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A-201-78
C.S.P. Foods Ltd. (Applicant) v.
Canada Labour Relations Board, Hugh J. Wagner and N. William Greer, on their own behalf and on behalf of a11 members of the Grain Services Union (CLC) and Grain Services Union (CLC) (Respondents)
Court of Appeal, Pratte, Heald and Le Dain JJ.— Regina, November 6; Ottawa, December 21, 1978.
Judicial review — Labour relations — Jurisdiction — Canada Labour Relations Board order — Union certified for certain employees in office of general manager sales and commodities of food processing and marketing arm of Manitoba and Saskatchewan Wheat Pools — Board's juris diction to make certification order challenged — Whether or not employees performing functions connected with a federal work — Whether or not nature of work performed in that office severable from other operations — Canada Labour Code, R.S.C. 1970, c. L-1 as amended by S.C. 1972, c. 18, ss. 2, 108 — Canada Grain Act, S.C. 1970-71-72, c. 7, s. 43(1) — Canadian Wheat Board Act, R.S.C. 1970, c. C-12, s. 45 — Federal Court Act, R.S.C. 1970 (2nd Supp.), c. 10, s. 28.
This is a section 28 application to review and set aside an order of the Canada Labour Relations Board certifying the Grain Services Union (CLC) as the bargaining agent for a unit comprising all employees of C.S.P. Foods Ltd.—the food pro cessing and marketing arm of the Manitoba and Saskatchewan Wheat Pools—working in the office of the general manager sales and commodities trading, excluding certain managerial positions. The principal ground of attack on the Board's order is that the Board lacked the jurisdiction to make it. If the Board has jurisdiction in this case, it is derived from section 108 of the Canada Labour Code. Applicant argues that it must be demonstrated that the employees in question perform func tions intimately connected with a federal work and that the operation carried on in its Winnipeg office is severable from its other operations so that the Canada Labour Code would not apply to the employees in its Winnipeg office.
Held, the application is dismissed. The declaratory section in the Canadian Wheat Board Act extends the declaration in the Canada Grain Act so that "all flour mills, feed mills, feed warehouses and seed cleaning mills ..." are declared to be "works or a work for the general advantage of Canada ... . This applicant is in a business to which the federal power attaches by virtue of the declaration: the business of producing and selling animal seeds, and the feed-mill proportion of the total operation is more than an insignificant or incidental part of the applicant's manufacturing operation. The Winnipeg
office plays a vitally important part in the price payable to the farmer member for his product and in determining and decid ing what the price will finally be by virtue of its marketing function as well as its "hedging and commodity trading" function. The work performed by this office is a necessary part of the whole, the whole being, inter alla, feed mills which have been declared to be federal works.
APPLICATION for judicial review. COUNSEL:
W. J. Vancise and D. E. W. McIntyre for applicant.
George Taylor, Q.C. and R. Alan Francis for respondent Canada Labour Relations Board.
SOLICITORS:
Balfour, Moss, Milliken, Laschuk, Kyle, Vancise & Cameron, Regina, for applicant.
Goldenberg, Taylor, Randall, Buckwold & Halstead, Saskatoon, for respondent Canada Labour Relations Board.
The following are the reasons for judgment rendered in English by
PRATTE J.: I agree with the conclusion reached by my brother Heald that the section 28 applica tion must be dismissed.
I do not wish to add anything to what he says in respect of the applicant's contention that it was denied natural justice.
As to the contention that the Canada Labour Relations Board had no jurisdiction, it must be rejected because, in my view, the record does not show that the employees comprised in the bargain ing unit are not "employed in connection with the operation" of a "feed mill" within the meaning of section 45 of the Canadian Wheat Board Act, R.S.C. 1970, c. C-12.
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The following are the reasons for judgment rendered in English by
HEALD J.: This is a section 28 application to review and set aside an order of the Canada Labour Relations Board dated April 12, 1978
certifying the Grain Services Union (CLC) as the bargaining agent for a unit comprising:
all employees of CSP Foods Ltd., working in the office of the general manager sales and commodity trading, excluding sales manager N.E.O. Ltd., location controller, manager feed ingred. sales, manager hedging and trading, manager traffic and distri bution, and those above.
The principal ground of attack on the Board's order is that the Board was without jurisdiction to make that order. The Board's jurisdiction, if it has jurisdiction in this case, is derived from section 108 of the Canada Labour Code, S.C. 1972, c. 18, which provides as follows:
108. This Part applies in respect of employees who are employed upon or in connection with the operation of any federal work, undertaking or business and in respect of the employers of all such employees in their relations with such employees and in respect of trade unions and employers' organ izations composed of such employees or employers.
