Early Retirement Offer with No Guarantee Not Binding

|Canadian Labour Reporter|Last Updated: 02/06/2011

Having signed up for an early retirement package, some 50 mine workers were informed two weeks after the application deadline that the deal was off.

The union grieved arguing that in rescinding the offer, the company was guilty of negligent misrepresentation and its actions constituted an unfair application of management rights.

In particular, the union pointed to language in the company’s written offer that committed it to presenting the union with a maximum number of employees who would be allowed to retire under the plan. In the end, no number was presented and no employees were permitted to retire. This constituted a breach of the company’s obligations under the agreement, the union said.