The union filed an application alleging the employer breached the statutory freeze provisions under section 86(1) of the Labour Relations Act by discontinuing an employee's short-term sickness benefits after he was laid off.
The employer argued that under the benefit plan pamphlet, coverage terminated upon cessation of employment.
The Board applied the 'reasonable expectations' test and found that the pamphlet did not contemplate the termination of vested benefits upon the cessation of the employment relationship.
The Board concluded that the employer's actions breached section 86(1) and ordered the reinstatement of the benefits.
