Jurisdictional Issues In The Aboriginal Workplace
Jurisdictional Issues In The Aboriginal Workplace
Jurisdictional Issues In The Aboriginal Workplace
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<strong>Jurisdictional</strong> <strong>Issues</strong><br />
in the<br />
<strong>Aboriginal</strong> <strong>Workplace</strong><br />
Carman J. Overholt<br />
and<br />
Meika LaLonde<br />
<br />
Telephone: (604) 622-5165<br />
E-mail: carman.overholt@fmc-law.com
<strong>Jurisdictional</strong> <strong>Issues</strong><br />
in the<br />
<strong>Aboriginal</strong> <strong>Workplace</strong>
Table of Contents<br />
<strong>In</strong>troduction ..................................................................................................... 1<br />
Jurisdiction Over Labour Realtions .................................................................. 1<br />
<strong>The</strong> General Rule ................................................................................................... 1<br />
<strong>The</strong> Functional Test ................................................................................................ 2<br />
<strong>The</strong> Functional Teat and “<strong>In</strong>dianness” ..................................................................... 3<br />
<strong>The</strong> Band Counsil as Employee .............................................................................. 4<br />
<strong>Aboriginal</strong> Rights and Jurisdiction ........................................................................... 6<br />
Labour Legislation............................................................................................ 6<br />
Federal or Provincial Labour Legisltion .................................................................... 6<br />
Parties Defined Under Codes ................................................................................. 7<br />
Protection of the Right to Oraganize ....................................................................... 7<br />
Certification ............................................................................................................ 8<br />
Collective Barganing and Collective Agreements...................................................... 9<br />
<strong>Aboriginal</strong> Self Government.............................................................................. 9<br />
<strong>The</strong> General Approach to <strong>Aboriginal</strong> Self Governement ............................................ 9<br />
Treaty Negotitations in British Columbia ................................................................ 12<br />
Conclusion ..................................................................................................... 12<br />
Fraser Milner Casgrain LLP’s Labour and Employment Group ....................... 13
<strong>In</strong>troduction<br />
Band Councils are assuming more and more responsibility<br />
in administering the affairs of Bands. <strong>The</strong> expansion of<br />
their role in governing Bands has had a direct impact on<br />
the scope of operations and the number of persons<br />
employed by Band Councils. Moreover, an unprecedented<br />
number of First Nations individuals are exerting a presence<br />
in the Canadian business community today. As such,<br />
Band Councils and First Nations’ employers are affected<br />
by the labour and employment legislation. For these<br />
reasons, it is crucial for First Nations’ employers to be<br />
aware of the constitutional and jurisdictional issues with<br />
respect to the legislation, as well as how the realization of<br />
<strong>Aboriginal</strong> self-government will affect the <strong>Aboriginal</strong><br />
workplace in British Columbia.<br />
Jurisdiction Over<br />
Labour Relations<br />
<strong>The</strong> General Rule<br />
<strong>The</strong> source of jurisdiction over labour relations in Canada<br />
is the Constitution Act 1 , and the jurisprudence that has<br />
been created. As a general rule, labour relations falls<br />
within the exclusive jurisdiction of the provincial legislatures.<br />
Section 92(13) of the Constitution Act states that provinces<br />
may exclusively make laws in relation to Property and Civil<br />
Rights. Most labour relations and employment<br />
relationships are subject to provincial legislation.<br />
<strong>In</strong> Reference re <strong>In</strong>dustrial Relations and Disputes Act (the<br />
“Stevedoring case”) 2 , the Supreme Court of Canada noted<br />
that there are exceptions to the general rule of exclusive<br />
provincial jurisdiction over labour relations. At page 564,<br />
Justice Estey explained,<br />
<strong>The</strong>re is a jurisdiction in the Parliament of Canada<br />
to legislate with respect to labour and labour<br />
relations, even though these relations are classified<br />
under Property and Civil Rights within the meaning<br />
of s. 92(13) of the B.N.A. Act and, therefore, subject<br />
to provincial legislation. This jurisdiction of<br />
Parliament to so legislate includes those situations<br />
in which labour and labour relations are (a) an<br />
integral part of or necessarily incidental to the<br />
headings enumerated under s. 91; (b) in respect to<br />
Dominion Government employees; (c) in respect to<br />
works and undertakings under ss. 91(29) and<br />
92(10); (d) in respect of works, undertakings or<br />
businesses in Canada but outside of any province.<br />
Page 1<br />
<strong>The</strong> first area identified in Mr. Justice Estey’s list is relevant<br />
in determining jurisdiction over labour relations and<br />
operations involving First Nations. Section 91(24) of the<br />
Constitution Act provides that Parliament has primary<br />
legislative authority with respect to “<strong>In</strong>dians and Lands<br />
Reserved for <strong>In</strong>dians.” Thus, if an operation touches on<br />
an integral part of, or is necessarily incidental to, “<strong>In</strong>dians<br />
or Lands reserved for <strong>In</strong>dians,” the operation will be<br />
governed by federal legislation.<br />
<strong>In</strong> determining jurisdiction regarding labour relations in a<br />
particular case, the focus should not be on who the<br />
employer is, who the employees are or where the activity<br />
is taking place. <strong>In</strong> other words, First Nations employees<br />
and employers, and operations taking place on a reserve<br />
are not automatically governed by federal labour law.<br />
<strong>In</strong>stead, at issue is the nature of the activity concerned.<br />
<strong>In</strong> Canada Labour Relations Board et al v. Yellowknife, 3 a<br />
case concerning the jurisdiction to regulate the labour<br />
relations of municipal employees, the Court clarified at p.<br />
736 that “jurisdiction over labour matters depends on<br />
legislative authority over the operation, not over the person<br />
of the employer.”<br />
<strong>The</strong> traditional approach for determining whether any<br />
business or other enterprise falls within federal or<br />
provincial jurisdiction in relation to the regulation of its<br />
labour relations was concisely summarized by the<br />
Supreme Court of Canada in Northern Telecom v.<br />
Communications Workers 4 at p. 363:<br />
(1) Parliament has no authority over labour relations<br />
as such nor over the terms of a contract of<br />
employment; exclusive provincial competence is the<br />
rule.<br />
1 Constitution Act, 1867, 30 &31 Vict., c. 3 (U.K. ) [R.S.C. 1970, Appendix II, No. 5] (as am. by Canada Act 1982, c. 11 (U.K.), Schedule to the Constitution<br />
Act, 1982, Item 1), ss. 91(24), 92(13).<br />
2 Reference re <strong>In</strong>dustrial Relations and Disputes Act (the Stevedoring case), [1955] S.C.R. 529.<br />
3 Canada Labour Relations Board et al v. Yellowknife, [1977] 2 S.C.R. 729.<br />
4 Northern Telecom v. Communications Workers, [1980] 1 S.C.R. 115
(2) By way of exception, however, Parliament may<br />
assert exclusive jurisdiction over these matters if it<br />
is shown that such jurisdiction is an integral part of<br />
its primary competence over some other single<br />
federal subject.<br />
(3) Primary federal competence over a given subject<br />
can prevent the application of provincial law relating<br />
to labour relations and the conditions of<br />
employment but only if it is demonstrated that<br />
federal authority over these matters is an integral<br />
element of such federal competence.<br />
(4) Thus, the regulation of wages to be paid by an<br />
undertaking, service or business, and the regulation<br />
of its labour relations, being related to an integral<br />
part of the operation of the undertaking, service or<br />
business, are removed from provincial jurisdiction<br />
and immune from the effect of provincial law if the<br />
undertaking, service or business is a federal one.<br />
(5) <strong>The</strong> question whether an undertaking, service or<br />
business is a federal one depends on the nature of<br />
its operation.<br />
(6) <strong>In</strong> order to determine the nature of the operation,<br />
one must look at the normal or habitual activities of<br />
the business as those of a “going concern”, without<br />
