Bad faith dismissal

Court confirms arbitrator's remedial authority to award damages for lost income, mental distress and pain and suffering, as well as punitive damages.

In Greater Toronto Airports Authority v. Public Service Alliance Canada, Local 0004, the Ontario Divisional Court has affirmed the broad remedial authority of labour arbitrators, including the power to award (1) damages for lost income from the date of dismissal until the worker would otherwise have retired, (2) damages for mental distress, (3) damages for pain and suffering, and (4) punitive damages.