- June 9, 2021
- Miscellaneous
In a decision released on September 26, 2018, Arbitrator Nyman denied Hotel X’s request for intervenor status in a grievance arbitration between IATSE Local 58 (“IATSE”) and The Board of Governors of Exhibition Place (“Exhibition Place”). The three grievances before Arbitrator Nyman concerned allegations that on three specific occasions Exhibition Place violated the Collective Agreement by permitting bargaining unit work to be performed by a third-party contractor who is not bound to IATSE and did not employ members of IATSE. Although the work in question was performed on the grounds of Hotel X, the grievances did not allege that Hotel X directly performed the work.
Hotel X sought to intervene in the grievance proceedings and argued that it was in the best position to put the work in context as it was performed on its property. Hotel X also argued that it had a labour relations interest in intervening as a ruling in favour of IATSE would require it to comply apply the terms of the Collective Agreement. Hotel X also sought to intervene to allow it to defend its reputation and argued it has both a commercial and reputational interest in the grievances.
IATSE opposed the intervention. It argued that granting third-party standing to a stranger to a collective agreement is an exceptional remedy that is not warranted in these circumstances. IATSE argued that a mere commercial interest is an insufficient basis to grant standing, there is no reputational interest at issue, and Hotel X has nothing substantial to add to the litigation.
In denying Hotel X’s intervention Arbitrator Nyman determined that Hotel X’s motivation and reputation were irrelevant to the arbitration. Arbitrator Nyman further held that a commercial interest, on its own, was insufficient for granting intervenor status. Even though Hotel X is party to a lease agreement with Exhibition Place which requires it to indemnify Exhibition Place if the collective agreement is breached, the potential for commercial losses did not warrant granting intervenor status to Hotel X. Arbitrator Nyman noted “Hotel X must live with the consequences, good and bad, of its negotiated commercial agreement.” Ultimately, Arbitrator Nyman was not convinced that Hotel X’s participation would add anything that is not significantly outweighed by the prejudice to IATSE.