SUPREME
COURT OF CANADA
Between:
Gaétan Plourde
Appellant
and
Wal‑Mart
Canada Corporation
Respondent
‑ and ‑
Commission
des relations du travail, Alliance of Manufacturers & Exporters
Canada,
also known as Canadian Manufacturers and Exporters,
Fédération
des travailleurs du Québec (FTQ), Coalition of BC Businesses,
Canadian
Chamber of Commerce, Canadian Civil Liberties Association,
Conseil
du patronat du Québec and Canadian Labour Congress
Interveners
Coram: McLachlin C.J. and Binnie, LeBel, Deschamps, Fish,
Abella, Charron, Rothstein and Cromwell JJ.
Reasons for
Judgment:
(paras. 1 to 65)
Dissenting
Reasons:
(paras. 66 to 147)
|
Binnie J. (McLachlin C.J. and Deschamps, Fish, Charron and
Rothstein JJ. concurring)
Abella J. (LeBel and Cromwell
JJ. concurring)
|
______________________________
Plourde v.
Wal‑Mart Canada Corp., 2009 SCC 54, [2009] 3 S.C.R. 465
Gaétan
Plourde Appellant
v.
Wal‑Mart
Canada Corporation Respondent
and
Commission des relations du travail,
Alliance of
Manufacturers & Exporters Canada,
also known as
Canadian Manufacturers & Exporters,
Fédération
des travailleurs du Québec (FTQ),
Coalition of
BC Businesses,
Canadian
Chamber of Commerce,
Canadian
Civil Liberties Association,
Conseil du
patronat du Québec and
Canadian
Labour Congress Interveners
Indexed
as: Plourde v. Wal‑Mart Canada Corp.
Neutral
citation: 2009 SCC 54.
File No.:
32342.
2009: January 21;
2009: November 27.
Present: McLachlin C.J.
and Binnie, LeBel, Deschamps, Fish, Abella, Charron, Rothstein and
Cromwell JJ.
on appeal from the court of appeal for quebec
Labour relations — Dismissal — Business closure — Remedies — Union
certified to represent employees — Negotiations to conclude first collective
agreement with employer unsuccessful — Employer announcing closure of business
— Complaint by employee that loss of employment was due to union activities —
Whether employees of closed business can bring their claim under ss. 15 to
17 of Quebec Labour Code and benefit from statutory presumption in s. 17
that they were dismissed because they exercised their collective bargaining
rights — Whether definitive business closure still “good and sufficient reason”
within meaning of s. 17 to justify dismissal — Labour Code, R.S.Q.,
c. C‑27, ss. 15 to 17.
In August 2004, the union to which P belongs was certified to
represent the employees of Wal‑Mart in Jonquière. The Jonquière store
was the first Wal‑Mart store to be unionized in North America. After
several fruitless bargaining sessions, the union filed an application under the
Quebec Labour Code to establish the provisions of a first collective
agreement. On February 9, 2005, the Minister of Labour referred the
dispute to arbitration and notified the parties of the referral. That same
day, Wal‑Mart informed the employees of its decision to close the store.
On April 29, 2005, P’s employment, along with that of approximately 190 other
employees, was terminated. Many proceedings were initiated by the Wal‑Mart
employees or their union arising out of the store’s closure, which was
presented by the union merely as a step taken by Wal‑Mart in a larger
employer strategy of hindrance, intimidation and union busting. In this case,
P filed a complaint under ss. 15 to 17 of the Code and claimed to have
lost his employment because of his union activities. He sought an order that
he be reinstated in his job.
The Commission des relations du travail (“CRT”) held that P could
rely on the presumption under s. 17, since he had engaged in numerous
significant union activities that were concomitant with the termination of his
employment. However, the CRT found that Wal‑Mart had shown the store’s
closure to be genuine and permanent and that in itself, according to a long
line of cases from City Buick onwards, is “good and sufficient reason”
within the meaning of s. 17 to justify the dismissal. The Superior
Court dismissed P’s application for judicial review and held that the CRT was
correct in not requiring Wal‑Mart to prove its reasons for closing the
store. The Court of Appeal dismissed P’s motion for leave to appeal. All
tribunals rejected P’s argument that the traditional case law should be
disregarded in favour of the freedom of association.
Held (LeBel, Abella and Cromwell JJ.
dissenting): The appeal should be dismissed.
Per McLachlin C.J. and Binnie,
Deschamps, Fish, Charron and Rothstein JJ.: The question raised by this
appeal is not whether employees have a remedy against an employer who closes a
workplace for anti‑union motives (they do have such a remedy under
ss. 12 to 14 of the Code) but whether employees of a closed business can
bring their claim within ss. 15 to 17 so as to obtain the considerable
advantage of a statutory presumption that they lost their jobs because they
exercised their collective bargaining rights. Under ss. 15 to 17, the
question before the tribunal relates to the reasons for the employees’ loss of
jobs whereas the question that can be put in play under ss. 12 to 14 is
the broader issue of why the plant was closed at all, and specifically was it
closed as part of an anti‑union strategy. A finding of an unfair labour
practice under ss. 12 to 14 opens up broader redress under the general
remedial provisions provided by ss. 118 and 119 of the Code for the
benefit of all employees who suffered as a result of the wrongful store
closure, including those who where not involved in union activity, and even for
those who opposed the union. [11‑12]
This Court in Place des Arts endorsed the view that no
legislation in Quebec obliges an employer to remain in business and that an
employer can close a plant for “socially reprehensible considerations”. While
the effect of Place des Arts is to exclude in a workplace closure
situation the application of s. 17, that case does not stand for the more
sweeping proposition that closure immunizes an employer from any financial
consequences for associated unfair labour practices. Nor does it preclude a
finding that the closure itself constitutes an unfair labour practice aimed at
hindering the union or the employees from exercising rights under the Code. It
is open to a union or employees to bring evidence of anti‑union conduct
to establish an unfair labour practice under ss. 12 to 14 of the Code. [8]
[10] [54]
In the result, the procedural vehicle offered by ss. 15 to 17
of the Labour Code is not available to an employee in circumstances
where a workplace no longer exists. The s. 15 reinstatement remedy
presupposes the existence of a place to which reinstatement is possible. The City
Buick doctrine that a definitive workplace closure constitutes “good and
sufficient reason” for the purposes of s. 17 has been followed
consistently and was not overruled by the legislature when extensive amendments
were made to the Code in 2001. The reference in s. 15 to an order to
“reinstate such employee in his employment” signals unambiguously the
legislative contemplation of an ongoing place of employment as the foundation
of a successful s. 15 application. This limited role for s. 15 is consistent
with the text and purpose of ss. 15 to 17. [4] [13] [35‑36] [47]
[50]
Section 15 provides a summary remedy backed by a presumption
against the employer. The legislature has specified in s. 15 the remedies
available for its breach. Adding the generality of ss. 118 and 119
remedies to a s. 15 violation would give the s. 17 presumption an
expanded effect beyond reinstatement and associated relief contemplated in the
ss. 15 to 17 group of provisions for an illegal dismissal. Former
employees of a closed workplace in search of general remedies would never be
obliged to establish anti‑union misconduct because its existence would
always be presumed in their favour as soon as they established that prior to
the closure they had exercised “a right arising from this Code”. This would
significantly alter the balance between employers and employees intended by the
Quebec legislature. [39]
Nothing in this decision affects the full range of relief available
from the CRT under ss. 15 to 19 in situations where the workplace continues
in existence. The issue in this appeal is limited to the availability of the
s. 17 presumption where the plaintiff seeks relief against what is alleged
to be an illegal dismissal in a situation where the workplace has closed. The
relief available when ss. 15 to 19 are properly invoked in the context of
a lesser sanction has not been put in issue before us and the scope of this
judgment is limited accordingly. [40]
This Court’s decision in Health Services, which recognized
that the freedom of association protected by s. 2 (d) of the Canadian
Charter of Rights and Freedoms includes a procedural right to collective
bargaining, is of no assistance here. Section 3 of the Code guarantees the
right of association to workers in Quebec and the legislature has crafted a
balance between the rights of labour and the rights of management in a way that
respects freedom of association. No argument was raised against the
constitutionality of any provisions of the Code and the Constitution does not
require that every provision, including s. 17, must be interpreted to
favour the union and the employees. [7] [55-56]
Reference was made by the Canadian Labour Congress and other
interveners to labour law and practice outside Quebec which they say take a
somewhat different approach to this problem. However, in a federal state there
is no requirement that provincial regulatory schemes must align themselves. It
is apparent that some of the differences in the jurisprudence from province to
province are a function of the statutory setting in which they are made.
Labour relations practices in some of the other provinces should not dictate
the outcome in Quebec, which in relation to the s. 17 presumption has been
based for many years on a principle recently endorsed in Place des Arts.
The CRT’s refusal to extend the s. 15 reinstatement remedy to a closed
workplace is a reasonable interpretation of its constituent Act and this Court
should not interfere with it. [58‑59] [61] [63]
Per LeBel, Abella and Cromwell JJ.
(dissenting): A dismissal in the case of the closing of a business can be
scrutinized for anti‑union animus under s. 15 to 19 of the Labour Code.
To suggest otherwise represents a marked and arbitrary departure from the
philosophical underpinnings, objectives and general scope of the Labour Code.
[69] [76]
The implementation of the remedies under ss. 15 to 19, including
the presumption in s. 17, represented one of the most significant reforms in
modern labour law. Until 2001, ss. 12 to 14, which protect the union’s ability
to establish, organize and administer its affairs without employer obstruction,
were penal provisions and there was no possibility of a civil remedy such as
reinstatement or compensation. Sections 15 to 19 were added to the Labour
Code 50 years ago to provide access to civil remedies for anti‑union
conduct by an employer, and to facilitate this access through a presumption
levelling the evidentiary playing field between employers and employees. Once
the employee shows that he or she is exercising a right under the Labour
Code, s. 17 creates a legal presumption in his or her favour, shifting the
burden to the employer to demonstrate that it had a “good and sufficient
reason” to sanction the employee, that is, one that was not motivated by anti‑union
animus. The presumption under s. 17 is at the procedural core of the
legislature’s scheme to protect employees from unfair labour practices, and is
one of labour law’s most vaunted equity tools for redressing the evidentiary
advantage held by employers. [68] [84] [90] [122] [124]
As a result, two complementary remedial routes — penal consequences
under ss. 12 to 14 and civil ones with the benefit of the presumption under ss.
15 to 19 — became available to allow employees to redress unlawful conduct on
the part of the employer and to enforce their associational rights. Until 1981,
the case law in Quebec had confirmed that an employer’s motives must always be
assessed to determine whether anti‑union animus is involved in the
decision to terminate someone’s employment. It is therefore inconsistent with
both legislative and judicial history to hold that the most drastic possible
employer conduct involving the termination of employment — the closing of a
business — is a form of dismissal which is uniquely exempt from scrutiny for
anti‑union animus. [92] [100‑101]
Yet, this was the impact of City Buick in 1981, which
concluded that a closing is a “good and sufficient reason” which rebuts the
presumption under s. 17. The effect of that case has been that under the Labour
Code, an employer’s conduct has been immunized from scrutiny for anti‑union
motives when a business has been closed. City Buick was a departure from
what had been an undisputed approach requiring, in every context, an assessment
of the “real and serious reason” for a dismissal, and ignored not only the
consistent stream of Quebec jurisprudence on what constitutes a dismissal, but
also the consistent jurisprudential confirmation that once an employee has been
dismissed and demonstrated that he or she was exercising a right under the Labour
Code, the burden shifts to the employer to demonstrate that the dismissal
was not motivated by anti‑union animus. City Buick’s dramatic departure
from the remedial approach and legislative objectives embodied in the Labour
Code makes it unsustainable. Closing a business can in fact be the most
severe form of reprisal for union activity. Since in all other complaints
involving s. 15 the RT scrutinizes the motives of the employer for anti‑union
animus, it is inconsistent with the intent of the Labour Code in
general, and with the purpose of s. 15 in particular, to scrutinize only the
authenticity of a closing, rather than the reasons behind it. Labour boards
across Canada have consistently refused to immunize employers who are inspired
to close a business — and dismiss employees — for anti‑union motives.
Furthermore, they have consistently held that a decision that is tainted by
anti‑union animus, whether a closing or any other action, is a violation
of labour rights. [104] [107-110] [112] [114]
There is no philosophical, jurisprudential, or textual support for
the idea that ss. 15 to 19, including the presumption in s. 17, apply only to
dismissals in an ongoing workplace. Dismissed employees are entitled to have
their dismissals scrutinized for anti‑union motives under ss. 15 to 19.
There is no reason to deprive them of access to this same remedial scheme,
including the wide remedial scope in ss. 118 and 119, when their dismissals
result from an employer closing down the entire workplace. Though reinstatement
is not a feasible remedy in a closed workplace, it is not the only remedy
contemplated by s. 15, it is only the most expansive one possible to fulfill s.
15’s objectives. To suggest that ss. 15 to 19, including the remedies available
under ss. 118 and 119, are only available to a dismissed employee in the case
of an ongoing workplace, contradicts the consistent, historic and unequivocal confirmation
that remedial statutes require a broad interpretation consistent with the
purposes of the legislation, not a word‑by‑word parsing that drains
the language of its remedial content. The better approach is to interpret the
legislative scheme in a way that connects recognized rights to meaningful
remedies. [69] [125‑126] [137]
Cases Cited
By Binnie J.
Applied: City Buick
Pontiac (Montréal) Inc. v. Roy, [1981] T.T. 22; I.A.T.S.E., Stage Local
56 v. Société de la Place des Arts de Montréal, 2004 SCC 2, [2004] 1 S.C.R.
43; distinguished: Health Services and Support —
Facilities Subsector Bargaining Assn. v. British Columbia, 2007 SCC 27,
[2007] 2 S.C.R. 391; referred to: Boutin v. Wal‑Mart
Canada inc., 2005 QCCRT 225, [2005] D.C.R.T.Q. no 225 (QL);
Boutin v. Wal‑Mart Canada inc., 2005 QCCRT 269, [2005] D.C.R.T.Q.
no 269 (QL); Pednault v. Compagnie Wal‑Mart du Canada,
[2005] J.Q. no 16222 (QL), aff’d 2006 QCCA 666, [2006] R.J.Q.
1266; Travailleurs et travailleuses unis de l’alimentation et du commerce,
section locale 503 v. Ménard, 2007 QCCS 5704, [2008] R.J.D.T. 138; Lafrance
v. Commercial Photo Service Inc., [1980] 1 S.C.R. 536; Hilton Québec
Ltée v. Labour Court, [1980] 1 S.C.R. 548; Asselin v. Lord, D.T.E.
85T‑193, SOQUIJ AZ‑85147041; Syndicat des travailleurs en
communication, électronique, électricité, techniciens et salariés du Canada
(C.T.C. — F.T.Q.) v. Schwartz, [1986] T.T. 165; Bourget v. Matériaux
B.G.B. ltée, D.T.E. 95T‑1257, SOQUIJ AZ‑95147099; Syndicat
des employés de la société chimique Laurentide Inc. v. Lambert, D.T.E. 85T‑523,
SOQUIJ AZ‑85147077; Teamsters — Conférence des communications
graphiques, section locale 555 M v. Joncas Postexperts inc., 2008 QCCRT
249, [2008] D.C.R.T.Q. no 249 (QL); Section locale 175
du Syndicat canadien des communications, de l’énergie et du papier (SCEP) v.
