Judgments

Decision Information

Decision Content

A-488-75
Bell Canada (Applicant) v.
Communications Workers of Canada (Respond- ent)
and
Canadian Telephone Employees' Association (Intervener)
Court of Appeal, Jackett C.J., Ryan J. and Kerr D.J.—Ottawa, November 24 and 25, 1975.
Judicial review—Canada Labour Relations Board finding applicant had prohibited its employees from participating in union affairs on company premises during non-working hours in violation of the Canada Labour Code, and ordering appli cant to cease and desist—Whether order in breach of natural justice requirements in that it was made before applicant had been given adequate opportunity to bring evidence—Canada Labour Code, R.S.C. 1970, c. L-1, as am. S.C. 1972, c. 18, ss. 184, 187, 189—Canadian Bill of Rights, S.C. 1960, c. 44, ss. 1 , 2.
The Canada Labour Relations Board found that applicant had enforced a policy which prohibited its employees from participation in lawful union activities on company premises during non-working hours, and that its directives violated sec tion 184(1)(a) and 3(e) of the Canada Labour Code. Applicant was ordered to cease and desist from prohibiting solicitation of union membership during non-working hours. At the hearing, argument centred around whether the facts as placed before the Board constituted or established breaches of the Code. Counsel for applicant, however, indicated that what they had had in mind that they were arguing was whether, assuming certain facts to be true, there was any breach of the Code, and that there would be subsequent opportunity to adduce evidence. Applicant contends that the Board breached requirements of natural justice in that the order was made before applicant had been given adequate opportunity to bring evidence as to the facts.
Held, dismissing the appeal, the rules of natural justice are flexible, and must be applied according to exigencies of the particular case, not to defeat a particular statute. There is evidence of lack of a clear cut concept as to whether the hearing was (a) merely a determination of the question of law whether the facts alleged, if true, breached the Code, or (b) a determination of whether applicant's "present practices", as evidenced by the directives, were in breach of the Code. How ever, there is no ground in the rules of natural justice for this application. Applicant was given full opportunity to state the facts upon which the decision was based, and applicant's coun sel was not able to suggest with any cogency any evidence that had been omitted.
APPLICATION for judicial review.
COUNSEL:
B. A. Roy and S. Potter for applicant. A. Golden and P. Cavalluzzo for respondent. Y. A. Hynna for Canada Labour Relations Board.
SOLICITORS:
Ogilvy, Cope, Porteous, Montgomery, Renault, Clarke & Kirkpatrick, Montreal, for applicant.
Golden, Levinson, Toronto, for respondent. Gowling & Henderson, Ottawa, for Canada Labour Relations Board.
The following , are the reasons for judgment delivered orally in English by
JACKETT C.J.: "This is a section 28 application to set aside a "decision and order" rendered by the Canada Labour Relations Board on August 22, 1975, by which that Board, inter alia,
(a) found that the applicant (hereinafter referred to as "Bell") had, through various directives, enforced a policy which prohibited its employees from participation in lawful trade union activities on company premises during their non-working hours and that that policy and those directives constituted a violation of section 184(1)(a) and (3)(e) of the Canada Labour Code, which provi sion, in so far as applicable, reads as follows:
184. (1) No employer and no person acting on behalf of an employer shall
(a) participate in or interfere with the formation or adminis tration of a trade union or the representation of employees by a trade union;
(3) No employer and no person acting on behalf of an employer shall
(e) seek, by intimidation, threat of dismissal or any other kind of threat, by the imposition of a pecuniary or other penalty or by any other means, to compel a person to refrain from becoming or to cease to be a member, officer or representative of a trade union or to refrain from
(i) testifying or otherwise participating in a proceeding under this Part,
(ii) making a disclosure that he may be required to make in a proceeding under this Part, or
(iii) making an application or filing a complaint under this Part;
and
(b) pursuant to section 189 of the Canada Labour Code,' ordered Bell to comply with section 184 and to cease and desist from prohibiting employees from soliciting other employees to join a trade union or distributing union literature during the non-working hours of employees.
On June 20, 1975, the respondent (hereinafter referred to as "the Union") filed with the Board a complaint 2 against Bell reading, in part, as follows:
C. THE NATURE OF THE ALLEGED FAILURE TO COMPLY.
(i) The Respondent 3 has interfered with the representation
Section 189 reads as follows:
189. Where, under section 188, the Board determines that a party to a complaint has failed to comply with section 148, 184 or 185, the Board may, by order, require the party to comply with that section and may,
(a) in respect of a failure to comply with paragraph 148(b), by order, require an employer to pay to any employee compensation not exceeding such sum as, in the opinion of the Board, is equivalent to the remuneration that would, but for that failure, have been paid by the employer to the employee;
(b) in respect of a failure to comply with paragraph
184(3)(a), (c) or (/), by order, require an employer to
(i) reinstate any former employee affected by that fail ure as an employee of the employer, and
(ii) pay to any employee or former employee affected by that failure compensation not exceeding such sum as, in the opinion of the Board, is equivalent to the remu neration that would, but for that failure, have been paid by the employer to the employee;
(c) in respect of a failure to comply with paragraph 184(3)(e), by order, require an employer to rescind any disciplinary action in respect of and pay compensation to any employee affected by the failure, not exceeding such sum as, in the opinion of the Board, is equivalent to any pecuniary or other penalty imposed on the employee by the employer;
(d) in respect of a failure to comply with paragraph 185(f) or (h), by order, require a trade union to reinstate or admit an employee as a member of the trade union; and
(e) in respect of a failure to comply with paragraph 185(g), (h) or (i), by order, require a trade union to rescind any disciplinary action taken in respect of and pay compensation to any employee affected by the failure, not exceeding such sum as, in the opinion of the Board, is equivalent to any pecuniary or other penalty imposed on the employee by the trade union.
2 See section,187 of the Canada Labour Code.
3 References to the "Respondent" in the complaint and the reply are, of course, references to Bell.
of employees by a trade union.
