rate your organization?s operations: a) What do you perceive that is positive within the organization? b) What areas could use a little improvement to increase productivity, staff morale, efficiency and overall effectiveness? 0) What areas require substantial improvement or are not working at all? a) Six (6) responses indicated excellent working relationships with co-workers and team leads. Seven (7) responses praised the positive degree of commitment by co-workers to provide equal, fair and impartial services and/or the ability to assist industry consumers who had been treated unfairly. One (1) response indicated that because of activities, higher industry compliance with statutory requirements was being achieved. Three (3) responses received echoed the same sentiment: ?there?s not much positive here and it?s going downhill fast. b) Seven (7) responses to this question related directly to NAVANTIS, new record management system. Those references indicated that the staff were having a variety of issues from lack of functionality, inability to perform the functions that it was intended for and inaccurate, incomplete and unreliabie information within the system. The remainder dealt with too many and constantly changing polices, administrative action being ordered from management as opposed to resulting from investigational findings and a perceived weaknesses in the Fair Trading Act and related Regulations. The concerns relating to the later were that ?the terms ?will? and ?shall' should be used as the current terminology seems to be somewhat discretionary." Several responses indicated that despite the lack of police experience being a significant drawback, the Senior Manager of investigations was perceived as working very hard towards doing the right things and trying to learn as time progresses. Page 39 of 49 c) Nine (9) responses indicated that implementation of the new NAVANTIS database has caused significant difficulties and has greatly reduced efficiency in AMVIC operations. The system does not provide the operational functions that are required, is not user friendly and requires redundant password entries. In addition, several respondents indicated that ?just when you get one glitch fixed, at least another one or two more appear." There were several suggestions that AMVIC strategic direction towards enforcement activities tends to change relatively often and without any advance warning ?it all depends on the flavor of the month.? The remainder of the responses all reflected very poorly on AMVIC management. There were a number of references to lack of communication between management and staff, management?s mistrust of staff and staff?s mistrust of management. There were numerous comments indicating the employee attrition rate was approximately 60% to 80% over the past 18 months. Additional issues were that new policy issued by management early in the morning could see as many as three to four amendments before lunch. Employment policy has been changed from offering new positions to current staff prior to advertising externally - ?basically John can hire whoever he wants and doesn?t even need a competition to do so. Additional comments specifically referenced the Executive Director, in that staff felt intimidated, alienated, undervalued, mistrusted and demoralized. Of most serious concern were the eight (8) individuals who indicated that staff were treated very poorly by management, specifically the Executive Director. When asked for examples, the individuals cited incidents where staff members were mocked, berated or humiliated in front of other staff. AMVIC staff members have received ?not so subtle? insinuations that any resistance to change or criticism of management would result in employee termination. Relating to the Executive Director and the Senior Manager of Investigations ?she tries to keep the peace between staff and the Executive Director but ends up bearing the brunt of his wrath.? The majority of Investigators interviewed commented on staff turnover and made comments such as: "With 60 to 80% of our staff already gone, how good can it be?? The substantial number and highly unfavourable nature of the comments relating to the Executive Director were a tremendous concern to the interviewers. The overall employee wellness of the AMVIC investigators in Calgary and Edmonton was of grave concern. Page 40 of 49 5) Do you feel that you have the opportunity to approach supervisors/management with your concerns or operational suggestions? If so, do you feel your supervisors/management consider your submissions? The vast majority of responses indicated that they have no issues with taking concerns or suggestions to the Team Leads. Approximater one half of the responses indicated that they would be willing to take their concerns or suggestions to the Senior Manager of Inves?gauons. All but two (2) individuals voiced significant concerns regarding the receptiveness of the Executive Director. The sentiment within the comment ?the Senior Manager is trying to move forward but John throws up barriers at every turn? was voiced by several persons. A similar sentiment was expressed as ?John does whatever he wants and without limits. He directs and actually gets involved in investigations rather than staying independent and unbiased. You can?t tell him anything." 