Judgments

Decision Information

Decision Content

A-312-90
Shur Gain Division, Canada Packers Inc. (Applicant)
v.
National Automobile, Aerospace and Agricultural Implement Workers Union of Canada (CAW- Canada) (Respondent)
INDEXED AS: SHUR GAIN DIVISION CANADA PACKERS INC. V. NATIONAL AUTOMOBILE, AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERS UNION OF CANADA (C.A.)
Court of Appeal, Pratte, Stone and Desjardins JJ.A.—Halifax, May 21; Ottawa, October 3, 1991.
Constitutional law — Distribution of powers — Labour rela tions — Whether Nova Scotia feed mill within CLRB jurisdic tion — Review of cases, authors on Constitution Act, 1867, s. 92(10) — Distinction between "work" and "undertaking" — Whether undertakings conducted at federal work subject to Code — Detailed analysis of Canadian Wheat Board Act — Whether Canada Labour Code, s. 2(h) ultra vires Parliament as to "undertaking" — Federal legislative jurisdiction over work including regulation of construction, repairs, alterations and management — Parliament having power to legislate as to labour relations of undertaking having no activity other than operating federal work.
Labour relations — S. 28 application to review certification by CLRB of union to represent workers at Nova Scotia feed mill — Whether Board exceeding jurisdiction — Whether mill work declared for general advantage of Canada under Cana- dian Wheat Board Act, s. 76 — Whether mill's labour relations within federal jurisdiction — Whether Act applies across Canada — 50% of capital cost of new plant for fish feed pro duction — Fish feed not containing grain — Whether mill more of fish mill, therefore outside contemplation of Act — Court bound by Board finding milling grain for livestock feed mill's primary and actual use — Whether Canada Labour Code, s. 2(h) ultra vires Parliament as to "undertaking" — Work of employees in question having direct, close connection with operation of federal work — Applicant's employees, other than those operating mill, remaining under provincial jurisdiction.
This was a section 28 application against a Canada Labour Relations Board decision certifying the respondent as bargain ing agent for seventeen employees directly involved in the operations of the applicant's plant at Truro, Nova Scotia.
The mill produces feed and a feed additive from grain and other commodities. The grain comes from Ontario and the West. Livestock feed is now the main product of the mill, but fish feed for aquaculture is a growing business. Fifty percent of the capital cost of Shur Gain's new mill in Truro is related to fish feed production. The livestock feed is 60% grain, the additive 5% grain, and fish feed is made without grain. The Board held that section 76 of the Canadian Wheat Board Act made the mill a federal work and that it therefore had jurisdic tion over its labour relations. The applicant argues that its plant is not a feed mill and that the Act applies only to western mills.
Held, the application should be dismissed.
Per Desjardins J.A.: Section 76 of the Canadian Wheat Board Act declares all feed mills to be works for the general advantage of Canada. Under subsection 8(1) of the Interpreta tion Act, an enactment applies to all of Canada unless a con trary intention is expressed. Although Parts II, III, V, and sec tions of Part VI are expressly limited to the "designated area" of western Canada, there is no such limitation to section 76. While the Act does not define "feed mill", the Board correctly read the expression to mean a plant where grain is processed into animal feed and applied the deciding factor of the primary and actual use, not the intended use, of the building. The mill is therefore a work declared to be for the general advantage of Canada within paragraph 92(10)(c) of the Constitution Act, 1867.
The application, in paragraph 92(10)(a), of federal jurisdic tion to "undertakings" extending beyond a single province does not apply to works. Paragraph 2(h) of the Canada Labour Code, in so far as it purports to confer jurisdiction over under takings declared to be for the general advantage of Canada, is ultra vires. Commission du Salaire Minimum v. Bell Telephone Company of Canada which dealt with conditions of work of an undertaking, does not apply here. The power of Parliament to assume exclusive legislative jurisdiction over a work which would otherwise be wholly within provincial jurisdiction is an exceptional one. The Board erred in saying that federal juris diction over a work carries with it authority over the undertak ing operating the work; but it does include the regulation of the management of the work itself and the working conditions of those directly involved in the operation of the work. This bal-
kanizes labour relations in the Shur Gain undertaking, author ity over the other employees being provincial.
Per Pratte J.A. (Stone J.A. concurring): Most of the provi sions of the Act either apply by their terms to all of Canada or may be so extended. The case law of the Court holds that Par liament may legislate with respect to the labour relations of an undertaking operating a federal work in so far as concerns employees whose functions are closely related to the operation of that work.
STATUTES AND REGULATIONS JUDICIALLY CONSIDERED
An Act to Amend the Act incorporating "The Bell Tele phone Company of Canada", S.C. 1882, e. 95.
An Act to incorporate The Bell Telephone Company of Canada, S.C. 1880, c. 67.
An Act to amend the Railway Act, S.C. 1990, c. 6. Atomic Energy Control Act, R.S.C., 1985, c. A-16, s. 18. Bell Canada Act, S.C. 1987, c. 19, ss. 2, 5.
Canada Grain Act, R.S.C., 1985, c. G-10, ss. 2 (as am. by R.S.C., 1985 (4th Supp.), c. 37, s. 1), 3 (as am. idem, s. 2), 13, 55, 121(1).
Canada Labour Code, R.S.C., 1985, c. L-2, ss. 2(h), 4, 22.
Canadian National Railways Act, R.S.C., 1985, c. C-19, s. 18.
Canadian Wheat Board Act, R.S.C., 1985, c. C-24, ss. 2 (as am. by R.S.C., 1985 (4th Supp.), c. 38, s. 1), 3, 5, 6, 20(1), 23, 24, 25 (as am. idem, s. 7), 26, 28(j), 30, 32, 33, 34, 35, 40, 45, 47, 48(2), 76.
Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1) [R.S.C., 1985, Appendix II, No. 5], ss. 91(29), 92(10)(a),(b),(c), 92A(1)(c) (as enacted by Constitution Act, 1982, Schedule B, Canada Act 1982, 1982 c. 11 (U.K.) [R.S.C., 1985, Appendix Il, no. 44], s. 50).
Interpretation Act, R.S.C., 1985, c. I-21.
Labour Relations Act, R.S.O. 1980, c. 228.
List of Elevators in the Eastern Division Regulations, SOR/89-319.
Minimum Wage Act, R.S.Q. 1941, c. 164.
CASES JUDICIALLY CONSIDERED
NOT FOLLOWED:
Burns c. Cie du trust national Ltée, Montréal 500-09- 000728-857, 500-09-000731-851, Monet, Vallerant and Baudoin JJ., judgment dated 10/7/90, Que. C.A., not yet reported.
DISTINGUISHED:
Commission du Salaire Minimum v. Bell Telephone Com pany of Canada, [1966] S.C.R. 767; (1966), 59 D.L.R. (2d) 145; Bell Canada v. Quebec (Commission de la santé et de la sécurité du travail), [1988] 1 S.C.R. 749; (1988), 51 D.L.R. (4th) 161; 85 N.R. 295; 15 Q.A.C. 217.
CONSIDERED:
Cargill Grain Co. v. Canada (Labour Relations Board), [1990] 1 F.C. 511; (1989), 63 D.L.R. (4th) 174; 89 CLLC 14,053; 105 N.R. 1 (C.A.); Central Western Railway Corp. v. U.T.U., [1989] 2 F.C. 186; (1988), 47 D.L.R. (4th) 161; 1988, 84 N.R. 321 (C.A.); United Transporta tion Union v. Central Western Railway Corp., [1990] 3 S.C.R. 1112; (1990), 76 D.L.R. (4th) 1; 91 CLLC 14,006; 119 N.R. 1; Ontario Hydro v. Ontario (Labour Relations Board) (1991), 1 O.R. (3d) 737; (1991), 77 D.L.R. (4th) 277; 91 CLLC 14,014; 43 O.A.C. 184; [1991] OLRB Rep. 115 (C.A.); Reference re Waters and Water-Powers, [1929] S.C.R. 200; [1929] 2 D.L.R. 481; C.S.P. Foods Ltd. v. Canada Labour Relations Board, [1979] 2 F.C. 23; (1978), 25 N.R. 91 (C.A.).
