Irv Kleiner

The Service Employees International Union applied for judicial review of an interest arbitration award that imposed a zero salary increase for the first two years of a collective agreement with 98 nursing homes.

The union argued the arbitrator unreasonably ignored the employers' ability to pay, mischaracterized Ontario's economy, and relied on inappropriate comparable settlements.

The Divisional Court dismissed the application, finding the arbitrator's application of the statutory criteria under the Hospital Labour Disputes Arbitration Act and his ultimate award were reasonable and entitled to a high degree of deference.

The applicant, which operates both a nursing home and a retirement home, sought judicial review of a Pay Equity Hearings Tribunal decision.

The Tribunal had ruled that because the applicant held a nursing home license, its entire operation, including the private retirement home, was a 'public sector employer' subject to the proxy method of comparison under the Pay Equity Act.

The Divisional Court quashed the Tribunal's decision, finding that a literal interpretation of the statute led to absurd and unfair results, such as forcing a private, unfunded retirement home to use a public sector pay equity method simply because of common ownership with a nursing home.

The Court held that the definition must be read to apply only to the extent of the nursing home operations.