The applicant union alleged a sale of business from Greenberg Stores Ltd. to Saan Stores Ltd. following Greenberg's bankruptcy, or alternatively sought a related employer declaration against Gendis Inc., Greenberg, and Saan.
The Board found no sale of business under section 69 of the Labour Relations Act, as there was no evidence Saan used Greenberg's acquired trademarks to operate its new store.
While the Board found the entities met the criteria for related businesses under section 1(4), it declined to exercise its discretion to make a declaration.
The Board concluded the union's bargaining rights were lost due to Greenberg's legitimate economic failure, not artificial corporate manipulation.