REFERRED TO:
Maple Leaf Mills Ltd.; Master Feeds Branch, London, Ont. Re, [1974] OLRB Rep. 797; The Queen v. Thumlert (1959), 20 D.L.R. (2d) 335; (1959), 28 W.W.R. 481 (Alta. C.A.); Jorgenson v. Attorney General of Canada, [1971] S.C.R. 725; (1971), 18 D.L.R. (3d) 297; [1971] 3 W.W.R. 149; 3 C.C.C. (2d) 49; Chamney v. The Queen, [1975] 2 S.C.R. 151; (1973), 40 D.L.R. (3d) 146; [1974] 1 W.W.R. 493; 13 C.C.C. (2d) 465; Cie du trust national Ltée c. Burns, [1985] C.S. 1286 (Que.); N.V. Bocimar S.A. v. Century Insurance Co. of Canada, [1987] 1 S.C.R. 1247; (1987), 39 D.L.R. (4th) 465; 22 C.C.L.1. 51; 17 C.P.C. (2d) 204; 76 N.R. 212; Attorney-General for Ontario v. Winner, [1954] A.C. 541; [1954] 4 D.L.R. 657 (P.C.); Let ter Carriers' Union of Canada v. Canadian Union of Pos tal Workers et al., [1975] 1 S.C.R. 178; (1973), 40 D.L.R. (3d) 105; [1974] 1 W.W.R. 452; 73 CLLC 14,190; Mon- treal City v. Montreal Street Railway Company, [1912] A.C. 333 (P.C.); In re Regulation and Control of Radio Communication in Canada, [1932] A.C. 304 (P.C.); Re Alltrans Express Ltd. and Workers' Compensation Board of British Columbia (1983), 149 D.L.R. (3d) 385; [1983] 6 W.W.R. 372; 28 B.C.L.R. (2d) 304 (B.C.C.A.); revg Re Alltrans Express Ltd. and Workers' Compensation Board of British Columbia (1980), 116 D.L.R. (3d) 79, 25 B.C.L.R. 22 (B.C.S.C.); Alltrans Express Ltd. v. British Columbia (Workers' Compensation Board), [1988] 1 S.C.R. 897; (1988), 15 Q.A.C. 161; [1988] 4 W.W.R. 385; 28 B.C.L.R. (2d) 312; 85 N.R. 241; Canadian National Railway Co. v. Courtois, [1988] 1 S.C.R. 868; (1988), 15 Q.A.C. 181; 85 N.R. 260; Canadian Pacific Railway Company v. Notre Dame de Bonsecours (Corpo- ration of), [1899] A.C. 367 (P.C.).
AUTHORS CITED
Finkelstein, N. Laskin's Canadian Constitutional Law, Vol. 1, 5th ed., Toronto: Carswell, 1986.
Fraser, I. H. "Some Comments on Subsection 92(10) of
the Constitution Act, 1867" (1984), 29 McGill L.J. 557. Hogg, Peter W. Constitutional Law of Canada, 2nd ed.,
Toronto: Carswell Co. Ltd., 1985
Lajoie, Andrée. Le pouvoir déclaratoire du Parlement, Montréal: Presses de l'Université de Montréal, 1969.
COUNSEL:
G. R. P. Moir and Arthur R. Donahoe, Q.C., for
applicant.
Lewis Gottheil for respondent.
Harold Doherty for Canada Labour Relations Board.
SOLICITORS:
Burchell, MacDougall & Gruchy, Truro, Nova Scotia, for applicant.
CAW-Canada, Willowdale, Ontario for respon dent.
Harold Doherty, Ottawa, for Canada Labour Relations Board.
The following are the reasons for judgment ren dered in English by
DESJARDINS J.A.: This section 28 [Federal Court Act, R.S.C., 1985, c. F-7] application seeks to review and set aside an order of the Canada Labour Rela tions Board dated April 10, 1990, certifying a group of employees of Shur Gain, a division of Canada Packers Inc. working at a feed mill in Truro, N.S. At issue is whether the Board exceeded its jurisdiction in so deciding. 1
More specifically, two questions are raised: whether the applicant's feed mill in Truro, N.S., is a work declared to be for the general advantage of Canada pursuant to section 76 of the Canadian Wheat Board Act 2 and, in the affirmative, whether the
I See Canada Labour Code, R.S.C., 1985, c. L-2, s. 22; Car- gill Grain Co. v. Canada (Labour Relations Board), [1990] 1 F.C. 511 (C.A.), at p. 515, footnote I.
2 R.S.C., 1985, c. C-24.
labour relations at the said feed mill fall within fed eral jurisdiction.
THE FACTS
The respondent, on December 18, 1989, applied to the Canada Labour Relations Board (the "Board") pursuant to section 24 of the Canada Labour Code for certification as bargaining agent for seventeen employees working at the feed mill operations of Shur Gain at its Truro mill and directly involved in the feed mill operations. They were described as: 3
All employees of Canada Packers Shur-Gain Division includ ing warehousemen, labourers, millhands, crusher-grinder oper ator, packer, mixer operator, maintenance men, shipper- receiver, pallet operator, and excluding stores and officer employees, supervisors and those above the rank of supervisor.
According to the Board, they were all directly involved in the feed mill operations and were classi fied as service centre clerk, grinder, mixer, fish feed mixer, maintenance, pellet operator, general labourer, and lead hands . 4
Shur Gain is one of several divisions of Canada Packers Inc. Canada Packers Inc. is involved in diversified operations in all provinces of Canada including food processing, packing houses, poultry processing plants, dairy manufacturing products, feed mills and potato operations. Shur Gain operates nineteen feed mills in Canada, five of which are in Atlantic Canada including the feed mill in Truro, N.S. Each feed mill is an independent business entity concentrating primarily on manufacturing and dis tributing animal feed to customers in the province where the feed mill is located. The feeds produced in Truro, for example, are sold to livestock producers, the majority of whom, about eighty percent, (80%) are located in Nova Scotia. The remainder, approxi mately twenty percent, (20%) are transported to Newfoundland to be sold in that province. 5
3 A.B., at p. 4.
4 A.B., at p. 195.
5 A.B., at pp. 35-36 and 194.
The Truro feed mill produces three types of feed: animal feed for livestock and poultry; "ultra-mix" which is a special package of ingredients that is sup plied to other feed mills of Shur Gain in Atlantic Canada for use in their production processes; and fish feed which is "a growing business in Atlantic Canada". 6 The aquaculture industry has expanded and Shur Gain has decided to get into this new activ ity. Fish feed, which contains no grain, is used to feed various types of fish including salmon, trout, halibut and arctic char. It is being produced in Shur Gain's old plant in Truro as a pilot project? At Shur Gain's new plant in Truro, which represents a total investment of about $9 million, fifty percent (50%) of the capital cost is related to animal and poultry feeds and the other fifty percent (50%) is related to the fish feed operation. 8 According to the applicant, this fish feed product has the potential of evolving as the major product in Truro; at the present time, however, livestock and poultry feed is the primary commodity being produced at the Truro feed mill. 9
Shur Gain's Truro feed mill purchases through brokers about 25,000 metric tonnes of grain annually. About seventy-five percent (75%) is barley, wheat and oats originating from Canada's Prairie Provinces, while about twenty-five percent (25%) is corn from Ontario. A small amount of barley and oats is pur chased from local producers. The protein which is used to mix with the grains is derived from soybean received from Ontario, and canola (rapeseed) which is shipped from Ontario or the West. Almost all the grain from Ontario and the Western Provinces is brought directly into the Truro feed mill by rail car. Occasionally, a shipment is received by truck through a grain elevator in Halifax, N.S., which in turn receives its grain via ship from Thunder Bay, Ont. Each year, also, there are a few shipments of locally grown grain hauled in by truck.
When the raw grain arrives in Truro, it is unloaded from the rail cars through a bucket-lift conveyor into four (4) storage tanks, each holding eight thousand
6 A.B., at p. 166.
7 A.B., at p. 169. R A.B., at p. 167. 9 A.B., at p. 194.
(8,000) bushels. From the storage tanks, the grain is directed through pipes (gravity feed) to grinding, crushing, rolling machines or mixing containers, depending on the product being manufactured. The processed grain is then combined with other additives to form the final product which is mainly in the form of a mash or pellets. The proportion of grain to other additives in the various products is as follows:
Livestock and Poultry Feed 60%
Ultra-Mi x 5%
Fish Feed Nil
Shur Gain also operates a small retail outlet at the Truro feed mill which offers pet foods, vitamins, vet erinary products and bags of feed for sale to local customers. 10
THE BOARD'S DECISION
The applicant argued strenuously before the Board that the Truro feed mill fell within provincial juris diction. The respondent simply produced previously issued certification orders of the Board affecting other feed mills in Atlantic Canada.
