Date: 20120529
Docket: A-101-11
Citation: 2012 FCA 156
CORAM: PELLETIER
J.A.
DAWSON J.A.
STRATAS
J.A.
BETWEEN:
TEMBEC INDUSTRIES INC.
Applicant
and
LEONARD BERTHELETTE, HENRY DUBE,
RANDOLPH DRUZYK, CLIFFORD HOUSTON,
DAVID TORRES, CANADA EMPLOYMENT
INSURANCE COMMISSION, OFFICE OF THE
UMPIRE
EMPLOYMENT INSURANCE ACT AND
THE ATTORNEY GENERAL OF CANADA
Respondents
REASONS FOR JUDGMENT
DAWSON J.A.
[1]
The
principal issue raised on this application for judicial review is whether an
employer who does not appear before the Board of Referees on an appeal brought
by an employee from a decision of the Canada Employment Insurance Commission
(Commission) is entitled to notice of any appeal taken from the decision of the
Board of Referees. The issue arises in the following context.
The Facts
[2]
Tembec
Industries Inc. (Tembec) operated a newsprint mill in Pine Falls-Powerview, Manitoba. Tembec
employed the five individual respondents (respondent employees) at the
newsprint mill.
[3]
An
existing collective agreement between Tembec and the bargaining agent which
represented some of its employees (including the respondent employees) expired
on August 31, 2009. On September 1, 2009, Tembec locked-out the bargaining unit
employees who were employed at the mill. By order dated January 13, 2010, the
Manitoba Labour Board ordered Tembec to immediately terminate the lock-out.
[4]
Following
the lock-out, the respondent employees claimed employment insurance benefits
under the Employment Insurance Act, S.C. 1996, c. 23 (Act). Their claims
to employment insurance benefits for the period from September 1, 2009 to
January 13, 2010 were denied pursuant to subsection 36(1) of the Act which
states:
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Subject
to the regulations, if a claimant loses an employment, or is unable to
resume an employment, because of a work stoppage attributable to a labour
dispute at the factory, workshop or other premises at which the
claimant was employed, the claimant is not entitled to receive benefits
until the earlier of
(a) the
end of the work stoppage, and
(b) the
day on which the claimant becomes regularly engaged elsewhere in insurable
employment. [emphasis added]
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Sous
réserve des règlements, le prestataire qui a perdu un emploi ou qui ne
peut reprendre un emploi en raison d’un arrêt de travail dû à un conflit
collectif à l’usine, à l’atelier ou en tout autre local où il exerçait
un emploi n’est pas admissible au bénéfice des prestations avant :
a) soit la fin de
l’arrêt de travail;
b) soit, s’il est
antérieur, le jour où il a commencé à exercer ailleurs d’une façon régulière
un emploi assurable. [Non souligné dans l’original.]
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[5]
The
respondent employees appealed the denial of benefits to the Board of Referees.
Tembec received notice of the hearings before the Board of Referees, but did
not attend the hearings. Previously, the Board of Referees had dismissed
appeals brought by similarly situated Tembec employees. The Commission had
previously taken the position before the Board of Referees, and continued to
take the position, that Tembec’s employees were not entitled to receive
employment insurance benefits by operation of subsection 36(1) of the Act.
[6]
On
July 19, 2010, a majority of the Board of Referees dismissed Mr. Berthelette’s
claim for benefits. One member of the Board dissented, relying upon Order No.
1474 issued by the Manitoba Labour Board. In Order No. 1474 the Manitoba Labour
Board had noted Tembec’s position that it intended “to exit the newsprint mill
at Pine Falls […] and that it [did] not intend to operate the Pine Falls site
as a going concern.” Relying upon this, the dissenting member reasoned
(emphasis added):
A reasonable person can only
conclude that in the case of Tembec Industries, the employer has effectively
abandoned its role as employer insofar as it is contemplated in the Act and the
application of subsection 36(1), and the so-called lockout of Tembec workers on
September 1, 2009 was actually a layoff or the beginning of operations windup,
with the remote possibility of a sale to a potential buyer.
I find that the lockout of
September 1, 2009 was not based on a genuine labour dispute, but was actually an
indefinite layoff or even the beginning of the operation’s windup.
