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In a decision release November 23, 2009, the Ontario Labour Relations Board refused to apply section 127.2 of the Labour Relations Act to strip unions and employees of their collective bargaining rights.

Section 127.2 of the Act provides that, where the Board makes a declaration under section 126 that an employer is a "non-construction employer", it must also declare (at the employer's request) that the trade union no longer represents the employees of that employer and that any negotiated collective agreement between the non-construction employer and the trade union no longer applies to those employees.

Independent Electrical Systems Operator was declared to be a "non-construction employer" under section 126 of the Act. However, on behalf of the trade unions representing IESO's employees, SGM's Lorne Richmond argued that section 127.2 violated the guarantee of freedom of association in section 2(d) of the Canadian Charter of Rights and Freedoms. 

The Board  agreed. It held that section 127.2 substantially interfered with collective bargaining, which the Supreme Court of Canada has held is protected under section 2(d)'s guarantee of freedom of association.  The Board therefore declared that section 127.2 was inoperative in this case and refused to strip the unions and their members of their collective bargaining rights.

For a more detailed summary of the case, click here. 

© SGM LAW 2010