The Board proceeded first to decide whether the applicant's feed mill in Truro, N.S., was a work declared by Parliament to be for the general advan tage of Canada. Relying on a decision of this Court in Cargill, ]] the Board concluded that section 76 of the Canadian Wheat Board Act applied to the whole of Canada with the result that Shur Gain's feed mill in Truro, N.S. was a work so declared. 12 The Board came to such a conclusion notwithstanding the argu ment of the applicant that the operation in Truro N.S. was not a "feed mill" within the terms of the Cana- dian Wheat Board Act. The applicant had argued that the diversification from livestock and poultry feeds to fish feed in which grain is not an ingredient removed its operation from the traditional concept of a feed mill. The Board noted that the Canadian Wheat Board Act does not define "feed mills", "flour mills",
10 A.B., at pp. 194-195.
11 Cargill, supra, footnote 1.
12 A.B., at pp. 203-204.
"feed warehouses" or "seed cleaning mills" used in section 76 of the Act. It adopted, however, the test developed by the Ontario Labour Relations Board in Maple Leaf Mills Ltd.; Master Feeds Branch, London, Ont. Re as to what function "the building in question is primarily devoted to ... " 13 and con cluded: 14
... the primary operation of Shur-Gain's Truro feed mill is milling grain for mixing into livestock and poultry feeds. It seems to us that this is the type of operation that the legislation had in mind when the declaration was enacted. We are satisfied that on the facts before us at the present time, Shur-Gain's operation at Truro, N.S. is a feed mill within the terms of the CWB Act.
With regard to whether federal jurisdiction over the work entailed jurisdiction over the labour and man agement operation of such work, the Board made a thorough analysis of the decision of this Court in Cargill and in Central Western Railway Corp. v. U.T. U., 15 and concluded: 16
From an analysis of the foregoing views expressed by the vari ous Federal Court Judges who have had an opportunity to speak on the matter, it is apparent that the debate over the prin ciples to be applied when determining constitutional authority over labour relations where works are declared to be federal under section 92(10)(c) of the Constitution Act, 1867 is far from settled. Until it is, it seems to us the wise course for the Board to take is to adopt the interpretation which gives realistic substance to section 4 of the Code:
"4. This Part applies in respect of employees who are employed on or in connection with the operation of any fed eral work, undertaking or business, in respect of the employ ers of all such employees in their relations with those employees and in respect of trade unions and employers'
13 [1974] OLRB Rep. 797, at p. 798.
14 A.B., at p. 204.
15 [1989] 2 F.C. 186 (C.A.). It should be noted that when the reasons for the decision of the Board were delivered on April 9, 1990, a day previous to the order presently under attack, the Supreme Court of Canada had not as yet rendered its decision in United Transportation Union v. Central Western Railway Corp., [1990] 3 S.C.R. 1112.
16 A.B., at pp. 210-212.
organizations composed of those employees or employers." (Emphasis added)
(For what it is worth, we note that section 2(h) of the Code also refers to "undertakings" as well as to "works").
To do otherwise would be to question the authority which Par liament has traditionally exercised over the grain industry, even in Western Canada where the Grain Act and the CWB Act declarations capture practically the whole industry. This authority has not only included the regulation of the movement and processing of grain, it has also extended to the regulation of industrial relations in the industry. Examples of this juris diction which has been accepted by the labour relations com munity in the grain industry are found in the "back-to-work" legislation which has been enacted by Parliament in recent years.
It would require some very clear and unequivocal directions from the Court for this Board to say that some undertakings in the grain industry, or for that matter in other industries where works have declared [sic] to be federal and which have tradi tionally been regulated for labour relations purposes under Part I of the Code, now fall within provincial jurisdiction. In the absence of such a clear direction, and, with the utmost respect to those who may have expressed views to the contrary, we prefer and adopt the majority decision in Central Western which is supported by the minority in the Cargill decision. Given the narrowest interpretation, this appears to stand for the proposition that undertakings, or presumably identifiable divi sions thereof, which operate works that have been declared to be federal works pursuant to section 92(10)(c) of the Constitu tion Act, 1867 on an ongoing and continuous basis, fall within the meaning of "federal works, undertakings or businesses" for the purposes of section 4 of the Code. (There appears to be room for an even broader interpretation according to the views expressed by Justices Lacombe and MacGuigan).
Unlike the situation in the Cargill decision where the affected employees were not directly employed upon the declared work, what we have before us in this case involves employees who actually operate the works which have been declared to be federal under section 76 of the CWB Act.
The undertaking, Shur-Gain, a division of Canada Packers is solely in the business of operating feed mills in various parts of the country. Shur-Gain operates the feed mill at Truro, N.S., as a separate business from its other feed mills, on an ongoing and continuous basis. Applying the Central Western test, the Board accordingly concludes that it does have jurisdiction to regulate the labour relations of Shur-Gain's feed mill at Truro, N.S. The Board will therefore proceed to determine the merits of the application for certification and the parties will be noti fied of the Board's decision in due course.
The following day, on April 10, 1990, the Board issued an order certifying the respondent as bargain ing agent for a unit comprising: 17
"all employees of Shur-Gain, a division of Canada Packers Inc., employed at its feed mill at Truro, Nova Scotia, excluding lead hands and those above". 1
THE SUBMISSIONS IN THIS APPLICATION
The applicant submits that the declaration con tained in section 76 of the Canadian Wheat Board Act is restricted to western mills and those specially described in the Schedule to the Act. It argues, alter natively, that section 76 of the Canadian Wheat Board Act only applies to mills where grain is processed into animal feed. The phrase "feed mill, feed warehouse" or "les fabriques ou entrepôts d'ali- ments pour les animaux", in section 76 of the Cana- dian Wheat Board Act, must be read in context. Since the Canadian Wheat Board Act deals with grain, it can only cover physical plants where grain is processed into animal feed. In this case, says the applicant, the Canada Packers Inc. plant does not fall within the language of the Act because half of the plant is designated for the production of fish feed without the use of grain and the other half produces both animal feed made substantially from grain and ultra-mix which has virtually no grain content.
17 A.B., at p. 215.
18 The report of the investigating officer contains the follo wing description of the "Exclusions" and of the "Lead Hand Position" (A.B., at pp. 114-115):
Exclusions Number of
Employees
manager 1
accounting clerk 1
data entry clerk 1
secretary 1
sales supervisor 1
salesman 3
production manager 1
lead hand 3
Total 12
(Continued on next page)
With regard to the constitutional argument, the applicant, in essence, submits the following: in Com mission du Salaire Minimum v. Bell Telephone Com pany of Canada, 19 Martland J., for the Court, points out that the words "works" and "undertakings" within the excepted classes mentioned in subsection 92(10) [Constitution Act, 1867, 30 & 31 Vict., c. 3 (U.K.) (as am. by Canada Act 1982, 1982, c. 11 (U.K.), Schedule to the Constitution Act, 1982, Item 1) [R.S.C., 1985, Appendix II, No. 5]] are to be read disjunctively. Martland J. also observes that the mat-
(Continued from previous page) Lead Hand Position
There is a difference of opinion on what are the responsibilities of lead hand. The applicant says the lead hands are known as "foremen" in the plant and have the right to hire, fire, discipline, and perform usual management functions. The employer says they possess none of these respon sibilities or authority and have minimal superviso ry duties. The incumbents refer to themselves as "foremen". Please see copy of employer's submis sion dated January 18, 1990, on file.
The investigating officer interviewed one of the lead hands, Mr. Wayne Crowe, who said that the lead hands do have the right to hire. In fact, he said, that last year when a new employee was hi red, Shur-Gain invited applications for the vacant position. Then Mr. Crowe and Mr. George Chestnut were given the stack of applications to go through and select a successful candidate. The two (2) lead hands selected the successful appli cant, Mr. Darcy Doucette, who was then hired by Shur-Gain.
In matters of discipline, Mr. Crowe says the lead hands can and have issued verbal warnings to em ployees without reference to anyone else in mana gement. However, when it came to more serious discipline, such as suspension or discharge, the lead hands report to Eric Murphy, Manager, who administers the discipline. Mr. Crowe, who said he was known in the plant as a "foreman", said he schedules overtime, when necessary, sometimes with, and sometimes without, prior approval from Eric Murphy.
