The appellant union and employees sought an injunction to prevent a group lay-off, arguing the employer failed to provide the 16 weeks' notice required by section 60 of the Canada Labour Code.
The employer relied on section 30(c) of the Canada Labour Standards Regulations, which deemed a lay-off not to be a termination if employees were recalled within six months.
The appellants argued this regulation was ultra vires as it breached the spirit of the Code.
The Supreme Court of Canada dismissed the appeal, holding that the regulation was validly enacted under the specific authority granted to the Governor in Council by section 60.2(d) of the Code.
