Judgments

Decision Information

Decision Content

A-973-87
Nova Scotia Nurses Union, DEVCO Local ("NSNU") (Applicant)
v.
Canada Labour Relations Board ("CLRB") (Respondent)
and
Cape Breton Development Corporation ("DEV- CO") (Respondent)
and
Canadian Union of Public Employees, Locals 1476 and 2046 ("CUPS") (Respondent)
and
Canadian Brotherhood of Railway, Transport and General Workers, Locals 504, 509 and 510 ("CBRT-GW") (Respondents)
and
International Association of Machinists and Aero space Workers ("IAM") (Respondent)
and
United Transportation Union Enginemen and Trainmen ("UTU") (Respondent)
and
United Mine Workers of America, District No. 26 and Sectionmen (Respondent)
and
Rail Canada Traffic Controllers ("ROTC") (Respondent)
INDEXED AS: NOVA SCOTIA NURSES UNION, DEVCO LOCAL v. CANADA (LABOUR RELATIONS BOARD) (C.A.)
Court of Appeal, Heald, Marceau and MacGuigan JJ.A.—Halifax, March 15; Ottawa, March 23, 1989. *
* Editor's Note: The reasons for judgment herein were received from the Court on November 6, 1990.
Labour relations — Revocation of certification — NSNU certified as agent for bargaining unit of registered nurses employed by DEVCO — 12 nurses out of 3,400 employees, at 5 locations — Board finding inappropriate to have such small, scattered unit — Board deciding unnecessary to answer question as to professional status of nurses — No error in law or, if any, not so patently unreasonable as to warrant judicial review.
Constitutional law — Charter of Rights — Fundamental freedoms — Freedom of association — Decertification of NSNU as bargaining agent for registered nurses employed by DEVCO not in violation of nurses' freedom of association Right to belong to specific bargaining unit dependent upon status of right to collective bargaining — Right to bargain collectively not guaranteed by Charter, s. 2(d).
Constitutional law — Charter of Rights — Equality rights — NSNU certified as agent for bargaining unit of registered nurses employed by DEVCO — 12 nurses out of 3,400 employees, at 5 locations — Board revoking certification on ground inappropriate to have such small, scattered unit — No violation of equality rights as no discrimination in relation to personal characteristics and no disadvantages nor loss of advantages in comparison with other groups.
The Nova Scotia Nurses Union, DEVCO Local (NSNU) had been certified for a bargaining unit composed of twelve registered nurses employed by the respondent DEVCO. In a decision dated September 30, 1987, the Canada Labour Rela tions Board directed the revocation of that certification and the integration of these nurses into a bargaining unit with the supervisory group of CUPE. The Board found that a twelve- person bargaining unit scattered across the employer's opera tion was inappropiate for collective bargaining in an industrial milieu of 3,400 employees. It declined to answer the question raised by the NSNU as to the "professional employee" status of Registered Nurses under the Canada Labour Code. This was a section 28 application to review and set aside that decision on the grounds that it was a violation of the nurses' freedom of association and equality rights guaranteed by the Charter. It was also argued that the Board had declined to exercise its jurisdiction by refusing to make a decision as to professional status and by making a finding of inappropriateness based solely on the numerical size of the unit.
Held, the application should be dismissed.
Per MacGuigan J.A.: The Board had not declined to exercise its jurisdiction. The finding of inappropriateness was not based solely on numbers: the Board saw the numbers as so dispropor tionate as to amount to a qualitative rather than just a quan titative difference. It also thought it relevant that the twelve nurses were scattered throughout five locations, with no more than three at any location. The finding was within the Board's
discretion and even if it was an error in law, it was not so patently unreasonable as to be open to judicial review.
The Board was entitled to decide that it was unnecessary for it to determine the professional employee status of registered nurses under the Code once it had found that, in any event, the unit was inappropriate for collective bargaining.
