Brewery, General and Professional Workers’ Union v. Canadian Medical Laboratories Ltd.
0439-99-R Brewery, General and Professional Workers’ Union, Applicant v. Canadian Medical Laboratories Ltd.; Labcare Inc. (formerly 1339821 Ontario Ltd.), Med-Chem Health Care Ltd., Responding Parties.
0440-99-U Brewery, General and Professional Workers’ Union, Applicant v. Canadian Medical Laboratories Ltd.; Labcare Inc. (formerly 1339821 Ontario Ltd.), Responding Parties.
BEFORE: Caroline Rowan, Vice‑Chair.
DECISION OF THE BOARD; February 4, 2000
Board File No. 0439-99-R is an application under section 69/1(4) of the Labour Relations Act, 1995 (the “Act”).
Board File No. 0440-99-U is an application under section 96 of the Act.
Prior to the hearing in these matters, the parties entered into the following Memorandum of Settlement dated January 20, 2000 (which has been reproduced in full without correction for typographical errors):
MEMORANDUM OF SETTLEMENT
BETWEEN:
BREWERY, GENERAL & PROFESSIONAL
WORKERS' UNION AND ITS LOCAL 288
(the "Union")
- and - -
LABCARE INC.
("Labcare”)
- and - -
CANADIAN MEDICAL LABORATORIES LIMITED
("CML")
WHEREAS Labcare, a wholly owned subsidiary of Canadian Medical Laboratories Limited, purchased the specimen collection centre assets (the "assumed assets") of the bankrupt Med-Chem Laboratories Ltd. (“Med-Chem”) and is operating the specimen collection centre business (the "assumed business") under the name "Labcare" and employing in the assumed business only the persons listed on the attached Schedule A (the "assumed employees");
AND WHEREAS neither Labcare nor CML purchased the medical testing laboratory or courier or head office or other assets of Med-Chem and are not operating any business relating to those assets ("the unassumed business");
AND WHEREAS medical testing laboratory functions, courier operations and head office functions (hereinafter referred to as the "provided functions") are provided to Labcare by CML;
AND WHEREAS the Union has made an Unfair Labour Practice complaint (OLRB file No. 0440-99-U) and a Common Employer and Successor Employer application (OLRB file No 0439-99-R) before the Ontario Labour Relations Board (hereinafter collectively referred to as the "Ontario Labour Relations Board complaints") against Labcare and CML;
AND WHEREAS the Union has raised grievances claiming severance and termination pay on behalf of former Med-Chem employees against 1339821 Ontario Limited (grievances referred to in the letter dated April 19,1999 from J. Cameron Nelson to Bill Phelps), and a grievance re contracting out against 1339821 Ontario Limited (grievance referred to in the separate letter dated April 19, 1999 from J. Cameron Nelson to Bill Phelps), hereinafter referred to as the "specific grievances", and 1339821 Ontario Limited subsequently changed its name to "Labcare Inc.";
AND WHEREAS the parties desire to settle the Ontario Labour Relations Board complaints, the specific grievances and all related matters;
THE PARTIES AGREE AS FOLLOWS:
- The Union and Labcare agree, subject to ratification, to the terms of a new collective agreement settled on January 20, 2000 for the bargaining unit defined in Article 2.01 thereof and agree that that agreement fulfills the collective bargaining obligations of Labcare and that the Union does not claim any bargaining rights with respect to CML or its divisions or associated companies.
2.(a) Labcare will pay the amount of $675,000 in settlement of all claims, grievances, causes of action or complaints by the Union on its own behalf and on behalf of persons formerly employed under the collective agreement between the Union and Med-Chem or under the arrangement between the Union and Pricewaterhouse Coopers Inc. (the “Receiver”) or on behalf of persons employed at any time under the collective agreement between the Union and Labcare against Labcare, 1339821 Ontario Limited, CML (including its divisions and associated companies) and their respective directors, officers, managers and successors (hereinafter collectively referred to as the "Releasees") and arising against the Releasees, or any of them individually, out of the former employment of the persons by Med-Chem or by the Receiver or the termination of such employment or arising out of the purchase by Labcare of the assumed business or arising out of the failure of the corporate releasees to purchase the unassumed business or arising out of the performance of the provided functions by CML or its divisions or associated companies or subcontractors to CML.
(a) All such claims, grievances, causes of action or complaints against the releasees, whether current or prospective, arising under the Labour Relations Act, the Employment Standards Act any collective agreement or otherwise are hereby settled and withdrawn including without limitation, the Ontario Labour Relations Board complaints and the specific grievances. The Union further agrees that Article 15.01 of the Med-Chem/Labcare Collective Agreement prior to the new Collective Agreement with the Union does not apply to Labcare.
Without limiting the generality of the foregoing the parties agree that:
(i) The Complaint of Unfair Labour Practice contained in OLRB file No. 0440-99-U is withdrawn without admission by any party. The Union will not rely on the particulars contained therein in any future matter
(i) The Union and Labcare agree that Labcare is a successor employer under section 69 of the Ontario Labour Relations Act in respect of only the assumed business from and after April 16, 1999 but not before. The Union agrees that neither Labcare nor CML or its associated companies is a successor employer in respect of the unassumed business. The parties further agree that neither Labcare nor CML or its associated companies was the employer of or has any liability whatsoever to those former Med-Chem employees not on Schedule A (referred to as the "unassumed employees") arising out of their employment or the termination of that employment with Med-Chem or the Receiver and that such unassumed employees have no seniority or recall rights with respect to Labcare, or CML or its associated companies. The Union further agrees that neither Labcare nor CML nor its associated companies was the employer of or has any liability whatsoever with respect to the assumed employees arising out of their employment or the termination of that employment with Med-Chem or the Receiver during the time period prior to April 16, 1999 except for the recognition of their prior service for the seniority and severance pay purposes of the new collective agreement.
(i) The Union agrees that neither Labcare