Mr. Crowe said that in addition to their superviso ry duties, the lead hands work along with the other employees and share all the duties of their subor dinates.
19 [1966] S.C.R. 767, at p. 772.
ters coming within the classes of legislative subjects defined in that subsection extend beyond the mere physical structure of e.g. a railway or a telephone sys tem. When dealing exclusively with "works" and not "undertakings", the converse, submits the applicant, is almost irresistible: the matter in relation to federal "works" does not extend beyond the mere physical structure of the work. The applicant cites Laskin's Canadian Constitutional Law: 20
If anything can be gathered from what has been done under section 92(10)(c), as well as from what has been said about it, the result of a declaration of a "work" to be for the general advantage of Canada must surely be to bring within federal authority not only the physical shell or facility but also the integrated activity carried on therein; in other words, the decla ration operates on the work in its functional character: see R. v. Thumlert, supra.
But then, it interprets that statement in the following way. The illustration The Queen v. Thumlert 21 and the two -cases Jorgenson v. Attorney General of Canada 22 and Chamney v. The Queen 23 cited by P. W. Hogg 24 do not hold that jurisdiction over a work brings within federal jurisdiction all activities carried on at the work. If that were so, the distinction between "work" and "undertaking" would be totally destroyed. These cases only indicate that authority over the work includes authority to control the uses to which the work may be put. 25 The undertaking itself does not come under federal jurisdiction. The applicant adopts the position of Hugessen J.A. (dis -
20 N. Finkelstein, Vol. 1, 5th ed. (Toronto: Carswell, 1986) at pp. 628-629.
21 (1959), 20 D.L.R. (2d) 335 (Alta. C.A.).
22 [1971] S.C.R. 725.
23 [1975] 2 S.C.R. 151.
24 Constitutional Law of Canada, 2nd ed. (Toronto: Cars-
well, 1985) at p. 492, where the following comment appears: It has been held that these declarations are effective to authorize federal regulation of the delivery, receipt, storage and processing of the grain, that is to say, the activities car ried on in or about the "works".
25 I. H. Fraser. "Some Comments on Subsection 92(10) of the Constitution Act, 1867" (1984), 29 McGill L.J. 557, at p.
(Continued on next page)
senting) in Central Western 26 that "[w]orks, being physical things, do not have labour relations". It dis tinguishes the position taken by Marceau J.A. in that same case. Marceau J.A. was of the view that there was "a basic difference ... between ... an under taking ... which happens to use such a work to con duct its operations and ... the undertaking whose sole reason for being is to operate on a continuing basis the federal work". Marceau J.A. said that when the national dimension is present, "the federal charac ter of the work would attract federal jurisdiction over all essential aspects of the operation thereof'. 27 But, says the applicant, an undertaking such as that of Shur Gain in Truro is in a different situation because it produces a product by purchasing and transporting inputs, by processing them at a work and by selling and transporting the product to customers. It cannot be said of a manufacturing interest, as it can of a rail way undertaking, that its sole reason for being is to operate a work. A manufacturing interest simply hap pens to use such a work to conduct its operations.
The respondent submits on the first point that under a proper interpretation of section 76 of the Canada Grain Act, all mills in Canada are declared to be works for the general advantage of Canada. It fur ther argues that because a substantial portion of the mill' s activities in Truro is devoted to producing animal feeds, the fish feed portion of the operation is only incidental with the effect that the operation of Shur Gain in Truro, N.S., comes within the provi sions of section 76 of the Canadian Wheat Board Act.
(Continued from previous page)
587: "Jurisdiction over a work of necessity includes an element of control over its use, ... it does not stem from them."
26 Central Western Railway Corp. v. U. T. U., [1989] 2 F.C. 186, at p. 214.
27 Central Western Railway Corp. v. U.T.U., [1989] 2 F.C. 186, at pp. 204-205.
On the constitutional level, the respondent claims that paragraph 92(10)(c) of the Constitution Act, 1867, read together with paragraph 2(h) and section 4 of the Canada Labour Code, provides, prima facie, that a federal work, or undertakings conducted at a federal work, are subject to the Code. It adopts what it says is a modern view of paragraph 92(10)(c) which it says is based on Laskin's Canadian Consti tutional Law that the "declaration operates on the work in its functional character". 28 In any event, it says, the sole reason for Shur Gain's undertaking in its physical premises is, as Marceau J.A. wrote in Central Western, 29 to operate the work on a continu ing basis, and not only to use it. The respondent also relies on statements made by Lacombe J.A. in that same case. Because the railway line of Central West ern was a work declared to be for the general advan tage of Canada, Lacombe J.A. took the view that since Central Western's employees were engaged in the day-to-day operations of a railway undertaking carrying on its business as a going concern over a federal work, the regulation of the conditions of employment of its employees formed an integral part of the primary federal competence over the matter coming within the class of subject mentioned in para graph 92(10)(c) of the Constitution Act, 1867. 80
ANALYSIS
A word should first be said about the Central West ern case.
When the Central Western case reached the Supreme Court of Canada, 31 Parliament had already passed legislation, retroactive to July 1, 1986, which operated to withdraw any paragraph 92(10)(c) decla rations with respect to Central Western. 32 The issue we are confronted with therefore disappeared. What
28 Finkelstein, N. Laskin's Canadian Constitutional Law, Vol. 1, 5th ed. (Toronto: Carswell, 1986), at p. 629.
29 Central Western Railway Corp. v. U.T. U., [1989] 2 F.C. 186, at p. 204.
so Central Western Railway Corp. v. U.T. U., [1989] 2 F.C. 186, at p. 227.
31 United Transportation Union v. Central Western Railway Corp., [1990] 3 S.C.R. 1112.
32 An Act to amend the Railway Act, S.C. 1990, e. 6 [Assen- ted to 29th March, 1990].
remained was whether federal or provincial labour legislation applied to an undertaking operating a rail way line wholly within Alberta, previously owned by a national railway but later owned and operated by a provincial company with a four-inch gap between the national line and the local line. The answer turned on whether the railway could be seen as a federal work or undertaking under paragraph 92(10)(a). A major ity of the Supreme Court of Canada said it did not, confirming therefore provincial jurisdiction over Central Western's employees. Central Western, the local line, had always been used and was still being used for the transportation of grain for some nine
grain elevators operated by four grain companies along the line. The Canada Labour Relations Board had found federal jurisdiction over Central Western on the basis that the work performed by employees of Central Western was integral to the operation of the grain elevators located along the rail line. The grain elevators were therefore viewed as a core federal undertaking because of a paragraph 92(10)(c) decla ration. Dickson C.J., for a majority, rejected that position: 33
In my view, this issue can be dealt with summarily. As the intervener the Attorney General for Alberta argued, the eleva tors are not dependent upon the continued operation of Central Western. Elevators exist to receive, grade, handle and store grain but are not directly concerned with the transportation of grain. Grain could be transported from the elevators by alter native means, such as trucking, without altering the usefulness of the elevators along the line. There is thus an insufficient nexus between the grain elevators and Central Western to bring the railway within federal jurisdiction. [Emphasis added.]
Before this Court, paragraphs 92(10)(a) and (c) were at issue since Central Western was running its railway cars on the former national line still declared. Marceau J.A. and Lacombe J.A. took the view that Central Western's employees came under the Canada Labour Code. Hugessen J.A. dissented.
33 United Transportation Union v. Central Western Railway Corp., [1990] 3 S.C.R. 1112, at p. 1143.
I find the factual situation before this Court in Central Western different from the case at bar. The issue in Central Western related to which jurisdiction covered the labour relations of all of Central Wes tern's employees. 34 It was, with these facts in mind, that the judges on the panel wrote the notes they did. Here, the application by the respondent union is lim ited to the employees directly involved in the feed mill operation. That makes it, in my view, a highly relevant distinction. I will therefore say little about Central Western in this judgment.
I will now proceed with the two issues facing the Board in the case at bar.
1. The scope of the declaration under section 76 of the Canadian Wheat Board Act
The Board noted that two declarations by Parlia ment under the Constitution Act, 1867 affect the grain industry in Canada. One is to be found in the Canada Grain Act, 35 the other in the Canadian Wheat Board Act.
