The Supreme Court backed U.S. retail giant Walmart Stores' right to close a Quebec store after a union attempted to organize workers there.
The court ruled 6-3 in favor of Walmart, which opened a store in Jonquiere in 2001 and closed it four years later after a union was certified and sought to negotiate a collective agreement. While backing the right to close the store, the court said Walmart may be required to pay compensation in such cases.
"We will have to review the ruling carefully in this regard before we can come to any decision," said Andrew Pelletier, Walmart, vice president of communications, regarding the possibility of a payout to workers. "The court decision wasn't a surprise and is consistent with a ruling by the Quebec labour commission and others."
The court ruled that no legislation obliges an employer to remain in business. Those opposing the decision argued that the closure sends a message that unionization carries the risk of the loss of jobs for all employees in the workplace.
The discount retailer has often come under fire for the lack of union organization amongst its employees.
Pelletier said in Canada, "workers have always voted against unionization when it has been put to the vote."
