Winnipeg Free Press Newspaper Archives Oct 27 1970, Page 12

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Winnipeg Free Press (Newspaper) - October 27, 1970, Winnipeg, Manitoba12 tuesday october 27, 1970 business finance test cases should Settle car status by John Mika Ottawa staff the Federal labor department and the government owned Cana Dian National railways Are grimly stalking each other in the litigation rings of Ontario and Alberta. Each is hoping to land the first punch in a Battle which will have ramifications for All nine in hotels from St. Johns Newfoundland to Vancouver and the Canadian brotherhood of railway and transport workers which represents their staffs. Perhaps More important in the Long run the test cases should Clear up a constitutional question determining whether the car is in fact a Crown corporation putting All its divisions within Ottawa s jurisdictions. And it s possible several provinces May get their licks in too before the Scarp is Over. In Ontario the Battle ground will be which mini mum wage Law applies to the chateau Laurier Parlia ment s next door neighbor which has been criticized in the commons Over the Issue. Labor minister Bryce Mac Kasey recently informed the critics that he has ordered prosecution of the hotel for ignoring the hourly minimum wage level which went into effect july 1 for All industries under Ottawa s jurisdiction. The hotel is paying an hour the new minimum set by the province of on Tario to More than 200 maids on the grounds that it does not move across Provin Cial boundaries like a train so it is governed by the provincial not Federal regulations. The car As do All the major transport systems observes the Federal minimum wage rate for workers in All of its transport and communications divisions the cart has Laid com plaints with the department against four other in hotels which observe provincial minimum wage regulations and the Fate of these is directly tied to the chateau Laurier lest. They Are fort Garry in Winnipeg the Mac Donald in Edmonton the bes Borough in Saska Toon and the Nova Colian in Halifax Lor males and for the outcome also might have an Impact depending on the terms of the final judgment on three other in hotels which have complicating factors the Newfoundland in St. John s which May have a different status because of the 1949 confederation terms and the Queen Elizabeth in Montreal and the hotel Vancouver both of which Are operated for in by the Hilton Chain. The chateau outcome also will have a direct Impact on wages at in s posh luxury Mountain resort Jasper. Park Lodge but it attracts More interest As the Battleground the railway s suit against the government. In that Case the in plans to Challenge the Federal labor department s right to certify the cart As bargaining agent for the Lodge s operating engineers which was done recently. It will argue that the Al Berta government has Juris diction not Ottawa again on the grounds that a hotel and not rolling Stock is involved. Both cases have been Sim Mering for several months but neither partly due to the distractions of the cur rent Fly crisis has Actu ally commenced before the courts. However spokesmen on both sides make no secret of the angry intensity of their differences. Neither the department nor the railway Are certain which Case actually will get off the ground first but it is apparent that the same fundamental Issue is at stake in both matters and the same fundamental Legal argument will have to be resolved Al though there May be tactical advantages to one or the other depending on which suit is off the Mark first. In any event because a difficult constitutional Issue is involved the Justice department will handle the government s Side. Whichever Case becomes the test it s expected to take about 18 months to Complete the trip up through lower courts for final decision by the supreme court of Canada. The chateau Laurier prosecution for instance would have to Start As a summary procedure in magistrate s court Here although neither Side has committed itself to a particular Legal argument by filing it before the courts yet there is a consensus View of the general approach each will have to take whether the Liti gation involves the minimum wage Law or certification jus fiction. The car is expected to rely on a 1950 privy Council decision which upheld a supreme court of Canada judg ment that the cup s Empress hotel in Victoria was subject to provincial jurisdiction because it was a fixed asset that could not possibly Cross any boundaries. Since that Case both rail ways have treated their hotel properties As provincially regulated businesses. Labor minister Mackasey proudly told the commons last Spring that his new mini mum wage would not Only apply to federally regulated business uses but also will exert the kind of pressure on the provinces that we want to raise minimums generally and automatically each year in line with productivity and Cost of living increases. And this month while Dis playing his embarrassment and anger that the in s Cha teau Laurier right across the Street was ignoring the Feder Al order he indicated to the commons the argument that will be used by Ottawa against applying the 1950 privy Council principle to the car. I can assure Hon. Members that Crown corporations have to observe the labour Laws of this country like any other Enterprise under Federal he snapped. Obviously the government will have to argue that Al though the privy Council interpretation gave railway hotels to provincial jurisdiction the in s hotel division is governed by Ottawa regulations because it is part of a Federal Crown corporation. That is an arguable proposition because although the car is often regarded As a Crown corporation it is not declared to be such in so Many words of its chartering act. So it can also be regarded As just another Commer Cial company which happens to have its issued shares owned by the Federal gov Vern meet instead of private citizens. The labor department s insistence on pushing the Legal dispute to a conclusion is understandable but it May appear puzzling Why the car would want to fight it out with the government. There Are several reasons not least being the wage costs of abiding by the Feder Al regulations. There probably Are More than persons in its employ below the hourly rate now and that rate is expected to Rise annually on an almost automatic in addition because of differential pay clauses in its Union contracts Many More employees now receiving or slightly More would have to be boosted again. Together those factors would add up to a sizeable sum All of it being an obligation not shared by the competing car hotel Chain and others under provincial jurisdiction. But an even More important aspect is at stake the precise definition of whether or not the car is a Crown corporation. Its present ambiguous status might Well Confer wide benefits in Many areas and specific problems where up until now it sometimes has been Able to choose the most advantageous image now Crown corporation now commercial operation without being pinned Down to one or the other. The strange twist of the whole affair is that a govern ment minister should be the one to demand to know which it is. But or. Macka sey is not noted for Pussy footing. Dividends by the Canadian press jockey club Ltd., six per cent pad. Series a 15 cents Svi per cent i d. Series b 13% cents ?5.60 pad. All Jan. 15, record dec. 21. Air Canada appointment Michael h. Cochrane Earl h. Orser vice president finance Tor air Canada announces tha appointment of Michael h. Cochrane to the position of controller. Or. Cochrane has had a wide experience in the automobile and insurance industries with the Ford motor company of Canada and the great West life Assurance company in Winnipeg. His office will be located in Montreal. Debentures earn you on your Money twill 5 a mfg. 2-4ywntft% writ credit font air 2ic Smith St., winning to Cill 942-1515 member Deposit Timur act corp ration . Bin worries exporters Montebello que. Up f. C. Winser of Montreal vice president of aluminium co. Of Canada Ltd., says the protectionist sentiment in the United states is of great concern to the Canadian Export association. He told the association s 27th annual meeting that new legis lation before the . Congress is strongly protectionist and one of the Bills in its present form would apply quotas to . Imports of textiles and shoes and facilitate the application of quotas to other or. Winser chairman of the association s advisory commit tee on . Customs and Trade said trading nations around the world see the dangers of the . Reversing 35 years of Prog Ress towards Freer Trade. Executive Home for rent 12 room Home situated on Park blvd. Large living room and dining room. Professionally decorated recreation room 7 Bath rooms. Domed swim Ming Pool. Heated 3 car garage. Exceptional rental value to View this dream Home please Contact Mckeag Harris realty Ltd. 1311 Portage ave. Days 774-2505 eve. Ceo. Curtin 774-6461 pictured above is one of four of Canadian National railway s new color Ful freight can. The cars have each had one Side specially covered with Large graphic illustrations to show exactly what they carry and Are in effect billboards on wheels. The opposite Side of each car remains in its Standard design and color. The project another phase of in s visual redesign prof ram n in tended to make the Public More aware of the expanding role of freight transportation. Noon entertainment and Buffet tomorrow haluicifrpyrogiessl.25 the Voyageur it Mim Hwy. Ask oils folder business Loans anywhere in to learn How you May obtain an id loan to assist in starting modernizing or expanding your business any where in Canada court of Appeal squashes move an Effort by certain american firms and individuals to have the Manitoba court of Appeal sit As an sex offitto lower court on litigation was quashed Mon Day by the court of Appeal it self. Hearing the application were chief Justice c. Rhodes Smith or. Justice Samuel Freedman and or. Justice r. G. B. Dick son. Bringing the application were the general Host corporation of new York represented by awyers John s. Lament and Leon Mercury and 107 defend ants named in a lower court lawyer Goldfields through its Canadian subsidiary. Northern Goldfield corporation 40 per cent by Che madly corporation. Or. Degraves and or. La Mont on behalf of their clients were applying to the court of Appeal to strike out the counter claim and or. Lament also sought to recover a loan Alle Gedly made to tantalum mining corp. Grounds for or. Lament s second application were that or. Justice Israel Nitikman of Manitoba court of Queen s Bench had Overly delayed a hearing on the matter and the first application concern my the 107 defendants was brought be cause if the Appeal court decide Industrial 364 e i Tuu Hun. Suit represented by Wilfred r. De Graves. Respondents before the courted m the appellants favor this monday were tantalum mining j Case could aim be decided. Corporation represented by but the Appeal court did not lawyer Henry b. Monk and decide in the appellants favor. Go Fields corporation of Mel Jit ruled that to Bear or. De Bourne Florida. Graves motion to strike out the at Issue is a motion counter aim was a usurpation counter aim filed in Manitoba j of the lower court s function court of Queen s Bench last1 and that or. Justice of Rikmar. 1 wednesday by Gol Fiehs had issued a discretionary j against general Host the order delaying hearing on greyhound corporation of pm the matter of the loan. Cago and the unto Bank of an original claim was filed by los Angeles. A Deng that they general Host in september. Conspired to gain ownership song Golf leu for Defa att on i and control of the re Mahig two tens one for million assets of principal in Jane t9gr, fee Otter for holy the tit alarm Nik at by tic Ninon in december. 19gb. Late han., on fee Manitoba or. Lament said monday oat Ontario Border 131 Miles East of is events were now paying Winnipeg. The a Day interest these Sames a defendants. Loams and had paid some the Ink Prada pcs Tanta in. Them a hot Nix stat Metaj a wed m Negim Tor Jyce . Wow Fig r is apr Ltd Mima Lomga cwt Tiwi. Pc m Anfe does your firm have growing pains your Manitoba Telephone system provides consult ing experts to determine whether your firm is suffering from ill fitting communications equipment in today s highly sophisticated world of business. And it costs no More than the Shine on your trousers. Your its communications consultant Manitoba Telephone system s

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