The applicant sought judicial review of an interest arbitration award that imposed a non-contracting out provision for a newly created Customer Service Agent position.
The applicant argued it was denied procedural fairness because both parties had agreed in written submissions that the issue of contracting out would be left for a future arbitrator, yet the arbitrator decided the issue anyway.
The Divisional Court held that the arbitrator breached procedural fairness by deciding an issue without giving the parties notice or an opportunity to make submissions.
The application for judicial review was allowed in part, and the relevant portions of the award were set aside and remitted to the arbitrator.