G. Brent Gawne

The appellant employer dismissed the respondent employee for unsatisfactory work performance (non-culpable incompetence).

The arbitration board found the dismissal was without just cause because the employer failed to follow the Re Edith Cavell criteria.

The board awarded damages in lieu of reinstatement under s. 142(2) of the Labour Relations Code, finding reinstatement inappropriate.

The Court of Appeal set aside the board's decision, holding that s. 142(2) did not apply to non-culpable dismissals and ordering reinstatement.

The Supreme Court of Canada allowed the appeal, holding that the standard of review for both the board's interpretation of s. 142(2) and its remedial award was reasonableness.

The Court found the board's broad interpretation of s. 142(2) to include non-culpable dismissals was reasonable, and its decision to award damages in lieu of reinstatement due to exceptional circumstances (the breakdown of the employment relationship) was also reasonable.

The respondents' positions in the Alberta public service were privatized, and they accepted employment with a new private association.

A letter of intent between the government and the union stated that employees accepting such employment would not be entitled to severance pay under the collective agreement.

The respondents brought a civil action seeking a declaration of entitlement to severance pay, alleging their resignations were procured under duress.

The Supreme Court of Canada held that the essential character of the dispute arose from the collective agreement.

Therefore, the claim fell within the exclusive jurisdiction of a labour arbitrator, and the civil action was properly struck.