Executive Summary: Key Legal and Evidentiary Issues

• The main dispute centered on whether the union’s off-table strategies (petition and election campaigns) to influence the employer’s bargaining position constituted bad faith bargaining under The Saskatchewan Employment Act.

• The Labour Relations Board found that both the United Food and Commercial Workers Union (UFCW) and its agent, Mr. Thebaud, breached their duty to bargain in good faith by attempting to change the Co-op’s board composition during ongoing negotiations.

• UFCW argued that the Board’s decision unreasonably restricted legitimate union advocacy and participation in a democratically controlled co-operative.

• The judicial review focused on whether the Board’s decision was reasonable, justified, and within the range of acceptable outcomes under administrative law principles.

• The Court upheld the Board’s findings, emphasizing deference to the Board’s expertise and the unique facts of the case.

• Costs were awarded to the successful party, Saskatoon Co-operative Association Limited, but the precise monetary amount was to be taxed under the applicable tariff.

Facts of the case

The dispute arose from a prolonged labour negotiation between the Saskatoon Co-operative Association Limited (the Co-op) and its employees, represented by the United Food and Commercial Workers Union, Local 1400 (UFCW). The central issue in bargaining was the Co-op’s proposal for a two-tier wage schedule, which the union argued would unfairly disadvantage new employees. After negotiations stalled, the union initiated a strike in November 2018, lasting over five months. Eventually, a renewed collective agreement was reached, incorporating a “bridged” two-tier wage schedule.

During the dispute, Craig Thebaud, a former employee of both the Co-op and UFCW, spearheaded two strategies to influence the Co-op’s direction. The first, the “Petition Strategy,” involved circulating a petition among Co-op members to force a special meeting aimed at replacing the board of directors with individuals more sympathetic to the union’s bargaining position. When this failed, the focus shifted to the “Election Strategy,” which sought to elect new board members at the annual general meeting who would support the union’s views. Both strategies were actively supported or tacitly endorsed by UFCW, including through social media promotion and participation in campaign events.

Policy terms and statutory provisions at issue

The case involved interpretation of several sections of The Saskatchewan Employment Act, particularly those governing the duty to bargain in good faith (s. 6-7), unfair labour practices by unions (s. 6-63(1)(c)), and the powers of the Labour Relations Board (s. 6-104(2)(c)). The Co-op argued that UFCW’s and Mr. Thebaud’s actions amounted to bad faith bargaining and unfair labour practices, as their sole purpose was to alter the board’s composition to influence negotiations, rather than to engage in the collective bargaining process as required by law.

Board decision and reasoning

The Saskatchewan Labour Relations Board found that both UFCW and Mr. Thebaud had breached their statutory duty to bargain in good faith. The Board concluded that UFCW was not a mere bystander but was directly involved in both the petition and election strategies, which were designed to circumvent the collective bargaining process by changing the employer’s negotiating stance from within. The Board rejected the argument that union advocacy within a co-operative’s democratic processes was protected in this context, emphasizing the need for genuine engagement in collective bargaining. While the Board recognized the unique context of a co-operative employer, it found that the union’s actions demonstrated hostility toward the bargaining process and were not aimed at finding a middle ground.

Judicial review and outcome

UFCW sought judicial review, arguing that the Board’s decision unreasonably limited union rights and failed to properly consider constitutional freedoms of expression and association. The Court, applying the reasonableness standard from Canada (Minister of Citizenship and Immigration) v Vavilov, found that the Board’s decision was justified, transparent, and intelligible. The Court emphasized that deference is owed to the Board’s expertise in labour relations and that the Board’s findings were well within the range of acceptable outcomes. The Court dismissed UFCW’s application for judicial review, affirming the Board’s declaration that UFCW and Mr. Thebaud had engaged in unfair labour practices.

Ruling and overall outcome

The Court upheld the Labour Relations Board’s decision, confirming that UFCW and Mr. Thebaud breached their duty to bargain in good faith by orchestrating strategies to alter the Co-op’s board composition during negotiations. The successful party was the Saskatoon Co-operative Association Limited, which was awarded its costs to be taxed under Column 3 of the Tariff of Costs. The exact amount of costs was not specified in the judgment and was left to be determined according to the tariff.