The appellant company closed its plant and terminated group insurance benefits for retired workers following the expiration of the collective agreement.
The union grieved the termination of benefits.
The company objected to the arbitrator's jurisdiction on the basis that the collective agreement had expired.
The arbitrator found the matter arbitrable.
The Supreme Court of Canada held that the arbitrator's decision on jurisdiction must be correct, applying a pragmatic and functional approach.
The Court further held that retirement benefits can vest and survive the expiration of a collective agreement, allowing the grievance to proceed.
