The union applied for a declaration that Current River Foods Ltd. was a successor employer to Canada Safeway Limited under section 63 of the Labour Relations Act, following the transfer of a retail food store lease and the sale of fixtures and inventory.
The employer argued it had merely acquired idle assets to start a new, distinct business.
The Board applied the 'Dutch Boy' line of cases, emphasizing the importance of location in the retail food industry.
The Board found that the employer's acquisition of the premises, fixtures, and inventory, and its efforts to retain the existing customer base, constituted a sale of part of Safeway's business.
The employer was declared bound by the existing collective agreement.