The applicant union alleged that there was a transfer of a business from the predecessor company to the successor company under section 55 of the Labour Relations Act, or alternatively that they were related employers under section 1(4).
The predecessor company had ceased operations due to financial difficulties, and its key employees formed a new company, purchasing about two-thirds of the predecessor's equipment and operating from the same location.
The Board found that the transfer of assets, along with the continuation of the same management, location, and type of work, constituted a sale of part of the business under section 55.
The successor company was therefore bound by the predecessor's collective agreements.
The section 1(4) application was dismissed as unnecessary.