regard for exceptional or casual factors; otherwise<br />
the Constitution could not be applied with any<br />
degree of continuity and regularity.<br />
<strong>The</strong> Functional Test<br />
<strong>The</strong> Supreme Court of Canada applied these principles<br />
to determine whether federal or provincial law regulated<br />
First Nations’ operations in Four B Manufacturing v. United<br />
Garment Works of America and Ontario Labour Relations<br />
Board et al. 5 Four B was an Ontario corporation, carrying<br />
on the business of sewing shoe uppers under contract<br />
for a shoe manufacturing company. <strong>The</strong> business of Four<br />
B was located and conducted on an <strong>In</strong>dian reserve. All<br />
of the corporation’s issued shares were held by four<br />
brothers, each of whom were members of the Band. <strong>The</strong><br />
Band Council in no way owned or controlled the company,<br />
nor did it share in the company’s profits. Four B received<br />
both grants and loans from the Government of Canada<br />
pursuant to programs of the Department of <strong>In</strong>dian Affairs<br />
and Northern Development. <strong>The</strong> programs were designed<br />
to promote cooperation between <strong>In</strong>dian and non-<strong>In</strong>dian<br />
businessmen in order to assist First Nations in developing<br />
Page 2<br />
and expanding viable businesses and to create jobs for<br />
<strong>In</strong>dians, both on and off reserves. <strong>The</strong> company<br />
employed 68 people, the majority of whom were Band<br />
members.<br />
At issue in the case was whether provincial labour relations<br />
legislation governed the activities of Four B. <strong>The</strong> company<br />
argued that the Ontario Labour Relations Board did not<br />
have the jurisdiction to certify the respondent union as<br />
bargaining agent for employees of the manufacturing<br />
plant. <strong>The</strong> Supreme Court of Canada disagreed.<br />
<strong>In</strong> its reasons for judgment, the Court began by<br />
summarizing the established principles relevant to the issue<br />
of legislative competence over labour relations at 1045:<br />
Exclusive provincial legislative competence is the<br />
rule, exclusive federal competence is the exception.<br />
<strong>The</strong> exception comprises, in the main, labour<br />
relations in undertakings, services and businesses<br />
which, having regard to the functional test of the<br />
nature of their operations and their normal activities,<br />
can be characterized as federal undertakings,<br />
services or businesses. . . . <strong>The</strong> functional test is a<br />
particular method of applying a more general rule<br />
namely, that exclusive federal jurisdiction over labour<br />
relations arises only if it can be shown that such<br />
jurisdiction forms an integral part of primary federal<br />
jurisdiction over some other federal object.<br />
After applying the law to the facts in the Four B case, the<br />
Court concluded that there was nothing about the<br />
company which might allow it to be characterized as a<br />
federal business. At p. 1046, the Court noted:<br />
<strong>The</strong> sewing of uppers on sport shoes is an ordinary<br />
industrial activity which clearly comes under<br />
provincial legislative authority for the purposes of<br />
labour relations. Neither the ownership of the<br />
business by <strong>In</strong>dian shareholders, nor the<br />
employment by that business of a majority of <strong>In</strong>dian<br />
employees, nor the carrying on of that business on<br />
an <strong>In</strong>dian reserve under a federal permit, nor the<br />
federal loan and subsidies, taken separately or<br />
together, can have any effect on the operational<br />
nature of that business. By the traditional and<br />
functional test, therefore, the Labour Relations Act<br />
applies to the facts of this case, and the Board has<br />
jurisdiction.<br />
5 Four B Manufacturing v. United Garment Works of America and Ontario Labour Relations Board et al, [1980] 1 S.C.R. 1031 [hereinafter Four B].
Thus, the fact that Parliament has exclusive legislative<br />
competence to make laws relating to <strong>In</strong>dians and Lands<br />
reserved for <strong>In</strong>dians does not mean that all rights, duties<br />
and undertakings of First Nations fall under federal<br />
jurisdiction. <strong>The</strong> Court in Four B held that there was<br />
nothing inherently federal about the rights of <strong>In</strong>dians and<br />
non-<strong>In</strong>dians to associate for a labour relations purpose,<br />
for a corporation to bargain collectively with its employees<br />
or for a business to operate privately on reserve land,<br />
independent of the Band Council.<br />
What factors, then, would lead the Court to conclude<br />
that a particular operation or business does form an<br />
integral part of primary federal jurisdiction over <strong>In</strong>dians or<br />
lands reserved for <strong>In</strong>dians? <strong>The</strong> Supreme Court of<br />
Canada held that to be characterized as a federal business,<br />
such an operation would necessarily involve <strong>In</strong>dian status<br />
as well as rights affected by status, including registrability,<br />
membership in a Band, the right to participate in the<br />
election of chiefs and Band Councils, and reserve<br />
privileges. Essentially, the purposes of the business,<br />
undertaking or operation must be related to “<strong>In</strong>dianness”<br />
to be characterized as federal.<br />
<strong>The</strong> Functional Test and “<strong>In</strong>dianness”<br />
Several lower Courts have settled questions concerning<br />
jurisdiction by considering whether or not the labour<br />
operations at issue touched on the core of “<strong>In</strong>dianness”<br />
or <strong>In</strong>dian status. <strong>The</strong> cases provide insight into the<br />
approach of Courts and Labour Boards in assigning<br />
legislative competence. It is important to note that the<br />
subtle differences in the facts of each case often lead to<br />
markedly different outcomes.<br />
<strong>In</strong> Qu’Appelle <strong>In</strong>dian Residential School Council v.<br />
Canada, 6 the Federal Court held that the nature of the<br />
operations of a provincially incorporated School Council<br />
and its employees formed an integral part of primary<br />
federal jurisdiction over <strong>In</strong>dians and <strong>In</strong>dian lands. <strong>The</strong><br />
School, which provided education and residential care to<br />
First Nations children, was located on a Reserve,<br />
employed mostly First Nations and received federal<br />
funding. <strong>The</strong> School Council, charged with the<br />
administration of the School, was composed of Band<br />
6 Qu’Appelle <strong>In</strong>dian Residential School Council v. Canada, [1988] 2 F.C. 266 (QL).<br />
7 Sagkeeng Alcohol Rehab Centre <strong>In</strong>c. v. Abraham, [1994] 3 F.C. 499 (QL) [hereinafter Sagkeeng].<br />
8 Westbank First Nation v. B.C. (L.R.B.), [1997] B.C.J. No. 2410 (QL) [hereinafter Westbank].<br />
Page 3<br />
chiefs. <strong>The</strong> School Council’s objectives were to foster<br />
and promote <strong>In</strong>dian culture, history and traditions in the<br />
School’s curriculum. <strong>The</strong> Court considered such a<br />
purpose to be directly related to <strong>In</strong>dian status and rights<br />
and were consequently federal in nature. Responsibility<br />
for the School had previously rested with the Minister of<br />
<strong>In</strong>dian Affairs, who eventually surrendered control to the<br />
Council. Thus, the operation came under federal<br />
jurisdiction partly for the reason that it always had.<br />
<strong>In</strong> Sagkeeng Alcohol Rehab Centre <strong>In</strong>c. v. Abraham, 7 the<br />
operation at issue was an alcohol rehabilitation centre<br />
located on a Reserve. Only a small number of those<br />
admitted to the centre were non-First Nations people.<br />
Part of the rehabilitation program focused on cultural<br />
awareness. <strong>In</strong> deciding that the labour relations of the<br />
centre were to be regulated by federal legislation, the Court<br />
resolved had this to say at pp. 459-461:<br />
<strong>The</strong> rehabilitation centre in question is engaged in<br />
the provision of a form of health care service designed<br />
and operated to meet the needs of its <strong>In</strong>dian<br />
beneficiaries.<br />
<strong>The</strong> fact that the rehabilitation centre is organized<br />
and operated primarily for <strong>In</strong>dians, governed solely<br />
by <strong>In</strong>dians, that its facilities and services are intended<br />
for <strong>In</strong>dians, that its staff are specially trained under<br />
the [National Native Alcohol and Drug Abuse<br />
Program] and receive First Nations training, and that<br />
its rehabilitation program, curriculum and materials<br />
are designed for <strong>In</strong>dians, all serve to identify the<br />
inherent “<strong>In</strong>dianness” of the centre and link it to<br />
<strong>In</strong>dians.<br />
For admission purposes, <strong>In</strong>dians are given priority<br />