6) Do you feel that there are adequate training opportunities made available to you or your colleagues to enable them to upgrade skill sets and keep abreast of new techniques? The most common response received was that AMVIC does not have long term training plans/goals in place for investigators. Three (3) individuals advised that very basic skill sets relating to note taking, report writing and evidence/exhibit handling were not being addressed. The second most common comment related to investigators having to ?source? requested training courses themselves, getting attendance approved, paying for all expenses which could include course fees, then having to expense the costs for later reimbursement. It was apparent that at least some of the investigators had received training courses during their tenure with AMVIC. Several indicated that they had attended courses related to Auto Theft, Search Warrants Production Orders, investigational Techniques and Undercover Operations. The courses deemed as most desirable were: interviewing Techniques, Statement Analysis, Undercover Operator, Report Court Brief Writing, Search Warrants Production Orders, Dealing with Difficult People and lnvestigational Techniques. There were several references to the fact that there is no formal on the job training or mentorship program for new Investigators. Page 41 of 49 7) If you were put into a position where you had authority to decide upon and implement a change within AMVIC what change or addition would you focus on? The responses to this question were remarkably few. Four (4) responses indicated that they would change the charging process as there are currently far too many steps required to lay charges. Three (3) individuals indicated they would immediately fire the Executive Director. Three (3) advised that the position of Senior Manager of Investigations must have an extensive ?boots on the ground? police investigative background combined with extensive police supervisory experience. Two (2) responses would see the function of the Board changed to having a strictly planning policy advisory capacity. One (1) would terminate the Board completely due to the perception of ?industry regulating their own industry? bias and have the Executive Director hired through the GOA hiring process. One (1) individual would give Team Leads more autonomy in decisions relating to the laying of charges. Four (4) individuals would ?scrap? the NAVANTIS database systems and replace it with a database that would provide the capabilities that they believe are necessary. Two (2) individuals indicated that engagement of a human resource professional would be advantageous. Assessment 8 A substantial number of adverse comments were received relating to the NAVANTIS record management System (RMS). it appears that this is a significant issue affecting AMVIC operations, staff productivity and morale. As the functionality and programming of a RMS falls outside both the scope of the review and the expertise of either reviewer; no recommendation will be made in this regard. 8) The final portion of the interviews was an ?open floor? where individuals were asked if there was anything else that they would like to share. The following comments are reflective of the most common themes and responses: The Licensing database is a mess. It is unreliable and investigators do not feel confident using it to lay charges. There is inaccurate information, significant issues with the online license renewals and inability to confirm the existence of licenses for businesses or individuals due to the accepted variants on names. Page 42 of 49 0 There is a widely held concern that the management does not have adequate law enforcement investigative experience. This leads to hesitancy in making decisions, empowerment of the Team Leaders and policies and practices that are constantly being changed or amended due to the fact they were not well considered in the first instance. 0 The third and by far the greatest theme relates to the general morale, operational and individual wellness within AMVIC. The concerns relate either directly or indirectly to the Executive Director. The direct quotes during the interviews were recorded and maintained, however it was felt that the fairest fashion to reflect these concerns was in a globalized reflection of these comments which are: a) The Executive Director acts as a Tyrant and Dictator who interprets any question of decision, direction or process as disobedience and responds with intimidation, veiled threats of firing or general bullying and belittling. b) The Executive Director continues to take an active part in investigations and provides direction or an indication of what the findings should be at the onset of a matter prior to investigation despite repeated advice from a number of sources to discontinue this practice. 