The applicant's argument, that by depriving the nurses of their own bargaining unit the Board had infringed their free dom of association, was without merit. The right to belong to a specific bargaining unit was dependent upon the status of the right to collective bargaining. However, it has been decided by this Court (in Public Service Alliance of Canada v. The Queen, [1984] 2 F.C. 889, affirmed by the Supreme Court of Canada with three of the six judges taking the same view of the law as did this Court), that the right to bargain collectively was not guaranteed by paragraph 2(d) of the Charter. This Court accordingly remains bound by its own earlier decision.
The applicant's equality rights were not violated. The nursing employees suffered no discrimination in relation to their per sonal characteristics and had neither disadvantages nor loss of advantages in comparison with other groups. Since the Board had not based its decision on numbers only, the argument that the nurses had been discriminated against on that basis is rejected.
Per Marceau J.A.: There was no merit to the argument that by declining to make a definite ruling as to the professional status of the nurses, the Board in effect refused to exercise its jurisdiction. Once it had determined that the nurses could not form an appropriate unit, the issue of professional status had become purely academic.
Neither the freedom of association of employees in the situation of the nurses here, nor their right of equality before the law could in any way be infringed by a legal and bona fide application by the Board of paragraph 125(3)(a) of the Code. In any event, this Court has previously held that recourse to a section 28 application cannot be had to attack the constitution ality of the provisions of law the tribunal whose decision is under review is called upon to apply. The reason is that this Court has not been given the power to make a declaration of unconstitutionality or inoperativeness in disposing of an application for judicial review.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
Canada Labour Code, R.S.C. 1970, c. L-1, ss. 118 (as am. by S.C. 1972, c. 18, s. 1), 119 (as am. idem), 122 (as am. by S.C. 1972, c. 18, s. 1; 1977-78, c. 27, s. 43), 125 (as am. by S.C. 1972, c. 18, s. 1) (1),(2),(3)(a).
Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44], ss. 1, 2(d), 15(1).
Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28. Industrial Relations and Disputes Investigation Act, R.S.C. 1952, c. 152.
CASES JUDICIALLY CONSIDERED
AFFIRMED:
Cape Breton Development Corporation and United Mine Workers of America, District No. 26, et al. (1987), 72 di 73; 80 CLLC 14,020 (CLRB).
FOLLOWED:
Public Service Alliance of Canada v. The Queen, [1984] 2 F.C. 889; (1984), 11 D.L.R. (4th) 387; 84 CLLC 10,054; 11 C.R.R. 97; 55 N.R. 285 (C.A.); affd [1987] 1 S.C.R. 424; (1987), 38 D.L.R. (4th) 249; 87 CLLC 14,022; 32 C.R.R. 114; [1987] D.L.Q. 230; 75 N.R. 161.
APPLIED:
Syndicat des employes de production du Quebec et de l'Acadie v. Canada Labour Relations Board, [1984] 2 S.C.R. 412; 14 D.L.R. (4th) 457; (1984), 55 N.R. 321; 14 Admin. L.R. 72; 84 CLLC 14,069; Reference Re Public Service Employee Relations Act (Alta.), [1987] 1 S.C.R. 313; (1987), 78 A.R. 1; 38 D.L.R. (4th) 161; [1987] 3 W.W.R. 577; 51 Alta. L.R. (2d) 97; 87 CLLC 14,021; [1987] D.L.Q. 225; 74 N.R. 99; Andrews v. Law Society of British Columbia, [1989] 1 S.C.R. 143; (1989), 56 D.L.R. (4th) 1; [1989] 2 W.W.R. 289; 34 B.C.L.R. (2d) 273; 36 C.R.R. 193; 91 N.R. 255.
REFERRED TO:
Assoc. of Engineers of Bell Canada v. Bell Canada (1976), 76 CLLC 469; [1976] 1 Can. L.R.R.B. 345; Canada (Attorney General) v. Vincer, [1988] 1 F.C. 714; (1987), 46 D.L.R. (4th) 165; 82 N.R. 352 (C.A.); Canada (Attorney General) v. Sirois (1988), 90 N.R. 39 (F.C.A.).
COUNSEL:
Susan D. Coen for applicant.
Diane Pothier for Canada Labour Relations Board.