The Canada Grain Act establishes the Canadian Grain Commission 36 whose objects are to "establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export mar kets". 37 The Act divides Canada between a "Western Division" 38 which "means all that part of Canada lying west of the meridian passing through the east ern boundary of the City of Thunder Bay, including the whole of the Province of Manitoba" and an "East- ern Division" 39 which "means that part of Canada not
34 They were eight including the president and the vice-pre sident. Central Western Railway Corp. v. U. T. U., [1989] 2 F.C. 186, at p. 206.
35 R.S.C., 1985, c. G-10.
36 S. 3 of the Canada Grain Act [as am. by R.S.C., 1985 (4th Supp.), c. 37, s. 2].
37 S. 13 of the Canada Grain Act.
38 S. 2 of the Canada Grain Act.
39 S. 2 of the Canada Grain Act.
included in the Western Division". The declaration under section 55 of that Act reads:
55. (1) All elevators in Canada heretofore or hereafter con structed, except elevators referred to in subsection (2) or (3), are and each of them is hereby declared to be a work or works for the general advantage of Canada.
(2) All elevators in the Eastern Division heretofore or here after constructed, as defined in paragraph (d) of the definition "elevator" in section 2, are and each of them is hereby declared to be a work or works for the general advantage of Canada.
(3) All elevators in the Eastern Division heretofore or here after constructed, as defined in paragraph (e) of the definition "elevator" in section 2, are and each of them is hereby declared to be a work or works for the general advantage of Canada.
Section 121 of that Act entiled "Coming into Force" states:
121. (1) Paragraphs (d) and (e) of the definition "elevator" in section 2 and subsections 55(2) and (3) or any of those pro visions shall come into force on a day or days to be fixed by proclamation.
No such proclamation has been made to this date.
The effect of this limitation is that subsection 55(1) of the Act can only be read in light of paragraphs (a), (b), and (c) [as am. by R.S.C., 1985 (4th Supp.), c. 37, s. 1] of the defined word "elevator" in section 2 of the Act. Paragraph (a) or (b) of section 2 have no application in the case at bar. We must revert to para graph (c) of section 2 which reads:
"elevator" means
(c) the portion of any premises in the Eastern Division des ignated by regulation pursuant to subsection 116(3) that is used for the purpose of storing grain,
Shur Gain's storing facilities in Truro do not appear in the List of Elevators in the Eastern Division Regulations 4 ° adopted under subsection 116(3) of the Canada Grain Act.
The Board therefore rightly decided that subsec tion 55(1) of the Canada Grain Act did not affect the Shur Gain feed mill in Truro, N.S.
ao SOR/89-319, 21 June, 1989.
Consideration had then to be given to the Cana- dian Wheat Board Act.
The Canadian Wheat Board Act creates the Cana- dian Wheat Board 41 "with the object of marketing in an orderly manner, in interprovincial and export trade, grain grown in Canada" 4 2 The word "grain" "includes wheat, oats, barley, rye, flaxseed, rapeseed and canola". 43
The Act does not divide Canada into two divisions but specifies that certain Parts of the Act are limited to a certain "designated area" which is thus defined in section 2 of the Act:
2. (1) In this Act,
"designated area" means that area comprised by the Provinces of Manitoba, Saskatchewan and Alberta, and those parts of the Province of British Columbia known as the Peace River District and the Cres- ton-Wynndel Areas, and such other areas as the Board may designate under subsection (3);
According to subsection 2(3) of the Act, the Board can extend the designated area thus:
(3) The Board may, by order, designate parts of the Province of British Columbia, other than the Peace River District and the Creston-Wynndel Areas, and parts of the Province of Onta- rio lying in the Western Division that are included in the desig nated area for the purposes of this Act.
Confusion has arisen as to whether section 76 of the Act is limited in its application to the "designated area" defined in section 2 or whether it applies to the whole of Canada. Section 76, to be found under the heading "Declaration" in Part VII of the Act entitled "General", reads:
76. For greater certainty, but not so as to restrict the general ity of any declaration in the Canada Grain Act that any eleva tor is a work for the general advantage of Canada, it is hereby declared that all flour mills, feed mills, feed warehouses and seed cleaning mills, whether heretofore constructed or hereaf ter to be constructed, are and each of them is hereby declared to be works or a work for the general advantage of Canada and, without limiting the generality of the foregoing, every
41 S. 3 of the Canadian Wheat Board Act.
42 S. 5 of the Canadian Wheat Board Act.
43 S. 2 of the Canadian Wheat Board Act [as am. by R.S.C., 1985 (4th Supp.), c. 38, s. I].
mill or warehouse mentioned or described in the schedule is a work for the general advantage of Canada.
In Cargill, the judges of the majority adopted the analysis made by MacGuigan J.A. who, although dis senting on another point, took the view that section 76 of the Canadian Wheat Board Act applied to "all flour mills, feed mills, feed warehouses and seed cleaning mills ... " in Canada 4 4 MacGuigan J.A. based his conclusion on a reading of the Act and on a history of the legislation made by Mailhot J. (as she then was), in Cie du trust national Ltée c. Burns, 45 with whom he agreed.
MacGuigan J.A. noted that the territorial divisions established in the Canada Grain Act and in the Cana- dian Wheat Board Act are not identical and that the two Acts are not pari materia. Even with the addi tional powers of designation given to the Canadian Wheat Board under subsection 2(3) of the Canadian Wheat Board Act, the "designated area" under that Act is not potentially equivalent to the Western Divi sion under the Canada Grain Act, since certain parts of British Columbia are made exempt from the desig nation. Following a history of the legislation, he con cluded that: 46
... between 1950 and 1971 the Canada Grain Act covered all of Canada, as did the Canadian Wheat Board Act. The Canada Grain Act was then changed to apply to all elevators in the Western Division, some in the Great Lakes Region and to east ern elevators named in Schedule II. No such change was made to the Canadian Wheat Board Act, and it therefore presumably was intended by Parliament to continue the broad declaration previously intended.
It is true that Mailhot J. was reversed in appeal4 7 But, for the reasons that follow, I am of the view that
44 Cargill, supra, at p. 532.
45 [1985] C.S. 1286 (Que.).
46 Cargill, supra, at p. 531.
47 See Burns c. Cie du trust national Ltée (10 July 1990), Montréal 500-09-000728-857, 500-09-000731-851 (C.A.), Monet, Vallerant and Baudoin JJ., not yet reported.
the matter was rightly decided by this Court in Car- gill.
A detailed reading of the Canadian Wheat Board Act shows that it consists of six Parts. Section 2 makes it clear that the definitions under the Canada Grain Act are incorporated in the Canadian Wheat Board Act with the exception of the word "elevator" which is specific to the Canadian Wheat Board Act. A "mill" under that definition is included in the word "elevator."
Part I of the Act is not limited to the designated area defined in section 2 of the Act reproduced ear
lier. It establishes the Canadian Wheat Board as a body corporate and an agent of Her Majesty in Right of Canada for the object of "marketing" in inter- provincial and export trade grain grown in Canada. The marketing is to be by means of buying, storing, selling, shipping, handling, etc. 49 Under subsection 20(1), "[e]xcept as otherwise provided in this Act", elevators are operated on behalf of the Board.
20. (1) Except as otherwise provided in this Act, every ele vator shall be operated for and on behalf of the Board and no person other than an agent of the Board shall operate any ele vator, unless the elevator has been excepted by order of the Board from the operation of this Act, and any elevator not excepted from the operation of this Act, operated otherwise than for the Board or by an agent of the Board, shall be deemed to be operated in contravention of this Act.
Part II of the Act, entitled "Control of Elevators and Railways" is said, under section 23, to apply only
48 S. 2(2) of the Canadian Wheat Board Act and the defini tion of "elevator" in s. 2(1) are the following:
2....
(2) Unless it is otherwise provided in this Act, words and expressions used in this Act have the same meaning as in the Canada Grain Act, except that where in any definition of any such word or expression contained in that Act the word "elevator" is used, it has the meaning given to it under subsection (1).
2. (1) In this Act,
"elevator" means a grain elevator, warehouse or mill that has been declared by Parliament to be a work for the general advantage of Canada.
