Corporate Director Incarcerated For 30 Days For Ignoring Arbitration Awards

Originally published in the Employment and Labour Relations Bulletin November 2005

When Mr. Ladislav Nagy ("Mr. Nagy") started his hotel enterprise, his business plans likely did not include the United Food and Commercial Workers ("UFCW").

That became quite apparent after his employees organized and certified the UFCW as their bargaining agent. Although Mr. Nagy signed a first collective agreement with the UFCW in early December 2004 in his capacity as President, General Manager and Secretary of 777604 Ontario Limited, which operated under the business name Rainy Lake Hotel, the business failed to comply with many of its financial obligations.

Specifically, Rainy Lake Hotel failed to remit union dues and initiation reports and to contribute to the UFCW’s National Defence Fund and health and dental plans as required under the terms of the parties’ collective agreement. As a result, over time, the UFCW lodged three separate grievances against Rainy Lake Hotel, which resulted in