The applicant union alleged that James River-Marathon Ltd. (JRM) was a successor employer to American Can Canada Inc. regarding its woodlands operations under section 63 of the Labour Relations Act.
JRM had purchased a paper mill and timber limits from American Can, but simultaneously transferred the woodlands equipment and exclusive cutting rights to Pic River Forest Products Inc., a subsidiary of Buchanan Forest Products Limited.
The Board found that while JRM initially acquired the woodlands business, it immediately transferred it to Pic River in a transaction resembling a sale of a business rather than a mere subcontract.
Since JRM did not retain or operate the woodlands business itself, the application for a successor employer declaration against JRM was dismissed.