0) Morale is at an extreme low and staff turnover is extremely high by any measure. In light of the nature and number of comments relating to poor staff-management relations and excessive attrition, further research was conducted. It was determined that since April 2013: twenty five (25) of thirty eight (38) staff members have left reflecting an attrition rate of 65.7%. 0 four (4) employees were terminated soon after the current Executive Director took on his role. Twenty one (21) have left voluntarily, reflecting a voluntary attrition rate of 55.2%. - during the interviews, it was voluntarily disclosed to the interviewers that an additional eight (8) staff members were actively involved in seeking other employment. If only these eight (8) individuals leave, the voluntary attrition rate would elevate to 76.3%. Factors Affecting Turnover (Lisa Magloff, Houston Chronicle Business Report) ?High turnover tends to occur in jobs where employees view themselves as undervalued. Low pay is one factor, but turnover also increases when employees feel they are not treated with respect and where there is a lack of teamwork, or where management is viewed as arbitrary and overly demanding. A lack of flexible work scheduling can also cause employees with families, especially women, to leave a job. Turnover can also increase when there is a change to the corporate structure, such as a merger or a major organizational restructuring" Page 43 of 49 Volunatry Turnover Rates [average percentage of emp?oyees?} 9.7 79 8 a 9"ng 8 4 . 2 i 72005?08 @6437 08?09 {39?15} iO??i 11?12 12?13 Scarce The Conference Fla-ant Canada. Source - The Conference Board of Canada The average voluntary turnover rate over the past three documented years is 7.13% and based upon the relative stability of the Canadian workforce during that period, the 2013 2014 statistical rate is quite likely similar to the three year average. The voluntary turnover rate for stands at a minimum of 55.2% with realistic potential to reach 76.3% within the very near future. This would place voluntary staff turnover rate at 7.5 to 10.7 times the national average. In considering the disclosures made during the interviews, the statements and findings of Ms. Magloff and the published statistical data from The Conference Board of Canada, there is overwhelming evidence of the existence of significant management employee discord. Assessment 9 - Based upon the staff comments received during the interview process and the atypical voluntary staff turnover rate, it is evident that the majority of AMVIC staff have exhausted their faith, trust and confidence relating to the management aptitudes of the AMVIC Executive Director. No organization can grow or advance itself during extended periods of high employee turnover. RECOMMENDATION 23: That action be undertaken forthwith to address the substandard morale and excessive voluntary staff turnover within AMVIC. Page 44 of 49 RECOMMENDATION SUMMARY REFERENCE: RECOMMENDATION 1: That a mechanism be developed and implemented that would allow the Director of Fair Trading to ensure that recommendations made pursuant to the provisions of Articles 6.7, 6.8 and 6.9 of the Agreement are discussed, considered and implemented where deemed prudent or in the best interest of mandate and operations. RECOMMENDATION 2: That AMVIC management review the requirements as specified in the Peace Of?cer Act and related Regulations and take steps to ensure full compliance with those requirements in the future. RECOMMENDATION 3: That AMVIC exercise additional diligence to ensure all MOUs are kept current and valid. It is further recommended that AMVIC update all MOUs to ensure that the names and signatures representing AMVIC and designated AMVIC representatives are current. RECOMMENDATION 4: That AMVIC delete the portion of the policy contained within Part A, Para 1.2 as it relates to Director Exemption from policy adherence. RECOMMENDATION 5: That AMVIC amend the standard of proof from ?balance of probability? to that of ?reasonable and probable grounds?. RECOMMENDATION 6: That all AMVIC offices dedicate an interview suite equipped with a recording system capable of both video and audio capture. RECOMMENDATION 7: That AMVIC develop and implement a sanction model to determine apprOpriate enforcement action, promote consistency in enforcement, create external transparency and assist in defending decisions. RECOMMENDATION 8: That AMVIC simplify their charge approval protocol for ALL charges (except those involving complex circumstances, sensitive issues or when deemed prudent to do so by the Team Lead andlor Sr. Manager of Investigations) to allow charge approval to be given by the Team Lead. RECOMMENDATION 9: That AMVIC develop and implement an enquiry I complaint handling ?flow chart? to assist staff in determining the appropriate handling process. RECOMMENDATION 10: That AMVIC amend the policy contained within Part C, Para 1.4.2 and Para 1.4.4 relating to verbal complaints about Peace Officers. RECOMMENDATION 