Grievance Arbitration — Ontario Employment Law
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About Grievance Arbitration
In a unionized workplace in Ontario, grievance arbitration is the formal, legally-mandated process used to resolve disputes between an employer and a union about the interpretation or application of a collective agreement. Think of it as a private court system for the unionized environment. Unlike non-union employees who must sue in civil court for issues like wrongful dismissal, unionized employees rely on this process. Section 48(1) of Ontario's Labour Relations Act, 1995 requires every collective agreement to contain a mechanism for the final and binding settlement of all disputes through arbitration, without any work stoppage. This process is typically the final step after the internal grievance procedure fails to produce a resolution.
The process begins when the union files a grievance on behalf of an employee (or a group of employees) that they believe the employer has violated the collective agreement. If the parties can't resolve it through discussion, the union can refer the matter to arbitration. A neutral third party, called an arbitrator, is appointed to hear the case. The hearing itself resembles a court proceeding: both the union and the employer present evidence, call witnesses, and make legal arguments. The arbitrator's final decision, known as an 'award,' is legally binding on all parties. Arbitrators have the authority to resolve a wide range of issues, including terminations, discipline, seniority rights, pay disputes, and even human rights complaints that arise under the collective agreement. Because this process is highly specific and governed by both the collective agreement and decades of labour law, understanding your rights and obligations requires careful review of your specific situation, often with guidance from your union representative.
Frequently Asked Questions
What is the difference between a grievance and grievance arbitration?
A grievance is the initial formal complaint filed by the union alleging a violation of the collective agreement. Grievance arbitration is the final, hearing stage of the process that occurs if the grievance cannot be resolved through the earlier steps of the grievance procedure.
Can I take my employer to arbitration by myself?
No. In a unionized workplace, the union 'owns' the grievance. The decision to advance a case to arbitration is made by the union, not the individual employee. Your role is to work with your union representative who will manage the case.
Who pays for grievance arbitration in Ontario?
Typically, the union and the employer share the costs of the arbitrator. This is a requirement under the Labour Relations Act, 1995, unless the collective agreement specifies a different arrangement.
Are there time limits for filing a grievance?
Yes, and they are extremely important. Collective agreements contain strict timelines for filing a grievance after an incident occurs. Missing these deadlines can result in your case being dismissed without ever being heard on its merits.
Is an arbitrator's decision final?
Yes, an arbitrator's award is legally binding and final. It can only be challenged in court on very narrow grounds, such as a denial of procedural fairness, through a process called judicial review. This is a high bar to meet.
My dispute involves discrimination. Does it go to arbitration or the Human Rights Tribunal?
It's complex, but often it must go to arbitration first. Ontario arbitrators have the power to apply the Ontario Human Rights Code. If the 'essential character' of the dispute arises from the collective agreement, arbitration is usually the required forum.
When should I talk to a lawyer about a grievance arbitration issue?
Your first point of contact should always be your union representative, as the union provides legal representation. You might consider seeking independent legal advice if you believe your union is not representing you fairly, which could lead to a separate 'duty of fair representation' complaint.
Common Scenarios
- A transit operator is terminated for a rules violation, and their union takes the case to arbitration, arguing the discipline was excessive and seeking reinstatement.
- A hospital implements a new vacation scheduling policy that the nurses' union argues violates the terms of their collective agreement, leading to a policy grievance that proceeds to arbitration.
- A construction worker is laid off while a more junior employee is kept on, prompting the union to file a grievance for violating the seniority clause, which is then heard by an arbitrator.
- An office administrator in a unionized company is denied a request for accommodation related to a disability, and the union grieves the decision as a violation of both the collective agreement and the Human Rights Code.
- An employer refuses to pay a newly negotiated wage increase on time, and the union files a grievance that proceeds to arbitration to force the employer to comply with the agreement and pay retroactive wages.
What You Should Know
- Carefully document every detail of the incident in question, including dates, times, witnesses, and conversations. Provide this information to your union steward or representative immediately.
- Review your collective agreement to understand the specific timelines for filing a grievance. Acting quickly is critical, as missing a deadline can be fatal to your case.
- Be an active partner in your case by cooperating fully with your union representative, providing all requested documents, and being honest about the facts.
- Understand that an arbitrator's decision is final and binding. The outcome, whether positive or negative, will resolve the matter definitively with very limited grounds for appeal.
- If you are concerned that your union is handling your case in a manner that is arbitrary, discriminatory, or in bad faith, you may need to consult an employment lawyer about filing a duty of fair representation complaint with the Ontario Labour Relations Board.
