Is a union security clause in an employment contract binding an employer with respect to severance pay?
Saskatchewan, Canada
The following excerpt is from Wittal and Maki on behalf of themselves and as members of the Saskatchewan Insurance, Office and Professional Employees' Union, Bennett, Gould et al. v. Saskatchewan Government Insurance, 1983 CanLII 2088 (SK QB):
In McGavin Toastmaster Limited v. Ainscough (1975), 1975 CanLII 9 (SCC), 4 N.R. 618; 54 D.L.R.(3d) 1, at page 6, Laskin, C.J.C., stated: The reality is, and has been for many years now throughout Canada that individual relationships as between employer and employee have meaning only at the hiring stage and even then there are qualifications which arise by reason of union security clauses in collective agreement. The common law as it applies to individual employment contracts is no longer relevant to employer employee relations governed by collective agreement which, as the one involved here, deals with discharge, termination of employment, severance pay, and a host of other matters that have been negotiated between union and company as the principal parties thereto.
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