I find that the Commission
should not have applied subsection 36(1) to the claimant.
[7]
Boards
of Referees, in majority decisions, upheld the decisions of the Commission in
respect of the four other respondent employees.
[8]
On
August 11, 2010, the Board of Referees rendered three decisions involving
Tembec employees in which the Board of Referees found the employees were
entitled to employment insurance benefits (the adverse decisions).
[9]
On
August 31, 2010, the respondent employees appealed the decisions of the Board
of Referees denying them benefits to an umpire. Tembec was not given notice of
these appeals.
[10]
On
October 8, 2010, Tembec appealed the adverse decisions to an umpire.
[11]
On
October 13, 2010, before a hearing date was set for the appeals brought by the
respondent employees, the Commission advised them (emphasis added):
The Commission has reviewed
the Board of Referees’ decision which you appealed to the Umpire. While the
final decision rests with the Umpire, the Commission will recommend that
your appeal be allowed.
Appeals which are decided by
the Umpire on the basis of the written information alone are usually finalized
sooner than cases on which an oral hearing has been requested. Therefore, your
agreement to withdraw your request for an oral hearing should hasten the final
decision in your case. A form and return envelope are enclosed for your
convenience.
In order to speed up the
appeal process, we are also prepared to advise the Umpire in writing that the
Commission wishes to concede the appeal in your favour. Upon receiving the completed
enclosed form, we will forward it with a memorandum advising the Umpire of the
Commission’s concession.
[12]
Copies
of this letter were sent to the Registrar of the Office of the Umpire and to
the Community Unemployed Help Centre (an entity which was assisting the
respondent employees). Tembec was not advised of the Commission’s change of
position, notwithstanding that it had three appeals pending before an umpire.
[13]
On
November 15, 2010, the Chief Umpire Designate (Umpire) rendered the following
decision in Mr. Berthelette’s appeal (CUB 75657):
Having reviewed
the material that was before the Board of Referees and considered the
Commission’s decision to concede this appeal in favour of the claimant, I
hereby set aside the Board of Referees’ decision and allow the claimant’s
appeal.
[14]
The
Office of the Umpire provided a copy of this decision to Tembec under cover of
a letter dated November 18, 2010.
[15]
The
Umpire rendered identical decisions in the appeals of the four remaining respondent
employees on December 17, 2010, (CUB 75976, CUB 75977, CUB 75978 and
CUB 75979). Copies were provided to Tembec by letters dated December 29,
2010.
[16]
These
are the five orders of the Umpire under review in this application for judicial
review. By order dated April 19, 2011, this Court gave leave for all five
orders to be challenged in this one application.
The Issues
[17]
Tembec
frames the issue to be whether the decisions of the Umpire should be set aside
on the basis that its rights to procedural fairness and natural justice were
violated as a result of the failure of the Commission or the Office of the
Umpire to provide it with notice of the appeals brought to the Umpire by the
respondent employees.
[18]
The
respondent employees also raise an issue. They argue that Tembec does not have
standing to bring this application because it is not directly affected by the
orders under review, as required by subsection 18.1(1) of the Federal Courts
Act.
[19]
In
my view, the central question raised on this application is whether under the
Act or the Employment Insurance Regulations, SOR/96-332 (Regulations)
Tembec was entitled to receive notice of the appeals to the Umpire brought by
the respondent employees. I will consider this issue before dealing with the
contention that Tembec lacks standing.
Consideration of the
Issues
[20]
The
Act describes in subsections 114(1) and 115(1) respectively who may appeal a
decision of the Commission to the Board of Referees and who may appeal a
decision of the Board of Referees to an umpire:
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114. (1) A
claimant or other person who is the subject of a decision of the
Commission, or the employer of the claimant, may appeal to the board of
referees in the prescribed manner at any time within
(a) 30
days after the day on which a decision is communicated to them; or
(b) such
further time as the Commission may in any particular case for special reasons
allow.
