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A-810-80
Halifax Longshoremen's Association, Local 269 of the International Longshoremen's Association (Applicant)
v.
David C. Nauss, Peter H. Roberts, Maritime Employers' Association and Canada Labour Rela tions Board (Respondents)
and
Deputy Attorney General of Canada
Court of Appeal, Thurlow C.J., Pratte J. and Lalande D.J.—Halifax, April 29; Ottawa, May 21, 1981.
Judicial review Labour relations Application to review and set aside a decision of the Canada Labour Relations Board ordering applicant to admit respondent Nauss as one of its members and to add respondent Roberts to the list of card men Applicant is a labour union which supplies longshore men to stevedoring companies Respondents are non-mem bers of the Union Whether the Board exceeded its jurisdic tion under the Canada Labour Code in giving the order Application allowed Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28 Canada Labour Code, R.S.C. 1970, c. L-1, as amended, ss. 121, 136.1, 161.1, 185(J), 187, 188, 189.
This is an application to review and set aside a decision of the Canada Labour Relations Board ordering the applicant to admit respondent Nauss into its membership and to add respondent Roberts to the list of its card men. It also ordered the applicant to prepare and post a set of rules for employment referral pursuant to section 161.1 of the Canada Labour Code which, according to the Board, it had contravened. The appli cant, a labour union, supplies longshoremen to stevedoring companies. In its operation it gives preference to its members, then to non-members who are card men. Neither Nauss nor Roberts was a member but Nauss was a card man. As a result of applicant's policy, they were denied membership. They filed complaints with the Board alleging that the applicant contra vened various sections of the Code. The issue is whether the Board exceeded its jurisdiction in making the orders relating to Nauss and Roberts.
Held, the application is allowed. The Board could, under section 189 of the Canada Labour Code, order the applicant to comply with section 161.1 and it could require the applicant to do or refrain from doing anything in order to remedy or counteract a consequence of the violation of that section. The orders relating to Nauss and Roberts were not made and could not have been made for that purpose. The exclusion of Nauss from the applicant and of Roberts from the ranks of the card
[1981] 2 F.C. at p. 828
men cc The third line from the top of the page is
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amended to read: "Also, per Thurlow C.J. and
Also, Lalande D.J.:"
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enact or establish such rules for the Union or to order that action not in accordance with them be taken. That is not to say that the Board cannot in a proper case order a union to admit a member. But the present is not a case of a union applying established rules in a manner that contravenes paragraph 185(f) of the Code. The order to admit Nauss to membership appears to have been made to discipline the Union rather than to remedy or counteract consequences of the only failure to comply with the law that had been found against it.
APPLICATION for judicial review. COUNSEL:
Gerald J. McConnell and R. F. Larkin for applicant.
D. Merlin Nunn, Q.C. and T. Roane for respondent David C. Nauss.
Yves Raic for respondent Maritime Employ ers' Association.
E. B. Durnford for respondent Canada Labour Relations Board.
SOLICITORS:
Kitz, Matheson, Green & MacIsaac, Halifax, for applicant.
Cox, Downie, Nunn & Goodfellow, Halifax, for respondent David C. Nauss.
Ogilvy, Renault, Montreal, for respondent Maritime Employers' Association.
McInnes, Cooper & Robertson, Halifax, for respondent Canada Labour Relations Board.
The following are the reasons for judgment rendered in English by
THURLOW C.J.: I have had an opportunity to read the reasons for judgment prepared by Mr. Justice Pratte and I agree with his conclusion that the part of the decision of the Canada Labour Relations Board which was attacked in this pro ceeding should be set aside. I am also in substan tial agreement with his reasons for reaching that conclusion.
The facts have been set out by Mr. Justice Pratte and I need not repeat them. The issue is whether the Canada Labour Relations Board
exceeded its jurisdiction under the Canada Labour Code, R.S.C. 1970, c. L-1, as amended, when it ordered the applicant Union to accept the respond ent Nauss into its membership and to add the respondent Roberts to its list of card men.
