The union filed an unfair labour practice complaint and a related employer application after Kennedy Lodge, a nursing home, announced it would contract out the work of its unionized nurse's aides to Medox, an outside agency, resulting in the termination of approximately 92 bargaining unit employees.
Kennedy Lodge cited severe financial difficulties and the need to reduce wage costs as the reasons for the decision.
The Ontario Labour Relations Board found that Kennedy Lodge would retain fundamental control over the nursing care provided by the aides, meaning Kennedy Lodge would remain the true employer of the aides supplied by Medox.
Alternatively, the Board found that Kennedy Lodge and Medox were related employers under section 1(4) of the Labour Relations Act.
The Board concluded that the arrangement was not a valid contracting out under the collective agreement and that replacing bargaining unit employees with non-union personnel to avoid collective bargaining obligations violated sections 50, 64, and 66 of the Act.
The Board issued declarations binding Kennedy Lodge and Medox to the collective agreement.
A dissenting member would have found the subcontracting valid and dismissed the complaints.