The appellant union appealed a decision dismissing its grievance for health insurance contributions from the employer.
The collective agreement required the employer to pay health insurance premiums.
However, the government's Health Insurance Act came into effect, voiding private contracts for insured services.
The union attempted to create a new fund for non-insured services, but it was not approved by the Pension Board until after the government plan took effect.
The Supreme Court of Canada dismissed the appeal, holding that the employer's obligation was extinguished by the Act and the new fund could not legally operate before its approval.
The Court also held that the interlocutory judgment authorizing the writ of evocation did not constitute res judicata.