49 S. 6 of the Canadian Wheat Board Act.
in, the "designated area".S 0 Section 24 of the Act establishes tight controls over the delivery of grain, including the person delivering the grain, the record ing of the grain through a permit book, 51 and the quantity of grain authorized under a quota system established by the Board. Severe prohibitions are imposed on the railway personnel in their handling of grain. 52 Section 30 contemplates a territorial expan sion of Part II 53 in allowing the Governor in Council, by regulation, to apply Part II to grain produced in any area in, Canada outside the designated area speci fied in the regulation and to producers in, respect of that grain. It has not as yet, however, been invoked. Part III entitled "Interprovincial and Export Market ing of Wheat by the Board", is restricted to the desig nated area. 54 Subsection 40(1) provides that the Gov ernor in Council may extend the provisions of Part III, in respect of wheat produced in any area in Canada outside the designated area. 55 Again, no reg ulation has been adopted under this section of the Act. Part IV, entitled "Regulation of Interprovincial and Export Trade in Wheat", is not limited to the des ignated area. Section 45 of that Part provides that the Board is the sole trader in the buying and selling, transport and export or import of wheat both inter
50 23. Subject to s. 30, in this Part, "grain" means grain pro duced in the designated area and "producer" means a producer in respect of that grain. [Emphasis added.]
51 See s. 26 of the Canadian Wheat Board Act.
52 See s. 25 [as am. by R.S.C., 1985 (4th Supp.), c. 38, s. 7] and s. 28(j) of the Canadian Wheat Board Act.
53 S. 30 of the Canadian Wheat Board Act:
30. The Governor in Council may, by regulation, apply this Part to grain produced in any area in Canada outside the designated area specified in the regulation and to producers in respect of that grain, and thereafter, until the regulation is revoked, "grain" in this Part means grain produced in the designated area and in the area so specified in the regulation and "producer" means a producer in respect of that grain.
54 See ss. 32, 33, 34, 35 of the Canadian Wheat Board Act.
55 S. 40(1) of the Canadian Wheat Board Act:
40. (1) The Governor in Council may, by regulation, apply the provisions of this Part, in respect of wheat produced in any area in Canada outside the designated area, specified in the regulation.
provincially or internationally. Part V is entitled "Oats and Barley", "Extension of Parts III and IV". Section 47 of that Part, authorizes the Governor in Council by regulation to extend the application of Part III, which is restricted to the designated area, or Part IV, which is not restricted, or both, to oats or to barley or to both oats and barley. Part VI, entitled "Marketing Plans", provides for the establishment of marketing plans only in respect of grain produced in the designated area. 56 There is no provision for a pos sible extension of that part. It is in Part VII, entitled "General", that section 76 is to be found under the heading "Declaration".
Subsection 8(1) of the Interpretation Act 57 states:
8. (1) Every enactment applies to the whole of Canada, unless a contrary intention is expressed in the enactment.
A limited application of the Canadian Wheat Board Act to the "designated area" only occurs where specifically mentioned in the Act, that is in Part II, Part III, Part V in part, and Part VI. The extensions contemplated in Parts II and III of the Act make it clear that Parliament had in mind that numerous pro visions of the Act could have a territorial application beyond the "designated area". This extension could not be sustained from a constitutional point of view if the declaration under section 76 did not cover the works therein as they are to be found in Canada. To put it another way, it is only if a work has been declared to be for the general advantage of Canada that Parliament can apply to it the provisions of the Canadian Wheat Board Act. If the work has not been declared, it remains a local work under provincial jurisdiction and there could be no valid application of the federal statute. Even if the phrase "in Canada" is not to be found in section 76, as it is found in section 55 of the Canada Grain Act, this makes no difference considering the clarity of intent expressed by Parlia ment in sections 30 and 40 of the Canadian Wheat
56 See s. 48(2) of the Canadian Wheat Board Act.
57 R.S.C., 1985, c. I-21.
Board Act. What follows from this interpretation is that, at present, outside of the designated area, mills are operated by agents of the Board but are not sub ject to the tight controls provided in Parts II and III of the Act. The Board, however, in all areas of the coun try, is the sole body authorized to move grain into the interprovincial and international market.
I conclude that section 76 applies outside of the designated area.
There remains to decide whether the Board was correct in rejecting the applicant's alternative conten tion that its mill in Truro, N.S. was more of a fish mill, and therefore not a mill contemplated under the Canadian Wheat Board Act.
I accept the applicant's reading of the Act that "feed mill" means a plant where grain is processed into animal feed. So did the Board. The Board was impressed, however, not with the purpose the plant had been designed for but with its primary and actual use. The Board found as a fact that the primary oper ation of the applicant's operation was milling grain for mixing into livestock and poultry feeds. We are bound by such findings. 58 The test adopted by the Board amounts to an answer of the following ques tion: "What is the undertaking which is in fact being carried on?" 59 There is nothing here for which the Board may be reproached.
2. Does a declaration under paragraph 92(10)(c) of the Constitution Act, 1867 bring within federal legis lative power the labour relations governing the rela-
58 See N.V. Bocimar S.A. v. Century Insurance Co. of Canada, [1987] 1 S.C.R. 1247.
59 Attorney-General for Ontario v. Winner, [ 1954] A.C. 541; [1954] 4 D.L.R. 657 (P.C.); Letter Carrier's Union of Canada v. Canadian Union of Postal Workers et al., [1975] I S.C.R. 178, at pp. 188-189; C.S.P. Foods Ltd v. Canada Labour Relations Board, [1979] 2 F.C. 23 (C.A.), at pp. 29-30.
tionships between employers and employees directly involved in the operation of the work?
In Cargill, none of the employees whose certifica tion was in issue worked directly in or on the eleva tors that had been declared to be for the general advantage of Canada; they were all office and clerical workers employed in the Eastern Division Headquar ters in Chatham. That office, however, besides being the centre from which the company conducted its grain merchandising activities, provided essential support services, principally accounting and report ing for the elevator operation. 60 A majority con cluded that the labour relations of that office came under provincial jurisdiction. The matter which is the subject of this appeal was not in issue.
Paragraphs 92(10)(a),(b) and (c) of the Constitu tion Act, 1867 provide:
92....
(10) Local Works and Undertakings other than such as are of the following Classes: —
a. Lines of Steam or other Ships, Railways, Canals, Tele graphs, and other Works and Undertakings connecting the Province with any other or others of the Provinces, or extending beyond the Limits of the Province:
b. Lines of Steam Ships between the Province and any Brit- ish or Foreign Country:
c. Such Works as, although wholly situate within the Prov ince, are before or after their Execution declared by the Parliament of Canada to be for the general Advantage of Canada or for the Advantage of Two or more of the Prov inces.
Subsection 91(29) for its part specifies:
91. It shall be lawful for the Queen, by and with the Advice and Consent of the Senate and House of Commons, to make Laws for the Peace, Order, and good Government of Canada, in relation to all Matters not coming within the Classes of Sub jects by this Act assigned exclusively to the Legislatures of the Provinces; and for greater Certainty, but not so as to restrict the Generality of the foregoing Terms of this Section, it is hereby declared that (notwithstanding anything in this Act) the exclusive Legislative Authority of the Parliament of Canada extends to all Matters coming within the Classes of Subjects next herein-after enumerated; that is to say,-
29. Such Classes of Subjects as are expressly excepted in the Enumeration of the Classes of Subjects by this Act assigned exclusively to the Legislatures of the Provinces.
6 ° Cargill, supra, per Hugessen J.A., at p. 515.
It is trite law that paragraph 92(10)(c) deals with "works" but not with "undertakings", and that the effect of the declaratory power is to withdraw the "work" from the domain of provincial legislative power and bring it within federal legislative power by virtue of subsection 91(29) as if it were expressly enumerated in section 91. Works are "physical things, not services". 61 An undertaking is "not a physical thing, but is an arrangement under which ... physical things are used." 62
Paragraph 2(h) of the Canada Labour Code 63 is therefore ultra vires Parliament's jurisdiction in so far as it covers an "undertaking". 64 But what about section 4 of the Canada Labour Code: 65 does it apply with respect to federal works when declared? This in turn raises the following constitutional question: does federal jurisdiction over a work declared to be for the general advantage of Canada extend to the labour
61 Montreal City v. Montreal Street Railway Company, [1912] A.C. 333 (P.C.), at p. 342.
62 1n re Regulation and Control of Radio Communication in Canada, [1932] A.C. 304 (P.C.), at p. 315. Fraser, supra, foot note 25, at p. 567 writes:
An undertaking has no concrete existence in the tangible world, but exists only as a construct of the legal imagina tion. While a work is a part of the physical world around us, an undertaking is really nothing but a product of legal theory.