Petro‑Canada, 2008 QCCRT 246, [2008] D.C.R.T.Q. no 246
(QL); Lagacé v. Laporte, [1983] T.T. 354; Dunsmuir v. New Brunswick,
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Iris inc., [2000] R.J.D.T. 1632, motion for judicial review dismissed,
Sup. Ct. Mtl., No. 500‑05‑061084‑008, January 12,
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Brown Bovari (Canada) Ltd., [1963] R.D.T. 242; Industrielle (L’),
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By Abella J. (dissenting)
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et travailleuses unis de l’alimentation et du commerce, section locale 503 v.
Ménard, 2007 QCCS 5704, [2008] R.J.D.T. 138; Boutin v. Wal‑Mart
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Summers, Clyde. “Labor Law in the Supreme Court:
1964 Term” (1965-1966), 75 Yale L.J. 59.
Verge, Pierre, Gilles Trudeau et Guylaine Vallée. Le
droit du travail par ses sources. Montréal: Thémis, 2006.
APPEAL from a judgment of the Quebec Court of Appeal (Rochon J.A.),
2007 QCCA 1210, [2007] J.Q. no 10678 (QL), 2007
CarswellQue 8612, dismissing an application for leave to
appeal from a judgment of Corriveau J., 2007 QCCS 3165, [2007] J.Q. no 7019
(QL), 2007 CarswellQue 6548, dismissing an application
for judicial review of a decision of the Commission des relations du travail,
2006 QCCRT 207, [2006] D.C.R.T.Q. no 207 (QL). Appeal dismissed, LeBel,
Abella and Cromwell JJ. dissenting.
Bernard Philion, Claude
Leblanc and Gilles Grenier, for the appellant.
Roy L. Heenan, Corrado De
Stefano and Frédéric Massé, for the respondent.
Hélène Fréchette, Vanessa
Deschênes and Lucie Tessier, for the intervener Commission des
relations du travail.
George Avraam, Mark Mendl,
Jeremy Hann and Kevin B. Coon, for the intervener the Alliance of
Manufacturers & Exporters Canada.
Robert Laurin, for the intervener
Fédération des travailleurs du Québec (FTQ).
Robin Elliot, for the intervener
the Coalition of BC Businesses.
Guy Du Pont, for the intervener
the Canadian Chamber of Commerce.
Andrew K. Lokan and Jean‑Claude
Killey, for the intervener the Canadian Civil Liberties Association.
Manon Savard and Sébastien
Beauregard, for the intervener Conseil du patronat du Québec.
Steven Barrett and Lise Leduc,
for the intervener the Canadian Labour Congress.
The judgment
of McLachlin C.J. and Binnie, Deschamps, Fish, Charron and Rothstein JJ. was
delivered by
[1]
Binnie J. — On
April 29, 2005, Wal-Mart shut its store at Jonquière, in the
Saguenay-Lac-St-Jean area of Quebec. The workers at this particular store had
chosen to collectively bargain through their union, which had been certified by
the Commission des relations du travail (“CRT”) on August 2, 2004. Thereafter
negotiations to conclude a collective agreement were unsuccessful. On February
9, 2005, the Minister of Labour appointed an arbitrator to resolve the
outstanding differences. On the same day, Wal-Mart announced closure of the
store. On May 17, 2005, the appellant filed a complaint under s. 16 of the Labour
Code, R.S.Q., c. C-27 (“Code”), claiming [translation]
“I lost my employment because of the unionization of my establishment.” He
sought an order that he be reinstated in his job. This could only occur if the
store was ordered to be reopened. For the reasons that follow I believe the
claim was rightly rejected and that the appeal should be dismissed.
I. Overview
[2]
This proceeding is one of many initiated by the Wal-Mart
employees or their union the United Food and Commercial Workers Union, Local
503, arising out of the closing of the Jonquière store, including other
proceedings before the CRT invoking its general remedial powers under ss. 114,
118 and 119 of the Code (Boutin v. Wal-Mart Canada inc., 2005 QCCRT 225,
[2005] D.C.R.T.Q. no 225 (QL); 2005 QCCRT 269, [2005] D.C.R.T.Q. no
269 (QL)), and proceedings for judicial review related thereto, as well as a
class action (Pednault v. Compagnie Wal-Mart du Canada, [2005]
J.Q. no 16222 (QL) (Sup. Ct.)). The Jonquière store was the first
Wal-Mart store to be unionized in North America, and the Pednault Statement
of Claim included the allegations that the store closure was intended to
intimidate employees [translation]
“of any other Wal-Mart store who have engaged in or are considering engaging in
unionization activities” and “to frustrate attempts to unionize this store and
any similar applications in any other store” (2006 QCCA 666, [2006] R.J.Q.
1266, at paras. 9-10). The class action was eventually dismissed on the basis
that the subject matter of the dispute lay more appropriately within the
jurisdiction of the CRT rather than the courts. In addition, the union
launched a grievance against Wal-Mart under s. 59 of the Code alleging, amongst
other things, that Wal-Mart [translation]
“also encouraged, fomented and fostered rumours that the Wal-Marts in
St-Hyacinthe and Brossard would soon be closing” (Travailleurs et
travailleuses unis de l’alimentation et du commerce, section locale 503 v.
Ménard, 2007 QCCS 5704, [2008] R.J.D.T. 138, at para. 3). In other words,
the Jonquière closing was presented by the union merely as a step taken by
Wal-Mart in a larger employer strategy of hindrance, intimidation and union
busting.
[3]
In this particular proceeding, Wal-Mart’s answer to the s. 16
complaint was that the appellant lost his job not because of union activity but
because the store no longer existed and therefore no jobs were available.
Abella J. argues that Wal-Mart’s response reflects Quebec case law that has
wrongly “resulted in a blanket immunization from scrutiny for business
closings, and has prevented both unions and employees from seeking any
remedy for anti-union conduct when a business is closed” (para. 66 (emphasis
added)). I do not agree that such an immunity exists. Even Wal-Mart did not
claim that the closing of its Jonquière store was immunized from “scrutiny” or
could serve to deny unions and employees “any remedy for anti-union conduct”.
[4]
The issue before the Court, as I see it, is quite limited albeit
it is an important one. It is a matter of procedure that has nothing to do
with any general inquiry into Wal-Mart’s labour practices. The narrow issue is
whether the procedural vehicle offered by ss. 15 to 17 of the Code is available
to the appellant in circumstances where a store no longer exists. More
specifically, the issue is whether an employee in such circumstances has the
benefit of the presumption in s. 17 that the loss of jobs was a
“sanction” imposed for an unlawful motive, namely union busting. With all due
respect to those of a different opinion, my view is that the necessary
foundation of a s. 15 order is the existence of an ongoing workplace. The
appropriate remedy in a closure situation lies under ss. 12 to 14 of the Code
(which were in fact invoked by Jonquière employees in the Boutin case
mentioned earlier). Abella J. writes that:
I see no reason why the Commission cannot order [compensation] under ss.
15 and 119 of the Labour Code if it is satisfied that the closing was
motivated by anti-union animus. [para. 146]
If my colleague
were to substitute ss. 12 to 14 in place of s. 15 in her conclusion we would be
in agreement.
[5]
From the perspective of the appellant and his union, the major
attraction of the procedure under ss. 15 to 17 is precisely the statutory
presumption under s. 17 which provides that where the employer takes action
against an employee who is exercising rights under the Code, the CRT must
assume that the sanction was imposed or the action taken because of the
exercise of such employee rights until the employer shows otherwise. The
appellant argues that the workplace closure was such a “sanction” or “action”
and the presumption therefore applies. Section 17 provides:
17. If it is shown to the satisfaction of the Commission that the
employee exercised a right arising from this Code, there is a simple
presumption in his favour that the sanction was imposed on him or the action
was taken against him because he exercised such right, and the burden of proof
is upon the employer that he resorted to the sanction or action against the
employee for good and sufficient reason.
The onus is thus
put on the employer (here Wal-Mart) to establish that the sanction or action
against the complainant was taken “for good and sufficient reason” (s. 17)
which in practice means a decision free of taint of anti-union activity. Wal‑Mart
complains that it cannot logically be inferred from the fact of prior union
activity that the closure of the Jonquière store was a “sanction or reprisal”.
[6]
In electing the procedure under ss. 15 to 17, the appellant was
confronted with a long line of cases in the Quebec courts and in this Court
addressing reinstatement issues, including Lafrance v. Commercial Photo
Service Inc., [1980] 1 S.C.R. 536, and Hilton Québec Ltée v. Labour
Court, [1980] 1 S.C.R. 548. Subsequently, in City Buick Pontiac
(Montréal) Inc. v. Roy, [1981] T.T. 22, the Quebec Labour Court held that a
business closure itself is “good and sufficient reason” within the meaning of
s. 17 to justify the dismissal [translation]
“even if the closure is based on socially reprehensible considerations” (per
Judge Lesage, at p. 26). The rationale is that the loss of employment is
explained by the closure. Reinstatement in a closed workplace is not a
feasible or appropriate remedy. The cause of the closure, on the other
hand, is a distinct question that may be pursued under other provisions
of the Code, as will be discussed.
[7]
Counsel for Wal-Mart reminds us that City Buick was
recently approved by our Court in I.A.T.S.E., Stage Local 56 v. Société de
la Place des Arts de Montréal, 2004 SCC 2, [2004] 1 S.C.R. 43. The
appellant, however, contends that this line of cases from City Buick
onwards, should now be reconsidered because, he says, the constitutional scope
of freedom of association has recently been broadened by this Court in Health
Services and Support — Facilities Subsector Bargaining Assn. v. British
Columbia, 2007 SCC 27, [2007] 2 S.C.R. 391, and the provisions of the Code
must now be re-interpreted in that light. For the reasons that follow I do not
think that the Health Services decision is of any assistance here.
[8]
The rule in Quebec that an employer can close a plant for
“socially reprehensible considerations” does not however mean it can do so
without adverse financial consequences, including potential compensation to the
employees who have thereby suffered losses.
The Existence
of Alternative Remedies
[9]
City Buick, as quoted and affirmed by this Court in Place
des Arts, spoke of “socially reprehensible considerations”. It did not
offer an employer immunity under the Code for illegal conduct.
[10]
It is open to a union or employees to bring evidence of
anti-union conduct to establish an unfair labour practice under ss. 12 to 14 of
the Code. The disadvantage from the employees’ point of view is that the s. 17
presumption is not available in an application under those provisions. A s. 12
claim that the employer committed an unfair labour practice is for the union or
employees to establish, not for the employer to rebut.
[11]
The bottom line in this appeal is therefore not whether employees
have a remedy against an employer who closes a workplace for anti-union motives
(they do have a remedy) but whether employees of a closed business can bring
their claim within ss. 15 to 17 so as to obtain the considerable advantage of a
statutory presumption that the dismissals were because the employees
exercised their collective bargaining rights.
[12]
The issue under ss. 12 to 14 is not the same issue as under ss.
15 to 17, although both procedures address the problem of anti-union activity.
Under ss. 15 to 17, as interpreted by the CRT, the question before the tribunal
relates to the reasons for the employee’s dismissal (to which the real and
definitive closing of the workplace has been held to be a good and sufficient
answer) whereas the question that can be put in play under ss. 12 to 14 is the
broader issue of why the plant was closed at all, and specifically was
it closed as part of an anti-union strategy. A finding of an unfair labour
practice under ss. 12 to 14 opens up broader redress under the general remedial
provisions of the Code for the benefit of all employees, including those
who were not involved in union activity, and even for those who opposed
the union, but who nevertheless suffered as a result of the wrongful store
closure.
[13]
All of this is not to underestimate the difficulty faced by the
union or employees under ss. 12 to 14 in establishing that a particular closure
was tainted by anti-union animus, although the minimal requirement of taint
sets a relatively low threshold. On the other hand, the City Buick line
of cases reflects the countervailing difficulty faced by employers in proving a
closure to be free of taint in “mixed-motive” closures. The City Buick doctrine
that a definitive workplace closure constitutes “good and sufficient reason”
for the purposes of s. 17 (because no reinstatement is possible) is well
understood and the Quebec legislature made no change during the major
amendments of 2001, despite representations on the issue, as hereafter
described. As will be seen, the relevant extracts from City Buick were
incorporated into this Court’s judgment in Place des Arts, at para. 28,
to which Gonthier J. added, for the Court, “I respectfully agree with Judge
Lesage’s account.” It would be unfortunate, absent compelling circumstances,
if the precedential value of a unanimous decision of this Court was thought to
expire with the tenure of the particular panel of judges that decided it.
II. Facts Specific to This Appeal
[14]
In August 2004, the union to which Mr. Plourde belongs was
certified to represent the employees of Wal-Mart in Jonquière. After several
fruitless bargaining sessions, the union filed an application under the Code to
establish the provisions of a first collective agreement. On February 9,
2005, the Minister of Labour referred the dispute to arbitration and notified
the parties of the referral. That same day, Wal-Mart informed the employees of
its decision to close the store. On April 29, 2005, the appellant’s
employment, along with that of approximately 190 other employees, was
terminated.
[15]
After the closure was announced, the employees and the union
brought a number of proceedings to obtain relief. In addition to various
proceedings under the Code, including the one at bar, a civil proceeding was
brought in Pednault that took the form of a motion for authorization to
institute a class action on behalf of all the employees of the Jonquière
store. In that motion, it was alleged that the closure infringed the
employees’ freedom of association under s. 3 of the Quebec Charter of
human rights and freedoms, R.S.Q., c. C-12, and damages were claimed. The
Court of Appeal upheld a judgment granting a motion for declinatory exception
on the basis that the dispute fell within the exclusive jurisdiction of the
CRT, since it clearly concerned the exercise of employees’ rights provided for
in, and employer conduct punishable pursuant to, the Code.
[16]
In the case at bar, Mr. Plourde, along with several other
employees, filed a complaint under ss. 15 et seq. of the Code and
claimed to have lost his employment because of his union activities.
III. Relevant Statutory Provisions
[17]
Labour Code, R.S.Q., c. C-27
12. No
employer, or person acting for an employer or an association of employers,
shall in any manner seek to dominate, hinder or finance the formation or the
activities of any association of employees, or to participate therein.
No association of employees, or person acting on behalf of any such
organization, shall belong to an association of employers or seek to dominate,
hinder or finance the formation or activities of any such association, or to
participate therein.
13. No
person shall use intimidation or threats to induce anyone to become, refrain
from becoming or cease to be a member of an association of employees or an
employers’ association.
14. No
employer nor any person acting for an employer or an employers’ association may
refuse to employ any person because that person exercises a right arising from
this Code, or endeavour by intimidation, discrimination or reprisals, threat of
dismissal or other threat, or by the imposition of a sanction or by any other
means, to compel an employee to refrain from or to cease exercising a right
arising from this Code.
This section shall not have the effect of preventing an employer from
suspending, dismissing or transferring an employee for a good and sufficient
reason, proof whereof shall devolve upon the said employer.
15. Where
an employer or a person acting for an employer or an employers’ association
dismisses, suspends or transfers an employee, practises discrimination or takes
reprisals against him or imposes any other sanction upon him because the
employee exercises a right arising from this Code, the Commission may
(a) order the employer or a person acting for an employer
or an employers’ association to reinstate such employee in his employment,
within eight days of the service of the decision, with all his rights and
privileges, and to pay him as an indemnity the equivalent of the salary and
other benefits of which he was deprived due to dismissal, suspension or
transfer.
That indemnity is due in respect of the whole period comprised between
the time of dismissal, suspension or transfer and that of the carrying out of
the order, or the default of the employee to resume his employment after having
been duly recalled by his employer.
