The federal government approved a Work Force Adjustment Policy, incorporated into the master collective agreement with the respondent union.
The Policy required departments to review and terminate contracted services to facilitate redeployment of surplus employees.
To reduce person-years, the Department of National Revenue contracted out the work of 270 data processors.
The union filed a reference under s. 99 of the Public Service Staff Relations Act, alleging the contracting out violated the Policy.
The Public Service Staff Relations Board found it had jurisdiction and ruled in the union's favour.
The Federal Court of Appeal upheld the decision.
The Supreme Court of Canada dismissed the appeal, holding that the Board correctly assumed jurisdiction under s. 99 because the obligation was owed to the bargaining unit as a whole, and its interpretation of the Policy was not patently unreasonable.
