The applicant unions sought declarations under sections 63 and 1(4) of the Labour Relations Act that a sale of a business had occurred between K & Z Construction Ltd. and Yola Construction Ltd., or alternatively, that the two companies were related employers under common control or direction.
K & Z had ceased operations due to financial difficulties, and one of its owners subsequently became a part-owner of Yola, an existing business.
The Board dismissed the section 63 application, finding no transfer of a functional economic vehicle.
The Board also declined to exercise its discretion to make a related employer declaration under section 1(4), concluding that doing so would inappropriately extend rather than preserve the unions' bargaining rights, as the new owner brought no meaningful part of K & Z's business to Yola.