The Public Service Alliance of Canada sought certification as the bargaining agent for Canadian civilian employees working at a United States naval base in Newfoundland.
The United States claimed sovereign immunity from the jurisdiction of the Canada Labour Relations Board.
The Supreme Court of Canada held that while the bare contracts of employment had commercial aspects, the certification proceedings and the imposition of a collective bargaining regime would unacceptably interfere with the sovereign management and operation of the military base.
The Court concluded that the proceedings did not relate to a commercial activity within the meaning of the State Immunity Act, and therefore the United States was entitled to state immunity.
