The applicant employer sought judicial review of an arbitration award that reinstated an employee terminated for sexual harassment and dishonesty during the investigation.
The arbitrator had substituted the dismissal with a 30-day suspension and a condition that any future sexual harassment would result in automatic termination, binding any future arbitrator to only determine if harassment occurred.
The Divisional Court upheld the arbitrator's finding that termination was not the only appropriate penalty, as it was based on reasonable factual findings.
However, the Court found the penalty unreasonable because the arbitrator lacked statutory authority under the Labour Relations Act to bind future arbitrators.
The application was granted and the matter remitted to the arbitrator to determine the appropriate penalty.
