The union brought an application alleging that Mount Citadel Inc. sold its business to McArthur Properties and/or Coram Deo Inc., and sought a declaration that the purchasers were bound by the existing collective agreement.
The purchasers argued the transaction was merely an asset purchase of an apartment building.
The Board found that Mount Citadel was bound by the collective agreement through its membership in an employers' organization.
Applying the tracing approach, the Board concluded that the transaction constituted a sale of a business under section 69 of the Labour Relations Act, 1995, as the purchasers acquired a functioning economic vehicle.
The Board declared the purchasers bound by the collective agreement and advised the Minister of Labour that he had the authority to appoint an arbitrator for related grievances.