(ii) The Respondent has contributed support to the Canadi- an Telephone Employees' Association in the Complainant's organizing campaign.
(iii) The Respondent has imposed a condition in the contract of employment that restrains, or has the effect of restraining, an employee from exercising rights conferred upon him by the Canada Labour Code.
(iv) The Respondent has sought by intimidation and threat of penalty to compel a person to refrain from becoming or to cease to be a member of a trade union.
D. THE SECTION OF THE ACT IN RESPECT OF WHICH IT IS ALLEGED THERE HAS BEEN A FAILURE TO COMPLY.
(i) Section 184(1)(a).
(ii) Section 184(1)(b).
(iii) Section 184(3)(b).
(iv) Section 184(3)(e).
E. THE FACTS UPON WHICH THE COMPLAINANT RELIES AS CON STITUTING THE ALLEGED FAILURE TO COMPLY.
(i) In or about early June, 1975, at the Respondent's office on Norelco Drive, Toronto, the Respondent's second level supervisors spoke to groups of employees. The employees were told that the distribution of union literature and the soliciting of union support was prohibited on company prem ises at any time. Any breaches of this prohibition would be severely dealt with. The employees were told that the Canadian Telephone Employees Association could conduct its normal business on company premises. Some of the aforementioned supervisors are Clayt French, Harold Faulk- ner, Andy Anderson and Stan Gancher.
(ii) On or about June 5th, 1975, employees of the Respond ent at its office at 76 Orenda Road, Brampton, Ontario, were told by foremen Bill Lowe and Jack Harper that it was illegal to solicit union support on company premises at any time.
(iii) In or about early June, 1975, an employee of the Respondent was distributing union literature of the Complain ant at the Shaw Street garage of the Respondent in Toronto before working hours. Mr. Sutherland, a supervisor of the Respondent admonished the said employee and instructed him not to engage in such conduct again. The employee was advised that there was a memorandum from the legal depart ment of the Respondent which specified that the soliciting of union support on company premises at any time is illegal.
(iv) On or about June 6th, 1975, Gene Kelly and Norm Watson, foremen of the Respondent, told employees at the Respondent's office on Esna Park, Toronto, that soliciting of union support was prohibited on company premises at any time.
(v) In or about early June, 1975, a representative of the Complainant was invited by certain employees of the Respondent to speak to them during their lunch hour in the cafeteria of the Respondent at its office at 76 Adelaide Street West, Toronto. While speaking to the employees during their lunch break, the said representative was approached by E. Moody, a foreman of the Respondent and Al Avis, a district chairman of the Canadian Telephone Employees' Association. Mr. Moody advised the representa tive that the distribution of literature of the complainant on company premises was prohibited at any time. The repre-
sentative was ordered to leave the building by Mr. Moody in the presence of Mr. Avis.
The Complainant alleges that by prohibiting the solicitation of union support and the distribution of union literature on company premises during the non-working hours of its employees, the Respondent is acting contrary to Sections 184(1)(a), 184(3)(b) and 184(3)(e).
To this complaint, Bell filed a reply reading, in part, as follows:
3.—As to the allegations contained in sections C and D, the Respondent denies having failed to comply at any time with any of the sections of the Act referred to by the Complainant;
4.—As to the allegations contained in section E from (i) to (v) inclusively, Respondent denies same as ill-founded in fact and in law;
9.—Furthermore and without prejudice to the foregoing, even if the facts alleged in Section E were to be taken as granted for the purposes of discussion, those facts do not constitute a violation of any disposition of the Canada Labour Code;
On August 8, 1975, the Board sent a "Telex" to the solicitors for the parties, 4 by which it
(a) indicated that it believed it imperative that at least some of the issues raised by the complaint be dealt with promptly,
(b) notified each party that a hearing would take place on August 22, 1975 "with regard to the complaint",
(c) quoted paragraph 9 of Bell's reply and indicat ed that the Board proposed to deal "first" with the issue of whether the assertion contained therein is in accordance with the provisions of the Canada Labour Code, and
(d) requested the parties, in order to facilitate and expedite "the hearing", to file and serve written submissions prior to August 16, 1975, and, more specifically, to provide the following information, together with substantiating data:
A. WHAT HAS BEEN THE POLICY AND THE PRACTICE OF BELL CANADA OVER THE LAST FIVE (5) YEARS CONCERNING THE DISTRIBUTION OF ANY TYPE OF LITERATURE- ON COMPANY PREMISES?
4 Canadian Telephone Employees' Association intervened in the matter but I do not find it necessary to refer to their part in the proceedings to express my conclusion with regard to the matter.
B. WHAT HAS BEEN THE POLICY AND THE PRACTICE OF BELL CANADA OVER THE LAST FIVE YEARS WITH REGARD TO THE SOLICITING OF ITS EMPLOYEES ON COMPANY PREMISES BY VARI OUS TYPES OF ORGANIZATIONS?
C. WHAT HAS BEEN THE POLICY AND THE PRACTICES OF BELL CANADA OVER THE LAST FIVE YEARS WITH REGARD TO ACTIVI TIES TAKING PLACE IN CAFETERIAS LOCATED ON ITS PREMISES DURING THE LUNCH HOUR OF THE EMPLOYEES?
D. HAS BELL CANADA ENFORCED OVER THE LAST FIVE YEARS RULES OR REGULATIONS PROHIBITING EMPLOYEES FROM ENGAG ING IN CERTAIN ACTIVITIES ON COMPANY PREMISES OUTSIDE THEIR WORKING HOURS? SUBSTANTIATE.
E. CONCERNING THE ABOVE, HAVE NEW DIRECTIVES BEEN ISSUED ÔR RULES OR REGULATIONS ENACTED SINCE APRIL 1, 1975? IF SO, PROVIDE COPIES.
