The respondents' positions in the Alberta public service were privatized, and they accepted employment with a new private association.
A letter of intent between the government and the union stated that employees accepting such employment would not be entitled to severance pay under the collective agreement.
The respondents brought a civil action seeking a declaration of entitlement to severance pay, alleging their resignations were procured under duress.
The Supreme Court of Canada held that the essential character of the dispute arose from the collective agreement.
Therefore, the claim fell within the exclusive jurisdiction of a labour arbitrator, and the civil action was properly struck.
