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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

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