Bell's solicitor wrote a letter dated August 14, 1975 to the Board in reply to the Telex, reading in part:
We note in your questions that you have addressed yourself, for the moment, solely to the statement made by Bell Canada in paragraph 9 of its Reply. With respect, Madame Vice-Chair- lady, we submit the following response in support of our Reply and the whole under reserve of and without prejudice to the rights of Bell Canada to introduce any and all evidence that Bell Canada deems necessary in order to defeat the complaints filed against Bell Canada by the Communications Workers of Canada (CWC) and to further support all aspects of our Reply.
In order to answer your questions, it must be stated from a global point of view that Bell Canada's policy and practice over the last five years is best illustrated in Bell Canada's General Circular 106.85 entitled "Emergency Operations Procedures— Protection of Company Buildings and Property", a copy of which is annexed hereto as Appendix "A" to form part hereof as if herein fully recited at length. This General Circular deals with the use and protection of all Bell Canada buildings and property and activities therein and thereon.
We draw your attention to Section 1.02 of the General Circular and in particular the first sentence thereof which states:
1.02 The provisions of this circular apply to all owned and leased premises which are occupied or used for Company purposes....
Section 3.01 sets out the manner in which this policy is applied. It states:
3.01 Each department has certain responsibilities in protect ing buildings and specified areas therein. All management personnel are responsible for the enforcement of procedures outlined herein as they apply to employees under their supervision and areas occupied by them. They shall take any action necessary to secure the cooperation of all concerned.
In effect, each manager has the responsibility to enforce the procedures and principles set out in Section 3.01 above.
We also point out for your information the provisions of Sections 4.03, 4.04 and 4.07 which discuss access to Bell Canada premises. These sections state:
4.03 Access to Company premises other than public areas shall be permitted only to those who are on Company business. When necessary, such persons shall be required to show their credentials. A valid Company identification card in itself is not sufficient justification for admission and a valid reason for admission is required.
4.04 Company employees reporting for duty and others, e.g., contractors, etc., shall be admitted without formality when the employee in charge recognizes and knows them to be employed and to have business in the building. When the employee in charge does not recognize a person seeking admission, that person may be vouched for by a Company employee, preferably a supervisor on the premises.
4.07 Access to restricted areas shall be granted only to those persons who have legitimate reasons for seeking admission and they shall be restricted to areas to which they need access to fulfill the purpose of their visit ....
It is evident from the General Circular, in general, and the sections thereof cited above, in particular, that Bell Canada has had a policy on access to Company premises and activities therein and thereon. You will note that the sheets of the General Circular bear "Jul 68" and "Jan 69" as being the last time it was revised. This General Circular replaced General Circular 304.6 entitled "Admission to Company Buildings and Property" which was issued in July 1957, a copy of which is annexed hereto as Appendix "B" to form part hereof as if herein recited at length.
Bell Canada owns approximately 1,980 buildings in its oper ating territory and also -leases approximately 390 locations within that territory. The General Circular is a policy guide to the various managers in these buildings and locations and such policy guide is meant to be administered by the local managers in these buildings and locations.
With reference to the specific questions you have asked, we make the following observations in the context of the remarks made above.
Regarding your first question, in principle, the policy and practice of Bell Canada over the years, including the last five (5) years, has been not to permit the distribution of any type of literature on Company premises. Before any type of literature is distributed on Company premises, permission from local management has been required. The Company representatives are expected to use good judgment in deciding whether or not to permit the distribution of the literature under consideration. It is the desire of Bell Canada not to allow the distribution of literature which would, in the opinion of management, be of a detrimentally controversial nature and/or of a nature which may prejudice the interests of the Company and/or the rela tionship between the Company and its employees.
Where the Company does permit the distribution of litera ture, for example, the posting of notices, it has set out certain guidelines to be followed. To illustrate this point, Headquarters Staff—Labour Relations issued a guideline on October 31, 1969 in response to a request by the Canadian Telephone Employees' Association (C.T.E.A.) to provide a number of bulletin boards. This guideline is attached hereto as Appendix "C" to form part hereof, as if herein fully recited at length.
Bell Canada, however, does state that its local managers have, from time to time, allowed the distribution of literature, for example in connection with charitable organizations, such as United or Federated Appeal, Blood Donor Clinics, etc., as well as organizations of Bell Canada engaged in similar activi ties, such as Telephone Pioneers, the Mabel Hubbard Club, etc. It should be stressed, however, that this has been done with Bell Canada approval.
In response to your second question, as in the response to the first question, in principle, the policy and practice of Bell Canada over the years, including the last five (5) years, have been not to permit the soliciting of employees on Company premises by various types of organizations, as is evidenced by the provisions of General Circular 106.85. Before any type of organization is permitted access to Company premises, for whatever cause it may support, again, permission from local management has been required. The same application of good judgment must be exercised by the Company representatives as discussed above in treating your first question.
Again, as in the response to the first question, Bell Canada has, from time to time, following a request which was granted, permitted the solicitation of employees by canvassers for chari table organizations. Similarly, Bell Canada managers have permitted Blood Donor Clinics to be temporarily established on Company premises.
Dealing with your third question, the policy and practice of Bell Canada over the years, including the last five (5) years, with respect to cafeterias and lunch rooms, have been that, in principle, these locations provide eating and relaxation facilities for the employees and are to be used as such. Employees of Bell Canada are not required to eat in these locations except on rare occasions, for example, when there is twenty-four hour cover age in certain switching centres, the Company employees work ing at night are requested to eat in the cafeterias or lunch rooms in these locations.
Periodically, however, local management, has, upon being requested to do so, authorized the utilization of the cafeteria or lunch room in a location to be used for meetings or social events, such as a retirement party for employees. But, it should be noted that the use made of these locations has been request ed and authorized by local management for specific events and in a manner so as to accommodate some of the employees of the Company and not to inconvenience, as much as possible, other employees of the Company.
In treating your fourth question, it is our contention that Bell Canada has certainly over the last five (5) years applied the principles of General Circular 106.85 referred to above as it relates to access to Company premises and activities therein and thereon, twenty-four (24) hours per day, the whole in keeping with the best interests of the Company's operations.
