The applicant union alleged that the respondent was a successor employer following the sale of a tavern business and sought a declaration that the respondent was bound by the existing collective agreement.
The respondent argued that it merely acquired the real property and location, not the business itself, and alternatively sought to terminate bargaining rights under section 63(5) of the Labour Relations Act due to a substantial change in the business's character.
The Board found that a sale of a business had occurred, as the respondent acquired the real property, chattels, liquor licenses, and continued the same food operation.
The Board also dismissed the respondent's request to terminate bargaining rights, finding that the essential nature of the work—preparing and serving alcoholic beverages—remained unchanged despite the introduction of adult entertainment.
The Board declared the respondent bound by the collective agreement.