It is the applicant's submission that for the Board to have jurisdiction, it must be demonstrat ed that the employees in question perform func tions which are intimately connected with a feder al work, undertaking or business and whose work is an integral part of, or necessarily incidental to, the effective operation of the federal work, under taking or business. The applicant further submits that, while the applicant, at various locations other than its Winnipeg office, carries on operations, some of which fall under the legislative umbrella of the federal government, nevertheless, so far as the duties performed by its employees in the Win- nipeg office are concerned, those duties and that employment do not fall within federal jurisdiction. The reason given by the applicant for this view is because, in its opinion, the nature of the operation carried on in the Winnipeg office is that of a service function related to the other functions of the applicant, but not a function which is intimate ly connected with, or an integral part of the opera tions of the applicant. It is the submission of the applicant that the operation carried on by it in its Winnipeg office is clearly severable from its other operations and, accordingly, the provisions of Part V of the Canada Labour Code do not apply to the employees in its Winnipeg office.
It is necessary, in my view, for a proper determi nation of the jurisdictional question, to consider the manner in which the applicant company func tions. A brochure which describes the applicant's operations is contained in the Case (pp. 47 to 64). Additionally, on the oral argument of this applica tion before us, the Court added to the Case para graphs 1 to 21 inclusive of the affidavit dated July 28, 1978 of Reginald S. Wayman, General Manager, Sales and Commodity Trading, of the Winnipeg office of the applicant company. From this material, the following picture of the appli cant's operations emerges:
The applicant company is the food processing and marketing arm of the Manitoba and Saskatch- ewan Wheat Pools. It provides the Pools' farmer membership with a ready market for their field crops, as processed or semi-processed products, mostly in the form of crude vegetable oils. The applicant sells its processed products in national and international markets, through marketing offices at Saskatoon, Winnipeg and Toronto and through an Export Marketing Group headquar- tered at Saskatoon. The applicant has a vegetable oil plant in Saskatoon which carries on the busi ness of a rapeseed crushing plant to produce crude rapeseed oil and meal for both domestic and export markets. Associated with the vegetable oil plant in Saskatoon is an elevator. The applicant also operates a vegetable oil processing plant at Nipawin, Saskatchewan, which is engaged in the crushing, refining and packaging of rapeseed oil and products thereof, destined for both export and domestic markets. It also operates an oil seed processing plant at Altona, Manitoba, which pro duces crude and refined rapeseed oil together with soybean and sunflower oil and products derived therefrom which are destined primarily for domes tic markets. The applicant also operates a com modity trading and marketing office in Winnipeg which office is the subject of the certification order under review. The Winnipeg office is responsible for the hedging and commodity trading relating to the sales of vegetable oils and meals—i.e., rape- seed, soybean and sunflower. Oilseeds are bought at competitive prices, at a flow rate that preserves the best price structure for the applicant's custom ers. The delicate balance between a fair producer price and a competitive consumer price is main tained with the use of sophisticated hedging princi-
pies, and this function, as stated supra, is per formed by the Winnipeg office. The vegetable oil seed purchases are carried out by the individual vegetable oil plants at Saskatoon, Nipawin and Altona on a cash basis. However, as against such cash purchases of seed and subsequent sales of products, the Winnipeg office, in its hedging oper ations, is engaged, through brokers, in trading in soybean and soybean oil and meal futures on the Chicago Board of Trade and rapeseed futures in the Winnipeg Commodity Exchange.
The respondent Board submits that it has juris diction over subject bargaining unit based on a number of statutory provisions as applied to the facts of this case. Initially, the Board cites section 108 of the Canada Labour Code quoted supra. It then refers to section 2(h) and (i) of the Canada Labour Code which reads as follows:
2. In this Act
"federal work, undertaking or business" means any work, undertaking or business that is within the legislative author ity of the Parliament of Canada, including without restrict ing the generality of the foregoing:
(h) a work or undertaking that, although wholly situated within a province, is before or after its execution declared by the Parliament of Canada to be for the general advantage of Canada or for the advantage of two or more of the provinces; and
(i) a work, undertaking or business outside the exclusive legislative authority of provincial legislatures;
It then refers to section 43 (1) of the Canada Grain Act, S.C. 1970-71-72, c. 7 which reads as follows:
43. (1) All elevators in Canada heretofore or hereafter con structed, except elevators referred to in subsection (2) or (3), are and each of them is hereby declared to be a work or works for the general advantage of Canada.
