The appellant union challenged the employer's unilaterally imposed mandatory random alcohol testing policy at a paper mill.
The arbitration board allowed the grievance, finding the policy unjustified absent evidence of a workplace alcohol problem.
On judicial review, the board's decision was set aside, and the New Brunswick Court of Appeal dismissed the union's appeal.
The Supreme Court of Canada (6-3) allowed the appeal, holding the arbitration board's decision was reasonable.
The majority found the board properly applied the established arbitral "balancing of interests" test, which requires evidence of enhanced safety risks to justify random testing.
The dissent would have found the board's decision unreasonable for departing from the arbitral consensus on the evidentiary threshold without explanation.
