Newfoundland (Treasury Board) V. N.A.P.E. - Background

Background

The provincial Newfoundland and Labrador government entered a pay equity agreement with the Newfoundland Association of Public Employees (N.A.P.E.) in 1988 which adjusted the wages for hospital employees in areas that were typically staffed by women to be comparable to salaries earned by male-dominated positions. The agreement specified that the wages would be increased over a five-year period ending in 1992.

In 1991, however, the provincial government had a $120 million deficit and was undergoing a significant financial crisis. Consequently, they enacted legislation that would cancel the agreement and would retroactively cancel the arrears already owed to the employees from the previous three years which amounted to about $24 million.

The union began an action against the government on the basis that the legislation discriminated against women and violated section 15(1) of the Charter.

An arbitration board found in favour of the union, ruling that section 15 was violated as the law discriminated against women employees by subjecting them to a larger share of the brunt of the cuts. The further found that it could not be saved under section 1 because the government failed to consider more minimally impairing means to find the money.

The Newfoundland and Labrador Supreme Court overturned the board. A violation of section 15 was found but that it was a reasonable limitation to the rights of the workers under section 1. The judge stated that when balancing the rights between different groups in society, deference should be given to the government.

The Newfoundland and Labrador Court of Appeal upheld the ruling of the Newfoundland Supreme Court.

The issue before the Supreme Court of Canada was whether the lower courts erred in their ruling that the violation was within the reasonable limits of section 1. In a unanimous decision the appeal was dismissed.