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T-3280-78
McKinlay Transport Limited (Plaintiff) v.
Joseph Goodman, John Dovak, Garry DeBeau, Larry Ballah, Robin Jones, Charles Ballah and Vittorio Griffi (Defendants)
Trial Division, Thurlow A.C.J.—Ottawa, July 25 and 27, 1978.
Jurisdiction — Labour relations — Practice — Application for continuation of ex parte interim injunction and for inter locutory injunction — Illegal strike by employees — Applica tion based on alleged breach of s. 180(2) of Canada Labour Code — Whether or not Court has jurisdiction to grant interlocutory injunction, and if it has jurisdiction, whether or not Court would exercise discretion to grant it — Canada Labour Code, R.S.C. 1970, c. L-1, ss. 180(2), 182 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, ss. 2, 23.
This is an application for an order continuing an ex parte interim injunction and for an interlocutory injunction until the trial or final disposition of this action. An illegal strike by plaintiffs employees is or was in progress when the ex parte interim injunction was ended. The plaintiffs claim is based on the alleged violation of subsection 180(2) of the Canada Labour Code, and on the underlying common law on which the Code is grafted.
Held, the application is dismissed. The relief sought is not available in this Court. In so far as its case is based on common law principles as opposed to the Code, the matter is concluded in Quebec North Shore Paper Co. v. Canadian Pacific Ltd. The concluding words of section 23 of the Federal Court Act apply to the situation created by section 182 of the Canada Labour Code as a whole, which assigns to the Canada Labour Rela tions Board jurisdiction inter alia to enjoin employees from participating in a strike. Even if the Court were wrong in concluding that it is without jurisdiction, it would exercise its discretion to refuse to grant the injunction. Even though the extensive amendments to the Canada Labour Code do not specifically purport to withdraw from the superior courts juris diction to issue injunctions in respect of conduct arising out of labour disputes, the Court can and ought to take into account in exercising its discretion that Parliament has shown its dispo sition that such matters be dealt with by the Board on the principles which it applies in the search for achievement of the objectives of the legislation rather than by the courts. Further, there is nothing before the Court to show that prompt and effective relief is not obtainable by the plaintiff in proceedings before the Canada Labour Relations Board.
Quebec North Shore Paper Co. v. Canadian Pacific Ltd. [1977] 2 S.C.R. 1054, applied.
ACTION. COUNSEL:
Claude Thomson, Q.C. and Mrs. L. Price for
plaintiff.
H. F. Caley for defendant Joseph Goodman.
No one appearing for the other defendants. SOLICITORS:
Campbell, Godfrey & Lewtas, Toronto, for plaintiff.
Caley & Wray, Toronto, for defendant Joseph Goodman.
The following are the reasons for order ren dered in English by
THURLOW A.C.J.: This is an application for an order continuing an interim injunction, granted on July 20, 1978, on an ex parte application, and for an interlocutory injunction until the trial or other final disposition of this action:
(a) restraining the defendants and each of them and any person acting under their instructions or in concert with them or any other person from declaring, authorising, counselling, aiding or engaging in or conspiring with others to bring about or continue an unlawful strike with respect to the employ ment of employees of the plaintiffs [sic] in combination or in concert or in accordance with a common understanding;
(b) restraining the defendants and each of them and any person acting under their instructions or in concert with them or any other person from
(i) watching, besetting or picketing or attempting to watch, beset or picket at or in the vicinity of the Canadian Customs Compound on Walnut Street, in Fort Erie, Ontario, or any of the terminals operated by the plaintiff in Ontario; and
(ii) interfering with the servants, agents, employees or suppliers of the plaintiffs [sic] or any other persons seeking peaceful entrance to or exit from said premises by the use of force, threats, intimidation, coercion or any other manner or means;
(iii) ordering, aiding, abetting, counselling or encouraging in any manner whatsoever, either directly or indirectly any person to commit the acts aforesaid or any of them; ...
That an illegal strike is or was in progress when the ex parte injunction was granted was not dis-
puted. Nor was it disputed that the defendants participated in it or that they were employees of the plaintiff. Counsel appeared for the Teamsters Union, Local 879, to which notice of this applica tion had been given as directed by the interim order, and for the defendant Goodman and took the position that the Court was without jurisdic tion to entertain the action or to grant interlocuto ry relief therein. None of the other defendants appeared or was represented though all but the defendant Griffi had been served.
