The union applied to the Canada Labour Relations Board for certification as the bargaining agent for a unit of foremen employed by the appellant.
The Board rejected the application, finding that the appropriate unit consisted of all foremen employed by all members of the employers' association.
The Federal Court of Appeal set aside the Board's decision, concluding it acted outside its jurisdiction by effectively imposing a multi-employer unit without the union's consent.
The Supreme Court of Canada allowed the appeal, holding that the Board had jurisdiction to determine the appropriate bargaining unit and to suggest a different composition.
The Court found the Board's decision was not patently unreasonable given its expertise and the need for industrial stability.