If the employee has worked elsewhere during the above mentioned
period, the salary which he so earned shall be deducted from such indemnity;
(b) order the employer or the person acting for an
employer or an employers’ association to cancel the sanction or to cease
practising discrimination or taking reprisals against the employee and to pay
him as an indemnity the equivalent of the salary and other benefits of which he
was deprived due to the sanction, discrimination or reprisals.
16. The
employees who believe that they have been the victim of a sanction or action
referred to in section 15 must, if they wish to avail themselves of the
provisions of that section, file a complaint at one of the offices of the
Commission within thirty days of the sanction or action.
17. If
it is shown to the satisfaction of the Commission that the employee exercised a
right arising from this Code, there is a simple presumption in his favour that
the sanction was imposed on him or the action was taken against him because he
exercised such right, and the burden of proof is upon the employer that he
resorted to the sanction or action against the employee for good and sufficient
reason.
114. The
Commission is responsible for ensuring the diligent and efficient application
of the provisions of this Code and exercising the other functions assigned to
it under this Code or any other Act.
.
. .
118. The
Commission may, in particular,
(1) summarily reject any motion, application, complaint or
procedure it considers to be improper or dilatory;
(2) refuse to rule on the merits of a complaint . . . ;
(3) make any order, including a provisional order, it considers
appropriate to safeguard the rights of the parties;
(4) determine any question of law or fact necessary for the
exercise of its jurisdiction;
(5) confirm, modify or quash the contested decision or order
and, if appropriate, render the decision or order which, in its opinion, should
have been rendered or made initially;
(6) render any decision it considers appropriate;
.
. .
119. Except
with regard to an actual or apprehended strike, slowdown, concerted action,
other than a strike or slowdown, or lock‑out in a public service or in
the public and parapublic sectors within the meaning of Chapter V.1, the
Commission may also
(1) order a person, group of persons, association or group of
associations to cease performing, not to perform or to perform an act in order
to be in compliance with this Code;
(2) require any person to redress any act or remedy any omission
made in contravention of a provision of this Code;
(3) order a person or group of persons, in light of the conduct
of the parties, to apply the measures of redress it considers the most
appropriate;
.
. .
IV. Adjudicative History
A. Commission des relations du travail, 2006
QCCRT 207, [2006] D.C.R.T.Q. no 207 (QL)
[18]
Wal‑Mart submitted that it had proven that the employments
were terminated for good and sufficient reason within the meaning of s. 17
of the Code, that reason being the complete and permanent closure of the
Jonquière store. Mr. Plourde contended that a loss of employment resulting
from an infringement of freedom of association could not be a loss of
employment for good and sufficient reason.
[19]
According to the CRT, there was no doubt that the appellant could
rely on the presumption under s. 17, since he had engaged in numerous
significant union activities that were concomitant with the termination of his
employment. However, the CRT found that Wal-Mart had shown the store’s closure
to be genuine and permanent. The evidence supported the conclusion that the
establishment no longer had any employees, was closed to the public and had
been emptied of its merchandise and equipment and stripped of any identifying
signage or colours. Moreover, the resiliation of the lease and the
uncontradicted explanations regarding efforts to sell the building sufficed to
show, in light of the evidence as a whole, that the closure of the store was
genuine.
[20]
Mr. Plourde conceded that the courts have consistently and
unanimously held for more than 25 years that the genuine closure of a business
constitutes a good and sufficient reason for the purposes of s. 17 of the
Code. But he argued that it was necessary to depart from this line of
authority in favour of the freedom of association protected by the Quebec Charter
and the Canadian Charter of Rights and Freedoms . The CRT rejected
the appellant’s argument and concluded that there was no support in the case
law for an inference that an employer could be compelled, on the basis of
freedom of association, to remain in business against its will. The CRT found
that in Place des Arts, the Supreme Court had endorsed, without
qualification, the comment of Judge Lesage in City Buick that what is
prohibited by s. 15 of the Code is dismissing employees engaged in union
activities, not permanently closing a business because one does not want to
deal with a union. Where the closure is real, genuine or permanent, the reason
for the termination of employment is the closure, not the union activities of
certain employees.
[21]
The CRT thus concluded that freedom of association does not bar
an employer from closing its business, regardless of its reason for doing so.
B. Quebec Superior Court, 2007 QCCS 3165,
[2007] J.Q. no 7019 (QL)
[22]
According to Corriveau J., the courts have long held that the
genuine closure of an establishment constitutes “good and sufficient reason”
within the meaning of s. 17 of the Code, and the CRT was accordingly
correct in not requiring Wal-Mart to prove its reasons for closing the store.
She wrote the following:
[translation] The
closure of an establishment is not in itself an action or a sanction against an
individual; it is the reason for a loss of employment, and that loss
constitutes the action against the employee within the meaning of s. 17 of
the Code.
Furthermore, it is because the closure of an
establishment is the reason for an action and not an action in itself that the
courts have historically recognized that closure constitutes “good and
sufficient reason” if it is genuine. [paras. 34-35]
[23]
Corriveau J. then considered the appellant’s argument that the
traditional case law should be disregarded in favour of the freedom of
association protected by the Charters. In her opinion, although the Charters
do protect freedom of association, they do not grant a right to a particular
form of association. The Code expands the scope of freedom of association for
a particular type of association and specifies the conditions for its
application. Hence, according to the judge, it is difficult to imagine that
the Charters themselves can expand the scope of the provisions of the
Code.
C. Quebec Court of Appeal, 2007 QCCA 1210,
[2007] J.Q. no 10678 (QL)
[24]
In brief reasons, Rochon J.A. held that the case did not raise a
new issue requiring the intervention of the Court:
[translation] The
applicant submits, in essence, that evidence of the real, genuine and permanent
nature of the closure of the Jonquière store cannot, on its own, whatever the
motives may be, constitute a good and sufficient reason. On the contrary, the
applicant writes:
Similarly,
where the presumption these measures entail applies as a result of activities
that are protected by both the Code and the Charter, there is
also a presumption that the Charter has been violated.
. . .
The applicant’s proposition does not stand up in
light of the Supreme Court of Canada’s holding in I.A.T.S.E., Stage Local 56
v. Société de la Place des Arts de Montréal, which does not provide
support for any questioning of the high court’s recent decision in Health
Services and Support Facilities Subsector Bargaining Assn. v. British Columbia.
[paras. 4 and 6]
Accordingly, the
application for leave was rejected.
V. Analysis
[25]
The multiple proceedings commenced by the union and numerous
employees following the closure of the Jonquière store were based on the
contention that Wal-Mart is a union-busting employer with a long track record
of anti-union activity. In this context, it was alleged that the closing of
the Jonquière store was intended not only as a reprisal against Jonquière
employees who had chosen to be represented by the union, but to send a
“chilling” signal to other Wal-Mart employees at other stores in the Saguenay
area and across its retail empire that if they, too, chose to be represented by
a union their jobs would be at risk.
A. Remedies Under Sections 12 to 14 of the
Labour Code
[26]
Section 12 of the Code prohibits an employer from in any manner
“hindering” the activities of any association of employees. In Asselin v.
Lord, D.T.E. 85T-193, SOQUIJ AZ-85147041, the Labour Court recognized that
s. 12 is available where there is an allegation that closure of a particular
workplace reflects anti-union conduct. The Labour Court, while not finding the
anti-union conduct to be proved in that case, observed:
[translation] If it is not shown that
the sole purpose of the closure was to hinder the union’s activities, the
employer cannot be found guilty . . . on the basis that the
consequences of the closure are so serious that they clearly hinder the union’s
activities.
Thus, the Court must be shown that the purpose of
the employer’s actions was to hinder the union’s activities or to endeavour
to compel an employee to refrain from or to cease exercising a right arising
from this Code . . . . [Emphasis added; p. 46.]
(I am mindful
that Asselin was decided in a penal context before civil remedies became
available with the coming into force of ss. 114, 116, 118 and 119 in 2002: see An
Act to amend the Labour Code, to establish the Commission des relations du
travail and to amend other legislative provisions, S.Q. 2001, c. 26, s. 63;
O.C. 1314-2002, (2002) 134 G.O. II, 6129. While relevant to the present
debate, Asselin should be read in light of that different context.)
[27]
The CRT and its predecessor, the Labour Court, have in fact
granted relief or imposed a sanction under s. 12 where an employer has threatened
to close a workplace for anti-union purposes: Syndicat des travailleurs
en communication, électronique, électricité, techniciens et salariés du Canada
(C.T.C. — F.T.Q.) v. Schwartz, [1986] T.T. 165 (penal proceeding); Bourget
v. Matériaux B.G.B. ltée, D.T.E. 95T-1257, SOQUIJ AZ-95147099 (penal
proceeding); Syndicat des employés de la société chimique Laurentide Inc. v.
Lambert, D.T.E. 85T-523, SOQUIJ AZ-85147077 (penal proceeding); Teamsters
— Conférence des communications graphiques, section locale 555 M v. Joncas
Postexperts inc., 2008 QCCRT 249, [2008] D.C.R.T.Q. no 249 (QL)
(civil proceeding); Section locale 175 du Syndicat canadien des
communications, de l’énergie et du papier (SCEP) v. Petro-Canada, 2008
QCCRT 246, [2008] D.C.R.T.Q. no 246 (QL) (civil proceeding). In Lagacé
v. Laporte, [1983] T.T. 354, the Labour Court made an order under s. 13 of
the Code against an employer who threatened closure as part of its anti-union
activities.
[28]
Professor Gagnon has explained the purpose of s. 12 as follows:
[translation] Union independence implies
an absence of both obstacles to and undue interference with legitimate
collective action. Thus, the union group, the association of employees, must
be able to form, organize and administer itself without being hindered or
interfered with by the employer, under the control and according to the wishes
only of the employees whose interests it is intended to defend. It is this
strictly collective dimension of the right of association that the legislature
had in mind when it enacted section 12, para. 1 L.C.
(R. P. Gagnon, Le droit du travail du Québec (6th
ed. 2008), at p. 337)
See also J.-Y.
Brière with the collaboration of J.-P. Villaggi, Relations de travail
(loose-leaf), vol. 1, at p. 2,402.
[29]
A claim under s. 12 is logical because the essential thrust of
the appellant’s position is not that he alone or with some colleagues
was singled out for discriminatory treatment but that Wal-Mart targeted
generally the rights of all employees at the Jonquière store (and
elsewhere). Jobs were lost not only by union supporters but by others who were
indifferent about the union or who were altogether against union
representation.
[30]
Accordingly, ss. 12 to 14 were in fact pleaded by Jonquière
employees in Boutin v. Wal-Mart Canada inc., in May 2005. However, the Boutin
proceedings were discontinued on or about December 5, 2007.
[31]
A finding in favour of the union under ss. 12 to 14 would have
allowed the CRT to exercise its broad remedial powers under ss. 118 and 119 of
the Code. Whether the CRT would be as aggressive in fashioning a remedy as its
counterparts in some of the other provinces would be for the CRT to determine.
Under ss. 12 to 14, however, the employees or their union must prove the
existence of anti-union misconduct on a balance of probabilities.
[32]
In any event, the issue on this appeal is not whether the
Wal-Mart employees at Jonquière had access to some remedy under the Code
for the store closure if the closure could be shown to be part of a
union-busting strategy, but whether ss. 15 to 17 were properly available to
have the workplace closure considered a “sanction” and anti-union motivation presumed
in their favour.
B. The Remedies Under Sections 15 to 17 of
the Labour Code
[33]
In this case it was shown to the satisfaction of the CRT that Mr.
Plourde had demonstrated a level of union activity that triggered the
application of the s. 17 presumption. The burden thus shifted to Wal-Mart to
show that the “real cause” of the dismissal was the store closure and that the
definitive closure constituted “good and sufficient reason” to justify the
dismissal. The CRT concluded that the closure was real and definitive, and
that Wal‑Mart had therefore discharged its onus under s. 17.
[34]
The appellant sought judicial review of the CRT decision. The
decision of the CRT on the proper interpretation of a provision of its
constituent statute is entitled to a measure of deference and should be
reviewed by the courts on a reasonableness standard: Dunsmuir v. New
Brunswick, 2008 SCC 9, [2008] 1 S.C.R. 190; Canada (Citizenship and
Immigration) v. Khosa, 2009 SCC 12, [2009] 1 S.C.R. 339.
[35]
Sections 15 to 17 set out a remedy for any person who is
dismissed, suspended, transferred, discriminated against or subjected to
reprisals or other sanctions because of exercising rights under the Code. The
remedy was added to the Code to address the deficiencies, from the employees’
point of view, of the then penal provisions prohibiting anti-union conduct by
employers. A successful prosecution under the previous law was cold comfort to
employees who had lost their jobs. The reference in s. 15 to an order to
“reinstate such employee in his employment” signals quite unambiguously
the legislative contemplation of an ongoing place of employment as the
foundation of a successful s. 15 application, although clearly more than one
employee may join in a complaint: Dar v. Manufacturier de bas Iris inc.,
[2000] R.J.D.T. 1632 (Lab. Ct.), motion for judicial review dismissed on
January 12, 2001, Sup. Ct. Mtl., No. 500-05-061084-008.
[36]
What, then, is the scope of the s. 15 remedy? My colleague’s
discussion of the U.S. Wagner Act and various other historic milestones
in North American labour relations is of interest but it is no substitute, with
respect, for an analysis of what the Quebec legislature has actually said
in the relevant statutory provisions. Section 15 authorizes the CRT to
(a) order the employer or a person acting for an employer
or an employers’ association to reinstate such employee in his
employment, within eight days of the service of the decision, with all his
rights and privileges, and to pay him as an indemnity the equivalent of
the salary and other benefits of which he was deprived due to dismissal,
suspension or transfer.
That indemnity is due in respect of the whole period comprised
between the time of dismissal, suspension or transfer and that of the carrying
out of the order, or the default of the employee to resume his employment
after having been duly recalled by his employer.
If the employee has worked elsewhere during the above mentioned
period, the salary which he so earned shall be deducted from such
indemnity;
(b) order the employer or the person
acting for an employer or an employers’ association to cancel the sanction
or to cease practising discrimination or taking reprisals against the employee
and to pay him as an indemnity the equivalent of the salary and other benefits
of which he was deprived due to the sanction, discrimination or reprisals.
The CRT has
consistently treated the indemnification provisions as limited to the situation
of an ongoing business rather than a free-standing power to award damages
against employers for anti-union conduct associated with a closed business: Bélanger
v. Hydro-Québec, D.T.E. 86T-86, SOQUIJ AZ-86147016. See also Produits
Coq d’Or Ltée v. Lévesque, [1984] T.T. 73; T.A.S. Communications v.
Thériault, [1985] T.T. 271. This limited role for s. 15 (albeit a powerful
role in light of the statutory presumption against the employer) is consistent
with the text and purpose of these provisions.
[37]
In Alltour Marketing Support Services Ltd. v. Perras,
D.T.E. 83T‑855, SOQUIJ AZ-83147158 (Lab. Ct.), indemnification was
awarded only for the interim period between the wrongful dismissal and the time
when the provincial board lost jurisdiction because the employer became
federally regulated.
[38]
Abella J. argues that this interpretation of s. 15 “is to
attribute to the legislature an intention to redress only unlawful conduct
which can be redressed by reinstatement. Such an ungenerous and impractical
intention collides with the approach to remedies in the law of obligations set
out in art. 1590 of the Civil Code of Québec” (para. 133). This is not
so. There is an alternative remedy. It is found in ss. 12 to 14 of the Code.
