Case information

Constitutional law — Division of powers — Labour relations — Direct and derivative federal jurisdiction — Works declared “for the general advantage of Canada” — Company operating “elevators” within meaning of Canada Grain Act — Whether SGS’s labour relations fall directly under federal jurisdiction over works declared for the general advantage of Canada pursuant to s. 92(10)(c) of Constitution Act, 1867 by reason of its inspection activities — Whether SGS’s labour relations fall derivatively under federal jurisdiction over works declared for the general advantage of Canada pursuant to s. 92(10)(c) of Constitution Act, 1867 by reason of its inspection activities — Canada Grain Act, R.S.C. 1985, c. G 10, s. 55 — Constitution Act, 1867, ss. 91(29) and 92(10)(c).

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The respondent, SGS Canada Inc. (SGS), is a subsidiary of a foreign company that offers inspection, analysis, certification and quality control services with respect to Canadian grain destined for interprovincial trade and international export. On November 22, 2019, the intervener Syndicat des travailleuses et travailleurs des industries manufacturières – CSN filed a petition for certification with the Administrative Labour Tribunal (ALT) under the Labour Code, CQLR, c. C 27. The union wanted to represent inspectors and grain graders employed by SGS in Quebec, who work mainly at grain elevators located in Quebec ports along the St. Lawrence River. In December 2019, SGS notified the appellant, the Attorney General of Quebec, that it intended to challenge the ALT’s jurisdiction. It argued that the certification of the employees in question did not fall under provincial jurisdiction, but rather under direct federal jurisdiction with respect to the regulation of labour relations because the employment relates to a work, undertaking or business within the legislative authority of Parliament within the meaning of the case law of the Supreme Court of Canada and therefore that it was up to the Canada Industrial Relations Board to dispose of the petition for certification in accordance with the Canada Labour Code, R.S.C. 1985, c. L 2. In July 2020, SGS gave its agreement on the composition of the proposed bargaining unit, whose representative character was also established. On February 26, 2021, the ALT refused the petition for certification under the Labour Code. The ALT found that the unit contemplated in the union’s petition for certification was subject to derivative federal legislative jurisdiction and that consequently the petition was refused. The Superior Court dismissed the application for judicial review, and the Court of Appeal dismissed the appeal.