The applicant union brought an application under subsection 1(4) and section 69 of the Labour Relations Act, 1995, alleging that a corporate amalgamation of several construction companies into a single entity, BFC Construction Group Inc., constituted a sale of a business.
The union argued that the entire amalgamated corporation was bound by the pre-existing collective agreements.
The responding parties conceded that a sale of business or related employer declaration might be appropriate but argued that the collective agreements should only bind the specific divisions that formerly constituted the predecessor companies.
The Board held that a corporate amalgamation is a sale of a business under section 69.
The Board further held that a division of a corporation can be a 'person' to whom a business is sold under section 69(2).
The Board directed further hearings to determine factually whether the business was transferred to the entire corporation or only to specific divisions.