I would think that an arrangement under which physical things are used is as much a reality as for instance the good will of a business. In a sense, the arrangement is what makes the work a going concern.
63 S. 2(h) of the Canada Labour Code states:
2....
(h) a work or undertaking that, although wholly situated within a province, is before or after its execution declared by Parliament to be for the general advantage of Canada or for the advantage of two or more of the provinces.
64 A similar view is held by Hugessen J.A. dissenting in Central Western, supra, at p. 214, footnote 14.
65 S. 4 of the Canada Labour Code states:
4. This Part applies in respect of employees who are employed on or in connection with the operation of any federal work, undertaking or business, in respect of the employers of all such employees in their relations with those employees and in respect of trade unions and employers' organizations composed of those employees or employers.
relations that govern the relationships between the employees directly involved in the work and their employer?
The applicant has cited the case of Commission du Salaire Minimum v. Bell Telephone Co. (also referred to as the Bell Canada 1966 case). 66 One comment should be made because of the language used in that case. Bell Canada is an undertaking which extends beyond the borders of a province and its works have been declared to be for the general advantage of Canada. 67 The issue in the Bell Telephone Co. case was whether the Quebec Minimum Wage Act applied to an undertaking coming within the terms of paragraphs 92(10)(a) and (c). At the beginning of his judgment, Martland J., for the Court, states: 68
It is also conceded that the Minimum Wage Act is, generally, within the competence of the Legislature of Quebec. The only matter to be determined is whether it can apply to an undertak ing which is within paras. (a), (b) or (c) of head 10 of s. 92 of the British North America Act. [Emphasis added.]
He concludes: 69
In my opinion, regulation of the field of employer and employee relationships in an undertaking such as that of the respondent's, as in the case of the regulation of the rates which they charge to their customers, is a "matter" coming within the class of subject defined in s. 92(10)(a) and, that being so, is within the exclusive legislative jurisdiction of the Parliament of Canada. [Emphasis added.]
While Martland J. casts the issue in wider terms at the beginning of his judgment (i.e. an undertaking coming under sub-heads 92(10)(a), (b) or (c)), his conclusion indicates that he retained paragraph 92(10)(a) only as a consideration. The question as to whether the Minimum Wage Act would apply to a work (not an undertaking) under paragraph 92(10)(c)
66 See Bell Canada v. Quebec (Commission de la santé et de la sécurité du travail), [1988] 1 S.C.R. 749.
67 See An Act to incorporate The Bell Telephone Company of Canada, S.C. 1880, c. 67; An Act to amend the Act incorpo rating "The Bell Telephone Company of Canada", S.C. 1882, c. 95 repealed by the Bell Canada Act, S.C. 1987, e. 19, but see s. 2, the word "company" and s. 5.
68 Commission du Salaire Minimum, supra, at p. 770.
69 Commission du Salaire Minimum, supra, at p. 777.
was therefore not dealt with in the Bell Canada 1966 case. 70
Was it dealt with in the case of Bell Canada v. Quebec (CSST)? 71
A majority of the Ontario Court of Appeal in Ontario Hydro v. Ontario (Labour Relations Board) 72 answered that question affirmatively.
The issue in the Ontario Hydro case was whether, by virtue of paragraph 92(10)(c) and subsection 91(29) of the Constitution Act, 1867, the labour rela tions of persons employed at certain Ontario Hydro's nuclear facilities came under federal jurisdiction or, on the contrary, whether they came under provincial jurisdiction on account of paragraph 92A(1)(c) enacted by the Constitution Act, 1982 [Schedule B, Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44]], section 50. The application for certification, under the Ontario Labour Relations Act, 73 was opposed by a group of employees who relied upon the declaration in section 18 of the Atomic Energy Control Act 74 that all works and undertakings involving atomic energy and "pre- scribed" substances related thereto were "works ... for the general advantage of Canada". They submitted that on account of such declaration their labour relations came within the provisions of the Canada Labour Code.
Tarnopolsky J.A., with whom Lacourcière J.A. agreed, concluded that Hydro Ontario's nuclear works were governed by federal legislation. In the course of delivering judgment, he said the follow ing: 75
It is well settled that, by virtue of ss. 91(29) and 92(10)(c), works or undertakings declared to be for the general advantage
70 See comment in A. Lajoie. Le pouvoir déclaratoire du Parlement, (Montréal: Presses de l'Université de Montréal, 1969), at p. 91.
71 Bell Canada, supra, at p. 749.
72 (1991), 1 O.R. (3d) 737 (C.A.). Leave to appeal to the Supreme Court of Canada granted July 4, 1991, [1991] 3 S.C.R. x.
73 R.S.O. 1980, c. 228.
74 R.S.C., 1985, c. A-16.
75 Ontario Hydro, supra, at p. 761.
of Canada are withdrawn from provincial legislative compe tence: Reference re Waters and Water-powers, supra, at p. 220 S.C.R.
He later continued: 76
A declaration with respect to works for the general advantage of Canada brings those works within the exclusive jurisdiction of Parliament by virtue of s. 91(29). Accordingly, it cannot be said that Parliament's jurisdiction with respect to such works is merely ancillary or incidental; rather, this matter is one over which Parliament has primary jurisdiction.
The opening words of s. 91 state that the exclusive legisla tive authority of the Parliament of Canada extends to all mat ters coming within the classes of subjects in s. 91. This includes those classes of subjects coming within Parliament's legislative competence circuitously, i.e., by s. 92(10)(c). By the very language of s. 91, it would be inconsistent to conclude that Parliament has legislative competence in relation to only some matters falling within s. 91(29), when the wording of s. 91 clearly indicates that Parliament has jurisdiction over all matters enumerated therein.
It has long been suggested that legislative jurisdiction over works and undertakings includes the power to regulate those matters touching on the employment of persons engaged on such works and undertakings (per Duff J., in Reference re Leg islative Jurisdiction over Hours of Labour, supra), notwith standing that, as a general proposition, labour relations fall within provincial authority under s. 92(13)—property and civil rights: see Northern Telecom Ltd. v. Communications Workers of Canada, [1980] 1 S.C.R. 115, 79 C.L.L.C. 14,211, 98 D.L.R. (3d) 1, 28 N.R. 107, at pp. 131-33 S.C.R., per Dickson J. That suggestion was confirmed by the Supreme Court of Canada in the trilogy of cases mentioned above: Bell Canada v. Quebec, supra; Canadian National Railway Co. v. Courtois, supra; and Alltrans Express Ltd. v. British Columbia (Workers Compensation Board), .supra. Those cases all dealt primarily with the issue of whether provincial statutes regulating health and safety in the workplace are applicable to a federal under taking.
For our purposes, Beetz J. in Bell Canada exhaustively reviewed the development of the law on this issue and, there fore, it need not be repeated here. That court held unanimously that, with respect to federal undertakings within the meaning of s. 92(10)(a), (b) and (c), working conditions and labour rela tions are matters within the classes of subjects mentioned in s. 91(29) and, consequently, within the exclusive jurisdiction of Parliament.
76 Ontario Hydro, supra, at pp. 765-767.
With respect, I disagree with such an interpretation of the decision of the Bell Canada 1988 decision.
The issue in the Bell Canada 1988 decision, which is the third of a trilogy, was whether the Quebec Act respecting occupational health and safety applied to Bell Canada. Beetz J., for the Court, made a most impressive synthesis of the rules developed by the courts in that area of constitutional law.
At pages 761-762, in dealing with what he named Proposition Three, Beetz J., for the Court, said the following:
Notwithstanding the rule stated in proposition two, Parlia ment is vested with exclusive legislative jurisdiction over labour relations and working conditions when that jurisdiction is an integral part of its primary and exclusive jurisdiction over another class of subjects, as is the case with labour relations and working conditions in the federal undertakings covered by ss. 91(29) and 92(10)a., b. and c. of the Constitution Act, 1867, that is undertakings such as Alltrans Express Ltd., Canadian National and Bell Canada. [Emphasis added.]