Brian G. Johnston for Cape Breton Develop ment Corp.
SOLICITORS:
Goldberg, MacDonald, Halifax, for applicant.
Patterson Kitz, Truro, Nova Scotia, for Canada Labour Relations Board.
McInnes Cooper & Robertson, Halifax, for Cape Breton Development Corp.
The following are the reasons for judgment rendered in English by
MARCEAU J.A.: I readily agree with my brother MacGuigan that this section 28 application cannot succeed.
First, I think, as he does, that there is no merit in the contention that, by declining to make a definite ruling as to the professional status of the nurses, the Board would have acted contrary to the directions of paragraph 125(3)(a) of its enabling statute and in a manner which amounted to a refusal to exercise its jurisdiction.' Once the Board had established that the 12 nurse employees, scat tered throughout five locations, could not, in any event, form an appropriate bargaining unit, this issue of professional status had become purely academic and of no consequence. A pronounce ment on it was completely useless.
Second, I see no merit either in the alternative Charter [Canadian Charter of Rights and Free doms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act, 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44]] argument. As I understand this argument, it is to the effect that, even assuming that the Board has acted in accordance with the "unless clause" in the second part of paragraph 125(3)(a) of the Code, its deci sion would nevertheless be without foundation, because that special clause would have to be declared inoperative as being in violation of para-
' 1 repeat for convenience paragraph 125(3)(a) of the Canada Labour Code [R.S.C. 1970, c. L-1 (as am. by S.C. 1972, c. 18, s. 1)]:
125. ...
(3) Where a trade union applies under section 124 for
certification as the bargaining agent for a unit comprised of or including professional employees, the Board, subject to subsection (2),
(a) shall determine that the unit appropriate for collective bargaining is a unit comprised of only professional employees, unless such a unit would not otherwise be appropriate for collective bargaining;
graph 2(d) and subsection 15(1) of the Charter. 2 If the argument were relevant, I would have, as indicated by my colleague, to remain consistent with the decision of this Court in Public Service Alliance of Canada v. The Queen, [1984] 2 F.C. 889. My opinion is definitely that neither the freedom of association of employees in the situa tion of the nurses here, nor their right of equality before the law, can in any way be infringed by a legal and bona fide application by the Board of paragraph 125(3)(a) of the Code as it now stands. But, in any event, I do not think that, in the present application, an argument to that effect was available to the applicant. This Court has in vari ous cases taken the position that the particular nature of the recourse given by section 28 of the Federal Court Act [R.S.C. 1970 (2nd Supp.), c. 10] did not allow for an attack on the constitution ality of the provisions of law the tribunal whose decision is under review is called upon to apply, the reason being that this Court has not been given the power to make a declaration of unconstitution- ality or inoperativeness in disposing of such a recourse. (See Canada (Attorney General) v. Sirois (1988), 90 N.R. 39 (F.C.A.) and Canada (Attorney General) v. Vincer, [1988] 1 F.C. 714 (C.A.)).
* * *
The following are the reasons for judgment rendered in English by
MACGUIGAN J.A.: This section 28 application is taken against a decision of the Canada Labour Relations Board ("CLRB" or "Board") [Cape Breton Development Corporation and United Mine Workers of America, District No. 26, et al. (1987), 72 di 73] dated September 30, 1987, with reasons dated November 27, 1987, by which the Board directed the revocation of the applicant's existing certification as bargaining agent for a bargaining unit composed of twelve registered nurses employed by the respondent DEVCO and
2 The applicant Union, in its written representations, does not openly seek a declaration. But it clarified its position in that respect during the hearing. Obviously, since, at this point of the argument, it was assumed that the Board had acted in strict conformity with the applicable provision of its enabling statute, its decision could not be set aside on the basis of the Charter without a finding that the provision on which it was founded was inoperative.
the integration of these nurses into a bargaining unit with the supervisory group of the respondent CUPS.
The applicant contended that the Board's denial to the nurses of certification as professional employees under subsection 125(3) of the Canada Labour Code ("Code") is a violation of the nurses' freedom of association guaranteed by paragraph 2(d) of the Canadian Charter of Rights and Free doms and of their right of equality guaranteed by subsection 15(1) of the Charter.
