The appellant union sought a declaration that teachers working in a federal penitentiary through a private contractor were government employees and members of the existing bargaining unit for collective bargaining purposes.
The majority held that, applying the pragmatic and functional approach, Parliament did not intend to confer jurisdiction on the labour board to determine that persons not appointed within the statutory public service scheme were employees of the Public Service.
The statutory regime created distinct labour relations structures for public servants and other federal workers, leaving no room for a de facto category of public servant.
The board therefore committed reviewable jurisdictional error, and the appeal was dismissed.
A dissent would have held the issue fell within the board's labour relations expertise and that its decision was not patently unreasonable.