The appellant union grieved the dismissal of an employee after a bank deposit disappeared while in his care.
The arbitrator substituted a suspension for the dismissal and ordered reinstatement.
The employer successfully applied to quash the award, and the Court of Appeal affirmed.
On appeal to the Supreme Court of Canada, the Court held that the collective agreement did not contain a specific penalty for the infraction, as the employer's right to impose a range of penalties at its discretion did not constitute a specific penalty under s. 157(d)(ii) of the Canada Labour Code.
The appeal was allowed and the arbitrator's award restored.