Abella J.’s interpretation, on the other hand, would erode the distinct roles
assigned by the legislature to the ss. 12 to 14 group of provisions and the ss.
15 to 19 group. In a workplace closure situation they would be duplicative.
My colleague notes that “one of the remedies Plourde seeks is compensation”
(para. 146). This is so, but it is in the context of a complaint, which is
dated some weeks after the store closed on April 29, 2005, that specifically
includes a demand that Wal-Mart be ordered [translation]
“to reinstate me in or transfer me back to my employment” (see exhibit
P-2, A.R., vol. II, at p. 68).
[39]
Abella J. also contends that the general remedial powers under
ss. 118 and 119 are available to the CRT on a s. 15 application (paras. 140‑41).
I do not agree. Section 15 provides a summary remedy backed by a presumption
against the employer. The legislature has specified in s. 15 the remedies
available for its breach. Adding the generality of ss. 118 and 119 remedies to
a s. 15 violation would give the s. 17 presumption an expanded (and
comprehensive) effect beyond the reinstatement and associated relief contemplated
in the ss. 15 to 17 group of provisions for an illegal dismissal. Employees in
search of general remedies would never have to establish anti-union
misconduct. Its existence would always be presumed in their favour as soon as
they established they had exercised “a right arising from this Code”. This, in
my view, would significantly alter the balance between employers and employees
intended by the Quebec legislature. The better view, I believe, is that where
employees seek relief under the general remedial provisions of the Code, their
remedy lies under ss. 12 to 14, as already discussed.
[40]
On the other hand nothing in these reasons affects the full range
of relief available from the CRT under ss. 15 to 19 in situations where the
workplace continues in existence. In these situations, s. 15(b)
provides that the CRT may order the employer to cancel an illegal sanction.
Where the illegal sanction falls short of dismissal, the issue of reinstatement
does not arise and lesser remedies will be considered. I will say nothing
further about “lesser remedies” because the issue in this appeal is limited to
the availability of the s. 17 presumption where the plaintiff seeks relief
against an illegal dismissal. The relief available when ss. 15 to 19 are
properly invoked in the context of a lesser sanction has not been put in issue
before us and the scope of this judgment is limited accordingly.
C. This Court’s Recent Decision in Place des
Arts (2004) Grew Out of 45 Years of Consistent Quebec Jurisprudence on
Workplace Closures
[41]
In Place des Arts, at para. 28, the judgment of our
Court adopted and expressly agreed with certain observations made by Judge
Lesage in City Buick, in the context of the s. 17 presumption:
[translation]
In our free enterprise system, there is no legislation to oblige an employer to
remain in business and to regulate his subjective reasons in this respect . . .
. If an employer, for whatever reason, decides as a result to actually
close up shop, the dismissals which follow are the result of ceasing
operations, which is a valid economic reason not to hire personnel, even if
the cessation is based on socially reprehensible considerations. What is
prohibited is to dismiss employees engaged in union activities, not to definitively
close a business because one does not want to deal with a union or because a
union cannot be broken, even if the secondary effect of this is employee
dismissal. [Emphasis added; italics in original deleted; p. 26.]
Accordingly,
these words can no longer be dismissed as merely the expression of the Quebec
Labour Court in 1981. The words express the unanimous view of the Supreme
Court of Canada in 2004.
[42]
In ruling that s. 15 is not appropriate in a workplace closure
situation, the CRT in this case thus drew from a long line of authority
commencing over 45 years ago. In Maresq et Brown Bovari (Canada) Ltd.,
[1963] R.D.T. 242, a case that did not involve a workplace closure but
the dismissal of a single employee, Judge Alan Gold of the Magistrate’s Court
of Quebec, then vice-chairman of the Labour Relations Board, stated at p. 246:
Thus, in order to decide whether or not the Act has been violated, we
must, of necessity, consider the reason indicated by the employer for
discharging his employee but our consideration must be solely directed to
determine if this reason is the real and determining reason — the causa
causans of the dismissal — or only a simulated reason given to mask the
real reason, which is the employee’s trade union activity and which has brought
about the employer’s displeasure. It is not for us to sit as a board of
review upon the employer’s decision other than to decide the sincerity of his
action. [Emphasis added.]
In Maresq,
the employee was fired at a time when he was taking part in union organizing,
but the court was satisfied that the employer did not know that. The employee
was held to have been fired for “fair and sufficient” reasons.
[43]
Judge Gold’s causa causans approach was followed in a
number of cases including by the Labour Court in Industrielle (L’),
Compagnie d’assurance sur la vie v. Nadeau, [1978] T.T. 175, and by the
Quebec Court of Appeal in Société des Hôtels Méridien Canada Ltée v.
Tribunal du travail, 80 CLLC ¶ 14,026, and Hilton Québec Ltée v.
Tribunal du travail, C.A. Québec, No. 200-09-000312-782, January 16, 1979.
[44]
The issue came before this Court in Lafrance, where
Chouinard J. said:
It remains for the Court to resolve the principal question raised by
this appeal, namely the meaning of the phrase “another good and sufficient
reason” in s. 16 [now s. 17] and the scope of the jurisdiction of the
investigation commissioner and of the Labour Court on appeal.
From the outset it has been held that this phrase means that the
investigation commissioner must be satisfied that the other reason relied on by
the employer is of a substantial nature and not a pretext, and that it
constitutes the true reason for the dismissal. [p. 544]
(See also Hilton Québec, per Chouinard J., at p. 550.)
[45]
The next case in this chain of pedigree is City Buick, to
which extensive reference has already been made. Unlike Maresq, which
involved the dismissal of a single employee, City Buick arose out of the
closure of a business. The comments in that case, now backed by Place des
Arts, that a real and definitive workplace closure is a complete
answer to any attempt to invoke the s. 17 presumption are therefore applicable
to this appeal.
[46]
In Quebec (and elsewhere) the firing of a single employee often
merits heightened scrutiny (e.g. the imposition of the reverse onus that
requires an employer to prove that it has a good and sufficient reason for
firing an employee who was at the time engaged in protected union-related
activity), but in Quebec the CRT and the courts have not thought it appropriate
to impose such a reverse onus in the case of the closure of an entire plant.
The Quebec view is that the immediate reason the employees were dismissed is
that their jobs no longer existed because of the closure. The reason for the
closure is a more remote question which, it was held, is not to be determined
on a s. 15 application.
[47]
In Maresq, Judge Gold had said that the real reason for
the dismissal was relevant (i.e. the court would not accept “a simulated
reason given to mask the real reason, which is the employee’s trade union
activity and which has brought about the employer’s displeasure”) whereas Judge
Lesage said that in the case of a closure the employer’s decision to close [translation] “for whatever
reason [including] socially reprehensible considerations” (emphasis added)
would not be reviewed under s. 17. A closure, for whatever reason, was still a
closure, making reinstatement impossible. The decision of Judge Lesage has
been followed consistently in Quebec in workplace closure situations (see,
e.g., Caya v. 1641‑9749 Québec Inc., D.T.E. 85T‑242, SOQUIJ
AZ-85147051 (Lab. Ct.); Bérubé v. Groupe Samson Inc., D.T.E. 85T-932,
SOQUIJ AZ-85147126 (Lab. Ct.); Ouellette v. Restaurants Scott Québec Ltée,
D.T.E. 88T‑546, SOQUIJ AZ-88147062 (Lab. Ct.); Entreprises Bérou inc.
v. Arsenault, [1991] T.T. 312).
D. Policy Concerns
[48]
The ss. 15 to 17 procedure is designed to deal in a summary way
with complaints of employees who claim to have been suspended, fired, or
otherwise disciplined for engaging in union conduct. The presumption arises
easily, i.e. anytime an employee is shown to be involved in any form of union
activity. It is difficult to rebut. Any taint of anti-union animus will be
fatal to the employer’s defence in a “mixed motive” decision, even if the
employer had other good reasons for the sanction, as pointed out by the Quebec
Court of Appeal in Silva v. Centre hospitalier de l’Université de Montréal —
Pavillon Notre-Dame, 2007 QCCA 458, [2007] R.J.D.T. 363, at para. 4:
[translation] [W]here the
motive for a sanction is unlawful, or where an unlawful motive is
accompanied by a lawful one, the presumption of section 17 of the Labour
Code is not rebutted. [Emphasis added.]
In so
concluding, the Court of Appeal referred with approval to Professor Gagnon’s
observation that [translation] “it
will not be necessary for the C.R.T. to separate the lawful and unlawful
considerations that may have contributed to motivating the employer. A
decision tainted by an unlawful motive is fatally flawed, regardless of
whether that unlawful motive was the deciding factor” (Le droit du travail
du Québec (5th ed. 2003), at pp. 274-75 (emphasis added)).
[49]
Similarly, the CRT held in St-Hilaire v. Sûreté du Québec,
2003 QCCRT 559, [2003] D.C.R.T.Q. no 559 (QL), that the employer
could not succeed where the fact the employee had filed a grievance had played
a role in its decision not to renew her contract, even though other legitimate
motives existed. The CRT affirmed that [translation]
“where an unlawful motive has contributed to a decision to dismiss, it changes
the very nature of the decision, which can no longer be considered to be good
and sufficient. By analogy, if just one drop of poison is placed in a vase
full of water, ‘all the water in the vase is irreparably contaminated’” (para.
139). See also: Jalbert v. Sobeys Québec, 2007 QCCRT 608, [2007]
D.C.R.T.Q. no 608 (QL), at para. 38, and Arsenault v. C & D
Aerospace inc., 2006 QCCRT 654, [2006] D.C.R.T.Q. no 654 (QL),
at para. 120. None of these cases involved workplace closures. From the employees’
point of view, the sufficiency of a mere “taint” in a mixed motive situation
considerably alleviates the difficulty of proof against the employer.
[50]
The appellant points out, rightly, that the employer is generally
in a better position than the employees to demonstrate “the real reason” behind
the workplace closure but the respondent also has a valid point that the
legislator could reasonably adopt the policy that the simple existence of union
activity prior to a closure should not, by itself, be sufficient to require the
employer to open up its books to justify to the CRT’s satisfaction that
management’s decision is untainted in any way by the union activity. The
Quebec legislature saw fit not to modify the Code to overrule City Buick when
extensive amendments were made to the Code in 2001. When questioned in 2001
about the potential scope of the CRT’s powers under s. 119, and specifically
whether these encompassed the power to prevent a business from closing, the
Minister of Labour at the time, Mr. Rochon, responded:
[translation]
Mr. Rochon (Charlesbourg): . . . the Labour Code does not provide that a
business can be prevented from closing or moving. That’s impossible. What the
Commission can order someone to do is limited to what the Code allows it
to order, and in this regard the Code cannot prevent an employer from
doing as it wishes with that business.
It seems clear
therefore that the Minister, and through the Minister the other members of the
National Assembly, were aware of the doctrine set out in City Buick and
the cases that followed it. The Minister continued:
[translation] If there
was an action — an unfair practice — that involved shutting down a business
solely to, as they say, bust a union, there may be other measures — under the
penal code or otherwise — to take, but it is not the Commission, under the
Code, that would be able to step in to prevent the business from closing.
[Emphasis added.]
(Journal des débats de la Commission permanente de l’économie et du
travail, vol. 37, No. 22, 2nd Sess., 36th Leg., May 29, 2001, at p. 47)
It seems clear,
therefore, that whatever “other measures” might be available, the legislators
understood that the Code as it stood in 2001 did not authorize the CRT to grant
s. 15 relief after a workplace had shut its doors and when the Code was
subsequently amended in 2001, the legislators did not see fit to make any
amendments relevant to that issue.
E. The Relevance of This Court’s Decision in
Place des Arts (2004)
[51]
As stated, the relevant dicta from City Buick was
accepted as correct by this Court in Place des Arts. However, this
case should not be read as broadly as Wal-Mart contends. The comments of
Gonthier J. must be read in context. In that case the employer, after a
protracted strike, decided to discontinue providing technical services to its
tenants and other performers. Tenants and others were thereafter left to
provide such technical services for themselves. The union complained under s. 109.1(b)
of the Code that Place des Arts was thereby “utilizing” the employees of other
employers to do the job of the strikers. The union sought to enjoin the use of
substitute workers. This Court took the view that the complaint and the
proposed remedy contemplated the continued existence of an ongoing
undertaking by the Place des Arts technical services group which on the
evidence no longer existed. That was the ratio decidendi of the case.
In that context resort was made to the City Buick line of cases. This
Court endorsed the view that no legislation obliges an employer to remain in
business. However, Gonthier J. did not suggest that the closure immunized the
employer from any consequences or that there was no remedy anywhere
under the Code to provide for compensation to the terminated employees, or
other relief or remedy, on proof that the termination was for anti-union
reasons.
[52]
I do not believe that Place des Arts should be read as
holding that closure immunizes an employer from all financial consequences of
related unfair labour practices. As the Canada Industrial Relations Board
(“CIRB”) suggested in Crawford Transport Inc. and Teamsters, Local 879
(2006), 146 C.L.R.B.R. (2d) 234:
It is important to keep in mind that the Supreme
Court’s analysis [in Place des Arts] was made in the context of whether
there had been a violation, in light of the particular wording of a provision
under Quebec’s labour legislation prohibiting the use of replacement workers. .
. . [T]hat decision, despite its confirmation of the right of enterprises to
genuinely go out of business, does not stand for the proposition that there can
never be a finding of a Code violation in the context where an employer
subsequently discontinues or transforms its business. [para. 90]
[53]
In Pegasus Express Inc. and Teamsters, Local 880 (2006),
140 C.L.R.B.R. (2d) 77, the employer had closed its business rather than
comply with a previous CIRB cease and desist order in respect of an unfair
labour practice. Following Place des Arts, the CIRB held it was not
open to it to order the employer to reopen its business. In the CIRB’s view, Place
des Arts had affirmed “that there is no legal limitation on an employer’s
decision to close its business” (para. 27) yet the CIRB held that under the
federal Labour Code relief could be awarded in respect of associated unfair
labour practices.
[54]
What, then, is the effect of Place des Arts? In my view,
in affirming that “there is no legislation [in Quebec] to oblige an employer to
remain in business” and that the “dismissals which follow are the result of
ceasing operations”, the effect of Place des Arts is to exclude in a
workplace closure situation the application of s. 17. This is because our
Court adopted the proposition that the remedial order presupposed an ongoing
business. In this situation, a workplace closure is a complete answer.
However, Place des Arts does not stand for the more sweeping proposition
that closure wipes the employer’s record clean and immunizes it from any
financial consequences for associated unfair labour practices. Nor does it
preclude a finding that the closure itself constitutes an unfair labour
practice aimed at hindering the union or the employees from exercising rights
under the Code. The appropriate remedies for employees as well as the union
simply exist elsewhere under the Code, and in particular under ss. 12 to 14
relating to unfair labour practices.
F. The Constitutional Argument
[55]
The appellant and interveners in his support argue that the
foregoing jurisprudence should be modified in light of the decision in this
Court in Health Services. In that case, the Court recognized that the
freedom of association protected by s. 2 (d) of the Canadian Charter includes
a procedural right to collective bargaining. The majority formulated the
constitutional proposition as follows:
The right to collective bargaining thus conceived is
a limited right. First, . . . the right is to a process, it does not guarantee
a certain substantive or economic outcome. Moreover, the right is to a
general process of collective bargaining, not to a particular model of labour
relations, nor to a specific bargaining method. As P. A. Gall notes, it is
impossible to predict with certainty that the present model of labour relations
will necessarily prevail in 50 or even 20 years . . . . [Emphasis added; para.