Two provisions of the Code were invoked as justifying the order, viz. section 121 and section 189. The former, which is found among provisions dealing with the general powers of the Board, in my opinion, is merely an authorization to do what is necessary or incidental to the effective use of other powers and adds nothing to what, if any thing, the Board might properly order r under sec tion 189. That section provides:
189. Where, under section 188, the Board determines that a party to a complaint has failed to comply with subsection 124(4) or section 136.1, 148, 161.1, 184, 185 or 186, the Board may, by order, require the party to comply with that subsection or section and may
(a) in respect of a failure to comply with section 136.1, require a trade union to take and carry on on behalf of any employee affected by the failure or to assist any such employee to take and carry on such action or proceeding as the Board considers that the union ought to have taken and carried on on the employee's behalf or ought to have assisted the employee to take and carry on;
(a.1) in respect of a failure to comply with subsection 124(4) or 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 (j), by order, require an employer to
(i) employ, continue to employ or permit to return to the duties of his employment any employee or other person whom the employer or any person acting on behalf of the employer has refused to employ or continue to employ or has suspended or discharged for a reason that is prohibited by one of those paragraphs,
(ii) pay to any employee or other person affected by that failure 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 that employee or other person, and
(iii) rescind any disciplinary action taken in respect of and pay compensation to any employee affected by that failure, not exceeding such sum as, in the opinion of the Board, is equivalent to any financial or other penalty imposed on the employee by the employer;
(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(/) 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,
and, for the purpose of ensuring the fulfilment of the objectives of this Part, the Board may, in respect of any failure to comply with any provision to which this section applies and in addition to or in lieu of any other order that the Board is authorized to make under this section, by order, require an employer or a trade union to do or refrain from doing any thing that it is equitable to require the employer or trade union to do or refrain from doing in order to remedy or counteract any consequence of such failure to comply that is adverse to the fulfilment of those objectives.
It will be observed that this section authorizes the Board in respect of violations of the provisions mentioned to:
(1) require a trade union to comply with the provision that has been violated,
(2) make specific types of orders in respect of violations of certain particular provisions not including section 161.1, and
(3) for the purpose of ensuring fulfilment of the objectives of Part V of the Code in addition to or in lieu of any other order that the Board is authorized to make under the section, require a "union to do ... any thing that it is equitable to require the ... union to do ... in order to remedy or counteract any consequence of such failure to comply that is adverse to the fulfil ment of the objectives."
This is undoubtedly a broad power, one that leaves room for the exercise by the Board of ingenuity in finding and prescribing remedies that fit particular situations. But it is not so broad as to authorize the Board, as the Board held, to "take such action as we judge necessary or appropriate to undo what has been done and to achieve objec tives of the Code". What the Board may order is limited, as it seems to me, by what "it is equitable to require" the union to do "in order to remedy or counteract any consequence of' the "failure to
comply" that is adverse to the fulfilment of the objectives of Part V. The "failure to comply" refers to the previous wording "any failure to comply with any provision to which this section applies".
The Board's findings appear from the following passages from its decision:
We find the union has contravened section 161.1 in that it has not established rules and posted them as required. We find those rules must necessarily include rules for attaining union membership and if those rules give priority to card men, which we think reasonable, they must necessarily contain rules against which a card man may know how he keeps or establishes his place on the priority list from time to time. All these rules in themselves must be fair and non-discriminatory. Section 161.1(1) requires a union, once having established rules, to apply them fairly and without discrimination. In Keith Sheedy, supra, we said "Not having any rules it cannot be said they are applied fairly and without discrimination as required by section 161.1(1)" (pp. 405 and 14,288). The same is true here. We need not find Nauss was singled out for special treatment. We must find whether the rules were applied fairly and without discrimination and that is a continuous process.
After an extensive quotation from its reasons in the Keith Sheedy case the Board continued:
We find there has been a failure to comply with section 161.1(1).
Because we consider membership rules to be an integral part of the rules for the referral to employment we do not consider it necessary to make any finding with respect to section 185(f) where Nauss was not singled out for any special treatment. With respect to section 136.1 and the duty of fair representa tion we do not consider it to be particularly apposite for this situation. We wish to state we do not find the negotiation of certain preferential benefits for union members, being those persons attached to the industry, contrary to this section. Nor do we find the union breached its duty in any respect other than where acting contrary to Article 15 (Rules of Dispatch) was the same activity on which the complaint under section 161.1 was based. We consider that having made a finding of a contraven tion of section 161.1 we need not be more specific in consider ing section 136.1.
