The union filed an unfair labour practice complaint alleging the employer breached its duty to bargain in good faith under section 14 of the Labour Relations Act.
During a protracted strike, the employer continued to pay non-striking employees the rates from its last pre-strike offer.
However, near the end of the six-month strike period, the employer informed the union it would only sign an agreement if the union agreed to a wage reduction or lump sum payment to reimburse the employer for business losses suffered during the strike.
The Board found that this demand, coupled with the employer's failure to unilaterally reduce wages based on economic conditions, was designed for rejection and penalized employees for exercising their right to strike.
The Board concluded the employer was not negotiating with the intention of concluding a collective agreement and directed it to cease and desist from bargaining in bad faith.