The applicant hospital sought judicial review of two interest arbitration awards that ordered retroactive wage increases for employees who were no longer actively employed.
The hospital argued that retroactivity was not a matter in dispute between the parties and that the arbitration board exceeded its jurisdiction and denied procedural fairness by deciding the issue without giving the parties an opportunity to make submissions.
The Divisional Court held that the board's decision was unreasonable because it failed to explain why it was necessary to deal with retroactivity when the parties had agreed it was not in dispute.
The Court also found a denial of procedural fairness and set aside the portion of the awards dealing with retroactivity.