[…]
115. (1) An
appeal as of right to an umpire from a decision of a board of referees may be
brought by
(a) the
Commission;
(b) a
claimant or other person who is the subject of a decision of the
Commission;
(c) the
employer of the claimant; or
(d) an
association of which the claimant or employer is a member. [emphasis added]
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114. (1) Quiconque
fait l’objet d’une décision de la Commission, de même que tout employeur
d’un prestataire faisant l’objet d’une telle décision, peut, dans les
trente jours suivant la date où il en reçoit communication, ou dans le délai
supplémentaire que la Commission peut accorder pour des raisons spéciales
dans un cas particulier, interjeter appel de la manière prévue par règlement
devant le conseil arbitral.
. .
.
115. (1) Toute
décision d’un conseil arbitral peut, de plein droit, être portée en appel
devant un juge-arbitre par la Commission, le prestataire, son employeur,
l’association dont le prestataire ou l’employeur est membre et les autres
personnes qui font l’objet de la décision. [Non souligné dans l’original.]
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[21]
In
this case, either the respondent employees or Tembec could appeal adverse
decisions of the Commission and the Board of Referees, and indeed both the
respondent employees and Tembec brought appeals to the Umpire from decisions of
the Board of Referees.
[22]
The
Regulations then prescribe how appeals to the Board of Referees and to an
Umpire are to be perfected. Section 80 of the Regulations allows both claimants
and employers to apply for a hearing before a Board of Referees irrespective of
which party commenced the appeal. A Board of Referees “shall give each of the
parties interested in an appeal a reasonable opportunity to make
representations concerning any matter before the board” (subsection 83(1) of
the Regulations). The appellant “and any other party interested in an appeal”
are to be notified in writing of the Board of Referees’ decision (subsection
83(4) of the Regulations).
[23]
Sections
85 and subsections 86(1), 86(2) and 87(1) of the Regulations deal with appeals
to the Umpire and state:
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85. (1) An
appeal brought by the Commission pursuant to section 115 of the Act shall
(a) be
made in writing;
(b) contain
a statement of the grounds of appeal; and
(c) be
filed at the office of the umpire.
(2) An
appeal pursuant to section 115 of the Act at the instance of a claimant, an
employer, an association of which the claimant or employer is a member or
any other person who is the subject of the decision of a board of referees shall
(a) be
made in writing;
(b) contain
a statement of the grounds of appeal; and
(c) be
filed at the office of the Commission at which that decision was communicated
pursuant to subsection 83(3).
(3) Where
an appeal referred to in subsection (1) or (2) is filed, the Commission
shall, within 60 days after the day on which it is filed,
(a) prepare
a docket containing
(i) a
copy of the appeal,
(ii) all
documents that have been considered by the board of referees during the
appeal,
(iii) the
transcript, if any, of the evidence given before the board of referees during
the appeal, and
(iv) the
written decision of the board of referees;
(b) file
the docket at the office of the umpire; and
(c) mail
a copy of the docket to each interested party.
(4) The
Commission may file a statement of observations and representations in
connection with an appeal at the office of the umpire and mail a copy
thereof to each interested party, within the time provided by subsection
(3) or such further time as the umpire may allow under section 116 of
the Act.
(5) The
appellant or any person or association that has a direct interest in an
appeal or the decision thereon may, within 15 days after the day
on which the docket referred to in subsection (3) is filed or within such
further time as the umpire may allow under section 116 of the Act, file
a statement of observations and representations at the office of the
Commission where the appeal was filed, and the Commission shall forward the
statement forthwith to the umpire.
(6) The
question as to whether any person or association has a direct interest in an
appeal referred to in subsection (1) or (2) or the decision thereon shall be
decided by the umpire.
(7) Subject
to section 86, the umpire may, at any time after the period of time referred
to in subsection (5), render a decision on the basis of the documents filed.
86. (1) The
appellant, the Commission or any person or association having a direct
interest in a decision of a board of referees or an appeal from such a
decision may apply in writing to an umpire for a hearing and
the umpire shall, after receiving the application, grant a hearing.
(2) Notwithstanding subsection (1),
the umpire may at any time direct that there shall be a hearing.
[…]
87. (1) A
decision of an umpire shall be given in writing and a copy of the decision
shall be sent to
(a) the
appellant;
(b) the
Commission;
(c) any
person or association having a direct interest in the decision; and
(d) such
other persons or associations as the umpire may direct. [emphasis added]
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85. (1) L’appel
interjeté par la Commission en vertu de l’article 115 de la Loi :
a) est formulé par
écrit;
b) comporte un exposé
des moyens d’appel;
c) est déposé au bureau
du juge-arbitre.
