The applicant union sought a declaration that the respondent was a successor employer following the purchase of a tavern and transfer of its liquor licence.
The respondent argued that no sale of a business occurred because the transaction involved a mortgagee in possession and the premises had been closed.
Alternatively, the respondent sought to terminate bargaining rights due to a substantial change in the character of the business, citing a shift to a 'goth' theme and new wave music.
The Board found that a sale of a business had occurred, as the essential elements, including the premises and liquor licence, were transferred.
The Board also dismissed the request to terminate bargaining rights, holding that changes in decor and entertainment do not constitute a fundamental difference in the nature of the work.
The respondent was declared bound by the collective agreement.