Subsections (2) and (3) deal with elevators in the eastern division and, accordingly, have no rele vance or application to the case at bar. Reference is also made to the companion declaratory section in the Canadian Wheat Board Act, R.S.C. 1970, c. C-12, being section 45 thereof, which reads as follows:
45. For greater certainty, but not so as to restrict the generality of any declaration in the Canada Grain Act that any elevator is a work for the general advantage of Canada, it is hereby declared that all flour mills, feed mills, feed warehouses and seed cleaning mills, whether heretofore constructed or hereafter to be constructed, are and each of them is hereby declared to be works or a work for the general advantage of Canada, and, without limiting the generality of the foregoing, each and every mill or warehouse mentioned or described in the schedule is a work for the general advantage of Canada.
The Board then turns to the definition of "eleva- tor" as contained in section 2(10)(a) of the Canada Grain Act which reads as follows:
2....
(10) "elevator" means
(a) any premises in the Western Division
(i) into which grain may be received or out of which grain may be discharged directly from or to railway cars or ships,
(ii) constructed for the purpose of handling and storing grain received directly from producers, otherwise than as a part of the farming operation of a particular producer, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be discharged, or
(iii) constructed for the purpose of handling and storing grain as part of the operation of a flour mill, feed mill, seed cleaning plant, malt house, distillery, grain oil extrac tion plant or other grain processing plant, and into which grain may be received, at which grain may be weighed, elevated and stored and out of which grain may be dis charged for processing or otherwise,
and the definition of "process elevator" as con tained in section 2(38) of the Canada Grain Act and reading as follows:
2....
(38) "process elevator" means an elevator the principal use of which is the receiving and storing of grain for direct manufacture or processing into other products;
The Board then submits that the vegetable oil plants owned and operated by the applicant at Saskatoon, Nipawin and Altona are "elevators" as defined in section 2(10)(a)(ii) and (iii) of the Canada Grain Act or "process elevators" as defined in section 2(38) of that Act and as eleva tors they have been declared pursuant to section 43(1) of that Act "a work or works for the general advantage of Canada". Accordingly, in the sub mission of the Board, when the functions of the Winnipeg office are analyzed, it is apparent that there is the necessary integral and intimate rela tionship between that office and the elevators in
question so as to constitute the functioning of the Winnipeg office a "work ... for the general advan tage of Canada" so as to clothe the Board with jurisdiction.
In my opinion, it is unnecessary to decide wheth er the three oil processing plants of the applicant are "elevators" or "process elevators" as defined in the Canada Grain Act in order to determine the jurisdictional question under review. A perusal of the declaratory section in the Canadian Wheat Board Act (section 45 thereof and quoted supra), discloses that it extends the declaration as con tained in the Canada Grain Act so that "all flour mills, feed mills, feed warehouses and seed clean ing mills ..." [underlining is mine] are declared to be "works or a work for the general advantage of Canada ...".
In my view, the record in this case clearly discloses that, inter alia, this applicant was in the business of producing and selling animal feeds. For example—on page 48 of the Case, it is said that "CSP also provides a complete range of meal and mill-feed by-products in bagged, pelleted and bulk forms." On the same page, the following statement appears: "Most oilseed products go to further processors; ...; animal feed manufacturers; ...". And again at page 57 "... The main quality control laboratory at Saskatoon also supervises quality control programs and does analysis on a commercial basis for a number of Canadian and American food processors and feed manufacturers ...". [Underlining is mine.] And again, on pages 58, 59 and 60, when describing the production facilities at Altona, Nipawin and Winnipeg, refer ences are made to the products of those mills as including: "bagged or bulk meal;" and "bulk or pelleted meal;". These references to the "feed mill" component of the applicant's operations sug gest that it is a rather substantial portion of the entire operation since reference is made to the provision of a "complete range" of meal and mill- feed by-products. While the record does not quan tify in any way, the feed-mill proportion of the total operation, nor would this be necessary, in my view, I am satisfied, nevertheless, from the record, that the feed-mill component is certainly more than an insignificant or incidental part of appli cant's manufacturing operation.
Accordingly, even if the federal power does not attach to the three plants of the applicant by virtue of the declaratory section and the definition sec tions of the Canada Grain Act, it seems clear to me that it does attach by virtue of the provisions of the Canadian Wheat Board Act referred to supra.
While neither of the Acts in question contains a definition of "feed mill", giving to that phrase its plain, ordinary and well-accepted meaning, the operations of the applicant described supra were, in my view, those of a "feed mill", whatever else they may have been.
However, this conclusion does not, per se, deter mine the jurisdictional issue because the applicant submits that the operations carried on in the Win- nipeg office are that of a service function and are not a function which is intimately connected with, or an integral part of applicant's operations and as such, are clearly severable from its other operations'.
