Carolyn Shaughnessy

The complainant union alleged that the respondent successor employer committed an unfair labour practice by refusing to employ the predecessor's employees following a sale of a nursing home business.

The Board found that the respondent was legally obligated under section 63 of the Labour Relations Act to staff the new facility with the predecessor's employees.

The Board ordered the respondent to reinstate the former employees with full seniority and compensate them for lost wages and benefits.

The union filed an unfair labour practice complaint alleging that the respondent, a successor employer, refused to recognize the union, apply the collective agreement, or retain the predecessor's employees.

The Board held that under section 63 of the Labour Relations Act, a successor employer inherits the predecessor's obligations, including the collective agreement.

The Board found that the predecessor's employees could not be terminated without just cause merely because of the impending sale, and the successor was obligated to retain them in accordance with the collective agreement's seniority provisions.

The applicant union sought a declaration under section 63 of the Labour Relations Act that the respondent had or would shortly acquire the business of a nursing home.

The respondent had entered into an agreement to purchase the nursing home licence and transfer residents to a new facility.

The Board declined to express a preliminary opinion on the hypothetical facts, noting the transaction had not yet closed and the licence had not been formally acquired.

The application was dismissed as premature, without prejudice to bringing a fresh application once the transaction was completed.