The Ontario Nurses' Association appealed a Divisional Court decision that had set aside an arbitrator's award regarding the interpretation of a collective agreement between the ONA and Toronto East General Hospital.
The dispute arose from the Hospital's closure of beds in a unit, which reduced available work hours for regular part-time nurses.
The Hospital spread the reduction across all part-time nurses without regard to seniority.
The arbitrator found this constituted a lay-off triggering the collective agreement's lay-off provisions, which require seniority-based reductions.
The Divisional Court reversed, finding the arbitrator's decision internally inconsistent and contrary to the collective agreement's terms.
The Court of Appeal allowed the appeal, finding the arbitrator's interpretation reasonable and consistent with the collective agreement's language and purpose.