(2) L’appel
interjeté en vertu de l’article 115 de la Loi par un prestataire, un
employeur, une association dont le prestataire ou l’employeur est membre
ou toute autre personne qui fait l’objet de la décision du conseil
arbitral :
a) est formulé par
écrit;
b) comporte un exposé
des moyens d’appel;
c) est déposé au bureau
de la Commission auquel cette décision a été communiquée conformément au
paragraphe 83(3).
(3) Dans
les 60 jours suivant la date de dépôt de l’appel visé aux paragraphes (1)
ou (2), la Commission prend les mesures suivantes :
a) elle prépare un
dossier contenant à la fois :
(i) une copie de l’appel,
(ii) tous les documents étudiés par le conseil arbitral dans le cadre de
l’appel,
(iii) la transcription, si elle existe, des témoignages recueillis par
le conseil arbitral relativement à l’appel,
(iv) la décision écrite du conseil arbitral;
b) elle dépose le
dossier au bureau du juge-arbitre;
c) elle envoie par
courrier une copie du dossier à chaque partie intéressée.
(4) La
Commission peut déposer un exposé de ses observations et arguments
relatifs à l’appel au bureau du juge-arbitre et en envoyer une copie par
courrier à chaque partie intéressée dans le délai prévu au paragraphe (3)
ou dans le délai supplémentaire accordé par le juge-arbitre en vertu de
l’article 116 de la Loi.
(5) L’appelant
ou toute personne ou association que l’appel ou son règlement intéresse
directement peut, dans les 15 jours suivant la date de dépôt du dossier
visé au paragraphe (3) ou dans le délai supplémentaire accordé par le
juge-arbitre en vertu de l’article 116 de la Loi, déposer un exposé
de ses observations et arguments au bureau de la Commission où l’appel a
été déposé; la Commission transmet aussitôt l’exposé au juge-arbitre.
(6) Le
juge-arbitre décide si une personne ou une association est directement
intéressée ou non à un appel visé aux paragraphes (1) ou (2) ou à son
règlement.
(7) Sous
réserve de l’article 86, le juge-arbitre peut, après l’expiration du délai
visé au paragraphe (5), rendre une décision en se fondant sur les documents
déposés.
86. (1) L’appelant,
la Commission ou toute personne ou association qu’une décision d’un conseil
arbitral ou un appel de la décision intéresse directement peut
demander par écrit au juge-arbitre une audience, auquel cas
celui-ci fait droit à la demande.
(2) Malgré le paragraphe (1), le
juge-arbitre peut ordonner à tout moment la tenue d’une audience.
. .
.
87. (1) La
décision du juge-arbitre est consignée et une copie en est envoyée aux
personnes suivantes :
a) l’appelant;
b) la Commission;
c) toute personne ou
association qu’intéresse directement la décision;
d) toute autre personne
ou association indiquée par le juge-arbitre. [Non souligné dans l’original.]
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[24]
Relevant
points to be taken from these provisions are that:
i. After
a claimant or the claimant’s employer have filed an appeal from a decision of
the Board of Referees, the Commission is to prepare a docket containing
specified material and this docket is to be mailed “to each interested party”
(paragraph 85(3)(c)).
ii. The
Commission is to mail a copy of any statement of observations it files “to each
interested party” (subsection 85(4)).
iii. Once
that is done “[t]he appellant or any person or association that has a direct interest
in an appeal or the decision thereon” may file a statement of observations and
representations (subsection 85(5)).
iv. Any
dispute as to whether any person or association has “a direct interest in an
appeal […] shall be decided by the umpire” (subsection 85(6)).
v. An
appellant, the Commission or any person or association having a direct interest
in a decision of a Board of Referees or an appeal from such a decision may
apply to an umpire for a hearing (subsection 86(1)).
vi. Once
rendered, a decision of an umpire shall be sent to persons including the
appellant, the Commission and “any person or association having a direct
interest in the decision” and “such other persons or associations as the umpire
may direct” (subsection 87(1)).