The plaintiff's claim as pleaded is based on alleged violation of subsection 180(2)' of the Canada Labour Code 2 and on breach of a term of a collective agreement providing that there should be no strike for any reason by the employees during the term of the agreement. At the hearing the breach of the collective agreement was aban doned as a basis for an interlocutory injunction. Counsel for the plaintiff founded his submissions on subsection 180(2) and what he referred to as the underlying common law on which the Code has been grafted. In so far as his case is founded on common law principles as opposed to the provi sions of the Code itself, I am of the opinion that the matter is concluded against him by the judg ment of the Supreme Court in Quebec North Shore Paper Co. v. Canadian Pacific Ltd. 3 If the Code were not in existence, the only law applicable under which he could claim relief in respect of tortious conduct by illegal striking, besetting or picketing of the plaintiff's undertaking, as I see it, would be the law of the Province of Ontario.
I should note at this point that, if the present matter fell to be decided merely on a balance of convenience, I would think the balance was heavily in favour of the plaintiff. The plaintiff has suffered and is likely to suffer severe and not readily esti-
' Subsection 180(2) reads:
180. ...
(2) No employee shall participate in a strike unless
(a) he is a member of a bargaining unit in respect of which a notice to bargain collectively has been given under this Part; and
(b) the requirements of subsection (1) have been met in respect of the bargaining unit of which he is a member.
2 R.S.C. 1970, c. L-1.
3 [1977] 2 S.C.R. 1054.
mable damage as a result of the stoppage of its operation while the defendants, so far as appears, would suffer no damages at all if restrained until the trial of the action. But I do not think the application can or should be dealt with on that basis. The remedy of injunction is always discre tionary and, where on the case presented there is serious reason to doubt the Court's jurisdiction to entertain the action, the discretion may, in my opinion, be exercised in favour of refusing an injunction.
More especially is this so where, as in the present instance, if the plaintiff has a cause of action in any superior court for damages and an injunction in respect of illegal striking and illegal picketing and illegally causing work stoppage, such action can be pursued in the Supreme Court of Ontario, and where there is also a further avenue for relief including injunction by proceedings before the Canada Labour Relations Board under the provisions of the Canada Labour Code. For as I view the matter, not only is the only law of Canada on which the plaintiff can rely in this Court the Canada Labour Code, but the only provision of the Code on which a fairly arguable case for an injunction can be sustained is subsec tion 180(2) which simply prohibits an employee from participating in an illegal strike and does not necessarily cover or prohibit watching or picketing or besetting save in so far as such actions are themselves part of an employee's participation in the strike. In this aspect, whether or not this Court has jurisdiction may well depend on facts which have yet to be explored.
There is a further consideration that appears to me to bear on whether or not the discretion should be exercised to grant an interlocutory injunction even if the Court has jurisdiction to entertain the action and the application and the case for an injunction is otherwise made out. Parliament has recently enacted extensive amendments to the Canada Labour Code which, in my view, demon strate that the purpose was to vest in the Canada Labour Relations Board extensive and far reach ing powers to deal with labour relations in the works and undertakings to which the statute applies including the granting of injunctions
enjoining employees from participating in strikes, and the making of orders requiring employees to perform the duties of their employment—a power not exercised by a Court of equity. Not only has the Board been vested with powers more extensive and particular than those of the courts in such situations but the area in which the Board's deci sions are open to attack and review has been narrowed by the amendments. The power previ ously reserved to the Minister of authorizing pros ecution for violation of the Act has also been vested in the Board. In the face of these provisions, even though the legislation does not specifically purport to withdraw from the superior courts juris diction to issue injunctions in respect of conduct arising out of labour disputes, it seems to me that the Court can and ought to take into account in exercising its discretion that Parliament has shown its disposition that such matters be dealt with by the Board on the principles which it applies in the search for achievement of the objects of the legis lation rather than by the courts. It is perhaps unnecessary to add that court injunctions have not been notoriously successful as a device for achiev ing harmonious labour relations or for resolving labour disputes.
A further aspect of the matter with respect to the exercise of discretion is that there is nothing before me to show that prompt and effective relief is not obtainable by the plaintiff in appropriate proceedings therefor before the Canada Labour Relations Board.
I turn now to the question whether the Court has jurisdiction to entertain the action. I may say that I am attracted by the submission that on the statute as amended the principle of Barraclough v. Brown 4 applies and that, as Parliament has, by the same statute in which it has given whatever right, if any, the plaintiff may have to an injunction in the circumstances, conferred on the Canada Labour Relations Board the jurisdiction to enforce that right, the only recourse open to the plaintiff for the relief sought is that provided for by the statute, that is to say, recourse to the Board. But I do not decide the matter on that ground. I prefer to decide it on the narrower ground that the relief
4 [1897] A.C. 615.
sought is not available in this Court.
Section 23 of the Federal Court Act on which the plaintiff relied as establishing jurisdiction in this Court provides:
23. The Trial Division has concurrent original jurisdiction as well between subject and subject as otherwise, in all cases in which a claim for relief is made or a remedy is sought under an Act of the Parliament of Canada or otherwise in relation to any matter coming within any following class of subjects, namely bills of exchange and promissory notes where the Crown is a party to the proceedings, aeronautics, and works and undertak ings connecting a province with any other province or extending beyond the limits of a province, except to the extent that jurisdiction has been otherwise specially assigned.