over others. <strong>The</strong> [centre’s] focus is primarily on<br />
<strong>In</strong>dians and its facilities are available first and<br />
foremost to <strong>In</strong>dians. <strong>The</strong> question of eligibility for<br />
admission, therefore, is integrally bound up with<br />
<strong>In</strong>dian status.<br />
Although it shares many factual similarities with the<br />
Sagkeegn case, Westbank First Nation v. B.C. (L.R.B.) 8<br />
had the opposite outcome. <strong>In</strong> Westbank, the Court<br />
agreed with the British Columbia Labour Relations Board<br />
that a long-term care facility operated on a reserve and<br />
jointly funded by the federal government and the Band<br />
Council fell under provincial jurisdiction. <strong>The</strong> home was<br />
controlled and operated by the Band Council. Although
it was intended that the facility give priority to First Nations<br />
residents, it opened its doors to many non-First Nations<br />
for financial reasons. <strong>The</strong> normal or habitual activities of<br />
the Pine Acres Home were thus considered to be the<br />
provision of intermediate care to residents of the South<br />
Okanagan community and the involvement of non-First<br />
Nations groups became more than an incidental part of<br />
the business. <strong>The</strong> Court discussed the purpose and<br />
function of the home on p. 14:<br />
Although the ultimate goal may be to benefit<br />
members of the Westbank First Nation and other<br />
First Nations groups, the actual function of the home<br />
is to provide intermediate care to a much wider<br />
group, the majority of which are not First Nations<br />
people. <strong>The</strong>re is a distinction to be made between<br />
the “means” and the “end”. While it may be argued<br />
that the “end only relates to First Nations people,<br />
the “means” to accomplish the “end” is much<br />
broader and relates to a majority of non-first Nations<br />
patients. <strong>In</strong> the Four B case, the purpose of the<br />
business was to benefit the Band as a whole to<br />
improve their economic position but the means to<br />
accomplish this purpose was held not to constitute<br />
a federal business. It is the “means”, not the “end”,<br />
which is the relevant consideration under the<br />
functional test of the nature of the business.<br />
<strong>In</strong> March of 2000, the B.C. Court of Appeal affirmed that<br />
the regulation of the labour relations of Pine Acres Home<br />
did not form an integral part of primary federal jurisdiction<br />
over <strong>In</strong>dians or Lands reserved for <strong>In</strong>dians. <strong>The</strong> operations<br />
at hand did not affect or touch upon <strong>In</strong>dian status or<br />
rights.<br />
Band Council as Employer<br />
Band Councils are the primary institution established<br />
under the <strong>In</strong>dian Act 9 to administer matters relating to<br />
<strong>In</strong>dian status, lands and other rights. To fulfill their local<br />
government function, Band Councils routinely pass<br />
by-laws authorized under the <strong>In</strong>dian Act and employ staff<br />
to secure the implementation of those by-laws. If the<br />
activities of a Council and its respective employees do<br />
indeed involve those contemplated by the <strong>In</strong>dian Act, the<br />
power generally to regulate them will form an integral part<br />
of primary federal jurisdiction in relation to “<strong>In</strong>dians and<br />
Lands Reserved for the <strong>In</strong>dians.” <strong>In</strong> other words, if a<br />
Council is doing that which the Parliament of Canada has<br />
permitted it to do by virtue of the <strong>In</strong>dian Act, the operation<br />
9 <strong>In</strong>dian Act, R.S.C. 1970, c. I-6.<br />
Page 4<br />
necessarily affects “<strong>In</strong>dianness” and federal labour<br />
legislation will apply.<br />
Section 81 of the <strong>In</strong>dian Act enumerates the purposes<br />
for which a Band Council may make by-laws in order to<br />
effectively administer the affairs of <strong>In</strong>dian Bands. Some<br />
of those purposes include the following:<br />
(1) to provide for the health of residents on the<br />
reserve and to prevent the spreading of<br />
contagious and infectious diseases;<br />
(2) the regulation of traffic;<br />
(3) the observance of law and order;<br />
(4) the prevention of disorderly conduct and<br />
nuisances;<br />
(5) the construction and maintenance of water<br />
courses, roads, bridges, ditches and other<br />
local works;<br />
(6) the dividing of the reserve into zones and<br />
regulating the use of and the construction<br />
permitted in such zones;<br />
(7) the regulation of the construction, repair and<br />
use of buildings, whether owned by the band<br />
or by individual members of the band;<br />
(8) the control and prohibition of public games,<br />
sports, races, athletic contests and other<br />
amusements;<br />
(9) the regulation of the conduct and activities of<br />
those who enter the reserve to buy, sell or<br />
otherwise deal in wares or merchandise;<br />
(10) the preservation, protection and management<br />
of fur-bearing animals, fish and other game<br />
on the reserve;<br />
(11) the removal and punishment of persons<br />
trespassing upon the reserve or frequenting<br />
the reserve for proscribed purposes;<br />
(12) with respect to any matter arising out of or<br />
ancillary to the exercise of powers under this<br />
section;<br />
(13) the imposition on summary conviction of a fine<br />
or imprisonment for violation of a by-law made<br />
by the Band Council;<br />
(14) the residence of band members and other<br />
persons on the reserve;<br />
(15) to provide for the rights of spouses or<br />
common-law partners and children who reside<br />
with members of the band on the reserve with<br />
respect to any matter in relation to which the<br />
council may make by-laws in respect of<br />
members of the band.
Moreover, s. 83 of the <strong>In</strong>dian Act permits a Band Council<br />
to pass money by-laws, with permission of the Minister,<br />
regarding the licensing of businesses, the appropriation<br />
and expenditure of Band monies, the appointment of<br />
officials to conduct the business of a council, the raising<br />
of money from Band members to support Band projects,<br />
and taxation for local purposes of land or interests in land.<br />
Various other provisions of the <strong>In</strong>dian Act are illustrative<br />
of the extent to which a Band Council possesses authority<br />
to administer the affairs of an <strong>In</strong>dian Band. For example,<br />
s. 20 of the Act provides that no <strong>In</strong>dian is lawfully in<br />
possession of reserve land unless it is given to him by the<br />
Band Council with the approval of the Minister. A Band is<br />
obliged to maintain the roads, bridges, ditches and fences<br />
within the reserve under s. 34. Section 60 of the Act<br />
allows the Governor in Council to grant a Band the right<br />
to exercise as much control and management over the<br />
reserve lands as the Governor in Council deems desirable.<br />
Section 69 enables the Governor in Council to permit a<br />
Band to control, manage and expend, in whole or in part,<br />
its revenue moneys. Sections 74 to 80 contemplate the<br />
elections of chiefs and Band Councils. All employment<br />
and activities created by the Band Council as a result of<br />
such delegated federal authority will be considered federal<br />
undertakings to be governed by federal legislation.<br />
<strong>The</strong> administration of a Band by a Band Council and the<br />
jurisdiction to govern the labour relations of such affairs<br />
has been the subject of much case law. <strong>In</strong> Francis v.<br />
Canada Labour Relations Board, 10 (reversed on other<br />
grounds), an order of the Canada Labour Relations Board<br />
certifying a unit of employees of the St. Regis Band<br />
Council was upheld. <strong>The</strong> nature of the work performed<br />
by the unit of employees was described as the<br />
administration of education, <strong>In</strong>dian lands and estates,<br />
welfare, housing, public works and an old age home. <strong>The</strong><br />
employees were also engaged in the maintenance of<br />
roads, schools, water and sanitation services, and garbage<br />
collection. <strong>The</strong> Court held that the work of the employees<br />
was performed pursuant to the by-laws enacted by the<br />
St. Regis <strong>In</strong>dian Band Council and that the labour relations<br />
in issue formed an integral part of primary federal<br />
jurisdiction over <strong>In</strong>dians or Lands reserved for <strong>In</strong>dians.<br />
Justice Heald further explained at p. 284:<br />
10 Francis v. Canada Labour Relations Board, [1981] 1 F.C. 225 (C.A.).<br />
11 Whitebear Band Council v. Carpenters Provincial Council Saskatchewan, [1982] S.J. No. 312 (CA) (QL).<br />
12 Whitebear Band Council v. Carpenters Provincial Council Saskatchewan, supra, p. 8<br />
13 Whitebear Band Council v. Carpenters Provincial Council Saskatchewan, supra, p. 7<br />
