The applicants sought judicial review of an Ontario Labour Relations Board (OLRB) decision declaring them 'related employers' under s. 1(4) of the Labour Relations Act, 1995.
The union had argued that the employer's use of independent contractors eroded bargaining rights.
The Divisional Court found the OLRB Vice Chair's decision unreasonable because it failed to consider the history of collective bargaining, the collective agreement, and letters of understanding regarding the employer's longstanding practice of contracting out work.
The court held that this failure led to a decontextualized analysis of the employer's control over the contractors.
The court set aside the OLRB decision and remitted the matter for a fresh hearing before a different Vice Chair.