[25]
This
review of the Regulations shows that a distinction is drawn between entities
that are “interested” in an appeal and those that have a “direct interest” in
an appeal. Persons “interested” in an appeal are entitled to participate before
the Board of Referees and to be notified in writing of the decision of the
Board of Referees (subsection 83(4)). They are also entitled to receive a
docket and any statement of observations and representations filed by the
Commission (paragraph 85(3)(c) and subsection 85(4)). An appellant and persons
or associations having a “direct interest in an appeal” are entitled to
participatory rights before the Umpire (subsection 85(5)).
[26]
In
the present application, the question then becomes whether an employer is an
“interested” party within the contemplation of subsection 83(4) and paragraph
85(3)(c) of the Regulations.
[27]
The
Act places no limitation on the right of a claimant’s employer to appeal to the
Board of Referees or the Umpire. A claimant’s employer is given an “appeal as
of right to an umpire”. The appeal as of right is not predicated in any way
upon the employer having participated before the Board of Referees.
[28]
Given
an employer’s statutory right to appeal a decision of the Commission involving
one of its employees to the Board of Referees (section 114 of the Act) and its
statutory right to appeal “as of right” a decision of the Board of Referees to
the Umpire (section 115 of the Act), I conclude that an employer is an
interested party within the contemplation of subsection 83(4) and paragraph 85(3)(c)
of the Regulations.
[29]
It
follows from this conclusion that Tembec was entitled to notification of all
decisions rendered by the Board of Referees with respect to its employees and
was entitled to receive the docket prepared by the Commission and filed with
the Umpire. The failure to comply with section 83(4) and paragraph 85(3)(c)
of the Regulations violated procedural rights owed to Tembec.
[30]
Because
the decisions of the Umpire at issue in this application were rendered in
violation of Tembec’s procedural rights, these decisions should be set aside so
as to afford Tembec the opportunity to exercise its rights under the Act and
the Regulations.
[31]
In
so deciding, it is not necessary for me to consider, and I do not consider,
whether Tembec has any direct interest in the appeals to the Umpire. If
Tembec’s standing is put in issue that will be a matter to be determined by the
Umpire. It is sufficient for the purpose of this application to find that
Tembec has the rights set out above, which will enable it to address any issue
that may arise about whether it has a direct interest in the appeals.
[32]
It
further follows that because procedural rights afforded to Tembec by the
Regulations were violated, it was directly affected by the decisions of the
Umpire at issue so as to have standing under subsection 18.1(1) of the Federal
Courts Act. At the least, the Umpire’s decision precluded Tembec from being
able to argue that it had a direct interest in the issue before the Umpire.
Conclusion
[33]
For
these reasons, I would allow the application for judicial review and would set aside
the decisions of the Chief Umpire Designate, with costs payable to Tembec by
the Attorney General of Canada. While Tembec sought costs on a solicitor client
basis there is nothing in the record to warrant departure from Rule 407. I
would therefore order that, if not agreed, the costs be assessed in accordance
with column III of the table to Tariff B of the Federal Courts Rules.
“Eleanor
R. Dawson”
“I
agree.
J.D.
Denis Pelletier J.A.”
STRATAS J.A. (Dissenting
reasons)
[34]
I
agree with my colleague’s statement of the facts and issues. My colleague has
proceeded on the basis that the standard of review is correctness and I agree
with that. I also agree that the plain wording of the relevant legislative text
is our proper starting point. However, the structure and purpose of this
legislation lead me to a different interpretation of it. Further, in a small
way, but significant for the outcome of this appeal, I read the legislative text
somewhat differently from my colleague.
[35]
For
these reasons, I reach a different result. I would dismiss Tembec’s application
for judicial review, with costs.
A. Can any employer
always appeal from every decision of a board of referees?
[36]
Under subsection 115(1) of the Act, an “appeal as of right to
an umpire” from a decision of a board of referees “may be brought” by “the
employer of the claimant” and others. Does that mean that an employer can
appeal to the umpire from every decision of the board of referees involving an
employee? Does the word “may” in subsection 115(1) have any significance?
[37]
In
my view, the structure of the Act sheds light on these questions. Many
different issues can arise under the Act. Many are potentially appealable under
subsection 115(1) of the Act. On some of those issues the employer has an
interest, others not.
