The applicant union sought a declaration under section 69 of the Labour Relations Act, 1995, that it represented employees of the responding party, Borden Cold Storage Limited, following the sale of a warehouse facility by J. M. Schneider Inc. The union argued that the transaction constituted a sale of part of a business, thereby transferring bargaining rights.
The Board found that the transaction was merely a sale of idle assets, specifically an empty and derelict warehouse, rather than the transfer of a functional economic vehicle or operational entity.
The purchaser created a new third-party commercial enterprise from the ground up.
Consequently, the Board concluded there was no sale of a business within the meaning of the Act and dismissed the application.