Feds ask for judicial review of STC arbitration ruling

The federal government is asking the Federal Court to quash an arbitrator’s decision that the Saskatchewan Transportation Company (STC) violated the Canadian Labour Code.

A ruling by arbitrator William Hood on April 27 found STC did not give enough notice for terminating a group of 50 or more employees.

STC – and by extension the Saskatchewan government – was ordered to pay 95 employees eight weeks and one day of wages for the violation.

READ MORE: STC ordered to pay 95 former employees over Canadian Labour Code violations

In an application filed in Federal Court on May 28, the attorney general of Canada said Hood erred or operated outside his jurisdiction in making his ruling.

One of the points argued by the government is the arbitrator included employees who had left STC prior to it ceasing operations in calculating the 50 employee threshold.

Under the CLC, an employer must give at least 16 weeks’ notice when terminating 50 or more employees.

It also states Hood erred in awarding the wages in lieu of notice, operated outside his jurisdiction in awarding damages for STC failing to establish a joint planning committee, and erred in determining STC operated as an industrial establishment instead of three distinct industrial establishments.

None of the allegations have been proven in court.

READ MORE: SGEU wants audit of defunct Saskatchewan Transportation Company

The federal government is asking the court to quash Hood’s decision and to send the matter back to arbitration.

The Saskatchewan government has previously stated it obtained a legal opinion prior to ending STC’s operations and were advised they were not violating the code.

A hearing date has not been set.