The applicant union sought a declaration under section 1(4) of the Labour Relations Act that Karl Thier Construction Limited and Penka Carpentry Limited be treated as one employer.
Karl Thier Construction, bound by a collective agreement with the union, ceased receiving contracts from a major developer due to its union affiliation.
The owner, Karl Thier, subsequently arranged for his uncle to incorporate Penka Carpentry Limited to obtain contracts from the same developer, with Thier managing the operations.
The Board found that the two companies carried on related businesses under common control and direction.
The Board exercised its discretion to declare them a single employer to protect the union's bargaining rights, finding that Penka was formed to circumvent Karl Thier Construction's collective bargaining obligations.