Court supports finding that lack of funds no reason to lay off staff

By Jeffrey Miller
|Canadian HR Reporter|Last Updated: 09/04/2003

A recent decision from Ontario’s highest court is yet another signal to employers that they should be extremely careful when negotiating their management rights in collective agreements.

The Ontario Court of Appeal has accepted a labour arbitrator’s view that, given the wording of the collective agreement in issue, an operator of homes for the aged could not lay off workers even though it didn’t have the money to pay them.

The trouble arose for the Huronview Home for the Aged when Ontario’s Tory government cut government funding to such facilities and also changed the law on the minimum standard of care required.