The respondent union obtained an arbitration award against Fanshawe College regarding vacation pay and holiday entitlement.
The union then sought to enforce this award against the appellant colleges, who were not parties to the arbitration, arguing that centralized bargaining under The Colleges Collective Bargaining Act, 1975 meant all colleges were bound by the award.
The union initiated contempt proceedings when the appellants refused to comply.
The Supreme Court of Canada held that the statutory framework and the collective agreement did not establish centralized arbitration.
The appellant colleges were not notified of or invited to participate in the arbitration, and therefore were not bound by the award.
The appeal was allowed and the contempt proceedings were dismissed.