Beetz J., as he clearly stated, was dealing with fed eral undertakings covered by subsection 91(29) and paragraphs 92(10)(a), (b) and (c). The three examples he gave, which corresponded to the cases before him, were three undertakings. Alltrans Express Ltd., an Ontario company registered to carry on business in British Columbia, 77 operates a trucking service inter- provincially and internationally. This brings it under subsection 91(29) and paragraph 92(10)(a). 78 Cana- dian National is an interprovincial undertaking whose works have been declared to be for the general advantage of Canada. 79 Bell Canada is an inter- provincial undertaking whose works have been declared to be for the general advantage of Canada. Both therefore came under paragraphs 92(10(a) and (c). The word "undertaking" was therefore well cho-
77 Re Alltrans Express Ltd. and Workers' Compensation Board of British Columbia (1983), 149 D.L.R. (3d) 385 (B.C.C.A.), at p. 386; Re Alltrans Express and Workers' Com pensation Board of British Columbia (1980), 116 D.L.R. (3d) 79 (B.C.S.C.), at p. 80.
78 Alltrans Express Ltd. v. British Columbia (Workers' Com pensation Board), [1988] 1 S.C.R. 897.
79 Canadian National Railway Co. v. Courtois, [1988] 1 S.C.R. 868; Canadian National Railways Act, R.S.C., 1985, c. C-19, s. 18.
sen by Beetz J. in relation to paragraphs 92(10)(a),(b) and (c). In the case at bar , we are concerned with a "work".
Further down, when dealing with the critics of the Bell Canada 1966 case, Beetz J. again is very pre cise: 8 °
General legislation on the management and working conditions of undertakings is legislation on matters falling within the property and civil rights class. But particular legislation on the management of federal undertakings and their working condi tions, like that in the Canada Labour Code, is legislation on matters falling within an exclusively federal class of subjects, that of federal undertakings. [Emphasis added.]
Tarnopolsky J.A. is of course correct when, at pages 761 and 766 of the Ontario Hydro case, he cites Duff J. in Reference re Waters and Water-Pow ers. 81 There, Duff J., for the Court, said with regard to paragraph 92(10)(c):
The authority created by s. 92(10c) is of a most unusual nature. It is an authority given to the Dominion Parliament to clothe itself with jurisdiction—exclusive jurisdiction—in respect of subjects over which, in the absence of such action by Parliament, exclusive control is, and would remain vested in the provinces. Parliament is empowered to withdraw from that control matters coming within such subjects, and to assume jurisdiction itself. It wields an authority which enables it, in effect, to rearrange the distribution of legislative powers effected directly by the Act, and, in some views of the enact ment, to bring about changes of the most radical import, in that distribution; and the basis and condition of its action must be the decision by Parliament that the "work or undertaking" or class of works or undertakings affected by that action is "for the general advantage of Canada," or of two or more of the provinces; which decision must be evidenced and authenti cated by a solemn declaration, in that sense, by Parliament itself. [Emphasis added.]
There is however in paragraph 92(10)(c) no refer ence to "undertaking". Besides, Reference re Waters and Water-Powers is previous to the decision of the Judicial Committee of the Privy Council in the Regu lation and Control caseR 2 where the distinction
80 Bell Canada, supra, at p. 841.
81 [1929] S.C.R. 200, at p. 220.
82 [1932] A.C. 304 (P.C.), at p. 315.
between a "work" (defined in Montreal City) 83 and an "undertaking" comes clear. Moreover, the Supreme Court of Canada was not, in 1929, the court of last resort for Canada.
The issue at bar, in my view, has never been decided by a court of last resort.
I come to the conclusion that the Canada Labour Code applies to the workers in the case at bar. Fed eral legislative jurisdiction over a work includes inter alia regulation for the construction, repairs and alter ations of a work, and also, it seems to me, for its management. 84
While I agree with the applicant's submission that a work does not have labour relations, and that pre sumably labour relations entail relationships between an undertaker and its employees, nevertheless, start ing from the proposition, recognized by our case law, that Parliament can validly control the movement of grain entering elevators because it has legislative jurisdiction over the use of the premises, it should follow that federal legislation can validly govern the working conditions of those directly involved in the operation of the work since both employer and employees have duties and responsibilities on the premises. Parliament's legislative jurisdiction over a "work" under subsection 91(29) is plenary. Labour relations over a work declared are therefore "matters" coming within the class of subjects comprised in sub section 91(29) of the Constitution Act, 1867.
This conclusion has the effect of balkanizing 85 the labour relations at Shur Gain in Truro, N.S. since its employees, other than those directly involved in the operation of the mill, remain under provincial juris diction. I have difficulty however with the proposi tion that Parliament would have legislative jurisdic tion over a "work" and, at the same time, be
83 Montreal City, supra, at p. 342.
84 These words were used in a different context in Canadian Pacific Railway Company v. Notre Dame de Bonsecours (Cor- poration of), [1899] A.C. 367 (P.C.), at p. 372.
85 I borrow the use of this word in the present context from Galligan J.A. (dissenting) in Ontario Hydro, supra, at p. 770.
incapable of adopting back-to-work legislation so as to make the work "functional". Effective control of the work would require effective control over those directly involved in its operations.
I cannot share, however, the view of those who would use the word "functional" to mean that federal jurisdiction attaches to the undertaking because of the work. The declaratory power is an exceptional power and what is acquired by Parliament, as a consequence of the use of such a power, is legislative jurisdiction over the work, not over the undertaking.
I conclude that section 4 of the Canada Labour Code applies only to those employees of the appli cant described in the Board's order of April 10, 1990, and that the Board correctly decided the matter before it.
I would dismiss this section 28 application.
* * *
The following are the reasons for judgment ren dered in English by
PxA'rrE J.A.: I agree with the conclusion reached by my colleague Desjardins. I also agree with much of what she says in her reasons. However, on two points, I would express myself a little differently.
The applicant's contention that section 76 of the Canadian Wheat Board Act should, in spite of the generality of its terms, be interpreted as referring only to the feed mills situated in Western Canada (or, more accurately, in the "designated area" defined in section 2) is based on the premise, which was accepted by the Quebec Court of Appeal in Burns c. Cie du trust national Ltée,R 6 that the other provisions of the Act do not apply outside of that area. That pre mise is false. Most of the other provisions of the Act either apply to the whole country or may, if the Gov-
86 See Bums c. Cie du trust national Ltée (10 July 1990), Montréal 500-09-000728-857, 500-09-000731-851 (C.A.), Monet, Vallerant and Baudoin JJ., not yet reported.
ernor in Council so decides, have such a general application.
As to the constitutional argument raised by the applicant, I would, like the Board, reject it for the reason that it is contrary to the jurisprudence of the Court.
In C.S.P. Foods Ltd. v. Canada Labour Relations Board, 87 we refused to set aside for lack of jurisdic tion a decision of the Canada Labour Relations Board certifying a union as bargaining agent for certain employees of a company which owned and operated a feed mill (which was a federal work by reason of the declaration contained in the Canadian Wheat Board Act) for the reason that the record did not show that the work done by the employees in ques tion was not closely related to the operation of the feed mill. While that decision did not discuss or even allude to the distinction that may be made in respect of the federal legislative competence in the field of labour relations between federal works and federal undertakings, it clearly assumed the authority of Par liament to legislate with respect to the labour rela tions of an undertaking operating a federal work with those of its employees whose functions are closely related to the operation of that work.
In Central Western Railway Corp. v. U.T. U., 88 the Court had to determine whether Parliament could legislate with respect to the labour relations of a com pany whose sole raison d'être and activity was the operation of a small railway line that had been declared to be a federal work. In that case, my col league Hugessen J.A. took the position that, while Parliament's legislative jurisdiction with respect to federal undertakings clearly includes the power to legislate with respect to the labour relations of those undertakings, its jurisdiction with respect to federal works does not include the power to regulate the labour relations of the undertakings operating those works. That view, though expressed with my col-
" [1979] 2 F.C. 23. 88 [1989] 2 F.C. 186.
league's usual clarity and persuasiveness, was rejected by the majority of the Court who held that Parliament has the power to legislate with respect to the labour relations of an undertaking that has no other activity than that of operating a federal work.
The decision of the Court in Cargill Grain Co. v. Canada 89 did not, as I read it, modify this jurispru dence. It set aside a decision of the Canada Labour Relations Board certifying a union as the bargaining agent for a group of employees of an undertaking operating a federal work for the simple reason that the connection between the work done by those employees and the federal work in question was too remote to found federal jurisdiction. Here, this prob lem does not arise since the work done by the employees clearly has a direct and close connection with the operation of a federal work.
STONE J.A.: I agree.
89 [1990] 1 F.C. 511.
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