Monday, April 11, 2005
For Immediate Release
Edmonton, AB – The Alberta Labour Relations Board has made a precedent-setting decision in favour of the International Association of Machinists and Aerospace Workers against Finning International Inc.
The Board ruled that IAMAW Local Lodge 99 has successor rights to the outsourcing of remanufacturing work from Finning International to O.E.M. Reman and that O.E.M. Reman and Finning International are a common employer. This means that 160 Machinists will not lose their jobs when Finning closes its Component Rebuild Centre (CRC) in Edmonton later this month and transfers its work to a new OEM Reman facility. Employees at the CRC represented by IAMAW repair damaged or worn equipment components for Finning’s customers.
“In a province where the government is noted for its antagonism toward unions, the labour relations board has made a courageous decision,” said Bob MacKinnon, IAMAW Directing Business Representative. “We’ve been vindicated, it’s a great victory for the 160 members whose lives have been put through the wringer since last summer over this.”
Through testimony at a hearing the Board learned that O.E.M. Reman established itself in the remanufacturing industry using Finning’s money. Finning financed the acquisitions that gave O.E.M. Reman its existing work. It is completely financing the costs of building the new facility and Finning is the 100% ‘beneficial’ owner of O.E.M. Reman. Finning admitted to the board the whole idea was to avoid bargaining with the IAMAW.
In its decision the Board stated, “We would add that even if avoidance had not been admitted, the facts of this case disclose a clear likelihood of erosion of established bargaining rights.” The Board went on to state, “We have found O.E.M. Reman to be a successor employer to Finning International pursuant to section 46 of the Code. Accordingly, the Union’s certificate and collective agreement remain in effect and bind O.E.M. Reman. We so declare.”