It will be observed that while the Board found that the applicant Union had breached all three subsections of section 161.1 in failing to establish and post rules for the making of referrals of per sons for employment and in failing to apply such rules without discrimination, the Board did not
find that the Union had breached in any other way its obligation under section 136.1 to represent, fairly and without discrimination, all employees in the bargaining unit. Nor did the Board find that the Union had violated paragraph 185(f) by deny ing membership to Nauss or Roberts by applying to either of them in a discriminatory manner the membership rules of the Union. The only order therefore that the Board could properly make under section 189 (apart from an order to comply with section 161.1) was an order to the Union to do any thing that it would be equitable to require the Union to do to remedy or counteract any consequence of its failure to establish and post referral rules and to apply them fairly and without discrimination.
It is not difficult to conceive of situations in which an employee may have been unfairly, or otherwise by reason of discrimination, deprived of an opportunity, which he might otherwise have had, to work or to work overtime or to work a convenient shift. In such situations it may, depend ing on the circumstances, be equitable to require the union to make up to the employee the loss he has suffered by giving him the first opportunities that arise of the kind he has missed. If that were done, the effect would be to remedy the conse quence of the union's failure to comply with sec tion 161.1. A further order designed to "coun- teract" any continuing consequence might also be appropriate. There may be other kinds of remedies as well, such as an order to pay the employee's loss, that might not be inappropriate.
But I do not think that, in the situation found by the Board, it can be said that it was equitable either to persons who, under such membership rules as the Union had, would have had priority over Nauss for admission to membership, or to the Union itself to order the Union to admit Nauss. The Union is entitled to establish and follow its own membership rules. It is not for the Board to enact or establish such rules for the Union or to order that action not in accordance with them be
taken. That is not to say that the Board cannot in a proper case order a union to admit a member. But the present is not a case of a union applying established rules in a manner that contravenes paragraph 185(f).
Nor do I think that the order for the admission of Nauss to membership in the Union can be regarded as an apt or appropriate measure to remedy or counteract any consequence that had resulted to Nauss or to anyone else by reason of the Union's failure to establish and post referral rules and to apply them fairly and without dis crimination. The finding of failure to comply with section 161.1 is couched in the most general of terms and there is no finding that Nauss suffered any specific consequence or loss by reason of such failure. In this situation to order the Union to admit him to membership does not appear either to be related to the violation of section 161.1 or to be a remedy for any consequence that resulted to Nauss from the violation. Moreover, in a passage which immediately precedes the direction to admit Nauss, the Board said:
In this case it is necessary to bring home to the union and those using its employment referral system the seriousness of its task and the shoddy manner in which it has been conducting its affairs. We propose to do this by directing the following:
In the circumstances the order to admit Nauss to membership appears to have been made to disci pline the Union rather than to remedy or coun teract consequences of the only failure to comply with the law that had been found against it.
I am accordingly of the view that the Board exceeded its jurisdiction in ordering the applicant Union to admit Nauss into its membership. For the like reasons I am of the opinion that the Board also exceeded its jurisdiction in requiring the applicant Union to add Roberts to its list of card men. Those portions of the Board's decision should accordingly be set aside.
The following are the reasons for judgment rendered in English by
PRATTE J.: This is an application under section 28 of the Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, to review and set aside a decision of the Canada Labour Relations Board.
The applicant is a labour union representing longshoremen working in the Port of Halifax. It entered into a collective agreement with the Mari time Employers' Association, one of the respond ents, which represents the various companies employing stevedores in that Port. Under the agreement, the applicant has the responsibility of operating a hiring hall through which longshore men are supplied to the various companies that need their services. In the operation of that hiring hall, the applicant gives the preference to its own members; when union members are not available to meet the requirements of the stevedoring com panies, the work is offered to non-union men, and, among them, priority is given to a group of men designated as "card men" because they have bought from the applicant Union a card identify ing them as regular part-time longshoremen.
Early in 1980, the respondents Nauss and Rob- erts filed complaints with the Board alleging that the applicant had contravened various sections of the Canada Labour Code. Both were non-union longshoremen who wanted to become members of the applicant; Nauss was a card man while Rob- erts did not even hold a card. They were the victims of the policy of the applicant to admit very few new members and to restrict the number of card men. They alleged that the applicant had breached sections 136.1, 161.1 and paragraph 185(f) of the Code.'
' Those provisions read as follows:
136.1 Where a trade union is the bargaining agent for a bargaining unit, the trade union and every representative of the trade union shall represent, fairly and without discrimi nation, all employees in the bargaining unit.
161.1 (1) Where, pursuant to a collective agreement, a trade union is engaged in the referral of persons to employ ment, it shall apply, fairly and without discrimination, rules established by the trade union for the purpose of making the referral.
