The employer appealed a decision of the Saskatchewan Court of Appeal which quashed an arbitration board's decision to reinstate an employee without compensation.
The employee had been dismissed for altering figures on a load sheet.
The arbitration board found the penalty of dismissal too severe and ordered reinstatement without back pay.
The Supreme Court of Canada allowed the appeal, holding that under s. 25(3) of The Trade Union Act, the arbitration board had the authority to substitute a lesser penalty because the collective agreement did not contain a specific penalty for the infraction.