The respondent, a union president, commenced a representative action claiming the appellant employer failed to provide employees with their share of employment insurance premium reductions under the Employment Insurance Act.
The employer moved to dismiss the action, arguing exclusive jurisdiction lay with a labour arbitrator.
The motion judge dismissed the motion, relying on previous case law.
On appeal, the Court of Appeal found the motion judge erred by not properly applying the Supreme Court's decisions in Weber and Parry Sound.
The Court held that the essential character of the dispute arose from the collective agreement, as informed by the substantive rights in the Employment Insurance Act, giving an arbitrator exclusive jurisdiction.
The appeal was allowed and the action stayed.