Your fifth and final question refers to directives or rules or regulations and you ask if any have been enacted since April 1, 1975. We are not aware of any.
We should, however, point out to you that a memorandum relating to Trade Unions Activities was issued on December 5, 1974 by Headquarters Staff—Labour Relations and forwarded to each of Bell Canada's three regions, Eastern, Western and CCNS, a copy of which is attached hereto as Appendix "D" to form part hereof, as if herein fully recited at length. This was
meant to be a guideline and interpretation of existing policy and practice. A copy of this memorandum was provided to Mr. N. Wilson, Labour Relations Officer of your Board's office in Toronto, on July 30, 1975.
For the Board's information, we wish to point out that similar guidelines have been followed over the years and to illustrate this point, a set of guidelines was issued in December 1964, a copy of which is attached hereto as Appendix "E" to form part hereof, as if herein fully recited at length.
In addition to Appendix "D", as further clarification of existing policy and practice, a memorandum was issued by Headquarters Staff—Labour Relations dated June 5, 1975, and by Western Region Staff—Labour Relations dated June 11, 1975, attached hereto as Appendices "F" and "G", respec tively, to form part hereof, as if herein fully recited at length.
In addition to the foregoing, with respect to the remarks initially set out in this letter and with reference to the remarks specifically addressed to your questions, please find attached herewith Bell Canada's Code of Business Ethics, the latest edition being that of April 1973, as Appendix "H", to form part hereof, as if herein fully recited at length. The previous edition was dated May 1966 and essentially contains the same information and guidelines for employees of Bell Canada as the 1973 edition. This document should be read in conjunction with General Circular 106.85 as being part and parcel of Bell Canada's general policy and practice over the years.
The June 5, 1975 memorandum referred to by Bell in its letter to the Board reads:
This is further to my letter of December 5, 1974 on the subject of Trade Union activities. The memorandum attached thereto said in part:
It is, of course, a fundamental right of all employees to discuss and exchange ideas or solicit signatures as long as such activities are not conducted during working hours. On the other hand, employees are not permitted to hold "meet- ings", defined as "an assembly of people gathered together for a specific purpose", on Company premises for Union activities except as provided for by a Collective Agreement or by permission of management.
It is the responsibility of supervisors to make sure that the Act and the Collective Agreements are adhered to by:
(1) Denying access to Company property to other than bona fide employees or such other persons approved by management.
(2) Preventing Union activities not authorized by the Collec tive Agreement from being conducted during working hours.
(3) Prohibiting the unauthorized placing or posting of print ed or other material anywhere on Company property, or the use of other Company facilities for this purpose.
(4) Ensuring that Company property is not used for activi ties other than for the purpose intended, without manage ment permission, and that the rights of individual employees making use of such facilities are protected. For example, lunchrooms are only intended to be used for eating and relaxation, and signs to this effect can be posted at the doors
of lunchrooms where local circumstances make this desirable.
(5) Refraining from comments on the Association, its administration and operation.
We are advised that Union organizing activities have recent ly intensified, and that recruitment is now taking place on Company premises, and our guidance has been sought as to the correct interpretation of (4) above in such circumstances. Where such activity is underway, managers should advise the Union organizers, politely but firmly, that no permission has been given for the use of Company property for this purpose and instruct them to confine their activities to off premises locations.
and the June 11, 1975 memorandum referred to therein reads:
We have been advised by managers in several locations that C.W.C. union organizing activities have recently intensified and that active recruitment is now taking place on Company premises. If such situations come to the attention of local managers we offer the following guidelines for management:
I) Ensure that Company buildings and/or property are not used for any activities other than for the purpose intended, unless management permission to do so has been granted.
2) It is a fundamental right of all employees to discuss and exchange ideas without management interference as long as this does not interfere with work operations and is confined to discussion. Employees however, are not permitted to hold "meetings" defined as "an assembly of people gathered together for a specific purpose" on Company premises to conduct union activities except as provided for by specific permission of management.
3) If a C.W.C. organizer engages in the activity of signing up Bell employees as C.W.C. members, this may be inter preted as a "meeting" between employees. When the activity is clearly observed, managers should deny the use of Com pany premises for this purpose.
4) Where such activity is underway, managers should advise the C.W.C. organizers, politely but firmly, that no permis sion has been given for the use of Company property for this purpose and instruct them to confine their activities to off-premises locations. (The fact that the C.W.C. Organizers are off duty does not mean that this activity may be conduct ed by these employees on Company premises.)
On August 15, 1975, there was filed, by the Union with the Board, a submission reading, in part:
2. Specifically, in response to the questions posed in the Board's telegram of August 11th, 1975:
(a) There appears to have been no policy or practice of the respondent restricting the distribution of literature on its premises before early June, 1975. In November, 1974, a group of employees organized into a body called "Exodus" with the purpose of withdrawing from the intervenant union. This group of employees was permitted to use the cafeteria of
some offices of the respondent to distribute literature and solicit support during lunch hours of the employees. These activities were not restricted until the group had publicized that it had opted for the complainant union. Various posters are posted on bulletin boards throughout the plant, some of which are enclosed.
(b) There has clearly been no policy or practice of the respondent prohibiting or restricting the soliciting of employees on company premises by various organizations. Many organizations are allowed on the respondent premises to solicit its employees. These include some of the following:
(i) Firefighters selling tickets;
(ii) T.T.C. employees selling public transit tickets;
(iii) Kneller phone shirts are sold on premises;
(iv) Girl Guides selling cookies;
(v) Employees selling tickets for Olympic Lottery, Win- tario, other lotteries, sports pools, charitable tickets, etc.
(vi) Pioneer group sell tickets and other items at the working place and during working hours;
(vii) United Appeal solicits support;
(viii) Red Cross solicits support;
(ix) Various other similar activities are carried on without restriction.
(c) There appears to have been no restriction on activities in the lunchroom during the lunch hours before early June, 1975. In Kingston a book to order Avon products is in the cafeteria. As well "womens rights" meetings ("brown bag lunches") have been held in the cafeteria in Kingston.
