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ARTICLE · 25 APRIL 2017

Contracting Out: Not Always Successor Or Common Employer

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A recent decision from Ontario's Labour Relations Board confirms that contracting out bargaining unit work performed by unionized employees is not always improper.

CanadaEmployment and HR
McMillan LLP
McMillan LLP
Paul Boshyk
Paul Boshyk
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A recent decision from Ontario's Labour Relations Board confirms that contracting out bargaining unit work performed by unionized employees is not always improper. In its decision in Molson Coors Canada, 2017 CanLII 14504, the Board held that contracting out by Molson to a warehousing company was neither a sale of business nor a related employer arrangement.

Background

As part of an effort to streamline the operation of its Toronto Brewery, Molson reorganized the way in which beer brewed on site was packaged and shipped. This changed both the work being done on site by unionized employees at the Brewery, and tasks of employees of Sherway Warehousing, Molson's non-union warehousing contractor. Some work moved to Sherway, and other work was brought back in house.

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