Featured Cases
H. v. Sun Life Assurance Company of Canada
2025 ONCA 740 (CanLII) · 2025-10-29This is an appeal from a motion judge's decision regarding jurisdiction and procedural fairness in a labour relations context. The Court of Appeal upheld the finding that the appellant's claim against his employer and Transport Canada was grievable under the Federal Public Sector Labour Relations Act and thus outside the court's jurisdiction, and also upheld the refusal to allow an amendment to the claim.
Ontario Public Service Employees Union v. Ontario (Solicitor General)
2025 ONSC 1801 (CanLII) · 2025-03-21Judicial Review: Grievance Arbitration & Issue Estoppel
This is a judicial review of a grievance arbitration decision involving the Ontario Public Service Employees Union and the Ontario Solicitor General. The Divisional Court reviewed whether the Arbitrator reasonably applied issue estoppel to dismiss grievances alleging violations of the collective agreement and the Occupational Health and Safety Act (OHSA) based on prior Inspector decisions. The Court upheld the Arbitrator's decision as reasonable, finding that the grievances constituted an impermissible collateral attack on the statutory appeal process.
Metrolinx v. Amalgamated Transit Union, Local 1587
2024 ONSC 1900 (CanLII) · 2024-04-02This is a judicial review proceeding concerning a grievance arbitration award in a labour relations dispute. The Divisional Court reviewed the arbitration decision involving Metrolinx and the Amalgamated Transit Union, Local 1587.
J. v. Canada School of Public Service
2024 ONSC 1041 (CanLII) · 2024-02-21Grievance Arbitration Jurisdiction: Privacy Tort Claims
This is an appeal to the Divisional Court from a procedural ruling on an interlocutory motion in a labour and employment dispute. The central issue was whether privacy tort claims against the employer fell within the exclusive jurisdiction of grievance arbitration under the Federal Public Sector Labour Relations Act or were actionable in the courts. The appeal was dismissed.
W. v. C.
2024 ONSC 728 (CanLII) · 2024-02-02This is a labour relations case concerning the union's duty of fair representation in grievance arbitration. The dispute arises from the interpretation of collective agreements and the conduct of unions in representing employees.
B. v. CUPE Local 4400
2023 ONSC 7024 (CanLII) · 2023-12-15This is a judicial review application concerning the exclusive jurisdiction of a grievance arbitrator versus the Human Rights Tribunal of Ontario (HRTO) in a labour relations context. The Divisional Court dismissed the motion to extend time for the judicial review, finding that the applicant failed to show apparent grounds for relief and that extending time would cause prejudice to the respondent.
Canadian Broadcasting Corporation v Canadian Media Guild
2023 ONSC 3303 (CanLII) · 2023-05-05This is a judicial review of a grievance arbitration decision regarding the disclosure of an investigator's report under a collective agreement. The Divisional Court upheld the arbitrator's order for disclosure, finding that the Grievance Processing Agreement (GPA) acted as a statutory tribunal and that the disclosure order was reasonable and procedurally fair.
National Organized Workers Union v. Sinai Health System
2022 ONCA 802 (CanLII) · 2022-11-22Union Injunction: Mandatory Vaccination Policy
This is an appeal to the Court of Appeal from an application judge's decision denying an interlocutory injunction. The union sought to prevent the hospital employer from enforcing a mandatory COVID-19 vaccination policy pending grievance arbitration. The application judge declined to intervene, finding that the potential harm of lost income could be fully remedied by an arbitrator. The Court of Appeal dismissed the appeal, confirming there was no remedial gap in the labour relations process to justify the court's residual jurisdiction. The denial of the injunction stands.
E. v. ACTRA Performers’ Rights Society
2021 ONSC 4400 (CanLII) · 2021-06-18ACTRA Use Fees: Exclusive Jurisdiction of Arbitration
This is an appeal to the Divisional Court regarding the exclusive jurisdiction of grievance arbitration versus the courts for a dispute over the calculation of Use Fees under a collective agreement. The Court allowed the appeal, finding that the dispute arose from the interpretation of the collective agreement and thus fell under the Labour Relations Act, while also refusing to admit fresh evidence regarding the corporate status of ACTRA PRS.
Allied Construction Employees, Local 1030 v. Bricklayers Masons Independent Union of Canada Local 1, Labourers’ International Union of North America Local 183
2021 ONSC 3329 (CanLII) · 2021-05-05Judicial Review: Arbitrator Denies Intervener Status
A judicial review application concerning the reasonableness of an arbitrator's refusal to grant intervener status to competing unions in a grievance arbitration. The Divisional Court affirmed the exclusive jurisdiction of the Ontario Labour Relations Board over alleged LRA violations, finding the applicants lacked a direct and legal interest.
G. v. S.
2020 ONSC 2028 (CanLII) · 2020-04-02Jurisdiction: Sexual Harassment in Unionized Workplace
This is an interlocutory or jurisdictional decision determining whether civil courts have jurisdiction over sexual harassment and assault allegations in a unionized workplace governed by a collective agreement. The court considered the application of the Weber and Parry Sound principles, whether the labour arbitrator has exclusive jurisdiction, and whether civil claims for damages under the Human Rights Code are barred.