(d) Until early June, 1975, the respondent has not enforced rules or regulations prohibiting employees from engaging in certain activities on company premises outside their working hours.
(e) There appears to have been a new directive circulated in early June, 1975. A copy is enclosed.
II. ISSUE
3. Do the facts in Section E of the complaint dated June 20th, 1975 in addition to any other facts submitted subse quent to the said complaint, constitute violations of Sections 184(1)(a), 184(1)(b), 184(3)(b) and 184(3)(e) of the Canada Labour Code?
III. ARGUMENT
4. By section 110(1) of the Canada Labour Code, every employee is granted the right and freedom to join the trade union of his choice and to participate in its lawful activities.
5. It is submitted that from Section 110(1) flows the right to solicit membership in a trade union and the right to distrib ute trade union literature. As well, Section 110(1) confers upon the employee the right to be asked to join a trade union and the right of access to any information or data distributed by a trade union.
6. By Sections 184(1)(a), 184(1)(b), 184(3)(b) and 184(3)(e) of the Code, an employer is obliged to refrain from any activity which would interfere with or restrain the said rights and freedoms.
7. By Section 185(d) a trade union or person acting on its behalf is prohibited from attempting to persuade the
employee to become, to refrain from becoming or to cease to be a member of a trade union at an employee's place of employment during his working hours without the consent of the employer.
8. By the direction of certain of its officers, the respondent has prohibited its employees from soliciting trade union membership or distributing trade union literature during the non-working hours of its employees at their place of employment.
9. It is submitted that by the wording of Section 185(d) it can reasonably be inferred that employees are not prohibited from participating in the prescribed conduct therein referring during their non-working hours at their place of employment.
10. It is submitted that Parliament has in Section 185(d) balanced the interests of employees and the interests of the employer. In its wisdom, Parliament has decided that the interests of the employer outweigh those of the employees during their working hours. By necessary implication, Parlia ment has decided that the employees' interests outweigh those of the employer during their non-working hours.
13. It is submitted that in interpreting the Code, the Board must do so in light of the Canadian Bill of Rights. It is submitted that the Board must construe and apply Sections 184(î)(a), 184(1)(b), 184(3)(b), 184(3)(e) and 185(d) of the Code as not to abrogate, abridge or infringe or to authorize the abrogation, abridgment or infringement of the freedom of speech and the freedom of assembly and associa tion of the employees of the respondent.
The Canadian Bill of Rights, 8-9 Elizabeth II, ss. 1, 2.
14. It is submitted that by its actions the respondent has violated the Canada Labour Code in the following ways:
(a) S. 184(1)(a)—it has interfered with the representation of its employees by the complainant trade union;
(b) S. 184(1)(b)—it has contributed support to the intervenant trade union by interfering with the representa tion of its employees by the complainant trade union;
(c) S. 184(3)(b)—it has imposed a condition in the con tracts of employment of its employees that has the effect of restraining its employees from exercising any right conferred by Part V of the Code; and
(d) S. 184(3)(e)—it has sought by threat to compel a person to refrain from becoming or cease to be a member, officer or representative of the complainant trade union.
On August 22, 1975, the Board had a hearing in connection with the matter. After preliminaries, the Chairman opened the matter with a statement that is reflected in the transcript as follows:
CHAIRMAN: As is customary in proceedings before this Board, the parties will be given an opportunity of making a prelim inary statement if they so wish, but before doing that I think it might be appropriate to sum up the file so as to clarify where we are at. The Board is in receipt of a complaint of unfair labour practice filed pursuant to Section 187 Paragraph 1 of the Canada Labour Code Part V—Industrial Relations. The complaint is dated June 20, 1975, and alleges that Bell Canada
has failed to comply with the provisions of Section 184(1)(a), 184(1)(b), 184(3)(b), but Mr. Cavalluzzo, I believe that has been later corrected as a typing mistake. The Section would be 184(2)(b) am I correct? instead of (3)(b)?
MR. CAVALLUZZO: Yes that is correct.
CHAIRMAN: And Section 184(3)(e) of the Code. In its reply, Bell Canada has, and their reply is dated July 10, 1975, Bell Canada has, generally, denied the allegations, the factual alle gations contained in the complaint, made a number of prelim inary objections on which I will come back, later, and it has further stated in Paragraph 9, furthermore, and without preju dice to the foregoing, even if the facts alleged in Section (e) which contains the factual allegation of the complaint were to be taken as granted for the purposes of discussion, those facts do not constitute a violation of any disposition of the Canada Labour Code.
The Board is aware, of course, as is probably the rest of Canada, the rest of Eastern Canada, that labour-relation-wise certain events are taking place amongst the various groups of employees of Bell Canada.
The Board has noted that both from the complaint, well maybe I should deal with the preliminary issue first. The respondent employer has raised in its reply, two preliminary objections.
I have referred you, earlier, to Section 187 Paragraph 1 of the Code, and the Board wishes to make it clear that the require ment set forth in its regulations, although they should be complied with inasmuch as possible, are not meant to prevent parties to file complaints before the Board, or to impose upon them the burden of being assisted by Counsel or seeking expert advice to do so, but in order to facilitate the processing of applications. So, in the circumstances, the Board will accept the complaint as is, subject of course to the onus on the complain ant to eventually prove the facts on which it relies and the preliminary objections founded on Section 48 of the Board's regulations are dismissed. Before proceeding however, it is necessary to clarify, further, the rather special circumstances in which this complaint, this hearing was called. Upon receipt of the complaint and subsequent additions to the complaint in the nature of more specific or additional allegations of fact and of the reply by the employer, this is not really covered by the intervention of the intervener. The Board noted that the instant case appears to raise two issues which are, of course, closely related but which may be separated. The first one is whether, in law, the restrictions imposed by Bell Canada through its regu lations or other statements of policy, restrictions upon certain types of activities which may be engaged in on company premises, are in conformity with the provisions of the Canada Labour Code. The complainant has asserted that they were not. Bell Canada has asserted that they were. This Board has not had an opportunity to pass on such an issue and on its possible relevance to determination of violations of Section 184 of the Code.
