Board finds intermingling of employees after sale of union and non-union businesses to new entity; representation vote ordered.
The union applied for a declaration that a sale of a business occurred when a unionized laundry business and a non-unionized laundry business were both sold to a newly incorporated company, which then integrated the operations and employees.
The Board found that a sale of a business had occurred.
The central issue was whether there was an 'intermingling' of employees under subsection 63(6) of the Labour Relations Act, given that the purchaser was a newly created entity with no pre-existing business.
The Board held that the purchaser carried on the businesses of both predecessor companies and intermingled their employees, satisfying the requirements of subsection 63(6).
Consequently, the Board ordered a representation vote to determine if the employees wished to be represented by the union.
Textile Processors, Service Trades, Health Care Professional & Technical Employees International Union, Local 351 v. R. V. Campbell Commercial Laundry Services (1985) Inc., 1991 CanLII 6074