[38]
For
example, employers have an interest in fines levied against them by the
Commission (e.g. subsection 39(1) of the Act), but they have no interest
in whether an employee has shown “just cause” for applying late for benefits.
[39]
Parliament
could have written specific appeal provisions into the Act that prescribe who
may appeal on a particular issue (i.e., who has a real interest in the
issue), how interested parties can intervene, and so on. But given the large
number of issues that arise under the Act, that would create a forest of
provisions setting out a number of appellate codes
that would apply in different cases.
[40]
Another
approach, the one I say Parliament adopted in sections 111 to 123 of the Act,
is to enact one set of compendious provisions specifying general rules for
appeals that potentially, but do not necessarily, apply in a particular case.
While, as a general matter, employers “may” appeal a matter under subsection
115(1), whether or not they can appeal a particular matter depends on whether
they have standing to appeal.
[41]
The
concept of standing is well-established in our system of justice. Only those
with a real and legitimate interest in a matter can maintain proceedings or get
notice of proceedings.
[42]
This concept of
standing exists right across the board, in judicial, administrative and
regulatory proceedings: League for Human Rights of B'Nai Brith Canada v.
Odynsky, 2010 FCA 307 and Rothmans
of Pall Mall Canada Ltd. v. Canada (M.N.R.), [1976] 2 F.C. 500 (C.A.) (in order to have direct
standing, a litigant must demonstrate an effect on its legal rights, the
imposition of legal obligations upon it, or some prejudicial effect on it ); Hy and Zel's Inc. v. Ontario (Attorney General), [1993] 3 S.C.R. 675, Canadian Council of
Churches v. Canada (Minister of Employment and Immigration), [1992] 1
S.C.R. 236 and Finlay
v. Canada (Minister of Finance), [1986] 2 S.C.R. 607 (the requirement of “standing” exists to screen out, in the words of the
Supreme Court, “busybodies”); Baker v. Canada
(Minister of Citizenship and Immigration),
[1999] 2 S.C.R. 817 at paragraph 25 (real and legitimate interests boost the
entitlement to notice and participation); Borowski v. Canada (Attorney
General),
[1989] 1 S.C.R. 342 (real
and legitimate interests, among other things, must be in play in order for a
case to be advanced, absent public interest considerations); Solosky v. The Queen, [1980] 1 S.C.R.
821 (declarations can only be granted for real concerns, not hypothetical
concerns).
[43]
Given
the fundamental role played by standing in our system of justice, we must
assume subsection
115(1) of the Act, the compendious appeal provision, was enacted alongside the
requirement of standing. Subsection 115(1) of the Act does not oust the
requirement of standing.
[44]
Accordingly,
subsection 115(1) of the Act does not mean that every employer can avail itself
of an appeal concerning any matter in the Act. Subsection 115(1) does not pave
over the fundamental concept that only people with a real, legitimate interest
in the matter can get notice of decisions or have standing to maintain
proceedings. Persons may appeal under subsection 115(1) only if they a real,
legitimate interest in the matter.
B. Implications
of this interpretation
[45]
Under
this interpretation, I see four different times when the employer’s lack of
standing might end the matter, subject to later judicial review by the
employer.
[46]
First,
an employer who does not have a real, legitimate interest in a matter is not a
“party interested in an appeal” and, therefore, need not be given notice of the
decision of the board of referees under subsection 83(4) of the Regulations.
[47]
Nevertheless,
an employer might find out about a decision of the board of referees and try to
file an appeal to the umpire under subsection 85(3) of the Regulations. In that
case, there are three more times when the employer’s lack of standing might end
the matter, subject to a later judicial review:
● Under subsection 85(3) of the Regulations,
the Commission is obligated to prepare the record of appeal, known as a
“docket,” circulate it to interested parties, and file it with the umpire – but
only where there is an “appeal.” If it is evident to the Commission from the
grounds listed in the employer’s notice of appeal that the employer has no
real, legitimate interest in the appeal, the Commission may conclude that there
is no valid “appeal.” In those circumstances, it is not obligated to do
anything further and the employer’s attempted appeal ends there.