The second issue, of course, does not ... , may arise whatever the determination on the, on the first issue but it could well be that even if the policies and regulations and directives of Bell Canada are perfectly valid under the Code, it could be, that as the complainant alleges, the manner in which they have been
implemented or applied might lead to a finding that the provisions of Section 184 have been violated. You are all aware that this is August, and I think you are all aware because this is unfortunately becoming too well known, it has had repercus sions on many people that this Board has a very heavy work load. This is the vacation season, which makes it worse from our point of view. And it was not possible for us to schedule a lengthy hearing on this complaint. However, because of the issues raised by it appear to be of special importance appear to be of to some extent of some urgency, since the finding by the Board in six months or a year would not obviously be very useful in remedying a situation which exists now and might continue to be particularly acute in the next few months. The Board has called this hearing, with a special purpose in mind, and this has been indicated to you in various telexes, which you have received. The Board would like to undertake today an inquiry on what I had described as the first issue, that is, aside from the manner in which they might have been implemented or [are] 5 Bell Canada's directives or practices in violation of the provisions of Section 184 of the Code or are they perfectly valid and legal. I have emphasized our scheduling problem, we had to cancel a hearing that was scheduled for today in order to be here. We cannot, at this stage, envisage adjourning this hearing to next week, for example. We convene you this morning at 9:30, we are prepared to sit as late as will be necessary, if necessary we will sit tomorrow. But we think it is important for all the parties, here, that a determination of the first point be arrived at. We believe that this is possible with the cooperation of the parties since the issue as defined here is a legal one which does not entail or should not entail submission of evidence. In this respect, when the Board forwarded its telex convening you to this hearing and asking for submissions, the Board relied on the statement, in the employer's reply, that even if the facts alleged in the complaint were true, they disclose no violation of the Code. The submissions received from the various parties have further elicited, as the Board requested, the practices and policies of Bell Canada. And the Board is even willing to go one step further. Mr. Gulden has, in a quite detailed submission dated August 14, explained what was the existing situation, what were the rules, what were the directives. It has given some information as to the manner in which they have been implemented and this information appears to be consistent with the submissions of the complain ant in its, in a document which is dated August 15, 1975, that is that, in fact, some solicitation by various organizations has been permitted. But according to Bell Canada this is in con formity with directives that require, that prohibit also ... such solicitation and distribution unless expressly authorized by local managers. It appears to be accepted that, on occasion, local managers have granted said permissions to various groups and organizations, some of which are named in the complainant's complaint, United Way, Red Cross. It is, thus, possible to clarify the issue one step further. And we would suggest that the point might properly be defined as follows: If the facts stated in Bell Canada's submission of August 14, 1975, as clarified by the complainant's submission of August 15 where that submission does not contradict the submissions of the
5 The word "or" here is obviously a stenographic mistake for "are".
employer is the present practices of Bell Canada as evidence( by various directives consistent with the provisions of th( Canada Labour Code, Part 5, Industrial Relations.
Counsel for the respondent made an opening state. ment, reading in part:
MR. CAVALLUZZO: Madam Chairman, my preliminary state ment will be very brief. I totally agree with the Board': approach in this problem. It is the most expedient procedure al this time. I appreciate the difficulties that the Board is havinl with respect to the hearing of these complaints. However, a: you will appreciate as Members of the Board, the complainant is now in the midst of an organizing campaign. And the issue: now before the Board are very, very important to it. Anc therefore, I agree that these issues should be resolved as quickly as possible. Now, I am totally agreeable with the Board': approach that we can accept the evidence as filed today by all the parties to this hearing, as agreed, in that all parties will have the opportunity to make legal representations upon that evidence to determine whether such activities, on the part of this employer, are in contravèntion of the Canada Labour Code. And, finally, I agree with the issue, as framed by the Board.
Counsel for the applicant made an opening state ment, reading:
MR. GULDEN: Madam President and Members of the Board. We, too, agree that the issues are to be isolated and we are prepared to answer the questions that were raised in the telegram that was sent to Bell Canada and to direct our attention strictly to the issues that were raised and support the, the responses in the submission by way of evidence if the Board so desires and to argue on the points raised in law. I should also point out to the Board that we are dealing today with a hypothetical issue in the sense that we are taking the facts as if they were produced as evidence. We are not admitting these facts and we will make a representation on that basis.
After such opening statements, the parties pro ceeded, at the hearing that was held by the Board on August 22, 1975, to argument, but, before the argument commenced there were further exchanges of a preliminary nature that are reflect ed by the transcript as follows:
CHAIRMAN: Before going further, there is one point we had referred them, parties have been agreeable to the procedure which we have suggested, which would be to take the facts elicited by the submissions as such for the purpose of argu ments in. law. There appears to be only one possibly important discrepancy between the submission of the Communication Workers of Canada and Bell Canada, it might be cleared up at this stage. As we read the facts outlined in Paragraph 2 of the Submission of the Complainant, they appear to state there has been no policy or practice of the respondent restricting distribu tion of literature on its premises before early June 1975. And this is repeated further. Mr. Gulden's submission refers to directives or general circulars as they are known at Bell, and pretty shortly the Board will, should have a fairly complete collection of the general circulars presently in effect at Bell.
Mr. Cavalluzzo, does the complainer recognize, and I'm not asking you, obviously, to comment on their application or relevancy or whether they have in fact been implemented, but does the complainant recognize these general circulars that have been filed in Appendix A and Appendix B, I guess, as being general circulars in effect at Bell Canada?
MR. CAVALLUZZO: Well, the position of the complainant on that point, Madam Chairwoman, is 1) We do recognize that there are the circulars, 2) In argument, we will dispute their rele vance to the facts before the Board at this time and 3) We certainly do not admit that the circulars have been uniformly enforced. Now that third point is minor in the sense that, as I said before, we feel that the circular has no relevance to the facts before the Board at this time.
