The Building Trades Council and several affiliated unions filed complaints and grievances against Ins-Co Sarnia Ltd. following the discharge of employees after an unlawful strike.
The parties engaged in settlement discussions, resulting in a memorandum of settlement signed by the Council's president.
Ironworkers Local 700, a member of the Council, subsequently argued it was not bound by the settlement and sought to continue its proceedings.
The Ontario Labour Relations Board held that the Council had ostensible authority to settle the matters on behalf of Local 700.
As the employer relied on this authority without knowledge of any internal limitations, the settlement was binding on Local 700, and the proceedings were terminated.