<strong>In</strong> the case at bar, the unit of employees in question<br />
were directly and continuously concerned with the<br />
election of councilors and chiefs, the matter of right<br />
to possession of reserve lands, the right of <strong>In</strong>dians<br />
on the reserve to have their children educated in<br />
schools on the reserve, the right to welfare when<br />
circumstances warrant it, the right to the facilities<br />
of the old age home in proper circumstances, etc.<br />
<strong>The</strong> total administration of the Band is continuously<br />
concerned with the status and the rights and<br />
privileges of the Band <strong>In</strong>dians.<br />
Page 5<br />
Employees of the Band Council in Whitebear Band Council<br />
v. Carpenters Provincial Council Saskatchewan 11 were also<br />
held to be directly involved in activities relating to <strong>In</strong>dian<br />
status and privileges. Pursuant to a program funded by<br />
the Federal Department of <strong>In</strong>dian Affairs and Northern<br />
Development, the Whitebear Band Council elected to<br />
undertake the construction and renovation of several<br />
homes on the reserve. Twenty Band members, all<br />
residents of the Reserve, were subsequently hired as<br />
carpenters and carpenter apprentices to carry out the task.<br />
<strong>In</strong> spite of protest from the Band Council that the province<br />
lacked jurisdiction over the labour relations of the<br />
undertaking, the Saskatchewan Labour Relations Board<br />
accepted the Union’s application for certification to<br />
represent the unit of carpenters. <strong>The</strong> Board held that<br />
housing construction on the Reserve, like the<br />
manufacturing of shoes in Four B, constituted an ordinary<br />
industrial activity within the Province.<br />
After looking at the normal or habitual activities of the<br />
Band Council, however, the Saskatchewan Court of<br />
Appeal determined that the construction of houses on<br />
the Reserve pursuant to the federal government program<br />
could not be “separated from the activity of the Band<br />
Council as a whole, isolated and assigned a different<br />
character than that of which it forms part – the general<br />
function of the Band Council.” 12 <strong>The</strong> Court observed<br />
that the primary function of an <strong>In</strong>dian Band Council is to<br />
provide a form of government by <strong>In</strong>dians on <strong>In</strong>dian lands<br />
through the enactment of by-laws. <strong>The</strong>ir associated<br />
functions, namely “acting at once as the representative<br />
body of the inhabitants of the Reserve and the agent of<br />
the Minister with regard to Federal programs for Reserves<br />
and their residents, and participating in certain of the<br />
decisions of the Minister in relation to the Reserve,” 13 are<br />
very much federal in nature as well.
It is important to note, however, that not all functions or<br />
undertakings of Band Councils are considered federal in<br />
nature. Recall that in the case of Westbank, the care<br />
facility fell under provincial jurisdiction despite the Band<br />
Council’s ownership and control of the operation. <strong>The</strong><br />
home had broadened the scope of its admissions and<br />
thereby moved into the normal commercial milieu and<br />
provision of health care in the province. <strong>The</strong> primary focus<br />
of the operation did not establish “<strong>In</strong>dianness” and the<br />
Band Council’s involvement could not be characterized<br />
general governance of the Band, as authorized under the<br />
<strong>In</strong>dian Act.<br />
<strong>Aboriginal</strong> Rights and Jurisdiction<br />
<strong>The</strong> division of powers between the Parliament of Canada<br />
and the provincial legislatures in relation to <strong>Aboriginal</strong> rights<br />
is relevant in the context of labour relations. <strong>The</strong> Supreme<br />
Court of Canada has held that provincial governments<br />
are prevented from legislating directly in relation to<br />
<strong>Aboriginal</strong> rights (i.e. rights in involving land and those that<br />
encompass practices, customs and traditions). <strong>Aboriginal</strong><br />
rights lie at the core of “<strong>In</strong>dianness” under s. 91(24) of the<br />
Constitution Act, and are within the exclusive legislative<br />
competence of the federal government. Nevertheless,<br />
laws of general application, including provincial labour<br />
legislation, may apply to <strong>In</strong>dians and <strong>In</strong>dian lands, unless<br />
the laws single out <strong>In</strong>dians for special treatment. <strong>In</strong> other<br />
words, an operation that involves the exercise of an<br />
<strong>Aboriginal</strong> right, such as the right to fish, may still be<br />
regulated by provincial labour legislation unless it can be<br />
established either that the legislation interferes with the<br />
right.<br />
<strong>In</strong> R. v. Sparrow 14 , the Court set out a framework for<br />
assessing whether legislation has the effect of interfering<br />
with an existing <strong>Aboriginal</strong> right at p. 411:<br />
First, is the limitation unreasonable? Secondly, does<br />
the regulation impose undue hardship? Thirdly,<br />
does the regulation deny to the holders of the right<br />
their preferred means of exercising that right? <strong>The</strong><br />
onus of proving a prima facie infringement lies on<br />
the individual or group challenging the legislation.<br />
14 R. v. Sparrow, [1990] 1 S.C.R. 1075 (QL).<br />
15 Celtic Shipyards (1988) Ltd. V. Marine Workers’ Union, 94 C.L.L.C. 16068 (QL).<br />
16 Canada Labour Code, supra.<br />
17 Labour Relations Code, R.S.B.C. 1996, c. 244.<br />
Page 6<br />
<strong>In</strong> Celtic Shipyards (1988) Ltd. V. Marine Workers’ Union, 15<br />
the Musqueam <strong>In</strong>dian Band alleged that the activities of<br />
its wholly owned subsidiary, Celtic Shipyards Ltd., involved<br />
the exercise of the <strong>Aboriginal</strong> right to fish. <strong>The</strong> Band<br />
argued that the shipyard’s labour relations were thus within<br />
primary federal jurisdiction over <strong>In</strong>dians and Lands<br />
Reserved for <strong>In</strong>dians. <strong>The</strong> B.C. Labour Relations Board<br />
held that the building and repairing of boats, as well as<br />
the provision of occupational skills training to aboriginal<br />
fishers, did not fall under the <strong>Aboriginal</strong> right to fish. Even<br />
if the exercise of an <strong>Aboriginal</strong> right had been established,<br />
the Board was not prepared to accept that provincial<br />
labour legislation infringed upon the right.<br />
Applying the functional test from the Four B case, the<br />
Board instead determined that the undertaking fell within<br />
provincial jurisdiction. <strong>The</strong> fact that the business was<br />
owned by First Nations individuals and employed a majority<br />
of First Nations employees did not make the enterprise<br />
particularly <strong>In</strong>dian; rather, it was an ordinary industrial<br />
activity.<br />
Labour Legislation<br />
Federal or Provincial Labour<br />
Legislation?<br />
<strong>Issues</strong> of constitutional jurisdiction over labour relations<br />
usually arise initially before the labour relations tribunal<br />
board which is asked to certify a Union as the bargaining<br />
agent for a group of employees. Thus, the first step in<br />
defining the relationship between the employer and<br />
employees and the rights associated, is to determine if<br />
federal or provincial law govern the relationship and the<br />
particular workplace. Although the Canada Labour Code 16<br />
and the Labour Relations Code 17 address many of the<br />
same aspects of the relationship, the requirements of the<br />
legislation are fundamentally different in many respects.<br />
It is important for the parties involved to be familiar with<br />
the rules under both pieces of legislation to ensure thatthe
certification and collective bargaining process are efficient<br />
and free of conflict. bent and free of conflict.<br />
Parties Defined Under the Codes<br />
Both federal and provincial labour legislation provides that<br />
every employee is free to join a trade union and to<br />
participate in its lawful activities. 18 Employees are thus<br />
legally entitled to join together and to seek representation<br />
by a trade union to have a collective voice in determining<br />
their wages and other terms and conditions of<br />
employment. <strong>The</strong> decision as to whether or not a group<br />
of employees wish to be represented by a trade union is<br />
entirely for those employees. Employers are prohibited<br />
from influencing or attempting to influence that decision.<br />
“Employee” means a person employed by an employer<br />
and includes dependent contractors. 19 <strong>The</strong> definition of<br />
dependant contractor has been interpreted more<br />
restrictively under the Canada Labour Code than under<br />
its provincial counterpart in B.C. Managers and persons<br />
employed in a confidential capacity are excluded from the<br />
definition of employee under both pieces of legislation.<br />
