The union and the employers' association failed to reach a new collective agreement for the residential construction sector.
An arbitrator was appointed under the Labour Relations Act, 1995.
The employers' association argued the arbitrator's jurisdiction was limited to the Greater Toronto Area (GTA), while the union argued for a province-wide award.
The arbitrator determined he had jurisdiction to make a province-wide award to avoid fracturing the bargaining unit.
The Divisional Court quashed the award for areas outside the GTA.
On appeal, the Court of Appeal held that the standard of review for the arbitrator's jurisdictional decision was reasonableness.
The Court found the arbitrator's decision was reasonable and restored the province-wide award.