91.]
[56]
The appellant’s argument extends the reasoning in Health
Services well beyond its natural limits. In that case the state was not
only the legislator but the employer. Here the employer is a private
corporation. Section 3 of the Code guarantees the right of association to
workers in Quebec. Other provisions implement this general guarantee. The
legislature has crafted a balance between the rights of labour and the rights
of management in a way that respects freedom of association. No argument was
raised by the appellant or any of the interveners against the constitutionality
of any provisions of the Code, or claimed that in its entirety the Code
fails to respect freedom of association. The appellant says the interpretation
of the Code should be developed to reflect “Charter values”, but the
entire Code is the embodiment and legislative vehicle to implement freedom of
association in the Quebec workplace. The Code must be read as a whole. It
cannot be correct that the Constitution requires that every provision (including
s. 17) must be interpreted to favour the union and the employees.
[57]
Care must be taken not only to avoid upsetting the balance the
legislature has struck in the Code taken as a whole, but not to hand to one
side (labour) a lopsided advantage because employees bargain through their
union (and can thereby invoke freedom of association) whereas employers, for
the most part, bargain individually.
G. Labour Legislation in Other Provinces
[58]
Reference was made by the Canadian Labour Congress and
other interveners to labour law and practice outside Quebec which they say take
a somewhat different approach to this problem. However, in a federal state
there is no requirement that provincial regulatory schemes must align
themselves. On the contrary, federalism permits wide variation within the
limits set by the Constitution, which is why the appellant in this case has
raised a constitutional argument based on freedom of association as explained
in Health Services, but which for the reasons just given I do not regard
as applicable to this appeal.
[59]
It is apparent that some of the differences in the jurisprudence
from province to province are a function of the statutory setting in which they
are made. Provincial labour relations statutes generally include provisions to
the effect that nothing therein is to be interpreted as preventing an employer
from closing for cause. It is also widely recognized that a closure may result
from mixed motives that may be tainted with a desire to avoid having to deal
with a union. In International Wallcoverings and Canadian Paperworkers Union
(1983), 4 C.L.R.B.R. (N.S.) 289, the Ontario Labour Relations Board
acknowledged the difficulty in a “mixed motive” case of reconciling the
interests of employees and employers even where the statute provides for a
legal inference of improper conduct against the employer in certain cases:
[T]he combined effect of the mixed motive approach and legal inference
can result in the striking down of employer conduct where the Board is not
prepared to accept tendered evidence of a bona fides business purpose as
a complete answer to the adverse impact on trade union activity complained of.
However, usually the Board has been reluctant to find by legal inference a
partial but improper motive where direct and persuasive evidence of an
acceptable business justification has been established by a respondent employer.
[Emphasis added; para. 30.]
[60]
Commenting on the mixed motive jurisprudence, former Justice
George W. Adams noted in Canadian Labour Law (2nd ed. (loose-leaf)), at
para. 10.360:
May an employer close all or part of its business because of the burden
of costs achieved by a trade union during many rounds of collective
bargaining? May an employer react to these same costs by subcontracting out
work or implementing technological change? . . . In each case, an employer may
be able to assert genuinely that it is reacting only to economics not to the
exercise of collective bargaining rights by employees and that labour
legislation is not intended to insulate unionized employees from the realities
of the marketplace. On the other hand, employees and their trade unions
can argue that statutory rights will be rendered illusory if an employer can
simply pick up its business and move elsewhere on the arrival of a trade
union. Both positions have considerable merit and labour boards have had to
broker the conflicting legitimate interests arising in these situations using
doctrines of intent, inference and various presumptions. [Emphasis added.]
[61]
I do not believe that labour relations practices in some of the
other provinces should dictate the outcome in Quebec, which in relation to the
s. 17 presumption has been based for many years on a principle recently
endorsed by the unanimous decision of this Court in Place des Arts.
While this Court holds itself free to depart from its own prior decisions for
compelling reasons, no such compelling reasons of policy or law have been
identified that were not evident to the Court, albeit differently constituted,
that decided Place des Arts five years ago. A measure of judicial
consistency is necessary to enable those working in the labour relations field
in Quebec to know the rules they are operating under. We should properly put Place
des Arts in context, as I have endeavoured to do, but I do not think any
compelling reason has been shown to overturn its fundamental premise.
[62]
Abella J. claims that the foregoing interpretation represents “a
marked and arbitrary departure from the philosophical underpinnings, objectives
and general scope of the Labour Code” (para. 69). I do not accept this
assertion as correct. The foregoing interpretation reflects the “philosophical
underpinnings, objectives and general scope” of the Quebec Labour
Code as endorsed in Place des Arts.
[63]
A distinguishing characteristic of federalism is that in matters
of provincial labour relations the various provinces are free to strike their
own balance according to their varying circumstances and attitudes. Quebec,
for example, contemplates imposition of a first contract. Some of the other
provinces do not provide for this possibility. For the reasons already given I
believe the CRT’s refusal to extend the s. 15 reinstatement remedy to a closed
workplace is a reasonable interpretation of its constituent Act and I would not
interfere with it.
VI. Conclusion
[64]
Under s. 12, a union or employees may claim anti-union conduct on
the part of the employer. Such a proceeding would focus directly on the reason
for the closure of the store not on the reason for the dismissal of employees
at a store that no longer exists. Under s. 12 the motive of Wal-Mart to close
the Jonquière store would be highly relevant. If the CRT were satisfied that
the closure occurred for anti-union reasons, the CRT could, if the matter were
properly before it, fashion a remedy of benefit to all the former employees.
[65]
For the reasons given, however, the procedure set out in ss. 15
to 17 does not provide an appropriate vehicle for the appellant’s complaint in
this case and the appeal must be dismissed.
The reasons of LeBel, Abella and Cromwell JJ. were delivered by
[66]
Abella J.
(dissenting) — For nearly 30 years, the labour jurisprudence
in Quebec has often followed the conclusion in the 1981 decision in City
Buick Pontiac (Montréal) Inc. v. Roy, [1981] T.T. 22, that an employee’s
dismissal in the case of a genuine closing of a business cannot be remedied,
even where the closing was for anti-union motives. This has resulted in a
blanket immunization from scrutiny for business closings, and has prevented
both unions and employees from seeking any remedy for anti-union conduct when a
business is closed. This Court has now been asked, for the first time, to
consider whether City Buick represents a reasonable interpretation of
the Quebec Labour Code, R.S.Q., c. C-27.
[67]
With great respect, it is my view that the conclusion in City
Buick that a dismissal resulting from a genuine closing can never be
scrutinized for anti‑union motives, is a rebuke to the prior
jurisprudence, to the history of the legislation, and to the purpose of the
legislative scheme.
[68]
The implementation of ss. 15 to 19 of the Labour Code,
including the presumption in s. 17, represented one of the most significant
reforms in modern labour law. Sections 12 to 14 were, until 2001, penal
provisions. There was no possibility of a civil remedy such as reinstatement
or compensation. Sections 15 to 19 were therefore added to the Labour Code
50 years ago to provide access to civil remedies for anti-union conduct by an
employer, and to facilitate this access through a presumption in s. 17
levelling the evidentiary playing field between employers and employees.
[69]
Depriving employees of their right to rely on access to the
fullness of this remedial scheme for dismissals when a workplace closes,
including the presumption, deprives them of these rights in situations when
they are most needed. To suggest, as the majority does, that the full
substantive and procedural benefits of ss. 15 to 19 are unavailable to provide a
remedy in the case of a business closed for anti-union reasons, represents a
marked and arbitrary departure from the philosophical underpinnings, objectives
and general scope of the Labour Code. Dismissed employees are entitled
to have their dismissals scrutinized for anti-union motives under ss. 15 to
19. There is no reason to deprive them of access to this same remedial
scheme, including the wide remedial scope in ss. 118 and 119, when their
dismissals result from an employer closing down the entire workplace.
[70]
I would therefore dissolve the immunity that City Buick
granted employers from scrutiny under the Labour Code for anti-union
motives when a business is closed, and remove its unwarranted restriction from
access in such circumstances to the protections and remedial scope of the Labour
Code, whether under ss. 15 to 19 or under ss. 118 and 119.
Background
[71]
On August 2, 2004, the Commission des relations du travail
(“Commission”) certified the United Food and Commercial Workers Union, Local
503 as the bargaining agent for employees of Wal-Mart’s outlet in Jonquière.
Between October 27, 2004 and February 1, 2005, the Union and Wal-Mart held nine
negotiating sessions. On February 2, 2005, the Union asked the Minister of
Labour to appoint an arbitrator to determine the terms of the first contract.
The Minister agreed on February 9, 2005. That same day, Wal‑Mart
announced that the store in Jonquière would close on May 6, 2005. On April 29,
2005, Wal‑Mart informed all employees that the Jonquière store would
close immediately rather than on May 6.
[72]
The Union and employees sought relief against Wal‑Mart,
alleging that the closing was motivated by anti‑union animus. There were
several applications grounded in different parts of the Labour Code and
the Act Respecting Labour Standards, R.S.Q., c. N‑1.1 (Pednault
v. Compagnie Wal‑Mart du Canada, [2005] J.Q. no 16222 (QL)
(Sup. Ct.); Plourde v. Cie Wal‑Mart du Canada, 2006 QCCRT 159,
[2006] D.C.R.T.Q. no 159 (QL); Travailleurs et travailleuses unis
de l’alimentation et du commerce, section locale 503 v. Ménard, 2007 QCCS
5704, [2008] R.J.D.T. 138; Boutin v. Wal‑Mart Canada inc., 2005
QCCRT 269, [2005] D.C.R.T.Q. no 269 (QL)).
[73]
Seventy-nine individual employees from the Jonquière store filed
complaints against Wal‑Mart under ss. 15 to 19 of the Labour Code,
including Gaétan Plourde. At a pre‑hearing conference on June 23, 2005,
the parties agreed that only a few of the complaints would proceed first. The
first set was heard at the Commission by vice-president Pierre Flageole (Bourgeois
v. Compagnie Wal‑Mart du Canada, 2005 QCCRT 502, [2005] D.C.R.T.Q. no
502 (QL)). Applying City Buick, he concluded, based on the lack of
evidence about the termination of the lease, that Wal‑Mart had not
completely closed the store and was therefore in violation of the Labour
Code. Wal-Mart sought judicial review. In Compagnie Wal‑Mart du
Canada v. Commission des relations de travail, 2006 QCCS 3784, [2006] J.Q.
no 6894 (QL), Courville J. upheld the Commission’s decision.
Wal-Mart appealed successfully. Gendreau J.A. concluded that it was
unreasonable for the Commission to give priority to one factor — the absence of
evidence about the termination of the lease — over other indicia that Wal-Mart
had definitively closed the outlet (Compagnie Wal‑Mart du Canada v.
Desbiens, 2008 QCCA 236, [2008] J.Q. no 673 (QL)).
[74]
The next case heard by the Commission was the complaint in this
case, Plourde v. Cie Wal‑Mart du Canada, 2006 QCCRT 207, [2006]
D.C.R.T.Q. no 207 (QL). Plourde sought, among other remedies,
compensation. He did not seek the reopening of the store. Vice-president
Flageole, who had decided the complaint in Bourgeois, this time came to
a diametrically opposite conclusion. Again relying on City Buick, he
accepted new evidence from Wal-Mart showing that it had terminated the lease
and therefore concluded that the store closing was in fact definitive and
genuine. Citing the “labour trilogy” (Reference Re Public Service Employee
Relations Act (Alta.), [1987] 1 S.C.R. 313, PSAC v. Canada,
[1987] 1 S.C.R. 424, and RWDSU v. Saskatchewan, [1987] 1 S.C.R. 460), he
also dismissed Plourde’s argument that the store closing was contrary to his
associational rights protected by the Labour Code and the Quebec
Charter of human rights and freedoms, R.S.Q., c. C‑12.
[75]
Corriveau J. upheld the Commission’s decision to dismiss
Plourde’s complaint (Plourde v. Commission des relations du travail,
2007 QCCS 3165, [2007] J.Q. no 7019 (QL)). Leave to appeal to the
Quebec Court of Appeal was denied by Rochon J.A. (Plourde v. Compagnie Wal‑Mart
du Canada inc., 2007 QCCA 1210, [2007] J.Q. no 10678 (QL)).
Analysis
[76]
The legal issue before us is whether a dismissal resulting from
the closing of a business can be scrutinized for anti-union animus. Since
1981, and based on City Buick, the only scrutiny permitted in Quebec
under the Labour Code was as to the genuineness of the closing, regardless
of the motive.
[77]
This is the first direct challenge in this Court to City Buick’s
reign over business closings in Quebec, and it is a challenge based on City
Buick’s divergence almost 30 years ago from labour law precedents,
principles and purposes.
[78]
It is important to note that the issue is not whether an employer
has the right to close a business, a proposition no one challenged before us,
nor is it whether an employer can be required to open a business. It is
whether a remedy should exist under ss. 15 to 19 when the motive for the
closing is anti-union.
[79]
The legislative regime for labour relations in Quebec had
historically consisted of a number of discrete laws responsive to specific
concerns. The Labour Relations Act, S.Q. 1944, c. 30, was the first
modern comprehensive labour regime, and its principles still inform the nucleus
of its current incarnation in the Labour Code.
[80]
The Labour Relations Act was based on the approach adopted
in the 1935 American Wagner Act (National Labor Relations Act, 49
Stat. 449). It was also based on the fundamental principles recommended by
Canadian labour ministers at a conference in 1944, and which have been adopted
throughout Canada. They include:
(1) employee
freedom of association and union recognition;
(2) compulsory
bargaining rights for certified trade unions;
(3) postponement of the right to strike until after government
intervention through conciliation;
(4) prohibition of unfair labour practices by both employers and
trade unions to protect individual rights and the collective bargaining
process;
(5) establishment of legal status and enforceability to the
collective agreement;
(6) provision for resolving disputes arising out of the collective
bargaining agreement without resorting to strike; and
(7) establishment of regulatory bodies with investigation and
control powers in the form of boards of industrial relations.
(George W. Adams, Canadian Labour Law (2nd ed. (loose-leaf)),
at p. 1‑15. See also Pierre Verge, Gilles Trudeau and Guylaine Vallée, Le
droit du travail par ses sources (2006), at p. 41.)
[81]
The purpose of such rights was eloquently addressed by Dickson
C.J. in his dissent in Reference Re Public Service Employee Relations Act,
where he said:
Freedom of association is the cornerstone of modern labour relations.
Historically, workers have combined to overcome the inherent inequalities of
bargaining power in the employment relationship and to protect themselves from
unfair, unsafe, or exploitative working conditions. . . .
.
. .
Freedom of association is most essential in those circumstances where
the individual is liable to be prejudiced by the actions of some larger and
more powerful entity, like the government or an employer. Association has
always been the means through which political, cultural and racial minorities,
religious groups and workers have sought to attain their purposes and fulfil
their aspirations; it has enabled those who would otherwise be vulnerable and
ineffective to meet on more equal terms the power and strength of those with
whom their interests interact and, perhaps, conflict. . . .
.
. .
The role of association has always been vital as a
means of protecting the essential needs and interests of working people.
