The employer and union agreed to reduce work hours for certain employees without loss of income, but the drafted collective agreement contained an error in the pay scales.
The employer corrected the error when calculating retroactive pay, prompting a union grievance.
The arbitrator rectified the collective agreement to reflect the true agreement, but the Divisional Court quashed the award, holding that arbitrators lack jurisdiction to apply rectification.
The Court of Appeal allowed the employer's appeal, holding that developments in labour law have expanded arbitrators' remedial powers, giving them exclusive jurisdiction to apply the law of the land, including the equitable remedy of rectification, despite a 'no alteration' clause in the agreement.
