Arbitrator's decision that a standard recall clause deferred statutory termination pay entitlement was patently unreasonable.
The union appealed a Divisional Court decision dismissing its application for judicial review of an arbitrator's award.
The arbitrator had dismissed a grievance claiming a temporarily laid-off unionized employee was entitled to termination pay and an election regarding recall rights under the Employment Standards Act, 2000.
The Court of Appeal held that the proper standard of review was patent unreasonableness, not reasonableness.
The Court found the arbitrator's interpretation of s. 56(2)(c) of the Act—that a standard seniority recall clause extended the temporary lay-off and deferred termination pay entitlement—was patently unreasonable because it undermined the purpose of the statutory election process.
The appeal was allowed and the arbitrator's award was quashed.
National Automobile, Aerospace Transportation and General Workers Union of Canada (C.A.W.-Canada) Local No. 27 v. London Machinery Inc., 2006 ONCA 8711