F. J. Matthews

The applicant union applied under section 40a of the Labour Relations Act for a direction to settle a first collective agreement by arbitration.

The parties had reached an impasse over the employer's insistence on a clause allowing it to discharge employees without just cause upon payment of severance.

The Ontario Labour Relations Board found that the employer's position was uncompromising and without reasonable justification, as it undermined the fundamental job security typically provided by a collective agreement.

The Board also dismissed the employer's arguments that the union had abandoned its bargaining rights and lacked standing, finding that a valid union merger had occurred.

The Board directed the settlement of the first collective agreement by arbitration.

The union filed a complaint alleging the employer bargained in bad faith contrary to section 15 of the Labour Relations Act by failing to table a monetary offer and by insisting to impasse on a clause allowing discharge without just cause upon payment of severance.

The Board dismissed the complaint, finding that the union had never requested a monetary offer.

Regarding the discharge clause, the Board held that it does not monitor the content of bargaining proposals unless they are illegal or indicate surface bargaining.

Since a clause permitting discharge without cause is not per se illegal, the employer's insistence on it did not violate the duty to bargain in good faith.

The applicants sought a declaration terminating the bargaining rights of the respondent trade union under section 49 of the Labour Relations Act.

The application was supported by petitions signed by employees.

The Board found that the petitions were circulated shortly after the employer posted a memorandum questioning employee support for the union's dues check-off request.

Given the circumstances, including the collection of signatures on company premises during working hours and unsolicited management suggestions to consult lawyers, the Board could not be satisfied that the petitions represented a voluntary expression of employee wishes.

The application was dismissed.