The respondents were locked out by their employer during a labour dispute.
A collective agreement was signed and a memorandum governing the return to work was agreed upon, with a portion of the workforce returning immediately and the rest gradually recalled.
The appellant Commission held that the workers not immediately recalled were only eligible for unemployment insurance benefits once production reached a certain level.
The Supreme Court of Canada upheld the Federal Court of Appeal's decision that the stoppage of work terminated on the date the collective agreement was signed, as the lack of intent to perform the contract of service had ended.