(2) Rules applied by a trade union pursuant to subsection (1) shall be kept posted in a conspicuous place in every area
After a lengthy hearing of those complaints, the Board issued a written decision in which it found
A. that the applicant had contravened section 161.1 by failing to establish and post rules gov erning the referral of longshoremen to employ ment;
B. that it was unnecessary to make any finding with respect to paragraph 185(f) since there was no evidence that Nauss and Roberts had been singled out for special treatment; and
C. that section 136.1 was not "particularly apposite for this situation" and that, in view of the finding that section 161.1 had been breached, there was no need to' be more specific in considering section 136.1.
Having made those findings, the Board directed
1. that Nauss be admitted as a member of the applicant and that Roberts be added to the list of card men; and
2. that, in order to achieve compliance with section 161.1 for the future, the applicant Union prepare and post, before March 1, 1981, a set of rules for employment referral, including rules governing admittance to union membership and issuance of cards.
That is the decision against which this section 28 application is directed.
The applicant's only ground of attack is that the Board exceeded its jurisdiction in ordering that the
of premises occupied by the trade union in which persons seeking referral normally gather.
(3) Where a trade union to which subsection (1) applies has not established, before the coming into force of this section, rules for the purpose of making the referral referred to in that subsection, the trade union shall establish rules for that purpose forthwith after the coming into force of this section.
(4) In this section, "referral" includes assignment, desig nation, dispatching, scheduling and selection.
185. No trade union and no person acting on behalf of a trade union shall
(f) expel or suspend an employee from membership in the trade union or deny membership in the trade union to an employee by applying to him in a discriminatory manner the membership rules of the trade union;
respondent Nauss be admitted as one of its mem bers and that the name of the respondent Roberts be added to the list of card men. Those were not, says the applicant, orders that the Board was authorized to make under the Code.
It is common ground that the complaints of the respondents Nauss and Roberts were made under section 187 of the Code. The Board had the duty, pursuant to section 188, to hear and determine them and was empowered to make the orders specified in section 189. That section reads in part as follows:
189. Where, under section 188, the Board determines that a party to a complaint has failed to comply with ... section 136.1 ... 161.1 ... 185 ... the Board may, by order, require the party to comply with that ... section .. .
and, for the purpose of ensuring the fulfilment of the objectives of this Part, the Board may, in respect of any failure to comply with any provision to which this section applies and in addition to or in lieu of any other order that the Board is authorized to make under this section, by order, require an employer or a trade union to do or refrain from doing any thing that it is equitable to require the employer or trade union to do or refrain from doing in order to remedy or counteract any consequence of such failure to comply that is adverse to the fulfilment of those objectives.
In this case, the Board determined that the applicant had contravened section 161.1 by failing to establish and post rules of referral; the Board did not determine that the applicant had contra vened any other provision of the Code. It followed that, under section 189, the Board could order the applicant to comply with section 161.1 and that it could, in addition, require the applicant to do or refrain from doing any thing in order to remedy or counteract a consequence of the violation of that section. It also followed that the Board could make no other order than those.
As the Board's directives relating to the respondents Nauss and Roberts obviously did not order compliance with section 161.1, the sole ques tion to be answered is whether those directives required the applicant to do or refrain from doing something in order to remedy or counteract a consequence of the violation of that section. I am of the view that those orders were not made and could not have been made for that purpose. The exclusion of Nauss from the applicant and of Roberts from the ranks of the card men could not
conceivably flow from the absence of rules con cerning referral to employment. Moreover, the Board did not purport to make those directives in order to remedy or counteract a consequence of the violation of section 161.1; the Board made those directives for the avowed purpose of bringing home "to the union ... the seriousness of its task and the shoddy manner in which it has been conducting its affairs" on the assumption, which was expressly stated in the decision under attack, that the Board could, under sections 121 and 189, pronounce any order that it considered appropriate to achieve the objectives of the Code. I have already indicated that I take a narrower view of the Board's powers under section 189; I am also of opinion that section 121 does not add anything substantial to those powers.
For those reasons, I am of the view that the Board exceeded its jurisdiction when it issued directives relating to the respondents Nauss and Roberts. I would, therefore, allow the application and set aside those parts of the decision under attack.
* * *
LALANDE D.J. concurred.
Page 837
The concurrence of Lalande D.J. is deleted from the end of the case and inserted at the bottom of page 833 following the reasons for judgment of Thurlow C.J.
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