July 17, 2014 10:59 am

Top court sides with feds in $57 billion EI surplus case

The Supreme Court of Canada has sided with the federal government in a long-running legal fight with Quebec's leading labour organizations in a multibillion-dollar employment insurance case.

THE CANADIAN PRESS/Adrian Wyld

OTTAWA – The Supreme Court of Canada has sided with the federal government in a long-running legal fight with Quebec’s leading labour organizations in a multibillion-dollar employment insurance case.

The unions sued the Harper government after it decided in 2010 to close the old employment insurance account and transfer the $57 billion balance into the government’s general revenues.

The Confederation des Syndicats Nationaux said the move was unconstitutional.

READ MORE: Quebec labour leader calls for union-led counterattack against Tory policies

The court, however agreed with the federal argument that it had the authority to this because the matter was dealt with in a 2008 Supreme Court decision.

A lower court sided with the federal government, but the Quebec Court of Appeal overturned that and the government appealed to the Supreme Court.

The justices say the original judge in the case was right to dismiss the union suit because it was bound to fail.

© The Canadian Press, 2014

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