The applicant union, which held bargaining rights for the respondent's employees at a plant in Montreal, Quebec, filed an application for certification and an unfair labour practice complaint after the respondent closed the Montreal plant and relocated its operations to Cornwall, Ontario.
The union alleged that the relocation and the respondent's subsequent refusal to hire the former Montreal employees at the Cornwall plant were motivated by anti-union animus and a desire to escape its collective bargaining obligations.
The Ontario Labour Relations Board dismissed the complaint and the certification application.
The Board found that the decision to relocate was based on legitimate economic reasons, including financial difficulties and a flawed plant design in Montreal.
The Board also concluded that the respondent's hiring practices in Cornwall were not tainted by anti-union animus, noting that the respondent had attempted to interview the Montreal employees for production positions but was thwarted by the union's insistence that all former employees be hired collectively.
Furthermore, the Board held that the Montreal collective agreement did not extend to the Cornwall location, as certification and bargaining rights are provincial matters and cannot be given extra-territorial effect.