MR. RENAULT: [for Bell] Mrs. Chairman, I had understood that Mr. Cavalluzzo had accepted the evidence at first in the statement, so I wanted to make sure now that where we are as far as Bell is concerned, it is accepted as for the benefit of discussion or it's not accepted. So I feel that this should be clear.
CHAIRMAN: Well, as I understand from the statement of Mr. Cavalluzzo, it answers our question that the general circulars are in existence, whether they are applicable or not to the situation under discussion in the instant cases, I think, properly a matter for argument, and we have expressly stated that we would not attempt to get today and the question of whether the manner in which the directives have been implemented might possibly, separately, from the validity of the practices or regula tions involve a violation of the Code. So as I understand it, it is accepted that these circulars are in existence and, obviously, Mr., I understand Mr. Cavalluzzo to reserve his right to argue on their relevancy, which, I think, in the circumstances, is understandable. Is that clear enough? Is that what you stated Mr. Cavalluzzo?
MR. RENAULT: I'm sorry, Mrs. Chairman, I provided, it's made clear to us that really the third point is not that he has submitted now, I took as granted at first the first statement at the opening statement after you talked that he had said that the evidence was accepted. And now of course if this third thing that he does not admit, that they have been uniformly enforced is not going to come in the picture today. In other words, only the relevancy and that the, all the circulars are recognized, so we then put back at the same, original statement that he has made that the evidence was accepted. So that's ...
CHAIRMAN: Yes, it is accepted for the purpose of the discussion.
MR. RENAULT: I understand. Only for the purpose of the discussion, or the discussion as a point of law.
CHAIRMAN: Is that a fair statement, Mr. Cavalluzzo? MR. CAVALLUZZO: Yes it is.
MR. CAVALLUZZO: Yes, Madam Chairman. Madam Chairwom an and Members of the Board: At this time, I would like to advise the Board that I'm restricting my argument to the question of whether Bell Telephone can restrict its own employees from the solicitation of union membership and from the distribution of literature on its premises, during the non- working hours of these employees.
MR. GULDEN: Madam Chairwoman, if I may interject here for one moment before we proceed with the formal argument, f would, I'd like to state Bell Canada's objection on the proceed ings, strictly on a procedural matter. We object to the filing, No. 1) of the letter of August 5th that Mr. Cavalluzzo filed. We feel that No. 1, in some of the answers or some of the paragraphs in the letter, he has changed the nature of the complaint and I'm referring, in one particular instance on page 2 of his letter where he refers to paragraph 7, he has changed the section numbers. If we are to respond today, I think we would be in a pretty difficult position to try to argue the point. We are proceeding, it is Bell Canada's intention to proceed of course today, but we are proceeding on them, on the basis to facilitate the Board's understanding of the issues but no way does Bell Canada wish to waive any of its rights, procedurally or on substantive matters. And it's on this basis that we agree to appear before the Board today. We have also considered the hearing today to really be a preliminary hearing in this sense that, again, for the Board to understand the nature of the issues and for the Board to decide whether or not a further hearing is to be had on the merits or the allegations in the complaint and to- then hear evidence whether or not the allegations are founded.
Thereafter, counsel for Bell and the Union argued at length; and, generally speaking, it is fair to say, I think, that the argument revolved around the question whether the facts as placed before the Board by Bell's letter of August 14, 1975, and the enclosures attached thereto constituted or estab lished breaches of the relevant provisions of the Canada Labour Code. On the other hand, counsel for Bell did, from time to time, indicate that they had in mind that what they were arguing was the question whether, assuming certain facts were true, there was any breach of the Canada Labour Code and that there would be a subsequent oppor tunity to adduce evidence.
On August 22, 1975 (the day of the hearing), the Vice-Chairman who presided at the hearing wrote to the solicitors for the parties as follows:
The Board has reviewed the written and oral submissions of the parties and studied the documents tendered by Bell Canada as embodying its policy and directives with regard to trade union activities on company premises. The Board has noted particularly the directives contained in two documents:
1) a letter from Mr. L. C. Godden, Assistant-Vice-Presi- dent-Labour Relations dated June 5, 1975, and addressed to various assistant vice-presidents and general supervisors;
2) a letter from Mr. J. Jacobs, Staff Supervisor-CTEA Labour Relations, Western Region, to all Ill Level Manage ment Western Region which is dated June 11, 1975.
In its telex to the parties, the Board had advised them that it intended at the hearing to deal with an issue raised in the respondent's reply to the complaint namely that even if all the
factual allegations of the complaint were true, they disclosed no violation of the Canada Labour Code. The Board finds that this contention of the respondent must be dismissed.
The Board finds that the crucial issue in the instant case is whether Bell Canada can prevent its employees from soliciting membership in a trade union and distributing union literature on company premises by making such behaviour subject to disciplinary action, when these activities take place outside the working hours of the employees involved. The Board finds that Bell Canada may not do so without violating the provisions of the Canada Labour Code (Part V—Industrial Relations), and particularly the provisions of Sections 184(1)(a) and 184(3)(b) of the Code.
Section 110(1) of the Canada Labour Code guarantees to employees the right to join the trade union of their choice and "to participate in its lawful activities". The basic freedoms thus protected include the right to distribute or otherwise dissemi nate and receive information about a trade union and its activities and the right to sign a membership card, provided these activities do not take place during the working hours of the employees involved. An employer may not without compel ling business reasons, prohibit employees from exercising these rights on company premises. To do so amounts to behaviour that is prohibited by the provisions of Sections 184(1)(a) and I 84(3)(b) of the Canada Labour Code (Part V—Industrial Relations).
The Board further finds that the property rights of the employer must be exercised in a manner that is consistent with the basic freedoms guaranteed to employees by the Code. Of course, the employer has the right to maintain production, to enforce discipline and to safeguard the safety and security of its property and premises. Nevertheless, it may not, without com pelling reasons, attempt to do so by prohibiting employee activities that are expressly protected by the Code. In the instant case, there is no reason to believe that these basic interests of Bell Canada cannot be protected by resort to customary disciplinary sanctions.