Under provincial jurisdiction in British Columbia, those with<br />
a special community of interest with management are not<br />
considered to be employees. <strong>The</strong>y are thus prohibited<br />
from being included in a unit of employees to participate<br />
in collective bargaining.<br />
Every employer is free to join the employers’ organization<br />
of choice and to participate in its lawful activities. An<br />
employer is any person who employs one or more<br />
employees. 20 Identifying the true employer can be<br />
problematic, particularly in the context of First Nations’<br />
operations where it is common for a Band Council to<br />
exert control over a corporation through which labour<br />
relations are carried out. <strong>In</strong> deciding who has fundamental<br />
control over employees, the federal and provincial Labour<br />
Boards will consider the following factors 21 :<br />
(a) Which party exercises direction and control over<br />
the employees performing work;<br />
18 Canada Labour Code, supra, s. 8; Labour Relations Code, supra, s. 4.<br />
19 Canada Labour Code, supra, s. 3(1); Labour Relations Code, supra, s. 1(1).<br />
20 Canada Labour Code, supra, s. 8; Labour Relations Code, supra, ss. 1(1) and 4.<br />
21 Celtic Shipyards (1988) Ltd. V. Marine Workers’ Union, 94 C.L.L.C. 16068 (QL).<br />
22 Canada Labour Code, supra, s.3; Labour Relations Code, supra, s. 1.<br />
23 Canada Labour Code, supra, s. 94(1) and (2); Labour Relations Code, supra, s. 6(1).<br />
24 Canada Labour Code, supra, s. 94(3); Labour Relations Code, supra, s. 6(3).<br />
25 Canada Labour Code, supra, s.24(4); Labour Relations Code, supra, s. 32(1).<br />
(b) Which party bears the burden of remuneration;<br />
(c) Which party imposes discipline on the employees;<br />
(d) Which party hires the employees;<br />
(e) Which party is authorized to dismiss the employees;<br />
(f) Which party is perceived to be the employer by the<br />
employees; and<br />
(g) Evidence of an intention to create the relationship<br />
of employer and employees.<br />
Page 7<br />
A trade union is defined under federal and provincial labour<br />
legislation as any organization of employees or any branch<br />
or local thereof whose purpose includes the regulation of<br />
relations between employers and employees. 22 A trade<br />
union could be an international, national, local, a council<br />
of unions or an in-house employee association. <strong>The</strong> most<br />
important characteristic of a trade union is that it must be<br />
independent from the employer and free from employer<br />
influence. If certified by the relevant Labour Board, a<br />
trade union has the exclusive right to represent employees<br />
in negotiating a collective agreement with the employer.<br />
Protection of the Right to Organize<br />
Once an organizing drive has begun, an employer is<br />
prohibited from doing anything which could interfere with<br />
the right of the employees to join a Union. <strong>In</strong> an effort to<br />
prevent management dominated unions, the legislation<br />
prohibits employer participation in the formation or<br />
administration of a trade union. 23 An employer is also<br />
prohibited from discharging, suspending, laying off, or<br />
otherwise disciplining an employee during a union<br />
organizing drive, except for proper cause. 24 Moreover,<br />
an employer cannot, without the permission of the relevant<br />
Board, change rates of pay or alter terms and conditions<br />
of employment while an application for certification is<br />
pending. 25<br />
A common form of interference is employer campaigning<br />
among employees against their exercise of the right to<br />
join a trade union. <strong>The</strong> federal and provincial legislation
includes rules regarding the extent to which an employer<br />
may communicate with employees regarding an organizing<br />
drive. Under the Canada Labour Code, an employer may<br />
not seek, by intimidation, threat or penalty of any kind, to<br />
compel a person to refrain from becoming or cease to be<br />
a member, officer or representative of a trade union. 26<br />
Denying, or threatening to deny pension rights, insurance<br />
plans or benefits to which the employee is entitled, is also<br />
contrary to the federal legislation. 27<br />
<strong>The</strong> B.C. Liberal Government recently broadened the<br />
scope of employer speech in an amendment to the Labour<br />
Relations Code. 28 Although the Board has yet to define<br />
the exact limits of employer speech under the<br />
amendment, it is clear that an employer must refrain from<br />
using coercion or intimidation of any kind that could<br />
reasonably have the effect of compelling or inducing a<br />
person to become or to refrain from becoming a member<br />
of a trade union. Employer misconduct may result in an<br />
order for automatic certification without a vote and the<br />
employees in the Bargaining Unit not having an opportunity<br />
to express their choice.<br />
Labour legislation also regulates actions of Unions. It is<br />
prohibited under federal and provincial legislation for a<br />
Union to attempt to persuade employees to become<br />
members at an employer’s place of business during the<br />
employee’s working hours without the permission of the<br />
employer or express permission from the relevant Board. 29<br />
Certification<br />
Under the Canada Labour Code, a Union may apply to<br />
the <strong>In</strong>dustrial Relations Board to be certified as exclusive<br />
bargaining agent if it claims to have a majority of the unit’s<br />
employees as Union members. Such support is<br />
evidenced by Union membership cards. <strong>The</strong> Board may<br />
either certify a union that has over 50% of employee<br />
support or dismiss the application of a Union that has<br />
26 Canada Labour Code, supra, s.94(1) and (2).<br />
27 Canada Labour Code, supra, s.94(3).<br />
28 Bill 42, Labour Relations Amendment Act, 3d Sess., 37 th Parl., British Columbia, 2002.<br />
29 Canada Labour Code, supra, s.109; Labour Relations Code, supra, s. 7.<br />
30 Canada Labour Code, supra, s.24.<br />
31 Canada Labour Code, supra, s.24.1.<br />
32 Labour Relations Code, supra, ss. 18(1) and 24(1).<br />
33 Labour Relations Code, supra, ss. 18(2) and 19(1).<br />
31 Canada Labour Code, supra, s.24.1.<br />
32 Labour Relations Code, supra, ss. 18(1) and 24(1).<br />
33 Labour Relations Code, supra, ss. 18(2) and 19(1).<br />
Page 8<br />
less than 35% support. <strong>The</strong> Canada Labour Code<br />
requires that the Board hold a representation vote if a<br />
Union has obtained between 35% and 50% support. 30<br />
Certification may be sought at any time if no collective<br />
agreement exists and where no Union has been certified<br />
to represent the proposed unit. Where a collective<br />
agreement is already in force, however, the Canada Labour<br />
Code dictates than an application for certification may<br />
only be filed with the Board during the “open period” of<br />
that collective agreement. <strong>The</strong> open period is typically<br />
the last three months of the collective agreement. If a<br />
Union is certified to represent a unit of employees and no<br />
agreement is in place, an application may not be made by<br />
another Union until one year after the original date of<br />
certification. 31 Such time restrictions are meant to ensure<br />
the stability of federal industrial relations.<br />
Under the B.C. Labour Relations Code, a Union may apply<br />
for certification if it has the support of 45% of the<br />
employees of the bargaining unit, as evidenced by<br />
membership cards. Unlike the federal legislation, the<br />
provincial legislation in British Columbia requires that a<br />
representation vote be taken within 10 days from the date<br />
the Board receives the application for certification. If less<br />
than 55% of employees in the unit cast ballots, the Board<br />
may direct another vote. 32<br />
Restrictions also exist under the Labour Relations Code<br />
as to when a Union may be certified. If a Union is certified,<br />
another Union may apply for certification as bargaining<br />
agent for the same unit of employees if six months have<br />
elapsed since the date of the original certification. If a<br />
collective agreement is already in force, a Union claiming<br />
to have the majority of support a unit of employees may<br />
apply to be certified during the seventh and eighth months<br />
in each year of the collective agreement, or any renewal<br />
or continuation of it. 33 Under both federal and provincial<br />
legislation, any previous certification order affecting the
parties is deemed to be revoked with a new certification<br />
order.<br />
Once a Union is certified as bargaining agent for a group<br />
of employees, an employer may not increase or decrease<br />
the rate of pay or alter a term of employment until four<br />
months have passed or a collective agreement is executed<br />
under provincial legislation, 34 or thirty days have passed<br />
or a collective agreement is executed under federal<br />
legislation. 35<br />
Collective Bargaining and Collective<br />
