Prior to the offending transaction, the Union represented production employees working in Finning Canada`s Finnish Alberta operations. Finning Canada operated a facility west of Edmontons, known as the Component Rebuild Centre (CRC). This is where EU staff repaired worn or damaged device components for Finnings customers. The main activity of the SCR was reprocessing, in which worn or damaged parts are returned to new or almost new specifications in order to be able to reuse them. The Court of Appeal also reminded labour courts to be wary of a creative corporate restructuring that infringes on collective bargaining rights. McLaughlan has made many independent decisions regarding the design and construction of the new state-of-the-art facility, with some contributions from Finning International as an investor and Finning Canada as an OEM client. A Joint Enterprise Agreement (JVA) has been reached between McLaughlan`s company and a Finning International company with respect to OEM, which provides that McLaughlan`s companies are responsible for the day-to-day management of OEMs and that Finning International would have some control over high-level strategic decisions. McLaughlan and Finning International also gave a blocking vote to the OEM Board of Directors. 49 employees were hired by Finning Canada. The OEM had its own collective agreement, guidelines, procedures, performance plans, human resources and management structure. Its employees were represented by the Transport, Warehousemen and Allied Trades Association (CLAC).
Following the commissioning of OEM, Finning Canada announced the closure of its CRC operations and the dismissal of its 160 union employees. CRC`s work was then entrusted to OEM in accordance with an after-sales service agreement. The Union stated that the OEM was a successor to the CRC collective agreement. She asked the Board of Directors to succeed her and to make joint statements from employers on the basis of the transfer of Finning Canada`s activities to OEMs. Finning International Inc. is the licensed distributor for the sale and services of Caterpillar heavy equipment in Western Canada. Finning Canada is a non-community division of Finning International based in Edmonton. One hundred and sixty of the 2,500 employees worked in a Component Reconstruction Centre (“CRC”) where worn or damaged equipment was repaired. The International Association of Machinists and Aerospace Workers, Local Lodge No. 99 (Union) was the certified bargaining partner for the bargaining unit and Finning International was the employer part of the collective agreement.
