Canadian Merchant Service Guild v. Gagnon et al.

Canadian Merchant Service Guild v. Gagnon et al.

The union did not breach its duty of fair representation by refusing to take the grievance to arbitration because the collective agreement reserved referral to the union, the union reasonably relied on a reasoned legal opinion, there was no evidence of arbitrary, discriminatory, hostile or bad faith conduct or of serious negligence sufficient to make it liable; an employee has no absolute right to arbitration where referral power rests with the union.

Citation
[1984] 1 SCR 509
Parties
Appellant (union): Canadian Merchant Service Guild; Respondent (employee): Guy Gagnon; Respondent (employer): Laurentian Pilotage Authority
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
7 June 1984
Procedural Posture
Labour Law Duty of Fair Representation / Appeal to the Supreme Court of Canada From the Quebec Court of Appeal
Outcome
Appeal allowed; judgments of the Court of Appeal and Superior Court set aside; action against the Canadian Merchant Service Guild dismissed with costs in all courts.
Legal Topics
Duty of Fair Representation, Union Discretion on Arbitration, Grievance Procedure, Arbitrability, Disguised Dismissal
Source Language
English
Labour Law Employment Law Collective Bargaining Labour Relations Duty of Fair Representation Union Discretion on Arbitration Grievance Procedure Arbitrability +1 more

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Parties

Canadian Merchant Service Guild

Appellant (union)

Guy Gagnon

Respondent (employee)

Laurentian Pilotage Authority

Respondent (employer)

Procedural Posture

Labour Law Duty of Fair Representation / Appeal to the Supreme Court of Canada From the Quebec Court of Appeal

Legal Issues

  1. 1 Whether the union breached its duty of fair representation by refusing to take the grievance to arbitration
  2. 2 Whether a union member has an absolute right to arbitration where the collective agreement vests referral power in the union
  3. 3 Whether failure to conduct a further investigation by the union amounted to bad faith, arbitrariness or serious negligence making the union liable

Ratio Decidendi

The union did not breach its duty of fair representation by refusing to take the grievance to arbitration because the collective agreement reserved referral to the union, the union reasonably relied on a reasoned legal opinion, there was no evidence of arbitrary, discriminatory, hostile or bad faith conduct or of serious negligence sufficient to make it liable; an employee has no absolute right to arbitration where referral power rests with the union.

Court Disposition

Appeal allowed; judgments of the Court of Appeal and Superior Court set aside; action against the Canadian Merchant Service Guild dismissed with costs in all courts.

Orders

  • Appeal allowed; set aside the judgments of the Quebec Court of Appeal and Superior Court; dismiss Guy Gagnon's action against the Canadian Merchant Service Guild with costs in all courts.