Individual personally liable for corporate unfair labour practices

Trucking company in Windsor, Ont., closed down after successful union certification drive
By Glenn Tait
|Canadian Employment Law Today

On Oct. 24, 2006, the Canada Industrial Relations Board (CIRB) held the individual who was officer, shareholder and manager of a trucking company personally responsible for unfair labour practices committed by the company. The order was the third in a series that began when Pegasus Express, a trucking company in Windsor, Ont., closed its doors in response to a successful union certification drive.

In the first proceeding, the CIRB found Pegasus had engaged in an illegal lockout and ordered the company not to close its operations, move its operations to the United States or transfer its work to persons outside the bargaining unit, if any reason for doing so related to the presence of the union. Pegasus was also ordered to reinstate employees terminated as a result of the closure, commence collective bargaining with the union, pay $30,000 to settle employee claims of unfair treatment during the organizing drive and pay the union’s legal costs.

The second CIRB order found that, prior to union certification, Pegasus had taken action against particular employees to prevent the union from achieving certification. This order awarded damages to several employees.