11: That AMVIC deveIOp and utilize an informal resolution form for complaints against Peace Officers. Page 45 of 49 RECOMMENDATION 12: That AMVIC amend their Peace Officer Policy, Part at Para 18 by removing reference to any appeal process involving the AMVIC Board of Directors and substitute reference involving appeal to reflect the Director of Law Enforcement. RECOMMENDATION 13: That this portion be amended to read - An Undertaking should typically only be offered if the identified breaches have been resolved and there is another enforcement or administrative option available should the supplier refuse to enter into an Undertaking. RECOMMENDATION 14: That the Undertaking Policy be substantially re-written to be consistent with the Administrative Action Policy or preferably, the Undertaking Policy be removed in its entirety leaving the Administrative Actions Policy as the single reference source for all Administrative Actions. RECOMMENDATION 15: That AMVIC ensure that they formalize a standardized investigation format and system to ensure complete and defendable investigations that comply with modern investigative practices that would withstand scrutiny and/or compliance with lawful disclosure requests. RECOMMENDATION 16: That AMVIC ensure all investigative staff receives training where required in the principles and practices involved in conducting and recording an investigative report. RECOMMENDATION 17: That a formalized and structured review and approvals process be utilized for all investigative reports to ensure they meet an acceptable standard for an enforcement body. RECOMMENDATION 18: That the Executive Director not engage or even be perceived to engage in the direction or findings of an active investigation conducted by AMVIC investigators. The Executive Director role is akin to a law enforcement agency?s senior management, which will receive updates in relation to progress and anticipated timelines or the approval of additionai financial or personnel requests. This position wouid not be actively or directly involved in any fashion with the investigation. RECOMMENDATION 19: That AMVIC at once engage in the practice of at least audio or preferably audio and video recording all hearings and maintaining a permanent record of these recordings consistent with their record retention policy. RECOMMENDATION 20: That Service Alberta and AMVIC undertake immediate measures to actually and perceptually separate the roles of Executive Director of AMVIC and those of the Director (as delegated) under the Fair Trading Act. The current reality of the overlap in roles completely prohibits the adherence to the principles of natural justice, and the principles of non-bias. RECOMMENDATION 21: That AMVIC immediately follow the guidance of and be in full compliance with all policy related to Undertakings as set forth in the AMVIC Administrative Action Policy. Page 46 of 49 RECOMMENDATION 22: That the Executive Director ceases any active roles in the conduct of investigations that would give rise to actual and/or perceived bias of the overall investigation. RECOMMENDATION 23: That action be undertaken forthwith to address the substandard morale and excessive voluntary staff turnover within AMVIC. Page 47 of 49 REFERENCES FOR BEST PRACTICES: The RAND Centre on Quality Policing Contemporary police practices 0 Organization for Security and Co-operation in Europe Good Practices in Basic Police training Curricula 0 International Assn. of Chiefs of Police Best Practices Guide 0 Edmonton Police Service Policy Procedures Manual - Commission on Accreditation for Law Enforcement Agencies Accreditation standards for smaller agencies a US Department of Justice - Bureau of Justice Assistance International Best Policing Practices Project 0 Saskatchewan Police Commission Policy Manual for Municipal Police Services 0 Vancouver Police Department Policy Standard Operational Procedures 0 University of Waterloo Faculty Association (Disciplinary Process) 0 Alberta Municipal Affairs Administrative Law II for Government and Review Board members - Queen?s University Legal Studies Procedural Fairness] Natural Justice 0 Baker v. Canada (Minister of Citizenship Immigration), 2 S.C.R. 817 0 Supreme Court of Canada Chief Justice Beverly MacLaughlin dissertation on procedural fairness quoting Lord Denning of the House of Lords. 0 Calgary Police Service Policy Operations Manual - Investigative Research Group (Canada) Organizational Policy Development 0 Human Resource Council of Canada Organizational Well-being 0 British Columbia Ministry of Health Organizational Health Welfare 0 Dr. Joel Bennett, Founder CEO, Organizational Wellness Learning Systems Critical Factors affecting Organizational Health a Canadian Human Rights Tribunal Tribunal Rules and Procedures 0 Justice Education Society of British Columbia Administrative Tribunals Act Page 48 of 49 Shah v. Xerox Canada Ltd.,1998 CanLll 14747 (Ont SC) ?respondent appealed to Ont CA and judgement upheId - Saunders v. Chateau Des Charmes Wines Ltd., 2002 OJ No.5114 (Ont SC) Page 49 of 49