Ian Donald

The employer, Paccar, terminated its collective agreement with the union and, after negotiations reached an impasse, unilaterally imposed new terms and conditions of employment.

The union complained to the Labour Relations Board, which held that the employer had the authority to unilaterally alter terms after expiry, subject to the duty to bargain in good faith.

The British Columbia Supreme Court and Court of Appeal quashed the Board's decision.

The Supreme Court of Canada allowed the appeal, holding that the Board's decision was not patently unreasonable and that the courts must show curial deference to the specialized tribunal's policy choices.

The Court also held that the Board had standing to make submissions defending the reasonableness of its decision.

The International Brotherhood of Electrical Workers applied to the Canada Labour Relations Board for certification as the bargaining agent for employees of Alberta Government Telephones (AGT).

The Board assumed jurisdiction, finding AGT to be a federal undertaking and not immune from the Canada Labour Code.

The Federal Court of Appeal upheld this decision.

On appeal, the Supreme Court of Canada held that while AGT is an interprovincial undertaking within federal jurisdiction under s. 92(10)(a) of the Constitution Act, 1867, it is a provincial Crown agent and therefore immune from the Canada Labour Code.

The Court found no clear Parliamentary intention to bind the provincial Crown in the Code, and AGT did not waive its immunity by its conduct.