Throughout history, workers have associated to overcome their vulnerability as
individuals to the strength of their employers. The capacity to bargain
collectively has long been recognized as one of the integral and primary
functions of associations of working people. While trade unions also fulfil
other important social, political and charitable functions, collective
bargaining remains vital to the capacity of individual employees to participate
in ensuring fair wages, health and safety protections, and equitable and humane
working conditions. [pp. 334, 365-66 and 368]
[82]
The Quebec labour relations scheme has the same genesis as
other labour codes across Canada (Fernand Morin, Jean‑Yves Brière and
Dominic Roux, Le droit de l’emploi au Québec (3rd ed. 2006), at p.
811). As Robert Gagnon has noted:
[translation] The Quebec Labour Code is
patterned on a model common to all the equivalent legislation in Canada, and
even in North America. It is predicated on the recognition and protection of
the freedom of association of the persons to whom it
applies . . . . It provides that they may choose a
collective representative for their relations with the employer and may have
the status of that representative recognized by government authorities through
the certification process . . . .
(Le droit du travail du Québec (6th ed. 2008), updated
by Langlois Kronström Desjardins, at p. 261.)
[83]
Some of the statutory reflections of the guiding principles
protecting workplaces from “unfair labour practices” first enacted in 1944,
were prohibitions against an employer from interfering with a union’s
activities. They were found in provisions similar to those now found in ss. 12
to 14 of the Labour Code, which state:
12. No
employer, or person acting for an employer or an association of employers,
shall in any manner seek to dominate, hinder or finance the formation or the
activities of any association of employees, or to participate therein.
No association of employees, or person acting on behalf of any such
organization, shall belong to an association of employers or seek to dominate,
hinder or finance the formation or activities of any such association, or to
participate therein.
13. No
person shall use intimidation or threats to induce anyone to become, refrain
from becoming or cease to be a member of an association of employees or an
employers’ association.
14. No employer nor any person acting for an employer or an
employers’ association may refuse to employ any person because that person
exercises a right arising from this Code, or endeavour by intimidation,
discrimination or reprisals, threat of dismissal or other threat, or by the
imposition of a sanction or by any other means, to compel an employee to
refrain from or to cease exercising a right arising from this Code.
[84]
These provisions protect the union’s ability to establish,
organize and administer its affairs without employer obstruction (Gagnon, at
pp. 306-7). Tactics such as intimidation or threats are prohibited by ss. 13
and 14, and can constitute an interference with union activity within the meaning
of s. 12 (Côté v. Compagnie F.W. Woolworth, [1978] R.L. 439 (Sup. Ct.),
at p. 459).
[85]
But until the reforms of 2001 discussed later in these reasons,
ss. 12 to 14 were only penal provisions and the sanction was a fine of $100 to
$1,000 per day (s. 143). An offence under these provisions
required proof of an unlawful motive (Syndicat canadien des communications,
de l’énergie et du papier, section locale 194 v. Disque Améric Inc., [1996]
T.T. 451; Gauthier v. Sobeys Inc. (numéro 650), [1995]
T.T. 131).
[86]
The penal regime offered little practical assistance to
employees. Not only was a fine on an employer of no compensatory benefit to
them, the onus under these provisions was difficult to discharge and created an
almost insurmountable procedural and evidentiary hurdle.
[87]
As a result, the legislature amended the Labour Relations Act in
1959 by adding provisions to better protect the ability of employees to
exercise their associational rights (Act to amend the Labour Relations Act,
S.Q. 1959‑1960, c. 8). Provisions similar to those now found in ss. 15
to 19 were introduced, expanding substantive and procedural access to remedies
for anti-union conduct by an employer. The relevant portions of those
provisions now state:
15. Where
an employer or a person acting for an employer or an employers’ association
dismisses, suspends or transfers an employee, practises discrimination or takes
reprisals against him or imposes any other sanction upon him because the
employee exercises a right arising from this Code, the Commission may
(a) order the employer or a person acting for an employer
or an employers’ association to reinstate such employee in his employment,
within eight days of the service of the decision, with all his rights and
privileges, and to pay him as an indemnity the equivalent of the salary and
other benefits of which he was deprived due to dismissal, suspension or
transfer.
.
. .
(b) order the employer or the person acting for an
employer or an employers’ association to cancel the sanction or to cease
practising discrimination or taking reprisals against the employee and to pay
him as an indemnity the equivalent of the salary and other benefits of which he
was deprived due to the sanction, discrimination or reprisals.
17. If it is shown to the satisfaction of the Commission that
the employee exercised a right arising from this Code, there is a simple
presumption in his favour that the sanction was imposed on him or the action
was taken against him because he exercised such right, and the burden of
proof is upon the employer that he resorted to the sanction or action against
the employee for good and sufficient reason.
[88]
Through these provisions, civil remedies not previously available
in Quebec were added, including reinstatement. Judge Morin discussed the
history and objectives of this enhanced remedial access now found in ss. 15 to
19 of the Labour Code in Industrielle (L’), Compagnie d’assurance sur
la vie v. Nadeau, [1978] T.T. 175, where he said:
[translation] At that time, the Labour
Relations Act provided for freedom of association. It contained a number of
measures to counter potential constraints on an employee’s ability to exercise
that freedom effectively. Both the Criminal Code and the Labour Relations Act
provided for offences where any person tried to hinder an employee’s union
activities. However, the sanctions they provided for were still only penal in
nature. Aside from the fact that it could sometimes be difficult to prove such
tactics, their effect — where they consisted in suspension or dismissal — could
be to prevent employees from exercising their legal rights even if the employer
was ordered to pay a fine. Furthermore, at that time, it was not possible
under the civil law to compel an employer to reinstate an employee. The
legislature therefore saw fit to change the situation and better protect
employees against certain employer tactics. Thus, the purpose of
sections 21a) to 21d) was, where an employer had acted in such
a way as to restrict an employee’s rights, to compel the employer to pay the
employee an indemnity and to reinstate the employee in his or her employ.
[Sections 21(a) to 21(d) correspond to ss. 15 to 17 in the
current Labour Code.]
.
. .
Therefore, it appears that the purpose and objective
of sections 14, 15 and 16 [ss. 15, 16 and 17] of the Labour Code is to
provide greater assurance that an employer cannot retaliate against an employee
for the employee’s union activities. [p. 187]
[89]
The significance of the new provisions was also explained by
Gagnon J.A. in United Last Co. v. Tribunal du
travail, [1973] R.D.T. 423 (C.A.), as
follows:
[translation] Sections
[15 to 19] serve a very special function in our labour law scheme. Their
purpose is to protect employees exercising rights under the Labour Code from
certain reprisals — namely dismissal, suspension and transfer — their employer
might take in response to the exercise of such rights. [p. 433]
He also noted
that these provisions offer indispensable protection particularly at the
crucial stage when a union is attempting to negotiate its first collective
agreement:
[translation] The legislature intended,
at this stage in particular, to protect the exercise of the right of
association, to guarantee that legitimate union activities can be carried on,
and at the same time to avoid disrupting a nascent bargaining unit that might
be certified at a later stage. [p. 434]
(See also Verge, Trudeau and Vallée, at p. 271.)
[90]
As in other jurisdictions, the onus of proof was reversed in this
new remedial scheme: once employees showed that a sanction or action had been
taken against them and that they were exercising rights under the Labour
Code at the time, s. 17 created a legal presumption in their favour that
the employer’s conduct was a response to the exercise of such rights. The
presumption shifted the burden to the employer to demonstrate that it had a
“good and sufficient reason” for its conduct towards the employees, that is,
one that was not motivated by anti-union animus.
[91]
The presumption was enacted to level the informational playing
field between employees and employers, given the inevitable evidentiary
difficulty for employees in attempting to prove that an employer’s conduct was
motivated by an anti-union animus. The rationale for the presumption was
cogently articulated by Adams, who said:
This protection prohibits, inter alia, the dismissal of union
supporters because they are engaged in protected activity. The employer,
however, may contend that a dismissal was for cause or was prompted by bona
fide business reasons. The union, on the other hand, will assert the discharge
was motivated by “anti‑union animus” or an unlawful intent, a prerequisite
for a finding of an unfair labour practice dismissal under this type of
provision. Because there are many legitimate reasons why an employee may be
dismissed or laid off, a trade union or employee can experience real
difficulty in establishing to a labour board’s satisfaction that the discharge
was because of union activity. In recognition of this reality, in many
Canadian jurisdictions the onus of proof is now reversed by statute and placed
on the employer to demonstrate, on the balance of probabilities, that the
discharge was not motivated by any grounds prohibited by the Act. A practical
justification for the reverse onus rule is that the employer is the party with
the most complete knowledge of the grounds for an employee’s discharge.
Indeed, it has been held that the statutory reversal of the burden of proof in
unfair labour practice proceedings merely brings those matters into line with
the common law and arbitral judging of dismissal cases and does not contravene
the presumption of innocence enshrined in s. 11 (d) of the Canadian
Charter of Rights and Freedoms . . . .
. . . Since employers are not likely to confess to an
anti‑union animus, tribunals have to rely on circumstantial evidence to
draw inferences about employer motivation. [Emphasis added; pp. 10-7 and 10-8.]
[92]
As a result, two complementary remedial routes — penal
consequences under ss. 12 to 14 and civil ones with the benefit of the
presumption under ss. 15 to 19 — became available in 1959 to allow employees to
redress unlawful conduct on the part of the employer and to enforce the
associational rights now explicitly protected at s. 3 of the Labour Code to
form, belong to, and participate in a union’s activities:
3. Every employee has the right to belong to the association of
employees of his choice, and to participate in the formation, activities and
management of such association.
[93]
In 1964, the Labour Code was enacted. At the time, it was
heralded as the most liberal piece of labour legislation in the country (Adams,
at p. 2-79). Morin, Brière and Roux described its objectives as follows:
[translation] One is
political in nature and concerns the exercise of freedom in an action carried
out in solidarity; the other, more economic and social, involves seeking fair
remuneration for each individual’s work. [p. 807]
Its purpose was
also explained by Baudouin J.A. in Syndicat des salariés de distribution de
produits pharmaceutiques (F.I.S.A.) v. Médis, Services pharmaceutiques et de
santé inc., [2000] R.J.D.T. 943 (C.A.), as follows:
[translation] The
general and primary purpose of the Labour Code, which dates from 1964,
is to promote industrial peace and strike a desirable balance between union
aspirations and management rights. Thus, it is intended to limit sources of
friction (which it does by providing for effective dispute resolution
mechanisms), foster stability in industrial relations and maintain, to the
extent possible, continuity and balance in collective relations. [para. 53]
[94]
The Labour Code retained the two remedial approaches found
in the 1959 Labour Relations Act, including the s. 17 presumption
requiring the employer to demonstrate that its sanction against an employee
was for a “good and sufficient reason”.
[95]
Gagnon J.A. in United Last remarked that once the
presumption is triggered, [translation]
“the law places a heavy burden on the employer” (p. 435). Rigorous scrutiny of
an employer’s motives has solid labour relations credentials in Quebec. As far
back as 1963, in Maresq et Brown Bovari (Canada) Ltd., [1963] R.D.T.
242 (L.R.B.), a case in which the employer was successful in rebutting the
presumption, Gold J.M.C., explained:
. . . in order to decide whether or not the Act has been violated, we
must, of necessity, consider the reason indicated by the employer for
discharging his employee but our consideration must be solely directed to
determine if this reason is the real and determining reason — the causa
causans of the dismissal — or only a simulated reason given to mask the
real reason, which is the employee’s trade union activity and which has
brought about the employer’s displeasure. [Emphasis added; p. 246.]
[96]
In 1978, Judge Morin in Nadeau continued this protective
jurisprudential dialogue by explaining that the only “good and sufficient”
reason for a dismissal is one that the employer can demonstrate is free of
anti-union animus (pp. 188-89).
[97]
The concept of “dismissals” has been very broadly defined, as two
Quebec Court of Appeal decisions demonstrate. In United Last, Gagnon
J.A. confirmed that the term “dismissal” includes any form of
termination motivated by union activity:
[translation] The
terms “dismissed” and “dismissal” must therefore be interpreted broadly enough
that the legislature’s intention is not frustrated, and in my view that
interpretation should cover all forms of termination of employment
motivated by union activity. [Emphasis added; p. 435.]
[98]
Similarly, Montgomery J.A. in Distinctive Leather Goods Ltd.
v. Dubois, [1976] C.A. 648, had held that the term “congédiement”
must be interpreted broadly. In rejecting the employer’s argument that there
is a hard and fast distinction between “mise à pied” and “congédiement”,
he stated:
Appellant would have us hold that, once an employer has established that
he had legitimate economic reasons for wishing to reduce his labour force,
neither an inquiry commissioner nor the Labour Court has jurisdiction to
inquire further into the matter. I cannot agree that this distinction is a
valid one. The words used in section 15, congédié, suspendu ou déplacé,
(in English, “dismissed, suspended or transferred”), are quite broad enough to
cover the case of a mise à pied or lay-off. A particular dismissal or
suspension may or may not constitute a lay-off, depending upon the
circumstances and the motives of the employer. If the employer is able to
establish that he had valid economic reasons for terminating the employment,
then the complaint may be dismissed, but this is not, in my opinion, a question
of jurisdiction. [p. 649]
(See also Verge, Trudeau and Vallée, at p. 91.)
[99]
The steady stream of Quebec jurisprudence flowing with a broadly
remedial current requiring scrutiny of the reasons for dismissals, culminated
in this Court’s decision in Lafrance v. Commercial Photo Service Inc.,
[1980] 1 S.C.R. 536. Lafrance involved the dismissal of employees who
participated in an illegal strike. While Chouinard J. concluded that the
employer had rebutted the presumption, in defining the phrase “good and
sufficient reason”, he relied on Gagnon J.A.’s decision in United Last,
Judge Morin’s decision in Nadeau, Mayrand J.A.’s decision in Société
des Hôtels Méridien Canada Ltée v. Tribunal du travail, 80 CLLC ¶ 14,026
(C.A.), and, in particular, Gold J.M.C.’s judgment in Maresq. Citing Société
des Hôtels, Chouinard J. confirmed that what must be determined is the [translation] “real and serious
reason . . . for the dismissal, and that it is not merely a pretext to
camouflage a dismissal for union activities” (p. 545 (emphasis added)):
From the outset it has been held that this phrase
means that the investigation commissioner must be satisfied that the other
reason relied on by the employer is of a substantial nature and not a pretext,
and that it constitutes the true reason for the dismissal. [p. 544]
[100]
Lafrance did not involve the closing of a business, but
its significance lies in its confirmation that an employer’s motives must always
be assessed to determine whether anti-union animus is involved in the decision
to terminate someone’s employment. (See Hôpital Notre-Dame
v. Chabot, D.T.E. 85T-258, SOQUIJ AZ-85147054 (Lab. Ct.), and Silva v.
Centre hospitalier de l’Université de Montréal — Pavillon Notre-Dame, 2007
QCCA 458, [2007] R.J.D.T. 363.)
[101]
It would be inconsistent with this legislative and judicial
history to hold that the most drastic possible employer conduct involving the
termination of employment — the closing of a business — is a form of dismissal
which is uniquely exempt from scrutiny for anti-union animus. And yet that is
precisely the impact of City Buick, which was decided only a year
following this Court’s decision in Lafrance.
[102]
In City Buick, the unionized employees of a car dealership
were in the process of renewing a collective agreement that had been imposed by
an arbitrator. The employer locked out the employees. In response, the
employees set up a picket line around the business. The general manager of
City Buick Pontiac in Montreal openly admitted to the media that he would
prefer to close his business rather than to deal with a union. Within days, the
employees were laid off and the business was closed. The employees brought a
complaint requesting remedies under s. 15 and were successful before the labour
commissioner.
