The union brought an application alleging a sale of business and related employer status between Bellefeuille Electric Limited (B.E.) and Portt Electric Ltd. (P.E.).
B.E.'s owner retired and sold significant assets, tools, and equipment to a former employee who started P.E. The former employee also used B.E.'s owner's Master's License to operate and secure work.
The Board dismissed the related employer application under subsection 1(4) as B.E.'s owner did not take an active role in P.E.'s operations.
However, the Board found a sale of business under section 69, concluding that the transfer of assets, the financing arrangement, the use of the Master's License, and the overlap in customers constituted a transfer of the essential elements of B.E.'s business to P.E. P.E. was declared bound to the collective agreements.