Agreements<br />
Following a certification order, a party to the collective<br />
agreement can require the other party to commence<br />
collective bargaining through written notice. <strong>The</strong> Canada<br />
Labour Code stipulates that where the notice to bargain<br />
has been given, the Union and employer must meet within<br />
20 days after the receipt of such notice. 36 <strong>The</strong> provincial<br />
legislation requires the parties begin collective bargaining<br />
within 10 days of receiving notice. 37<br />
Both labour codes stipulate that the parties have a duty<br />
to bargain in good faith once notice has been given, and<br />
must make every reasonable effort to reach an<br />
agreement. 38 <strong>In</strong> other words, the parties must not adopt<br />
an uncompromising bargaining position without<br />
reasonable justification, refuse to recognize the legitimacy<br />
of the other party or partake in surface bargaining. If an<br />
employer and bargaining agent reach an impasse and fail<br />
to conclude a first Collective Agreement, the relevant Board<br />
may assist the parties in negotiating or the settlement of<br />
the terms of their first agreement. 39<br />
<strong>The</strong>re are certain provisions that must be included in and<br />
some characteristics that are common to all collective<br />
agreements, whether falling under federal or provincial<br />
34 Labour Relations Code, supra, s. 45(1).<br />
35 Canada Labour Code, supra, s. 24(4).<br />
36 Canada Labour Code, supra, s. 50.<br />
37 Labour Relations Code, supra, s. 47.<br />
38 Canada Labour Code, supra, s.50; Labour Relations Code, supra, s. 47.<br />
39 Canada Labour Code, supra, s. 80; Labour Relations Code, supra, s. 55.<br />
40 Canada Labour Code, supra, s.56; Labour Relations Code, supra, s. 48.<br />
41 Canada Labour Code, supra, s.67; Labour Relations Code, supra, s. 50.<br />
42 Canada Labour Code, supra, s.57; Labour Relations Code, supra, s. 84.<br />
43 Labour Relations Code, supra, s. 84(1).<br />
Page 9<br />
legislation. A Collective Agreement is binding on every<br />
employee, bargaining agent and employer. 40 A collective<br />
agreement must have a minimum term of one year from<br />
the date on which it comes into force. 41 <strong>The</strong> Collective<br />
Agreement cannot be terminated earlier without the<br />
relevant Board’s consent. <strong>The</strong> Collective Agreement must<br />
be in writing and include a mechanism for resolving<br />
disputes, such as arbitration, without resorting to a strike<br />
or lockout. 42 <strong>The</strong> Labour Relations Code also stipulates<br />
that the agreement must contain a clause prohibiting<br />
dismissal or discipline except for just and reasonable<br />
cause. 43<br />
<strong>Aboriginal</strong><br />
Self-Government<br />
<strong>The</strong> General Approach to <strong>Aboriginal</strong><br />
Self-Government<br />
A discussion regarding jurisdiction over labour relations<br />
and First Nations’ operations would be incomplete without<br />
addressing the <strong>Aboriginal</strong> right to self-government. <strong>In</strong> its<br />
policy guide entitled <strong>The</strong> Government of Canada’s<br />
Approach to Implementation of the <strong>In</strong>herent Right and<br />
the Negotiation of <strong>Aboriginal</strong> Self-Government, 44 the<br />
federal government provides:<br />
<strong>The</strong> Government of Canada recognizes the inherent<br />
right of self-government as an existing <strong>Aboriginal</strong><br />
right under section 35 of the Constitution Act, 1982.<br />
. . Recognition of the inherent right is based on the<br />
view that the <strong>Aboriginal</strong> peoples of Canada have the<br />
right to govern themselves in relation to matters that<br />
are internal to their communities, integral to their<br />
unique cultures, identities, traditions, languages and<br />
institutions, and with respect to their special<br />
relationship to their land and their resources.<br />
44 Federal Policy Guide: <strong>The</strong> Government of Canada’s Approach to Implementation of the <strong>In</strong>herent Right and Negotiation of <strong>Aboriginal</strong> Self-Government,<br />
online: <strong>In</strong>dian and Northern Affairs Canada http://www.ainc-inac.gc.ca/pr/pub/sg/plcy_e.html (date accessed: 1 August 2002), p. 3.
How has the commitment to <strong>Aboriginal</strong> self-government<br />
manifested itself in government policies and Court<br />
decisions with respect to competence over labour<br />
relations? Although Labour Boards and Courts have yet<br />
to break new ground for First Nations, there is a growing<br />
recognition that traditional labour legislation may not be<br />
wholly appropriate or adept at handling the concerns<br />
unique to First Nations communities.<br />
A thorough review of federal labour legislation was<br />
conducted in 1996 by the “Sims Task Force.” <strong>The</strong><br />
resulting report, entitled Seeking a Balance: Review of Part<br />
I of the Canada Labour Code, 45 examined First Nations’<br />
labour relations and made the following recommendations<br />
at p. 55:<br />
<strong>In</strong> proceedings before the Board, and in the<br />
discussion of labour relations issues that affect First<br />
Nations, special recognition should be given to the<br />
role of First Nations as employers and as entities<br />
with responsibility for governance.<br />
A dialogue should be encouraged between First<br />
Nations and organized labour over the form of First<br />
Nations labour relations, particularly as this may be<br />
affected by the emergence of new federal-provincial<br />
First Nations agreements concerning selfgovernment.<br />
<strong>In</strong> Listuguj Mi-gmaq First Nation Council, 46 the Canadian<br />
<strong>In</strong>dustrial Relations Board noted the comments made in<br />
the Sims Task Force report and stated that it fully endorsed<br />
the recommendations that were made. <strong>In</strong> that case, the<br />
Union brought an unfair labour practice complaint against<br />
the Employer Band Council for altering terms and<br />
conditions of employment in contravention of the Canada<br />
Labour Code. 47 <strong>The</strong> employer contended that the Board<br />
should interpret and apply the Code in such a way so as<br />
to distinguish the actions of a Band Council from such<br />
action by a private commercial corporation.<br />
<strong>The</strong> Board held that although it would take into account<br />
the special circumstances and responsibilities of a Band<br />
Council, the standards of the Canada Labour Code must<br />
Page 10<br />
be respected. Thus, despite the Board’s support of the<br />
Sims Task Force report, it resolved the issue using<br />
traditional federal labour legislation.<br />
<strong>In</strong> Red Bank First Nation (Re), 48 the Canada <strong>In</strong>dustrial<br />
Relations Board was asked to review its decision to certify<br />
a Union as bargaining agent for a unit of Band Council<br />
employees. <strong>The</strong> Band Council had passed By-law no. 3<br />
respecting rules and procedures for personnel, including<br />
hours of work, holidays, conduct of employees,<br />
procedures for hiring, suspensions and dismissals, salaries<br />
and leaves, travel and staff meetings. <strong>The</strong> Council enacted<br />
By-law no. 3 pursuant to section 81(1)(q) of the <strong>In</strong>dian<br />
Act which provides that Bands may make by-laws with<br />
respect to any matter arising out of or ancillary to the<br />
exercise of powers under the section.<br />
<strong>The</strong> Band Council felt that its by-law set rules and<br />
standards that were sensitive to First Nations’ needs and<br />
allowed the Council to play a significant role in labour<br />
relations. <strong>In</strong> the opinion of the Council, the by-law<br />
“reflected uniquely ‘<strong>In</strong>dian’ aspects of employer-employee<br />
relations at Red Band First Nation and better facilitated<br />
traditional Mi’kmaq Tribal methods of dispute resolution<br />
than the more adversarial provisions of the Canada<br />
Labour Code.” 49 It was argued that By-law no. 3<br />
superceded the Canada Labour Code and that it was, in<br />
effect, the instrument through which the labour relations<br />
of the Band and its employees should be regulated.<br />
<strong>The</strong> Canada <strong>In</strong>dustrial Relations Board did not determine<br />
whether section 81(1) of the <strong>In</strong>dian Act granted a Band<br />
Council the power to regulate labour relations of staff<br />
members. <strong>The</strong> Board was, however, of the view that the<br />
by-law could not preclude the application of federal labour<br />
legislation. <strong>The</strong> Board reasoned at page 6 that “in light of<br />
Canada’s commitment both nationally and internationally<br />
to promote free collective bargaining . . . clear and<br />
unequivocal statutory language would be needed to<br />
support any regulatory derogation from the basic right of<br />
45 Canada, Seeking a Balance: Review of Part I of the Canada Labour Code, (Ottawa: Sims Task Force, 1996) (Chair: Andrew Sims, Q.C.), cited in Listuguj<br />