The CLRB has the power under section 119 [as am. by S.C. 1972, c. 18, s. 1] of the Code to "review, rescind, amend, alter or vary" its original 1977 certification. Its power to determine appro priate bargaining units is found in sections 118 [as am. idem] and 125 of the Code, the relevant parts of which are as follows:
118. The Board has, in relation to any proceeding before it, power
. • •
(p) to decide for all purposes of this Part any question that may arise in the proceeding, including, without restricting the generality of the foregoing, any question as to whether
. • .
(v) a group of employees is a unit appropriate for collec tive bargaining,
• • •
125. (1) Where a trade union applies under section 124 for certification as the bargaining agent for a unit that the trade union considers appropriate for collective bargaining, the Board shall determine the unit that, in the opinion of the Board, is appropriate for collective bargaining.
(2) In determining whether a unit constitutes a unit that is appropriate for collective bargaining, the Board may include any employees in or exclude any employees from the unit proposed by the trade union.
(3) Where a trade union applies under section 124 for certification as the bargaining agent for a unit comprised of or including professional employees, the Board, subject to subsec tion (2),
(a) shall determine that the unit appropriate for collective bargaining is a unit comprised of only professional employees, unless such a unit would not otherwise be appro priate for collective bargaining;
(b) may determine that professional employees of more than one profession be included in the unit; and
(c) may determine that employees performing the functions, but lacking the qualifications of a professional employee, be included in the unit.
Under the predecessor legislation, the Industrial Relations and Disputes Investigation Act [R.S.C. 1952, c. 152], all professionals were excluded from the definition of employee, but with the new Part V of the Code in 1972 (S.C. 1972, c. 18) the exclusion of professionals was removed, and Par liament enacted in paragraph 125(3)(a) what the Board has called "a clear legislative preference for units comprising only professional employees": Assoc. of Engineers of Bell Canada v. Bell Canada (1976), 76 CLLC 469, at page 473, Professional employees are defined in section 107 [as am. by S.C. 1972, c. 18, s. 1] of the Code, but nothing turns on that definition in the present case.
The heart of the CLRB decision in this case is as follows, at pages 91-93:
After considering all of the information before it, the Board released the following decision regarding the NSNU bargain ing unit on September 30, 1987:
"The Nurses' unit is to be integrated with the supervisory unit represented by CUPS. In making this determination, the Board found that a unit comprising only twelve persons was simply not appropriate in an industrial setting of some 3,000 employees. In arriving at this conclusion, the Board panel declined to make a ruling as to whether Registered Nurses are professional employees within the meaning of the Code, as it found that this issue was academic in view of the circumstances which prevail at Devco."
The reasons for this decision have more to do with appropriate ness than with professional employee status under the Code. Clearly, the Board has a discretion under section 125(3) to find that a bargaining unit of professional employees is not, on its own, appropriate for collective bargaining. Keeping in mind that the purpose of this whole exercise was to rationalize all of the bargaining unit structures at Devco's Coal Division, the Board asked itself the obvious questions. Even if these twelve nurses were found to be professional employees within the meaning of the Code, are they in the circumstances before us, appropriate for collective bargaining as a separate bargaining unit?
Aside from the purported professional status, was there any thing about this small group of employees that justified sepa rate bargaining rights, separate right to strike, separate con tract administration, and separate conditions of employment? Since this review commenced in January 1987, eight other bargaining units had lost their separate bargaining rights. Most of those units had existed at Devco or its predecessors for many years before the nurses unit came into existence in 1977. All of those units were larger than the nurses unit and most of them,
like the nurses, could be identified by the specialized skills and knowledge applied by the specific group of employees. Having eliminated those separate bargaining units as no longer being appropriate for collective bargaining in Devco's industrial set ting, the Board searched to see if there was something to justify the existence of this small nurses unit. The unanimous answer of the Board was that there was nothing. Certainly, the empha sis by the NSNU about the neutrality of the nurses and the need for confidentiality did not convince us that the NSNU was the only trade union that was capable of representing the nurses at Devco. No matter how the Board viewed the situa tion, the answer was that a 12-person bargaining unit, and particularly one where the 12 members are scattered across the employer's operations, is simply not appropriate for collective bargaining in an industrial milieu of 3 400 employees.
