The applicant union applied for a direction that a first collective agreement be settled by arbitration under section 40a of the Labour Relations Act.
The parties had resolved all issues except for a subcontracting provision.
During bargaining, the respondent municipality stated it did not intend to hire members of the applicant union, as it felt obligated to assign the work to its own employees represented by another union (CUPE).
The Board found that the municipality's approach, combined with its refusal to agree to a subcontracting provision, constituted a refusal to recognize the bargaining authority of the applicant union.
The Board directed that the first collective agreement be settled by arbitration.