The applicant union sought a declaration that the respondent, More Groceteria Limited, was a successor employer bound by a collective agreement with Loblaws Limited.
Loblaws had closed a neighbourhood store, transferred its employees, and subleased the premises to the respondent, who also purchased the store's fixtures.
The Ontario Labour Relations Board held that the transaction constituted a sale of a part of Loblaws' business under section 55 of the Labour Relations Act.
The Board emphasized that in the retail food industry, goodwill often inheres in the premises themselves, and the direct commercial dealings between the parties supported a finding of a sale rather than a mere asset disposition.
The application was granted, with one member dissenting.