The applicant union referred a grievance to arbitration under section 112a of the Labour Relations Act, claiming that employees working on the Petrosar project were entitled to a travel allowance.
The respondent employer argued the project fell within the 'Free Zone' where no allowance was payable, asserting a latent ambiguity in the collective agreement's boundary description.
The Board applied the test from Leitch Gold Mines, finding no latent ambiguity as the parties' intention to use specific roadways as boundaries was clear from the negotiating history.
The Board allowed the grievance, concluding the project was in Zone A and travel allowances were payable.