For those reasons, the Board decided that it was unnecessary to answer the question raised by the NSNU about the "profes- sional employee" status of Registered Nurses under the Code. Before leaving this topic though we would like to point out that this panel of the Board agrees with Devco's submission about Parliament's intentions when it enacted section 125(3). There can be little doubt that Parliament was responding to the pressures of the day in 1973 to extend collective bargaining privileges to professional groups who were therefore excluded from the Code. With that in mind, we concur with Devco's submission that section 125(3) is an anomaly within the overall scheme of the Code and that the Board should give this section a restrictive interpretation to ensure that it is not used to circumvent all of the established rules and criteria normally applicable to the appropriateness of bargaining units. Before extending the benefits of section 125(3), the Board must be convinced that those seeking the advantages of the section are truly professional employees within the meaning and intent of the legislation and also that they are in fact practising their profession at the given time.
Under section 122 [as am. by S.C. 1972, c. 18, s. 1; 1977-78, c. 27, s. 43] of the Code decisions or orders of the Board may be reviewed only in accordance with paragraph 28(1)(a) of the Feder al Court Act.
A preliminary issue arose as to whether the Board declined jurisdiction by refusing to apply paragraph 125(3)(a) of its statute. The applicant argued that, on the basis of the "clear legislative preference for units comprising only professional employees" adopted by the Board in the Bell Canada case, supra, the Board must first make a decision as to professional status, which it failed to do. Moreover, it urged that no finding of inappro- priateness as a bargaining unit could be made solely on the basis of the numerical size of the unit, since that would be to employ a standard appropri-
ate under subsection 125(1) but not under subsec tion 125(3).
As I read the CLRB decision, it did not purport to find a separate bargaining unit inappropriate solely because of numbers, and certainly not because of "mere numbers". It seems to me that the Board saw the numbers (12 in 3,400) as so disproportionate as to be a qualitative rather than just a quantitative difference. In addition, the Board also thought it relevant that the twelve nurses were scattered throughout five locations, with no more than three at any location. To my mind, moreover, even a decision in terms of mere numbers would not be an error in law, because there is no statutory requirement that the factors considered under subsection 125(3) should be dif ferent from those taken into account under subsec tion 125(1). Both are left to the discretion of the Board. Finally, even if the Board had committed an error of law, such an error would appear to be within the Board's jurisdiction and indeed close to the very core of the Board's expertise. It would be a "mere" error of law, not a "patently unreason able" one that would be subject to judicial review: Syndicat des employes de production du Quebec et de l'Acadie v. Canada Labour Relations Board, [1984] 2 S.C.R. 412.
In my view what the CLRB held was that it was unnecessary for it to decide the professional employee status of registered nurses under the Code because the unit in question in this instance, even if composed of professional employees, would not otherwise be appropriate for collective bar gaining. It is true that the Board muddied the waters somewhat by its digression "Before leaving this topic" and particularly by the sentence begin- ing "Before extending the benefits of section 125(3)". However, I interpret "the benefits of section 125(3)" as referring to the principal clause in paragraph (a) of that subsection and not to the whole of that paragraph. The Board was, I believe,
merely following the judicial tradition of "assum- ing without deciding" with respect to professional status. That it was entitled to do within its jurisdiction.
Paragraph 2(d) of the Charter reads as follows:
2. Everyone has the following fundamental freedoms:
. . .
(d) freedom of association.
The applicant argued that this provision of the Charter guarantees the freedom to join a union, which is merely a particular "association group" and to pursue the collective interests of its mem bership. In the case at bar the nurses had previous ly joined a union and formed a bargaining unit approved by the CLRB, through which they suc cessfully pursued their collective interests for a decade: by depriving them of own bargaining unit, the Board had infringed the freedom of the nurses to associate with other nurses.
