The complainant union alleged that the respondent employer violated the Labour Relations Act by issuing mass termination notices to bargaining unit employees shortly after the union was certified.
The union argued the terminations were motivated by anti-union animus and violated the statutory freeze period under section 79.
The Ontario Labour Relations Board dismissed the section 66 complaints, finding the terminations were driven by legitimate economic justifications and a pre-existing modernization plan, not anti-union animus.
Regarding the statutory freeze, the Board applied a 'reasonable expectations' test and held that the mass layoffs in the processing function did not violate section 79, as employees could reasonably expect layoffs during a severe economic downturn.
However, the Board found that contracting out the drapery workroom functions violated the freeze period, as it introduced a new method of operation outside the employees' reasonable expectations.