The appellant town terminated its contract with a transportation company for the operation of its municipal transit system and commenced operating the system itself, hiring a significant number of the company's laid-off workers.
The Ontario Labour Relations Board found that a 'sale of a business' had occurred under s. 64 of the Labour Relations Act, binding the town as a successor employer.
The Supreme Court of Canada dismissed the town's appeal, holding that the Board's finding of a nexus between the company and the town was not patently unreasonable given their historical and functional connection.
