The applicant union alleged that a 'sale of a business' occurred under section 55 of the Labour Relations Act when the respondent, Beef Terminal (1979) Limited, leased the premises and equipment of the predecessor, Beef Terminal.
The predecessor operated a comprehensive meat packing business, while the respondent operated a custom slaughterhouse using the same facilities and many of the same employees.
The Ontario Labour Relations Board found that the respondent acquired a coherent and severable part of the predecessor's business.
The Board concluded there was no substantial change in the character of the business to justify terminating bargaining rights under section 55(5).
The union's bargaining rights were preserved, but a related employer application under section 1(4) was dismissed.
One Board Member dissented, arguing the business character had substantially changed.