Calgary Alberta - Canadian Pacific Railway (CP) acted in bad faith when it fired a Calgary conductor last year after a major derailment, basing her dismissal on "unfounded" grounds that appeared to "camouflage" discrimination, an arbitrator ruled.
 
Stephanie Katelnikoff filed a union grievance after she was dismissed by the railroad in January 2015.
 
The dispute was heard by a third-party arbitrator, Maureen Flynn, who ruled Wednesday that CPR must reinstate Katelnikoff and compensate her for lost wages and benefits.
 
"Overall, the Arbitrator finds that the grounds cited for Ms. Katelnikoff's dismissal are factually inaccurate and unfounded," Flynn wrote in her final report.
 
"Furthermore, those allegations appear to be a camouflage of the Company's actual reasons that are discriminatory and in bad faith."
 
CPR said it was reviewing the decision and declined to comment on the findings.
 
Katelnikoff said she felt vindicated, though she was angry after learning a sexual harassment complaint she filed against a fellow employee formed part of the reason she was fired.
 
"I'm going to go back with my head held high," she said in an interview.
 
CP reported it had fired Katelnikoff in part because she had failed to immediately report injuries she sustained during a major derailment near Banff townsite on 26 Dec 2014.
 
Katelnikoff was conductor of the train, her second trip after training, when 15 cars fell off the track while crossing a bridge over 40 Mile Creek, with seven cars falling into the water, spilling some of their contents.
 
One of the cars contained fly ash, hazardous cargo used to produce concrete.
 
Fly ash can be toxic if inhaled and can irritate skin and eyes, but Katelnikoff was not aware of the risks when she inspected the train.
 
Katelnikoff said she wasn't informed the train was carrying hazardous materials until she told a supervisor she had pain in her lungs.
 
The supervisor told her to seek medical attention, which she did.
 
CP said she didn't comply with company policy to immediately report her injury.
 
But the arbitrator found she made reasonable efforts to inform the company within six hours of her initial symptoms, under the stressful conditions of a major derailment, after recently finishing her training.
 
The railroad reported it had also fired Katelnikoff because she had been in contact with a reporter and violated company rules by disclosing information surrounding the Banff derailment.
 
But the arbitrator said the conductor declined the media interview after consulting a supervisor.
 
In her report, Flynn said evidence reveals that Jason Inglis, an assistant superintendent at CP involved in Katelnikoff's dismissal, had taken "disturbing actions" when handling the file.
 
The arbitrator cited an internal memo in which Inglis recommended that Katelnikoff be fired.
 
In the memo, he raised concerns with a health issue Katelnikoff suffered and a sexual harassment complaint she filed against a fellow employee.
 
In her report, Flynn said Katelnikoff's health issue and her sexual harassment complaint, which resulted in disciplinary action against the offending employee, appeared to be among the company's reasons for firing her.
 
"Even if the Company did not per se dismiss (Katelnikoff) on these discriminatory grounds... the written dismissal recommendation drafted by Mr. Inglis speaks for itself," Flynn wrote.
 
"He did take those incidents into consideration, and, in doing so, his recommendation is in part discriminatory."
 
Reid Southwick.