The Board's decision will be further explained in reasons for judgment which will be issued and communicated to the parties at a later date.
Because of the special circumstances of the instant case, the Board believes that it is desirable that its decision be issued promptly. Accordingly, you will find enclosed a copy of the Board's order. Because of time constraints, it has not been possible to issue this order in both official languages• However, a French version of the order will be made available shortly.
On the same day, the formal order of the Board that is the subject of this section 28 application was issued. It reads as follows:
WHEREAS, a complaint pursuant to Section 187 of the Canada Labour Code (Part V—Industrial Relations) dated June 20th, 1975 was filed with the Canada Labour Relations Board on behalf of the Communications Workers of Canada alleging inter alia failure by Bell Canada to comply with the provisions of Section 184(1)(a) and Section 184(3)(e) of the said Code; and
WHEREAS, the Board has requested and received evidence and submissions from the parties concerning the policy and direc tives of the Respondent prohibiting or restricting union activi ties on company premises; and
WHEREAS, the Board has reviewed the evidence submitted by the respondent and the written and oral submissions of the parties.
NOW, THEREFORE, the Board finds that the Respondent, through various directives, has enforced a policy which prohib its its employees from participation in lawful trade union activities on company premises during their non-working hours and that this policy and those directives constitute a violation of the provisions of Section 184(1)(a) and 184(3)(e) of the Canada Labour Code (Part V—Industrial Relations).
NOW, THEREFORE, the Canada Labour Relations Board, pur suant to Section 189 of the Canada Labour Code, orders. the Respondent to comply with the provisions of Section 184 of the Code and to cease and desist from prohibiting employees soliciting other employees to join a trade union or distributing union literature during the non-working hours of employees.
FURTHER, the Board orders the Respondent to transmit a copy of the instant order to all the persons in the employ of the Respondent who are known to have received copies of the directives on trade union activities which were issued by Mr. L. C. Godden on June 5, 1975 and by Mr. J. Jacobs on June 1 I, 1975.
This section 28 application is to have that order set aside and, it was made clear, by counsel for Bell during the argument in this Court, that this application is based solely on the contention that the Board made its order in breach of the require ments of natural justice in that it was made before Bell had been given adequate opportunity to bring evidence as to the facts relating to the order. It is clear that Bell did not, in this Court, attack the interpretation put by the Board on the unfair labour practice provisions of the Canada Labour Code and that this Court does not, in this case, have to take any position with regard thereto.
It is not unimportant to keep in mind in a case such as this that the so-called rules of natural justice are a means devised by the courts to inter pret and apply statutory law in such a way as to avoid unjust results in particular cases. They are not rigid but flexible. They must be applied according to the exigencies of the particular case and they are not to be used as an instrumentality to defeat the achievement of the objectives of the particular statute. On the other hand, they are to be applied, inter alia, to remedy any real possibili-
ty of injustice through failure to afford any party a reasonable opportunity to meet what is being said against him.
With regard to the natural justice point in this case, as I understand it, Bell's position is that its representatives went to the August 22nd hearing on the understanding that the question to be heard that day, and the sole question to be heard that day, was the question of law whether, assuming the facts alleged in the complaint were correct, they constituted a violation of the Canada Labour Code, and that, in consequence, they were not given the opportunity required by natural justice to meet the allegations of fact by whatever evi dence would have been available to them if they had been given due notice of a hearing on the facts. The alternative view, as I understand it, was that the parties were duly notified that some, but probably not all, of the issues raised by the com plaint (of which the question of law would be the "first") would be dealt with at the hearing, that, at the outset, before argument, the "issue" to be dealt with was defined and accepted by the parties and that that issue was the question whether Bell's practices, as evidenced by various directives put before the Board by Bell, were in breach of the Canada Labour Code. Indeed, as I view it, there is no possibility of any middle room. I find it difficult to believe that any of the experienced lawyers involved understood that the hearing of August 22 was anything other than either
(a) merely a determination of the question of law whether the facts alleged by the complaint, if true, were a breach of the Canada Labour Code, or
(b) a determination of the question whether Bell's "present practices" as evidenced by the various directives were in breach of the Canada Labour Code.
On the other hand, there is evidence, when one reads, and re-reads, the transcript carefully, that there was a lack of a clear cut concept pervading the hearing from beginning to end as to which of these kinds of hearings was being held.
After giving the matter the best consideration that I can, I have concluded that there was no miscarriage of justice here. The first fact to be noted is that Bell, at the request of the Board, put a complete statement of facts before the Board
upon the basis of which argument took place and the order attacked was made. As any experienced lawyer would have appreciated, those facts would not have been relevant to the question of law as to whether what was alleged by the complaint was illegal. Secondly, the Vice-chairman re-stated the question in terms of "the present practices of Bell Canada as evidenced by various directives" immediately before counsel made their statements and her statement thereof was not challenged at any time. Thirdly, although this causes me more difficulty, various statements by Bell's counsel which seemed to contemplate a future hearing for the taking of evidence could have been made with reference to the issues that were deliberately left for future action by the Chairman's opening state ment. Finally, there is the fact that notwithstand ing the course of discussion throughout the hear ing, very experienced counsel for Bell at no time took objection to argument on the actual facts, as opposed to the alleged facts, but, indeed, par ticipated in such argument.
With hesitation, I have concluded that there is no ground in the rules of natural justice for this section 28 application. I come to that conclusion with hesitation but, having regard to the fact that Bell was given full opportunity to state the facts that were the basis of the decision attacked and that counsel for Bell was not able to suggest in this Court with any cogency any evidence that had been omitted, I am less concerned about the con clusion that I have reached than I would otherwise be.
In my view, the section 28 application should be dismissed.
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RYAN J. concurred.
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KERR D.J. concurred.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.