● If
the Commission overlooks the employer’s lack of real, legitimate interest,
circulates the “docket” to interested parties and files it with the umpire, the
umpire might have an immediate concern about the employer’s standing to appeal
under subsection 115(1) of the Act. In that circumstance, the umpire may hold
an immediate and early hearing on the issue and might decide against the
employer’s standing to appeal: subsection 86(2) of the Regulations.
● If
the umpire does not address the employer’s standing under subsection 115(1) of
the Act at the outset, any responding party to the appeal may challenge the
employer’s standing as part of its submissions regarding the merits of the
appeal, and the umpire may rule on the issue.
[48]
To
the extent that an employer has a real, legitimate interest in a matter but was
not given notice of the board of referees’ decision, the umpire might still
grant participatory rights under subsection 83(4), subsection 85(5), or
paragraph 85(3)(c) of the Regulations. If those rights were not afforded
and they should have been, the employer would be able to bring an application
for judicial review of the umpire’s decision.
C. The
contrary interpretation
[49]
A contrary
interpretation of the legislation is that subsection 115(1) allows any employer,
indeed any potential appellant listed in the subsection, to appeal to the
umpire in any situation. Once the appeal is launched, however, section 85 of
the Regulations explicitly allows the umpire to prevent an employer with
no real and legitimate interest in the matter from making representations. I
reject this contrary interpretation.
[50]
Under
subsection 85(5) of the Regulations, “the appellant [e.g.,
the employer] or any person or association that has a direct interest in an
appeal or the decision thereon” can make representations. Does the phrase “that
has a direct interest in an appeal or the decision thereon” modify “any person
or association” or both “the appellant” and “any person or association”? In
other words, does the requirement of a “direct interest” apply to “the
appellant”?
[51]
In my view, no. Subsection 85(6) of the Regulations shows this. It
provides that the Umpire decides the question as to whether “any person or
association” has “a direct interest in an appeal referred to in subsection (1)
or (2).” Subsection 85(6) does not empower the umpire to decide whether “the
appellant” has a direct interest in the appeal.
[52]
Further confirmation of this is seen elsewhere in the Regulations.
The umpire is to give his decision to “any person or association having a
direct interest in the decision”: paragraph 87(1)(c) of the
Regulations. The umpire must also give “the appellant” the decision: paragraph
87(1)(a) of the Regulations. The word “appellant” is not modified by the
phrase “having a direct interest in the decision.”
[53]
Therefore, section 85 of the Regulations does not
explicitly allow the umpire to prevent an employer with no real and legitimate
interest in the matter from making representations.
D. My
interpretation vs. the contrary interpretation: does it matter?
[54]
Assuming
for the moment that both the interpretation I have adopted and what I have
called “the contrary interpretation” are plausible, one might ask what turns
upon them. After all, under each interpretation, employers without any real,
legitimate interest are screened out.
[55]
In
my view, much does turn upon them. The difference between the two is when an
appellant without any real, legitimate interest – what the Supreme Court in Hy
and Zel's,
Canadian Council of Churches and Finlay calls a “busybody” –
might be screened out, and how many opportunities exist for screening the
busybody out.
[56]
My
interpretation has the virtue of screening out a busybody as soon as possible
and as much as possible. It could happen as a result of the busybody never
getting notice of the decision of the board of referees. Or it could happen at
the outset when the Commission prepares the “docket.” Or it could happen soon
after the umpire receives the appeal and perceives a problem with the
appellant’s standing. Or it could happen later as a result of a responding
party’s submissions to the umpire on the merits. Under the contrary
interpretation, there is only one time that a busybody might be screened out,
if at all.
[57]
My
interpretation is consistent with the overall objectives of the Act. In
engaging in legislative interpretation, we must have regard to them: Merck
Frosst Canada Ltd. v. Canada (Health), 2012 SCC 3 at paragraph 64; Re
Rizzo & Rizzo Shoes Ltd., [1998] 1 S.C.R. 27 at paragraph 21.