With respect, I cannot accept this submission since, in my view, it is not established by the evidence. In the brochure describing applicant's operations (Case, p. 51), it is stated: "The delicate balance between a fair producer price and a com petitive consumer price is maintained with the use of sophisticated hedging principles". And then, in paragraphs 14 and 15 of the Wayman affidavit:
The jurisprudence seems to clearly establish the test to be applied—i.e., Is the operation in question "an integral part or necessarily incidental" to the effective operation of the federal work?
See: Reference re Industrial Relations [1955] S.C.R. 529 at 567-568 per Estey J.
The Letter Carriers' Union of Canada v. M & B Enter prises Ltd. [1975] 1 S.C.R. 178 at 187-188 also establishes that it is not essential for the employees in question to be exclusively employed upon or in connection with a federal work.
14. THAT the purchase of vegetable oil seed is carried out by the individual vegetable oil plants situate in Saskatoon, Nipa- win and Altona, on a cash basis.
15. THAT as against such cash purchases of seed and subse quent sales of products the Winnipeg office, in its hedging operation, is engaged, through brokers, in trading in soybean and soybean oil and meal futures on the Chicago Board of Trade and rapeseed futures in the Winnipeg Commodity Exchange.
The applicant is the processing and marketing arm of the Manitoba and Saskatchewan Wheat Pools which organizations have some 100,000 farmer members. The stated raison d'être of the applicant is to provide these farmer members with a ready market and a fair price for their field crops. It is clear from the evidence quoted supra, that the Winnipeg office plays a vitally important part in the price payable to the farmer member for his product and in determining and deciding what that price will finally be by virtue of its marketing function as well as its "hedging and commodity trading" function. To hold that a branch of a company which operates the marketing and pric ing function in that company is not an "integral" part of the effective operation of a work which commences at the feed mill or oil processing plant and terminates as a feed product or a vegetable oil product for sale both domestically and offshore would, in my view, be wrong. The fixing of the price at which the raw product is purchased, and the manufactured product is sold and the market ing of the manufactured product are just as essen tial components of the entire operation as the work of the mill employee who weighs the farmer's rapeseed or who operates the crushing mill. The Living Webster Dictionary defines "integral", inter alia, as: "belonging to or forming a necessary part of a whole". In my view, the work performed by applicant's Winnipeg office was a necessary part of the whole, the whole being the operation of, inter alia, feed mills which have been declared to be federal works.
Accordingly, and for the foregoing reasons, I have concluded that the respondent Board had jurisdiction in this case.
The only other ground of attack advanced by applicant's counsel at the hearing before us was
that the respondent Board had failed to observe the principles of natural justice in issuing the said order, without having held a hearing and giving the applicant the opportunity to present evidence and make argument as had been requested by the applicant. At the conclusion of his submissions on this issue, counsel for the applicant was advised by the Court that he had not convinced us that there was any substance in this ground of attack. Accordingly, respondents' counsel were not called on to deal with this issue. It was the Court's opinion that, applying the principles set out in Durham Transport Inc. v. International Brother hood of Teamsters (1978) 21 N.R. 20 and Re Greyhound Lines of Canada Ltd. and Office and Professional Employees International Union, Local 458 (1979) 24 N.R. 382 to the facts of the present case, the applicant has failed to establish that the Board did not conduct itself in accordance with the principles of natural justice and the audi alteram partem rule.
For all of the reasons set out herein, I would
dismiss the section 28 application.
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The following are the reasons for judgment rendered in English by
LE DAIN J.: I agree that the section 28 applica tion must be dismissed. If the works for the gener al advantage of Canada in this case be process elevators operated in connection with the vegetable oil plants then I would seriously doubt that the commodity trading and marketing activity of the applicant's Winnipeg office is sufficiently closely related to the operation of the elevators to be an integral part of them or necessarily incidental thereto. But if the works be the plants themselves in their character as feed mills, then there can in my opinion be no doubt, for the reasons given by my brother Heald, that the functions performed by the Winnipeg office are at least necessarily inci dental to the operation of the mills. There is, as my brother Heald has demonstrated, evidence from which one may conclude that the vegetable oil plants operated at Altona, Nipawin and Saskatoon are also feed mills within the meaning of section 45 of the Canadian Wheat Board Act. I hesitate, however, to make this finding in the absence of further evidence showing the relative importance of the feed producing operations of these plants. It
is sufficient for purposes of the present case, I think, that on a record which raises the distinct possibility that the vegetable oil plants are also feed mills, the applicant, who had the burden of proving the alleged absence of jurisdiction, has failed to establish that they are not feed mills.
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