Board dismisses sale of business application but grants related employer declaration for relocated fabrication shop.
The applicant union filed applications under sections 1(4) and 63 of the Labour Relations Act, seeking to bind the respondent employer's new fabrication shop to an existing collective agreement.
The union argued that the employer's acquisition of a lease and equipment from a defunct company constituted a sale of a business.
The Ontario Labour Relations Board dismissed the section 63 application, finding that the new operation was primarily a continuation of the employer's previous non-union shop rather than an acquisition of the defunct company's business.
However, the Board granted the section 1(4) application, declaring the various corporate entities operating the shops to be a single employer, thereby binding the new shop to the bargaining rights the union had recently acquired for the previous shop.
The International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, Local 128 v. Townsend and Bottum of Canada Limited, 1984 CanLII 1132