[103]
On appeal to the Labour Court, Judge Bernard Lesage concluded
that the employees had established that the presumption in s. 17 applied to
their dismissal because the exercise of their right to picket under the Labour
Code was concurrent with the decision to dismiss them. He rejected the
employer’s argument that the closing was motivated by economic difficulties.
[104]
However — and significantly — he also asserted that the
dismissals resulted from the closing of the store, which was, in his view, [translation] “a completely separate
aspect” (p. 25). City Buick specifically affirmed the application of
the s. 17 presumption to a workplace closing, but held that a closing is a
“good and sufficient reason” which rebuts the presumption. Judge Lesage
concluded that since there is no obligation for a business to remain open, an
employer’s motives for closing a business, anti-union or otherwise, are not
relevant under s. 17.
[105]
The reasons for the closing cannot be scrutinized, he held, even
if the [translation] “cessation
is based on socially reprehensible considerations” (p. 26). The only relevant
question is whether it is a genuine closing or a subterfuge. In his words:
[translation] What is
prohibited is to dismiss employees engaged in union activities, not to
definitively close a business because one does not want to deal with a union or
because a union cannot be broken, even if the secondary effect of this is
employee dismissal. [Emphasis in original; p. 26.]
The direct
reason for the loss of jobs is the closing, he concluded, and a closing is
always a “good and sufficient reason” within the meaning of s. 17 for employee
dismissals. This conclusion has been interpreted as meaning that neither
individual employees nor unions have been able to seek protection under the Labour
Code from anti-union conduct when the conduct takes the form of a business
closing, either under ss. 12 to 14 or under ss. 15 to 19.
[106]
Despite this Court’s explicit conclusion in Lafrance that
in order to rebut the presumption, an employer must demonstrate that the
decision was not motivated by anti‑union animus or it would be unlawful, City
Buick considered only the fact of whether the closing was
definitive, genuine and permanent, without in any way relating that fact to the
possible underlying motives.
[107]
It strikes me as oddly tautological to conclude that a business
closing is a good enough reason for closing a business. The effect is to
suggest that under the Labour Code, an employer’s conduct can be
scrutinized for anti-union motives if a single employee is dismissed, but not
if all employees are dismissed. Closing a business can in fact be the
most severe form of reprisal for union activity. To close a business in order
to avoid a union is to dismiss employees because they have engaged in union
activity.
[108]
Far from representing a continuation of the jurisprudential
pedigree surrounding dismissals as the majority asserts, City Buick
cited no jurisprudence, either from the Supreme Court of Canada the previous
year or from the long chain of Quebec jurisprudence stressing the importance of
scrutinizing an employer’s conduct in the case of a dismissal. City Buick
ignored not only the consistent stream of Quebec jurisprudence on what
constitutes a dismissal, but also the consistent jurisprudential confirmation
that once an employee has been dismissed and demonstrated that he or she was
exercising a right under the Labour Code, the burden shifts to the
employer to demonstrate that the dismissal was not motivated by anti‑union
animus.
[109]
City Buick was therefore a departure from what had been an
undisputed approach requiring, in every context, an assessment of the
“real and serious reason” for a dismissal. It adopted a new and dramatically
narrower definition of a dismissal, resting on an artificial distinction
between a dismissal when a business is closed and a dismissal in other
circumstances. It is a distinction the majority seeks to retain.
[110]
Since in all other complaints involving s. 15 the Commission
scrutinizes the motives of the employer for anti-union animus, it is
inconsistent with the intent of the Labour Code in general, and with the
purpose of s. 15 in particular, to scrutinize only the authenticity of a
closing, rather than the reasons behind it. Interpreting ss. 15 and 17
differently in the case of the closing of a business has the effect of
rendering those provisions mute in such circumstances, leaving employees
uniquely without their traditional remedial access in only one labour relations
context, arguably the most dramatic for employees.
[111]
As Professor Clyde Summers observed in his critical discussion of
the U.S. Supreme Court’s decision in Textile Workers Union of America v.
Darlington Manufacturing Co., 380 U.S. 263 (1965), which concluded that an
employer’s decision to close does not constitute an unfair labour practice:
The mischief in the Court’s reasoning is that it ignores the rights of
those who have been discriminatorily discharged. The essence of the Court’s
logic is that discharge for supporting the union is not itself an unfair labor
practice, that it is no wrong as to the ones discharged, and that the law is
not concerned with their injury.
(“Labor Law in the Supreme Court: 1964 Term” (1965‑1966), 75 Yale
L.J. 59, at p. 67)
In other words,
the closing is not only punitive for those employees who attempt to unionize,
but also sends a general message that unionization is an endeavour that carries
the risk of the loss of jobs for all employees in that workplace.
[112]
A comparative review of the jurisprudence demonstrates that
labour boards across Canada have consistently refused to immunize employers who
are inspired to close a business — and dismiss employees — by anti-union
motives (Adams, at p. 10-9). Furthermore, labour boards have consistently held
that a decision that is tainted by anti-union animus, whether a closing or any
other action, is a violation of labour rights. (See generally, the Canada
Labour Relations Board: Retail Clerks’ International Union and National
Bank of Canada (1981), 42 di 352; New Brunswick Labour and Employment
Board: J.D. Irving Ltd. and C.E.P. (2003), 94 C.L.R.B.R. (2d) 105;
Alberta Labour Relations Board: Central Web Offset Ltd. and C.E.P., Local
255G (2008), 155 C.L.R.B.R. (2d) 113; British Columbia Labour Relations
Board: Hunt Manufacturing Ltd. and United Association of Journeymen and
Apprentices of the Plumbing and Pipefitting Industry of the United States and
Canada, Local No. 170, [1993] B.C.L.R.B.D. No. 291 (QL); EF
International Language Schools Inc. (Re), [1997] B.C.L.R.B.D. No. 203 (QL);
874352 Ont. Ltd. (Comox District Free Press) and G.C.I.U., Local 525 M
(1995), 26 C.L.R.B.R. (2d) 209; Saskatchewan Labour Relations Board: Retail,
Wholesale and Department Store Union, Local 454 v. Westfair Foods Ltd.,
[1993] S.L.R.B.D. No. 2 (QL); Ontario Labour Relations Board: Academy of
Medicine, [1977] O.L.R.B. Rep. 783; Westinghouse Canada Ltd., [1980]
O.L.R.B. Rep. 577, application for judicial review dismissed, 80 CLLC ¶ 14,062
(Ont. Div. Ct.); Humber College of Applied Arts and
Technology, [1979] O.L.R.B. Rep. 520; Doral
Construction Ltd., [1980] O.L.R.B. Rep. 693.)
[113]
In the view of the majority, the jurisprudence on the closing of
a business in the rest of Canada is not relevant in Quebec, since it is up to
each provincial legislature to decide on the proper balance between employer
and employee rights. There is no doubt that provinces are entitled to strike
their own legislative balance, but the current approach to business closings in
Quebec did not emerge from a legislative construct, but from a jurisprudential
one that was developed in City Buick and perpetuated notwithstanding its
inconsistency with the interpretation of the Supreme Court in Lafrance a
year earlier, with Quebec’s own labour jurisprudence, and with the text of the
Labour Code itself.
[114]
I see City Buick as a singular deviation from the prior
Quebec jurisprudence and a sharp departure from the remedial approach and
legislative objectives embodied in the Labour Code. All this, in my
view, makes it unsustainable.
[115]
Nor do I find much support in I.A.T.S.E., Stage Local 56 v.
Société de la Place des Arts de Montréal, 2004 SCC 2, [2004] 1 S.C.R. 43,
for Wal-Mart’s argument that City Buick should remain operative. The
issue in Place des Arts was the use of replacement workers under s.
109.1(b) of the Labour Code and whether the union was entitled to
an injunction against Place des Arts for “utilizing” replacement workers. The
union was successful at the Quebec Superior Court and the Court of Appeal. In
this Court, however, the conclusion was that the employer was not “utilizing”
replacement workers. Section 109.1(b) was the only provision at issue
in the case. The fundamental principles in Place des Arts about what
constitutes “utilizing” workers under s. 109.1(b) and about the right of
a business to close are not impugned in these reasons.
[116]
City Buick was peripheral to the Court’s analysis. Place
des Arts affirmed City Buick only to the extent of confirming the
proposition that employers have the right to close a business. Nothing in Place
des Arts suggests that s. 15 cannot provide remedies to dismissed
employees, or that the s. 17 presumption is unavailable in the case of a
business closing.
[117]
And, significantly, no one challenged or disputed the City
Buick line of cases at any stage of the proceedings in Place des Arts.
It can therefore hardly be said that the Court addressed its mind to its
ongoing relevance in such a way that ought to constrain our central invitation
in this case to consider its continued legitimacy.
[118]
The fact that a single passage from City Buick was cited
by this Court in connection with an unrelated issue and for a proposition that
no one disputes, should not be taken as this Court giving its imprimatur to the
central conclusion in City Buick.
[119]
The majority is prepared to acknowledge that City Buick
ought no longer to stand as a precedent to foreclose access to scrutiny for
anti-union animus, but only if the scrutiny takes place under ss. 12 to 14 of
the Labour Code, provisions traditionally used by unions, not
employees. This prevents the scrutiny from being accompanied by the benefit of
the presumption. An invitation is accordingly being extended by the majority
to employees to wander from their habitual statutory home in ss. 15 to 19 and
take up temporary residence under ss. 12 to 14 when they want a business
closing scrutinized.
[120]
It is frankly unclear from the jurisprudence and academic
literature whether employees are also, like unions, able to use ss. 12 to 14.
It is true that historically employees have not used these provisions, just as
unions have eschewed ss. 15 to 19. But those are questions of standing that
we need not address definitively in these reasons in the absence of full
argument by the parties. In any event, the question is not whether employees
are entitled to use ss. 12 to 14 to scrutinize dismissals when a business is
closed, but whether they should be deprived of access to ss. 15 to 19,
including the presumption in s. 17, in that same context.
[121]
Both sets of provisions were designed to address an employer’s
anti-union conduct, but the 15 years between them represent an evolutionary arc
that had less to do with who had standing to challenge an employer’s anti-union
conduct and more to do with the recognition, implemented in ss. 15 to 19, that
remedies other than penal ones were additionally appropriate, and that a
different onus was justified to reflect the reality of the informational
imbalance between employers and unions or employees.
[122]
The majority offers no reason for depriving employees of the
benefit of the historic protection of the presumption for dismissals in the
case of workplace closings other than its concern about the “lopsided
advantage” it offers. This “lopsided advantage” is at the procedural core of
the Quebec legislature’s scheme to protect employees from unfair labour
practices, as Judge Morin explained in Nadeau:
[translation] Since the purpose of the
1959 amendment was to afford effective protection to employees, the
legislature, believing that employees would encounter excessive difficulties in
trying to prove that they were transferred, suspended or dismissed because of
their union activities, wished to reverse the burden of proof and accordingly
created the presumption provided for in section 16 [s. 17 of the present Labour
Code]. [p. 188]
[123]
And the presumption is hardly insurmountable. In addition to Maresq
and Lafrance, employers have been able to discharge the presumption in
numerous cases, such as Houde v. Université Concordia, 2007 QCCRT 454,
[2007] D.C.R.T.Q. no 454 (QL); Craig v. Université McGill (Office
of Secretariat), 2007 QCCRT 278, [2007] D.C.R.T.Q. no 278 (QL);
Dallaire v. Sûreté du Québec, 2007 QCCRT 74, [2007] D.C.R.T.Q. no
74 (QL); Desgagné v. Québec (Ministère de l’Emploi, de la Solidarité sociale
et de la Famille), 2005 QCCRT 351, [2005] D.C.R.T.Q. no 351
(QL); Ouimet v. Solotech location inc., 2005 QCCRT 180, [2005]
D.C.R.T.Q. no 180 (QL); Bazinet v. Commission scolaire de la
Seigneurie‑des‑Mille‑Îles, 2004 QCCRT 606, [2004]
D.C.R.T.Q. no 606 (QL); D’Amour v. Autobus Matanais inc.,
2004 QCCRT 450, [2004] D.C.R.T.Q. no 450 (QL); Marcoux v.
Thetford Mines (Ville), 2004 QCCRT 76, [2004] D.C.R.T.Q. no 76
(QL); Simard v. Québec (Ministère de la Sécurité publique), 2004 QCCRT
57, [2004] D.C.R.T.Q. no 57 (QL); Bédard v. Étalex inc., 2004
QCCRT 45, [2004] D.C.R.T.Q. no 45 (QL); Laramée v. Coop de taxi
de Montréal, 2004 QCCRT 30, [2004] D.C.R.T.Q. no 30 (QL);
Turcotte v. Montréal (Ville), 2003 QCCRT 545, [2003] D.C.R.T.Q. no
545 (QL); Turpin v. Collège d’enseignement général et professionnel de St‑Laurent
(1988), 26 Q.A.C. 296; Cie Price Ltée v. Auclair, D.T.E. 88T‑688,
SOQUIJ AZ-88021372 (Sup. Ct.); and Hôpital Royal Victoria v. Duceppe,
[1984] T.T. 163.
[124]
The presumption under s. 17 is one of the most vaunted equity
tools in modern labour law and is, arguably, as conceptually and analytically
significant for employees seeking protection from anti-union conduct as is the
presumption of innocence in criminal law. Yet the majority’s obvious
discomfort with the presumption in s. 17 has caused it to interpret the
legislation in such a way that the presumption is unavailable to assist an
employee who has been dismissed when a workplace closes.
[125]
With respect, there is no philosophical, jurisprudential, or
textual support for the majority’s idea that ss. 15 to 19, including the
presumption in s. 17, apply to dismissals only where there is an ongoing
workplace. Legislative provisions such as those found in s. 15 were for the
express purpose of providing expanded civil remedies — including the procedural
remedy of a presumption — for any conduct motivated by anti-union
animus. Though reinstatement is not a feasible remedy in a closed workplace,
it is not the only remedy contemplated by s. 15, it is only the most
expansive one possible to fulfill s. 15’s objectives (Alltour Marketing
Support Services Ltd. v. Perras, D.T.E. 83T‑855, SOQUIJ AZ-83147158
(Lab. Ct.); Produits Coq d’Or Ltée v. Lévesque, [1984] T.T. 73; and T.A.S.
Communications v. Thériault, [1985] T.T. 271).
[126]
The majority’s approach also seems to be an argument that bases
its interpretation for the entire scheme introducing civil remedies in ss. 15
to 19 almost five decades ago, around four words in s. 15: “reinstate . . . in
his employment”. To suggest that s. 15 is only available to a dismissed
employee in the case of an ongoing workplace, contradicts the unequivocal
jurisprudence confirming that remedial statutes require a broad interpretation
consistent with the purposes of the legislation, not a word-by-word parsing
that drains the language of its remedial content. As Pierre-André Côté noted
in The Interpretation of Legislation in Canada (3rd ed. 2000):
At common law, traditionally a distinction is made
between penal statutes and remedial statutes: the former are interpreted
strictly, the other liberally. [p. 499]
And Iacobucci
J., in Rizzo & Rizzo Shoes Ltd. (Re), [1998] 1 S.C.R. 27, confirmed
that “benefits-conferring legislation” like labour legislation, was to “be
interpreted in a broad and generous manner. Any doubt arising from difficulties
of language should be resolved in favour of the claimant” (para. 36).
