The employer appealed a Divisional Court decision upholding a labour arbitrator's award.
The arbitrator found that 23 unionized employees were on 'temporary layoff' and entitled to Supplemental Unemployment Benefits under the collective agreement, despite the employer initially deeming the layoffs permanent.
The Court of Appeal applied the newly released Dunsmuir framework, determining that the standard of review for a labour arbitrator interpreting a collective agreement is reasonableness.
The Court concluded that the arbitrator's decision was reasonable as it was based on the factual background, the terms of the SUB Plan, and relevant law.
The appeal was dismissed.
