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Employer Jailed for Defying Arbitrator’s Orders
June 24, 2006

For what appears to be the first time in Canadian history, an employer has been imprisoned for failing to comply with an arbitration award.

The employer, a hotel in Fort Frances, Ontario, failed to comply with three arbitration awards ordering it to pay employees on time, remit union dues and pay its share of health and dental insurance premiums. The court found the hotel to be in contempt and sentenced its manager, who was president of the hotel’s corporate owner, to 30 days in jail.

The court also fined the hotel and its manager $25,000, ordered them to reimburse the union for $15,000 in legal costs and ordered them to comply with the collective agreement in the future.

United Food and Commercial Workers International Union Locals 175 and 633 v. Rainy Lake Hotel, [2005] O.J. No. 4140 (Sup. Ct.)