The applicant union sought a declaration under section 1(4) of the Labour Relations Act that Cronkwright Transport Limited and Erie Employee Services Ltd. constituted a single employer.
Cronkwright had previously contracted out shunting work to an independent operator but later transferred the work to Erie, a related corporation under common control.
The Board found that the essential elements of a related employer relationship were present and that the transfer of work to a related entity, rather than an arm's-length contractor, threatened to erode bargaining rights.
The Board exercised its discretion to grant the declaration, binding Erie to the collective agreement.
A dissenting member would have dismissed the application on grounds of delay and the employees' right to free choice.