[58]
This
legislation is designed to make benefits available quickly to those unemployed
persons who qualify under it and should be liberally interpreted to achieve
that end: Abrahams v. Attorney General of Canada, [1983] 1 S.C.R. 2 at
page 10. It is “aimed at diverting issues relating to employment insurance from
the court system into the more informal, specialized, efficient adjudicative
mechanisms set up by Parliament”: Steel v. Canada (Attorney General),
2011 FCA 153 at paragraph 74, Stratas J.A. (concurring). In setting up the
procedures to be followed within this administrative regime, Parliament must be
taken to have desired efficiency and effectiveness. The legislative wording
should be interpreted with these objectives front of mind: Chrysler Canada
Ltd. v. Canada (Competition
Tribunal),
[1992] 2 S.C.R. 394; Canadian Pacific Air Lines Ltd. v. Canadian Air Line
Pilots Assn., [1993] 3 S.C.R. 724.
[59]
Accordingly,
this legislation should be interpreted in such a way that, to the extent
possible and as quickly as possible, busybodies are excluded. Otherwise, the
objectives of ease of access to benefits by deserving persons and efficiency
will be undercut. Indeed, one can foresee the potential for mischief and harm
in allowing those who have no real legitimate interest in the matter to launch
an appeal, prolong matters, and keep deserving claimants from their benefits.
E. The
case before us
[60]
In
the case before us, we have an employer, Tembec, saying that it had a right to
notice of the board of referees’ decision and a right to appeal from it.
[61]
But
in its written submissions in this Court, Tembec did not identify any real,
legitimate interest in pursuing its appeal to the umpire.
[62]
Under
repeated questioning at the oral hearing, Tembec suggested, in a vague way
without support in the record, that there were “reputational” concerns
necessitating its participation in the matter before the umpire. These
reputational concerns were said to be associated with the umpire applying the
Manitoba Labour Board’s decision against the employer on the issue of the
lockout of the employees.
[63]
But
Tembec did not seek judicial review of the Board’s decision and is bound by it,
absent special considerations which it did not raise here: Danyluk v.
Ainsworth Technologies Inc., 2001 SCC 44, [2001] 2 S.C.R. 460. Any attempt
by Tembec before the umpire to challenge the Board’s decision would be a
collateral attack against it and an abuse of process: R. v. Consolidated
Maybrun Mines Ltd., [1998] 1 S.C.R. 706; Toronto
(City) v. C.U.P.E., Local 79, 2003 SCC 63, [2003] 3 S.C.R.
77.
[64]
Tembec
could not point to any later proceedings or matters involving it that might be
affected by the umpire’s decision. In any event, if Tembec cannot be a party
before the umpire, the umpire’s decision cannot affect it in later proceedings
or matters: see, e.g., Minott v. O’Shanter Development Company Ltd.
(1999), 42 O.R. (3d) 321 (C.A.).
[65]
Therefore,
on the facts of this case Tembec had no legitimate or real interest before the
umpire. It was a busybody. It had nothing to do before the umpire except,
perhaps, take issue with what the Manitoba Labour Board had done – something
that was not open to it.
[66]
Properly
interpreted, the legislation does not require that notice of anything be given
to busybodies, nor does it give participatory rights to busybodies. Therefore,
I conclude that Tembec was not entitled to notice of the board of referees’
decision and had no right to appeal from it.
[67]
Further,
for the reasons set out above, Tembec did not have sufficient direct standing
to challenge the decision of the umpire in this Court under section 18.1 of the
Federal Courts Act, R.S.C. 1985, c. F-7.
[68]
Finally,
given the fact that Tembec had nothing to say to the umpire other than to
attack or cast doubt on the decision of the Manitoba Labour Board – something
that was not open to it – any failure to give it notice of the decision of the
board of referees or to grant it participatory rights before the umpire was of
no consequence. Therefore, to the extent that Tembec is entitled to certiorari
on this application for judicial review, we should exercise our discretion
against granting it: Mobil Oil Canada Ltd. v. Canada-Newfoundland Offshore
Petroleum Board, [1994] 1 S.C.R. 202; MiningWatch
Canada v. Canada (Fisheries and Oceans),
2010 SCC 2, [2010] 2 S.C.R. 6; Stemijon Investments Ltd. v. Canada
(Attorney General), 2011 FCA 299.
[69]
Therefore,
for the foregoing reasons, I would dismiss Tembec’s application for judicial
review, with costs.
“David Stratas”