The applicant union alleged that the responding municipality violated the duty to bargain in good faith under section 15 of the Labour Relations Act by withdrawing a wage offer and refusing to negotiate retroactive wage increases.
The employer argued that its actions were justified by the financial impact of the Expenditure Reduction Program and the Social Contract Act.
The Board dismissed the application, finding that the employer recognized the union, was prepared to enter into a collective agreement, and was entitled to withdraw its wage proposal due to changed financial circumstances.