Ian McPherson

The union applied for a declaration that STM, All-Way, and the TTC be treated as one employer under s. 1(4) of the Labour Relations Act, or alternatively that a sale of a business occurred under s. 63.

The Board found that STM and the TTC were not under common control or direction, as the TTC had passed control of the subcontracted station wagon service to STM.

However, the Board declared that All-Way and STM, which were wholly-owned subsidiaries of the same parent corporation, carried on related activities under common control and direction.

The Board exercised its discretion to make a one-employer declaration to protect the union's bargaining rights, which would otherwise be undermined by the transfer of the contracting work from All-Way to STM.

The application regarding the TTC was dismissed.

The Province of Manitoba assessed Air Canada for retail sales tax on its aircraft, repair parts, and services used during overflights through Manitoba airspace and temporary stopovers, as well as on liquor served to passengers.

Air Canada successfully challenged the assessment in the Manitoba courts.

On appeal to the Supreme Court of Canada, the Court held that the mere entry of aircraft into the airspace over Manitoba does not give the aircraft a situs within the Province to support a tax under section 92(2) of the British North America Act.

The Court further found that the taxing statute itself did not capture overflights or temporary stopovers, as there was no bringing of property into the Province or consumption within it.

The appeal was dismissed.