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ARTICLE · 04 JULY 2014

Store Closing Is Not "Business As Usual"

Employers often remark, with varying degrees of intention, that they would rather close up shop than manage a unionized business.

CanadaEmployment and HR

Employers often remark, with varying degrees of intention, that they would rather close up shop than manage a unionized business.  In yet another chapter of this ongoing saga, the Supreme Court of Canada has ruled that it was not "business as usual" for Wal-Mart to close its recently unionized store in Jonquière, Québec.  Wal-Mart will now likely be ordered to pay damages to almost 200 employees for violating the "statutory freeze".

Background

Just three years after Wal-Mart opened its store in Jonquière in 2001, the United Food and Commercial Workers, Local 503 ("UFCW") was certified to represent the store's employees in collective bargaining.  When bargaining proved unsuccessful, the UFCW obtained an order that the first collective agreement be settled by arbitration (labour statutes in B.C., Saskatchewan, Manitoba, Ontario, Newfoundland and P.E.I. also provide for the possibility of first contract arbitration).

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