Air Canada v. Canadian Union of Public Employees, Air Canada Component
2020 ONSC 847 (CanLII) · 2020-02-06This is a judicial review application concerning a grievance arbitration between Air Canada and the Canadian Union of Public Employees. The Divisional Court stayed the application as premature because the arbitrator had substituted a suspension for termination but remained seized of the issue of reinstatement, meaning no final decision had been rendered.
R. v. Waterloo Regional Police Services Board
2019 ONCA 267 (CanLII) · 2019-04-05This is a procedural ruling by the Court of Appeal for Ontario regarding the jurisdiction of the Superior Court to hear claims of systemic gender-based workplace discrimination and harassment by police officers. The Court held that the Superior Court lacks jurisdiction because the Police Services Act and the collective agreement provide mandatory grievance and arbitration mechanisms, applying the Weber framework to require resolution through those channels or the Human Rights Tribunal.
Ontario Public Service Employees Union v. The Crown in Right of Ontario
2019 ONSC 1077 (CanLII) · 2019-02-21Judicial Review: WSIA Jurisdiction and Harassment Damages
This is a judicial review of a Grievance Settlement Board decision regarding workplace bullying and harassment under a collective agreement. The Divisional Court examined whether the Board had jurisdiction to award damages for mental stress injuries compensable under the Workplace Safety and Insurance Act (WSIA) and whether its reliance on WSIAT decisions was reasonable. The Court found the decision reasonable and declined to consider new arguments raised for the first time on judicial review.
Toronto Community Housing Corp. v. C.U.P.E. Local 79 et al
2018 ONSC 5008 (CanLII) · 2018-08-29Judicial Review of Arbitration Award: Reinstatement Remitted
This is a judicial review of a grievance arbitration award reinstating an employee dismissed for cause. The employer alleged the arbitrator breached procedural fairness and made unreasonable findings regarding evidence and reasons. The Divisional Court found the arbitrator's decision lacked sufficient analysis and justification, resulting in the grievance being remitted for rehearing before a different arbitrator.
D.M. v R. et al et al.
2018 ONSC 858 (CanLII) · 2018-02-05This is an interlocutory proceeding determining whether the court has jurisdiction over a defamation claim brought by an employee against co-workers for statements made during a workplace harassment investigation, or if the matter falls under the exclusive jurisdiction of grievance arbitration under the collective agreement. The court applied the Weber v. Ontario Hydro framework to assess if the arbitrator could provide an adequate remedy and considered whether workplace harassment policies mandated by the Occupational Health and Safety Act were incorporated into the collective agreement.
M.M. v Ontario English Catholic Teachers’ Association (‘OECTA’) et al, London District Catholic School Board (‘LDCSB’), Ontario Labour Relations Board (‘OLRB’)
2017 ONSC 3986 (CanLII) · 2017-06-26A judicial review application concerning a grievance arbitration decision under the Labour Relations Act. The case addresses procedural and substantive issues within the context of collective labour relations and the oversight of labour boards.
Essar Steel Algoma Inc. (Re)
2016 ONSC 1802 (CanLII) · 2016-03-14CCAA Stay of Grievance Arbitration: Essar Steel
This is a procedural ruling in insolvency proceedings concerning the treatment of employee grievance claims under the CCAA. The court addressed whether staying grievance arbitration and replacing it with a CCAA claims procedure violated the collective agreement, the Charter's freedom of association, or provincial labour laws. The court held that the stay and claims process were permissible under the CCAA and did not violate constitutional or statutory protections.
EllisDon Corporation v. Ontario Sheet Metal Workers' and Roofers' Conference and International Brotherhood of Electrical Workers, Local 586
2015 ONCA 7 (CanLII) · 2015-01-08Labour Relations: Estoppel Period Clarification
This is an appeal decision by the Court of Appeal for Ontario restoring an Ontario Labour Relations Board ruling in a labour relations matter. The court issued an addendum to clarify the application of the two-year estoppel period following its decision, addressing whether the period restarts from the date of the appellate decision.
EllisDon Corporation v. Ontario Sheet Metal Workers' and Roofers' Conference and International Brotherhood of Electrical Workers, Local 586
2014 ONCA 801 (CanLII) · 2014-11-17Judicial Review of OLRB Remedy in Labour Dispute
This is a judicial review of a Divisional Court decision that substituted its own remedy for that of the Ontario Labour Relations Board in a labour relations dispute. The Court of Appeal addressed whether the Divisional Court erred in substituting a permanent estoppel for the Board's two-year estoppel remedy and in reviewing the Board's admission of evidence under the Evidence Act.