[127]
Quebec’s Interpretation Act, R.S.Q., c. I‑16,
similarly guides us in s. 41, which states:
Every
provision of an Act is deemed to be enacted for the recognition of rights, the
imposition of obligations or the furtherance of the exercise of rights, or for
the remedying of some injustice or the securing of some benefit.
Such statute shall receive such fair, large and
liberal construction as will ensure the attainment of its object and the
carrying out of its provisions, according to their true intent, meaning and
spirit.
When it was
applied in Syndicat des infirmières et infirmiers du Centre hospitalier de
l’Archipel (FIIQ) v. Plante, [2003] J.Q. no 997 (QL) (Sup. Ct.),
the court noted:
[translation]
With this in mind, the proper approach is to favour a large and liberal
interpretation of the Labour Code . . . . [para. 57]
[128]
Adams points out that the intended protection in the scheme was —
and is — from reprisals generally, including dismissals (p. 10-7). The
language of ss. 12 to 19 tracks this objective, referring to threats,
intimidation, discrimination, sanctions, suspensions, transfers and
dismissals, representing a continuum of anti-union conduct, with dismissals
being the most serious. Section 15(b), for example, uses remedial
language such as “cancel the sanction”, “cease practising discrimination”, and
“pay him as an indemnity . . . other benefits of which he was deprived due to
the sanction, discrimination or reprisals”.
[129]
There must logically therefore be seen to be a continuum of
remedies for this continuum of conduct, with reinstatement being the most
significant. To see s. 15, therefore, as only being a vehicle for
reinstatement, reads out the possibility of redress using other available
remedies. A reinstatement hardly makes sense for the loss of a promotion, or a
demotion, or a reduction in pay, or the failure to provide a pay increase, let
alone a threat of any of the above. These are among the kinds of activity that
are encompassed by the words “discrimination”, “reprisals”, or “any other
sanction” used in s. 15. And the language of s. 17, which creates the
presumption, speaks generally of “the sanction . . . imposed . . . or the
action . . . taken”.
[130]
If the legislature had intended to restrict access to remedies
for anti-union conduct to circumstances where only reinstatement was the
appropriate remedy, it would hardly have provided such an expansive menu of
unlawful conduct. That this entire scheme should instead be determined by the
words “reinstate . . . in his employment” in s. 15, strikes me as introducing
the interpretive novelty of a highly restrictive approach to remedial
legislation which had traditionally attracted a highly expansive one.
[131]
And as for the majority’s suggestion that since remedies for
dismissals in the case of a workplace closing are available under ss. 12 to 14,
recourse to ss. 15 to 19 must be seen to be duplicative, one can reasonably ask
why such a confluence does not, equally, argue for finding ss. 12 to 14
duplicative, rather than ss. 15 to 19. The only difference, of course, is that
the presumption is part of the ss. 15 to 19 remedial route, but not the one in
ss. 12 to 14. It seems to me, with respect, that before such a remedial
deprivation is permitted to occur through statutory interpretation, there
should be a justification based on legislative and historic purpose, rather
than on an objection to the presumption.
[132]
It is true that the Commission, unlike an arbitrator, cannot
refuse to grant reinstatement when it is feasible. It is also true that
reinstatement is not feasible in the case of a business closing. But it is no
less true that Quebec’s labour jurisprudence supports the imposition of
subsidiary or alternative remedies, such as compensation, when reinstatement is
not feasible.
[133]
This is not surprising. To conclude that no appropriate remedial
alternatives are available, is to attribute to the legislature an intention to
redress only unlawful conduct which can be redressed by reinstatement. Such an
ungenerous and impractical intention collides with the approach to remedies in
the law of obligations set out in art. 1590 of the Civil Code of Québec,
S.Q. 1991, c. 64, which provides for the application of alternative remedies
(Didier Lluelles and Benoît Moore, Droit des obligations (2006), at
paras. 2876-77). As Verge, Trudeau and Vallée note :
[translation]
Ordinary civil courts have never had trouble, where the circumstances so
required, ordering the payment of wages or of damages to compensate for the
nonperformance in kind of an employment contract, including an unlawful breach
of the contract by one of the parties. [p. 212]
[134]
It also contradicts the language and purpose of s. 15 of the Labour
Code. In Alltour, for example, compensation was ordered to be paid
for an improper dismissal when the business of the employer was transferred to
another jurisdiction and reinstatement was therefore no longer a practical
remedy. As Gendreau J.A. stated in Immeubles Bona Ltée v. Labelle,
[1995] R.D.J. 397 (C.A.):
[translation] Thus, the arbitrator must
consider all these factors to decide on the remedy: reinstatement, an
indemnity, or any other remedy. An indemnity, if the arbitrator opts for this
alternative, must therefore be designed to compensate for the loss associated
with the contractual scheme, with the employment contract the employer has
unjustly terminated. Usually, the arbitrator will award an amount equivalent
to a certain number of weeks or months of service. [p. 400]
(See also Québec
(Gouvernement du) (Revenu Québec) v. Fortin, 2009 QCCRT 241, [2009]
D.C.R.T.Q. no 241 (QL), at para. 19; and Adams, at p. 10-126.2.)
[135]
Michel Bergevin offers examples of circumstances where
reinstatement would not be appropriate but where another remedy, such as
indemnity or compensation, is nonetheless available. These include:
[translation]
·
a deterioration in the complainant’s interpersonal relations with
management or with other employees;
·
a complete breakdown of the relationship of trust that must exist, in
particular, where the complainant held a high-ranking position in the company;
·
contributory fault on the complainant’s part that would warrant reducing
his or her dismissal to a less severe disciplinary action;
·
an attitude adopted by the complainant that suggests that the situation
is unlikely to improve if he or she is reinstated;
·
the complainant’s being physically unable to immediately resume his or
her duties;
·
the elimination of the position held by the complainant at the time of
his or her dismissal; and
·
other events occurring after the dismissal that make reinstatement
impossible, such as bankruptcy and layoffs.
(“L’opportunité
et l’efficacité de la réintégration”, in Meredith Memorial Lectures 1988,
New Developments in Employment Law (1989), 283, at p. 290, citing Côté
v. Corp. Dicom, [1987] T.A. 183.)
[136]
What is therefore required is a remedial interpretation fully
consistent with the history and purposes of the provisions at issue. An
inquiry into the “why” of an employee’s dismissal has always been at the core
of an unfair labour practice allegation, and the presumption has always
accompanied the inquiry. It should be no different in the case of a business
closing. This leads to recognizing the availability for employees of both
effective scrutiny and appropriate remedies in the case of dismissals
for anti-union reasons, whether or not they result from the closing of a
business.
[137]
The reality is that because City Buick had foreclosed any
scrutiny of business closings for anti‑union motives, there has, until
now, been no need to consider what the appropriate remedy for a dismissal under
such circumstances would be. This has created a jurisprudential vacuum. It
seems to me to be unduly restrictive to build an approach to rights under the Labour
Code on the foundation of a remedial vacuum. The majority’s conclusion
that ss. 15 and 17 do not apply in the case of a closing because they
presuppose the existence of an “ongoing business” unduly restricts the
expansive protection offered by these provisions. If a business is found to be
closed for anti‑union reasons, the fact that reinstatement is not a
feasible remedy should not — and does not — cauterize access to a more feasible
one. (See Verge, Trudeau and Vallée, at pp. 411‑13.) Nor is there any
justification for denying limiting the application of the presumption in s. 17
in these situations. The interpretive analysis should be driven by the broad objectives
of the legislation, not by a narrow and literal interpretation of the remedy.
The better approach, it seems to me, is to interpret the legislative scheme in
a way that connects recognized rights to meaningful remedies.
[138]
And that connection, I think, is precisely what the legislature
reinforced when it enacted ss. 118 and 119. The 2001 reforms to the Labour
Code which created an independent Commission with jurisdiction over
applications and complaints made under the Labour Code, also endowed it with
related investigative, hearing and remedial powers (Act to amend the Labour
Code, to establish the Commission des relations du travail and to amend other
legislative provisions, S.Q. 2001, c. 26). Prior to these reforms,
employees had no access to civil remedies for anti-union conduct under ss. 12
to 14, only under ss. 15 to 19. One of the purposes, therefore, was to expand
the remedial powers available under the Labour Code.
[139]
These increased powers are found at ss. 118 and 119, which state:
118. The
Commission may, in particular,
(1) summarily reject any motion, application, complaint or
procedure it considers to be improper or dilatory;
(2) refuse to rule on the merits of a complaint where it
considers that the complaint may be settled by an arbitration award disposing
of a grievance, except in the case of a complaint referred to in section 16 of
that Code or in sections 123 and 123.1 of the Act respecting labour standards
(chapter N‑1.1) or a complaint filed under another Act;
(3) make any order, including a provisional order, it considers
appropriate to safeguard the rights of the parties;
(4) determine any question of law or fact necessary for the
exercise of its jurisdiction;
(5) confirm, modify or quash the contested decision or order
and, if appropriate, render the decision or order which, in its opinion, should
have been rendered or made initially;
(6) render
any decision it considers appropriate;
(7) ratify
an agreement, if in conformity with the law;
(8) dissolve an association of employees if it
is proved to the Commission that the association participated in a
contravention of section 12.
If an association dissolved under subparagraph 8 of
the first paragraph is a professional syndicate, the Commission shall send an
authentic copy of its decision to the enterprise registrar, who shall give
notice of the decision in the Gazette officielle du Québec.
119. Except
with regard to an actual or apprehended strike, slowdown, concerted action,
other than a strike or slowdown, or lock‑out in a public service or in
the public and parapublic sectors within the meaning of Chapter V.1, the
Commission may also
(1) order a person, group of persons, association or group of
associations to cease performing, not to perform or to perform an act in order
to be in compliance with this Code;
(2) require any person to redress any act or remedy any omission
made in contravention of a provision of this Code;
(3) order a person or group of persons, in light of the conduct
of the parties, to apply the measures of redress it considers the most
appropriate;
(4) issue an order not to authorize or participate in, or to
cease authorizing or participating in, a strike or slowdown within the meaning
of section 108 or a lock‑out that is or would be contrary to this Code,
or to take measures considered appropriate by the Commission to induce the
persons represented by an association not to participate, or to cease
participating, in such a strike, slowdown or lock‑out;
(5) order, where applicable, that the grievance
and arbitration procedure under a collective agreement be accelerated or
modified.
[140]
Based on its concern about the presumption in s. 17, the majority
also concludes that while a violation of ss. 12 to 14 allows the Commission to
order a remedy under ss. 118 and 119, those remedial powers are unavailable to
the Commission under ss. 15 to 19 in the case of a dismissal arising from a
workplace closing. There is no language in either ss. 118 or 119 which
restricts their application in this way, and, in particular, there is no
language referring to a distinction between a closed and ongoing workplace.
Denying dismissed employees access to the wide remedial protection offered by
the 2001 reforms under s. 15 in the case of business closings, is as anomalous
as City Buick was in denying them access to having the reasons for the
closing scrutinized.
[141]
Sections 118 and 119 are found in Chapter VI of the Labour
Code, which sets out the duties and powers of the Commission in general,
without limit to their scope and application. The remedial references, in
fact, allow the Commission to require conduct in “compliance with this Code”
(in s. 119(1)), or to redress conduct “in contravention of a provision of this
Code” (in s. 119(2)). It is not clear to me what there is in either the
language or purposes of ss. 118 and 119 that permits us to conclude that every
provision in the Labour Code is covered by the reforms except s.
15. To read the general wording of these enhanced remedial powers as somehow
being selectively inapplicable to s. 15, is to impute a restrictive legislative
intention not apparent to an ordinary reader.
[142]
The majority relies on a Hansard reference dealing with the 2001
reforms to support the argument that ss. 15 to 19 do not provide a remedy for
the closing of a business. But, with respect, this evidence does not support
the majority’s distinction between the availability of remedies for employees
under ss. 12 to 14 and under ss. 15 to 19. The Minister of Labour said that
the Commission lacks the power to prevent a business from closing. This is in
no way responsive to the issue of whether the general remedies in s. 119 are
available under s. 15. Nor is it responsive to whether the legislature put its
mind to the immunity from scrutiny in City Buick. The Minister’s
statement focussed solely on the unavailability of a particular remedy under s.
119(3): forcing a business to reopen. That question is not before us. What
we are being asked to consider is not whether a business can be forced to
reopen (no one submits that it can), but whether employees can scrutinize an
employer’s motives under ss. 15 and 17 when that business is closed.
[143]
What is notable from Hansard, however, is that the Minister of
Labour made it clear that s. 119 is not limited in its application. On the
contrary, he explicitly stated that s. 119 [translation]
“covers everything that the Labour Code does, any act or omission
provided for in the Labour Code”. And further [translation] “That is to say, the purpose of this section is
to enable the Commission to take action to stop any activity contrary to this
Code” (Journal des débats de la Commission permanente de l’économie et du
travail, vol. 37, No. 32, 2nd Sess., 36th Leg., June 18, 2001, at pp. 17
and 21). This confirms the legislative intention that s. 119 encompasses a
broad range of available remedies, including under s. 15.
[144]
As the Minister also explained, and as the opening language of s.
119 indicates, the only restriction on the use of that provision’s remedial
reach is in the case of “an actual or apprehended strike, slowdown, concerted
action, other than a strike or slowdown, or lock-out” in the public sector:
[translation] Because,
if you read the section as it is worded, the first paragraph refers to powers
that are within the jurisdiction of the Conseil des services essentiels, and
these are excluded from the powers the Commission can exercise. This paragraph
says, “Except with regard to an actual or apprehended strike”, and so on, or
“concerted actions other than a strike or slowdown, or lock‑out”.
So, except in those cases, which are matters for the
Conseil des services essentiels, the Commission’s powers are spelled out, and
it is said, for example, regarding a lock-out, in (4), that “the Commission may
issue an order not to authorize” and so on, and the words “actual or
apprehended” are not repeated in relation to businesses. [Ibid., at p.
20]
[145]
Section 119 therefore applies throughout the Labour Code
unless it is specifically excluded, and its only self-imposed restriction is
found in its introductory paragraph. Section 15 is, notably, not
excluded. This too confirms that the remedies in s. 119 are available under s.
15.
[146]
In addition to other alternatives, one of the remedies Plourde
seeks is compensation. I see no reason why the Commission cannot order such a
remedy under ss. 15 and 119 of the Labour Code if it is satisfied that
the closing was motivated by anti-union animus.
[147]
I would therefore allow the appeal with costs throughout and
refer Plourde’s complaint to the Commission to be heard on the merits.
Appeal dismissed, LeBel,
Abella and Cromwell JJ. dissenting.
Solicitors for the appellant: Philion
Leblanc Beaudry, Montréal.
Solicitors for the respondent: Heenan
Blaikie, Montréal.
Solicitor for the intervener Commission des relations
du travail: Commission des relations du travail, Québec.
Solicitors for the intervener the Alliance of Manufacturers &
Exporters Canada: Baker & McKenzie, Toronto.
Solicitor for the intervener Fédération des
travailleurs du Québec (FTQ): Robert Laurin, Sainte‑Julie.
Solicitor for the intervener the Coalition of BC
Businesses: University of British Columbia, Vancouver.
Solicitors for the intervener the Canadian Chamber of
Commerce: Davies Ward Phillips & Vineberg, Montréal.
Solicitors for the intervener the Canadian Civil Liberties
Association: Paliare, Roland, Rosenberg, Rothstein, Toronto.
Solicitors for the intervener Conseil du patronat du
Québec: Ogilvy Renault, Montréal.
Solicitors for the intervener the Canadian Labour
Congress: Sack Goldblatt Mitchell, Toronto.