Mi-gmaq First Nation Council, [2000] C.I.R.B.C. No. 20.<br />
46 Listuguj Mi-gmaq First Nation Council, [2000] C.I.R.B.C. No. 20.<br />
47 Canada Labour Code, R.S.C., 1985, c. L-2.<br />
48 Red Bank First Nation (Re), [1999] C.I.R.B. No. 5 (QL).<br />
49 Red Bank First Nation (Re), supra, p. 5.
association granted by Part I of the Canada Labour Code.”<br />
It further offered at page 8:<br />
While a band council may decide upon the terms<br />
and conditions of employment that will govern its<br />
employees, the liberty to impose the working<br />
conditions it deems appropriate ceases when its<br />
employees decide to opt for collective bargaining.<br />
<strong>In</strong> such circumstances, the rules contained in Part I<br />
of the Canada Labour Code then become<br />
applicable, as in the case of any other employer that<br />
falls under federal jurisdiction.<br />
A review of the Canadian Human Rights Act 50 was also<br />
conducted in June of 2000. <strong>The</strong> Canadian Human Rights<br />
Act is applicable to employment relations in which a<br />
scheme for collective bargaining is not in place. <strong>The</strong><br />
recommendations regarding <strong>Aboriginal</strong> self-government<br />
were outlined on page 132 of the review panel’s report:<br />
<strong>The</strong> Panel believes something more should be done<br />
in order to ensure a greater say in the human rights<br />
rules that apply to <strong>Aboriginal</strong> self-governments. This<br />
would be consistent with the principle of selfgovernment.<br />
We think the [Canadian Human Rights Act] should<br />
provide that <strong>Aboriginal</strong> governments, locally or<br />
regionally or nationally, could create their own human<br />
rights law, in keeping with <strong>Aboriginal</strong> values. <strong>The</strong><br />
federal and <strong>Aboriginal</strong> governments could negotiate<br />
the conditions in which the <strong>Aboriginal</strong> human rights<br />
laws take over from the Act and the basic standards<br />
that <strong>Aboriginal</strong> legislation should meet.<br />
<strong>In</strong> Ermineskin Cree Nation v. Canada, 51 the Ermineskin<br />
Band Council challenged the jurisdiction of the Canadian<br />
Human Rights Tribunal to hear an employee’s complaint<br />
alleging discrimination by the Council on the basis of<br />
physical disability. <strong>The</strong> Council argued that federal human<br />
rights legislation was inapplicable to its employment<br />
relations because of the <strong>Aboriginal</strong> right of<br />
self-government. It further contended that the Tribunal<br />
lacked the jurisdiction to determine the constitutionality of<br />
its enabling legislation. <strong>The</strong> Court ordered a stay of the<br />
proceedings before the Tribunal, as it found that the<br />
determination of the constitutional question was indeed a<br />
serious one.<br />
50 Canada Human Rights Act, R.S.C., 1985, c. H-6.<br />
51 Ermineskin Cree Nation v. Canada, [1999] A.J. No. 1209 (Q.B.) (QL).<br />
52 Ermineskin Cree Nation v. Canada, [2001] A.J. No. 1187 (Q.B.) (QL).<br />
53 Manitoba Teachers’ Society v. For Alexander <strong>In</strong>dian Band et al, [1984] 1 F.C. 1109 (QL).<br />
Page 11<br />
<strong>The</strong> jurisdictional issue was consequently tried two years<br />
later. 52 This time, the Court determined that the Tribunal<br />
did have the jurisdiction to decide whether the Canadian<br />
Human Rights Act applied to the Ermineskin Band<br />
Council. It is settled law that a Tribunal may hear questions<br />
of a complex constitutional nature. Nevertheless, it was<br />
decided that a Court was better suited to hear the<br />
arguments of the Band Council because of some of the<br />
problems associated with a Tribunal’s handling of complex<br />
jurisdictional questions. <strong>The</strong> case is still pending and a<br />
decision has not yet been rendered as to whether federal<br />
legislation applies to the Band or if a third level of<br />
government, namely the Ermineskin Band Council, can<br />
assume jurisdiction over its own employment standards.<br />
Thus, it remains to be seen if the Task Force’s<br />
recommendations regarding <strong>Aboriginal</strong> self-government<br />
will become a reality in the near future.<br />
What is clear at present is that if a unit of employees is<br />
certified as one appropriate for collective bargaining, an<br />
employer must respect the decisions and orders of the<br />
relevant Labour Board regarding relations between the<br />
employees and employer. <strong>In</strong> Manitoba Teachers’ Society<br />
v. Fort Alexander <strong>In</strong>dian Band et al, 53 the Band Council,<br />
its Chief and members were fined in excess of $25,000<br />
for refusing to appear at a Board hearing regarding<br />
allegations of coercion and intimidation of a unit of certified<br />
employees. Such acts, if proven, were in contravention<br />
of provisions of the Canada Labour Relations Code. <strong>The</strong><br />
Council contended that although the unit of teachers had<br />
been certified by the Board, the council was immune from<br />
the application of the Canada Labour Code due to the<br />
principles of self-determination. <strong>The</strong> Court was unyielding<br />
in its decision to uphold the Code as applicable to the<br />
Council at p. 6:<br />
This institution cannot tolerate disobedience,<br />
particularly when it comes to the protection of the<br />
individual teachers, collective bargaining and<br />
freedom of association . . . If the Council of the Fort<br />
Alexander <strong>In</strong>dian Band wishes to challenge the<br />
constitutionality of the Canada Labour Relations<br />
Board or of this Court, the proper procedure is to<br />
appear, express its views, bring forth its challenges<br />
and use all the legal means that are available and at<br />
its disposal.
