The applicant union sought a declaration that a sale of business occurred between British Brand Clothes Limited and Antonacci Clothes Inc., and that Antonacci Clothes was bound by the union's bargaining rights.
British Brand had ceased its clothing production operations and terminated its employees.
Patrick Antonacci, a former designer and minority shareholder of British Brand, incorporated a new company, purchased British Brand's production equipment, and hired several former employees to perform contract work, including exclusively supplying British Brand's continuing retail operation.
The Board found that a sale of part of a business had occurred under section 63 of the Labour Relations Act, as there was a substantial continuation of the predecessor's business organization, equipment, and key personnel.
The Board declined to order a representation vote, finding that the sale did not create a representation issue requiring a vote.
The application was granted.