"Relief" is defined in section 2 as including
. every species of relief whether by way of damages, payment of money, injunction, declaration, restitution of an incorporeal right, return of land or chattels or otherwise;
The concluding words of section 23, "except to the extent that jurisdiction has been otherwise specially assigned", were recently considered and applied by the Court of Appeal in Canadian Pacific Limited v. United Transportation Unions in holding that the Trial Division did not have jurisdiction under the section by reason of section 155 of the Canada Labour Code and an arbitra tion agreement for the settlement of disputes be tween the parties. Ryan J. with whom Heald and Urie JJ. concurred said [at pages 625-627]:
There is a final submission by the appellant. This is the submission that, assuming the subject matter of the action is one that falls within the scope of the Canadian Railway Arbitration Agreement, the jurisdiction of the Trial Division is not ousted by the provision of the Arbitration Agreement for final settlement.
With reference to this submission, I would start by referring to Clause 13 of the Canadian Railway Arbitration Agreement which provides that a decision of the Arbitrator shall be final and binding. I refer next to section 155 of the Canada Labour Code, which is in these terms:
155. (1) Every collective agreement shall contain a provi sion for final settlement without stoppage of work, by arbi tration or otherwise, of all differences between the parties to or employees bound by the collective agreement, concerning its interpretation, application, administration or alleged violation.
5 [1979] 1 F.C. 609.
(2) Where a collective agreement does not contain a provision for final settlement as required by subsection (1), the Board shall, on application by either party to the collec tive agreement, by order, furnish a provision for final settle ment, and a provision so furnished shall be deemed to be a term of the collective agreement and binding on the parties to and all employees bound by the collective agreement.
Section 155 establishes a system for the final settlement, without stoppage of work, of disputes arising under collective agreements. Every collective agreement must contain a provi sion for final settlement of the types of differences specified in subsection (1). The parties to an agreement are thus under a duty to provide for such final settlement by arbitration or by some other means. If they fail to fulfil this duty (possibly by a good faith failure to select a method), the Board itself is to make the provision on the application of either party, and the provision so determined becomes part of the collective agree ment. It is within this context that the effect of the closing words of section 23 of the Federal Court Act must be deter mined. And it is my view that in this case the selection, by the parties, of arbitration as the means of final settlement did constitute a special assignment of jurisdiction to determine the issues posed by the present action.
It is true that the parties might have chosen another method; it is also true that they might have failed to choose a method and, accordingly, the Canada Labour Relations Board might have had to furnish a provision for final settlement on applica tion by a party. I, of course, recognize that the duty of the Board to furnish such a provision arises only when one of the parties makes an application. Subsection 155(1) does, however, itself require that every collective agreement shall provide a method for final settlement without stoppage of work, and the parties to the agreement have chosen arbitration as that method. It is not necessary to speculate on what the situation would have been if they had not done so.
No other case was cited, and I am not aware of any, in which the concluding words of section 23 of the Federal Court Act have been considered or applied but it seems to me that, if they apply to the situation created by section 155 of the Canada Labour Code in imposing, in effect, arbitration as the means of settling disputes between parties to collective agreements, they also apply to the situa tion created by the new section 182 6 in the context of the Code as a whole, which assigns to the Canada Labour Relations Board jurisdiction inter
6 182. Where an employer alleges that a trade union has declared or authorized a strike, or that employees have par ticipated, are participating or are likely to participate in a strike, the effect of which was, is or would be to involve the participation of an employee in a strike in contravention of this Part, the employer may apply to the Board for a declaration that the strike was, is or would be unlawful and the Board may, after affording the trade union or employees an opportunity to be heard on the application, make such a declaration and, if the
alia to enjoin employees from participating in a strike. I am accordingly of the opinion that the Court does not have jurisdiction to entertain the plaintiffs claim for an injunction or to grant the interlocutory relief which the plaintiff seeks.
It follows that the application must be dismissed but I should add that, if I am wrong in concluding that the Court is without jurisdiction, I would nevertheless, for the reasons given, exercise the discretion of the Court to refuse the injunction.
ORDER
The application is dismissed with costs.
employer so requests, may make an order
(a) requiring the trade union to revoke the declaration or authorization to strike and to give notice of such revocation forthwith to the employees to whom it was directed;
(b) enjoining any employee from participating in the strike;
(c) requiring any employee who is participating in the strike to perform the duties of his employment; and
(d) requiring any trade union, of which any employee with respect to whom an order is made under paragraph (b) or (c) is a member, and any officer or representative of that union, forthwith to give notice of any order made under paragraph (b) or (c) to any employee to whom it applies.
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