Treaty Negotiations in British<br />
Columbia<br />
<strong>In</strong> the years ahead, Canada and British Columbia anticipate<br />
more than fifty agreements to be signed with First Nation<br />
communities defining both <strong>Aboriginal</strong> resource rights and<br />
self-government powers. <strong>The</strong> implementation of such<br />
agreements will undoubtedly affect the governance of<br />
labour relations of First Nations’ operations in the province.<br />
But to what extent?<br />
<strong>In</strong> its “Federal Policy Guide,” the Government of Canada<br />
outlined the scope of jurisdiction or authority that <strong>Aboriginal</strong><br />
governments and institutions will possess under future<br />
treaties. First Nations will gain jurisdiction over matters<br />
such as culture, language, and education. Some areas,<br />
however, may “go beyond matters that are integral to<br />
<strong>Aboriginal</strong> culture or that are strictly internal to an <strong>Aboriginal</strong><br />
group. To the extent that the federal government has<br />
jurisdiction in these areas, it is prepared to negotiate some<br />
measure of <strong>Aboriginal</strong> jurisdiction or authority.” 54 One area<br />
in which the government is prepared to grant First Nations<br />
a limited amount of control is labour relations.<br />
<strong>The</strong> Nisga’a Final Agreement Act 55 constitutes the first<br />
modern-day treaty in British Columbia. <strong>The</strong> Agreement<br />
includes provisions regarding fisheries, lands and<br />
resources, the environment, Nisga’a government and<br />
taxation. <strong>The</strong> Treaty also provides that all federal and<br />
provincial laws of general application will continue to apply<br />
to the Nisga’a, unless the treaty dictates otherwise.<br />
Certain sections of the Agreement relate specifically to<br />
labour relations. Sections 63-65 at Chapter 11 of the<br />
Nisga’a Final Agreement state:<br />
63. Nisga’a Lisims Government may make laws<br />
prescribing the aspects of Nisga’a culture, including<br />
aspects such as cultural leave from employment,<br />
to be accommodated in accordance with federal<br />
and provincial laws of general application by<br />
employers and employees’ organizations that have<br />
the duty to accommodate employees under those<br />
federal and provincial laws.<br />
64. If, in any industrial relations matter or industrial<br />
relations proceeding involving individuals employed<br />
Page 12<br />
on Nisga’a Lands, other than a matter or<br />
proceeding arising from a collective agreement, an<br />
issue arises in respect of this Agreement or Nisga’a<br />
culture, the matter or proceeding will not be<br />
concluded until notice have been served on<br />
Nisga’a Lisims Government.<br />
65. <strong>In</strong> any industrial relations matter or industrial<br />
relations proceeding to which paragraph 64<br />
applies, Nisga’a Lisims Government may make<br />
representations concerning this Agreement or the<br />
effect of the matter or proceeding on Nisga’a<br />
culture.<br />
Following the ratification of the Treaty, the British Columbia<br />
Labour Relations Board issued a Practice Guideline, 56<br />
explaining the manner in which the Board would apply<br />
the relevant provisions of the Nisga’a agreement. <strong>The</strong><br />
Board agreed to give notice to the Nisga’a Lisims<br />
Government if any application made under the Labour<br />
Relations Code were to concern operations involving the<br />
Band, and to grant them the opportunity to make<br />
presentations with regard to the Final Agreement or<br />
Nisga’a culture.<br />
Conclusion<br />
Managing employees in <strong>Aboriginal</strong> communities begins<br />
with a careful consideration of the complex jurisdictional<br />
issues that exist by virtue of the Canadian Constitution<br />
and the right to self-government.<br />
Although the existing jurisprudence provides some<br />
guidance in determining questions of jurisdiction, the<br />
developing nature of aboriginal business and enterprise<br />
and the recognition of self-government, means that the<br />
law in this area is not settled. <strong>The</strong> challenge for aboriginal<br />
employers is to be aware of the jurisdictional issues and<br />
the developing constitutional law as to whether aboriginal<br />
government includes jurisdiction over labour relations and<br />
employment.<br />
54 Federal Policy Guide: <strong>The</strong> Government of Canada’s Approach to Implementation of the <strong>In</strong>herent Right and Negotiation of <strong>Aboriginal</strong> Self-Government,<br />
55 Nisga’a Final Agreement Act, S.B.C. 1999, C.2. supra, p. 6.<br />
For further <strong>In</strong>formation, please contact:<br />
<br />
<br />
E-mail: carman.overholt@fmc-law.com<br />
56 Statement of Practise in Respect of Nisga’a Final Agreement, online: B.C. Labour Relations Board http://lrb.bc.ca/guidelines/nisga’a.htm<br />
(date accessed: 1 August 2002).
Fraser Milner Casgrain LLP<br />
National Labour and Employment Law Group<br />
Fraser Milner Casgrain is a business law firm with over 500 lawyers including approximately 40 lawyers<br />
who practice exclusively in the labour and employment law area. For more information about our firm and<br />
our lawyers, please visit our website at www.fmc-law.com.<br />
<strong>The</strong> members of our national Labour and Employment Law Group are as follows:<br />
Vancouver<br />
Carman Overholt (604) 622-5165 carman.overholt@fmc-law.com<br />
Gary Clarke (604) 443-7133 gary.clarke@fmc-law.com<br />
Jeevyn Dhaliwal (604) 443-7138 jeevyn.dhaliwal@fmc-law.com<br />
Calagry<br />
Michael Ford (403) 268-7172 michael.ford@fmc-law.com<br />
Barabara Johnston (403) 268-3030 barbara.johnston@fmc-law.com<br />
Edmonton<br />
Fausto Franceschi 780) 423-7348 fausto.franceschi@fmc-law.com<br />
Peter Jasper (780) 970-5217 peter.jasper@fmc-law.com<br />
Donald Kruk (780) 423-7310 donald.kruk@fmc-law.com<br />
Tom Wakeling (780) 423-7342 tom.wakeling@fmc-law.com<br />
Joe Hunder (780) 423-7354 joe.hunder@fmc-law.com<br />
Toronto<br />
Paul Baston (416) 863-4622 paul.baston@fmc-law.com<br />
Lisa Goodfellow (416) 863-4726 lisa.goodfellow@fmc-law.com<br />
Michael Horan (416) 862-6773 micheal.horan@fmc-law.com<br />
Elizabeth Keenan (416) 862-3466 elizabeth.keenan@fmc-law.com<br />
Jamie Knight (416) 863-4560 jamie.knight@fmc-law.com<br />
Anneli LeGault (416) 863-4450 anneli.legault@fmc-law.com<br />
Audrey Mak (416) 361-2322 audrey.mak@fmc-law.com<br />
Catherine Osborne (416) 862-3468 catherine.osborne@fmc-law.com<br />
Ken Peel (416) 863-4396 ken.peel@fmc-law.com<br />
Mary Picard (416) 863-4469 mary.picard@fmc-law.com<br />
Mark Rowbotham (416) 367-6757 david.rowbotham@fmc-law.com<br />
Kritsin Taylor (416) 863-4612 kristin.taylor@fmc-law.com<br />
Janice Clugston (416) 361-2355 janice.clugston@fmc-law.com<br />
Nadine Cote (416) 863-4477 nadine.cote@fmc-law.com<br />
Rebecca Finn (416) 863-4704 rebecca.finn@fmc-law.com<br />
Pamela Leiper (416) 863-4596 pamela.leiper@fmc-law.com<br />
Blair McCreadie (416) 863-4532 blair.mccreadie@fmc-law.com<br />
Adrian Miedema (416) 863-4678 adrian.miedema@fmc-law.com<br />
Mark Tector (416) 367-6779 mark.tector@fmc-law.com<br />
Alexandra Tinmouth (416) 863-4650 alexandra.tinmouth@fmc-law.com<br />
Jordan Winch (416) 863-4761 jordan.winch@fmc-law.com<br />
Montreal<br />
Jean Bazin (514) 878-8804 jean.bazin@fmc-law.com<br />
Guy Lavoie (514) 878-8842 guy.lavoie@fmc-law.com<br />
Christian Letourneau (514) 878-8860 christian.letourneau@fmc-law.com<br />
Denis Manzo (514) 878-8829 denis.manzo@fmc-law.com<br />
Michel Towner (514) 878-8820 michel.towner@fmc-law.com<br />
Yves Turgeon (514) 878-8839 yves.turgeon@fmc-law.com<br />
Noemie Lavoie (514) 878-5858 noemie.lavoie@fmc-law.com<br />
Genevieve Pharand (514) 878-5808 genevieve.pharand@fmc-law.com<br />
Marie-Noel Massicottel (514) 878-8821 marrie-noel.massicottel@fmc-law.com<br />
Ottawa<br />
Catherine Coulter (613) 783-9660 cathrine.coulter@fmc-law.com<br />
Sheri Farahani (613) 783-9621 sheri.farahani@fmc-law.com<br />
Sean Kelly (613) 783-9654 sean.kelly@fmc-law.com