The Court held that at common law, secondary picketing is legal so long as there is no criminal or tortious conduct.

Employees of PepsiCo ("Pepsi"), organized by the Retail, Wholesale and Department Store Union, in Saskatchewan went on strike.

The Court felt that the limited financial and human resources of labour unions would prevent the unchecked spread of picketing beyond the primary parties, with limited resources they felt it was unlikely the union would picket a location which has no possible impact on their labour dispute.

Pepsi had relied primarily on the Court of Appeal for Ontario decision Hersees of Woodstock Ltd v Goldstein (1963), 2 OR 81 (CA), which held that all secondary picketing was illegal.

The Court's overall conclusion was that secondary picketing is legal so long as it is not tortious or criminal in nature and does not inflict "undue" hardship on the struck parties.