The applicant Ontario Construction Secretariat brought complaints against the responding unions for failing to remit payments required under O. Reg. 187/93.
The responding unions raised a preliminary constitutional challenge, arguing the regulation imposed an unconstitutional indirect tax and violated their freedom of association under section 2(d) of the Charter.
The Board dismissed the constitutional challenges, finding that the regulation of labour relations is within provincial jurisdiction and the required payments are valid administrative fees ancillary to a provincial regulatory scheme, not a tax.
Relying on Supreme Court of Canada jurisprudence, the Board also held that compelled payments do not infringe the freedom of association.