International Brotherhood of Electrical Workers, Local 353 v. Rimwood Electrical Services, 2001 CanLII 14867

2465-00-G; 2468-00-R International Brotherhood of Electrical Workers, Local 353, Applicant v. Rimwood Electrical Services, Electricomm Cabling Services Inc., 1087543 Ontario Inc., Gridd Electrical Services Inc. and R.G. Group Inc., Responding Party.

BEFORE: David McKee, Vice-Chair.

DECISION OF THE BOARD; May 17, 2001

These two files are an application for the referral of a grievance to arbitration pursuant to section 133 of the Labour Relations Act, 1995 S.O. 1995 ch. 1 (the "Act") and an application under subsection 1(4) and section 69 of the Act in respect of the responding parties. Before the hearing commenced in these proceedings the parties entered into Minutes of Settlement which provide as follows:

O.L.R.B. File Nos. 2465-00-G and 2468-00-R

BETWEEN:

WORKERS, LOCAL 353

Applicant

-and-

RIMWOOD ELECTRICAL SERVICES, ELECTRICOMM CABLING SERVICES INC., 1087543 ONTARIO INC.,

GRIDD ELECTRICAL SERVICES INC. AND

R.G. GROUP INC.

Respondents

WHEREAS the Applicant filed an application under Section 69 and 1(4) alleging, inter alia, a sale of business by Rimwood Electrical Services Inc. and/or Electricomm Cabling Services Inc. to 1087543 Ontario Inc. and/or Gridd Electrical Services Inc. and/or R.G. Group Inc., the subject matter of OLRB File No. 2468-00-R;

AND WHEREAS the Applicant also filed grievances alleging a breach of the Collective Agreement between The Electrical Trade Bargaining Agency of the Electrical Contractors Association of Ontario and The International Brotherhood of Electrical Workers and The IBEW Construction Council of Ontario effective from May 1, 1998 to April 30, 2001 and any renewals thereof, which have been referred to the Ontario Labour Relations Board for arbitration in OLRB File No. 2465-00-G;

AND WHEREAS the Ontario Labour Relations Board has scheduled a hearing with respect to these matters, scheduled to commence on May 15, June 21 and 22, 2001;

AND WHEREAS the parties hereto wish to resolve their outstanding differences in a full and final manner, the parties hereby agree as follows, and request that the Board issue their agreement into a Consent Order:

The parties agree that there has been a sale of business or part of a business from Rimwood Electrical Services Inc. (“Rimwood”) to Gridd Electrical Services Inc. (“Gridd”) within the meaning of Section 69 of the Labour Relations Act, 1995, and without limiting the generality of the foregoing:

(a) Mr. Isidoro Quattrociocchi, a principal of Rimwood who serves as an officer and director of Rimwood, who has controlled and directed the electrical contracting services of Rimwood and whose services, skills, experience, contacts and qualifications have been integral to the electrical contracting business of Rimwood, has transferred those services, skills, experience, contacts and qualifications to the benefit of Gridd and in this regard has controlled, directed and co-ordinated the electrical contracting services of Gridd including he acquisition, profitable performance and timely completion of electrical work and directed and coordinated electricians, electricians’ apprentices and other persons performing electrical work;

(b) electrical contracting projects initially acquired by, inter alia, Mr. Quattrociocchi for the benefit of Rimwood and its principals have been assigned to and otherwise performed by Gridd, and persons working on behalf of Gridd and to the benefit of Gridd; its principals and without limiting the generality of the foregoing,

(c) the acquired trade skills, trade contacts and knowledge of Mr. Quattrociocchi which have been an essential element of the business of Rimwood, have been transferred to Gridd, for its benefit

and the parties request that the Board so find and the Board declare that there has been a sale of business or part of a business from Rimwood to Gridd.

The parties hereto also agree and request that the Board so declare, that, pursuant to the sale of a business from Rimwood to Gridd within the meaning of the Section 69 of the Labour Relations Act, 1995, that Gridd is bound, to the same extent and degree as Rimwood, to the Provincial Collective Agreement between The Electrical Trade Bargaining Agency of the Electrical Contractors Association of Ontario and The International Brotherhood of Electrical Workers and The IBEW Construction Council of Ontario effective from May 1, 1998 to April 30, 2001 and any renewals thereof.
The Respondents hereto hereby advise and request that 1087543 Ontario Inc. and R.G. Group Inc. are not currently engaged in electrical contracting activities in the construction industry.
It is agreed that, should the Applicant demonstrate that either R.G. Group Inc. and/or 1087543 Ontario Inc. have performed any electrical contracting work in the construction industry, the parties hereby agree to a consent order and declaration by the Board that any such performance of work will conclusively prove that there has been a sale of a business from Rimwood and/or Electricomm Cabling Services Inc. and/or Gridd to 1087543 Ontario Inc. and/or R.G. Group Inc. within the meaning of the Section 69 of the Labour Relations Act, 1995 and hereby provide their irrevocable consent to such a consent order for a declaration of a sale of a business pursuant to Section 69, or the successor provision thereto, of the Labour Relations Act, 1995.
The parties hereto agree that, as alleged in the grievance and referral of grievance in OLRB File No. 2465-00-G, that damages in the amount of Forty Five Thousand Dollars ($45,000.00) have been caused to the Applicant as a result of performance of electrical contracting work in the construction industry by Gridd without proper regard for the provisions of the Provincial Collective Agreement, and request that the Board so find and declare.
The parties further agree, and request that the Board so order, that such damages in the amount of Forty Five Thousand Dollars ($45,000.00) shall be payable as follows:

(a) Fifteen Thousand Dollars ($15,000.00) payable by certified cheque payable to IBEW, Local 353 on or before May 15, 2001;

(b) Ten Thousand Dollars ($10,000.00) payable to IBEW, Local 353 by post dated cheques to be delivered to the offices of the IBEW, Local 353, each in the amount of $2,000.00 and dated as follows:

July 1, 2001, August 1, 2001, September 1, 2001, October 1, 2001 and November 1, 2001

(c) If any or all of these payments are not made and/or honoured as and when required, the entire amount of Twenty Five Thousand Dollars ($25,000.00) will be due and payable forthwith, less any monies already paid.

(d) The remaining Twenty Thousand Dollars ($20,000.00) which will only be payable should the Applicant demonstrate in proceedings before the Ontario Labour Relations Board (or the successor thereto) that either Rimwood and/or Gridd have violated the union security provisions of the Provincial Collective Agreement regarding employment of union members and subcontracting to union contractors, prior to May 1, 2003,

and the parties request that the Board so declare and so order.