The leading cases on the freedom of association in relation to labour relations are two Supreme Court of Canada decisions announced on the same day: Reference Re Public Service Employee Rela tions Act (Alta.), [1987] 1 S.C.R. 313; and PSAC v. Canada, [1987] 1 S.C.R. 424. In those cases three of the six participating judges held that the guarantee of freedom of association in paragraph 2(d) of the Charter does not include a guarantee either of the right to bargain collectively or of the right to strike, two judges held that it included both guarantees, and the sixth held that it did not include a guarantee of the right to strike (which was all that was necessary for decision in those cases) but left open the possibility that other aspects of collective bargaining may be Charter- protected. It would therefore appear that, on the law as decided by the Supreme Court of Canada, the issue in the case at bar is open.
However, the issue has already been decided in this Court in Public Service Alliance of Canada v. The Queen, [1984] 2 F.C. 889, the case from which the appeal was taken to the Supreme Court
in its second decision above. In that case Mahoney J.A. said, at page 895 F.C.:
I do not think it desirable to attempt to catalogue the rights and immunities inherent in a trade union's guaranteed freedom of association. Clearly, collective bargaining is, or should be, the primary means by which organized labour expects to attain its principal object: the economic betterment of its membership. However fundamental, it remains a means and, as such, the right to bargain collectively is not guaranteed by paragraph 2(d) of the Charter ....
Marceau J.A. in his concurring reasons took the same point of view. Since the appeal from this Court was dismissed by the Supreme Court, with three of the six judges taking the same view of the law as this Court, I believe I continue to be bound by this Court's decision. The applicant's argument on this question must therefore fail, since any right to belong to specific bargaining units is dependent upon the status of the right to collective bargaining itself.
In the circumstances no issue arises as to section 1 in relation to the freedom of association.
The applicant further argued that the twelve nursing employees were discriminated against in violation of subsection 15(1) of the Charter, which reads as follows:
15. (1) Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.
The only authoritative interpretation of this sub section is that in Andrews v. Law Society of British Columbia, [1989] 1 S.C.R. 143, in which McIntyre J. on this point expressed the opinion of a unanimous Supreme Court, at pages 174-175:
I would say then that discrimination may be described as a distinction, whether intentional or not but based on grounds relating to personal characteristics of the individual or group, which has the effect of imposing burdens, obligations, or disad vantages on such individual or group not imposed upon others, or which withholds or limits access to opportunities, benefits, and advantages available to other members of society. Distinc tions based on personal characteristics attributed to an individual solely on the basis of association with a group will rarely escape the charge of discrimination, while those based on an individual's merits and capacities will rarely be so classed.
This test requires (1) a distinction based on grounds relating to the personal characteristics of the group (2) which has the effect of imposing burdens, obligations, or disadvantages on the group or limiting its access to opportunities, ben efits and advantages available to other groups.
In the case at bar the nursing employees suf fered from no discrimination in relation to their personal characteristics and had neither disadvan tages nor loss of advantages in comparison with other groups. All professional groups are treated in the same way under paragraph 125(3)(a) of the Code, including being subject to the same "unless" clause. This is thus, in McIntyre J.'s terminology, a distinction based on the capacity of the group.
The applicant attempted to make much of the alleged fact that the nurses have, merely because of their numbers, been stripped of their bargaining unit status and the opportunity to establish them selves as an independent bargaining unit under paragraph 125(3)(a). Presumably this would be discrimination under the paragraph as applied rather than as written. But I have already expressed the view that the CLRB did not base its decision upon "mere numbers". However, even if it had, it would not even constitute an error of law under the Code, let alone an act of discrimination under the Andrews test.
Since the applicant's challenge under subsection 15(1) fails, no issue arises under section 1.
It should finally be noted that none of the parties in this case made any argument to the Court in relation to the appropriateness of a chal lenge to constitutional jurisdiction on a section 28 application, rather than through an action for a declaration, so that it is unnecessary to address this issue.
The section 28 application should accordingly be dismissed.
HEALD J.A.: I agree.
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