The applicant union brought an application under section 55 of the Labour Relations Act alleging that a sale of a business had taken place when the respondents acquired the leasehold interest and liquor licence of The Horseshoe Tavern.
The respondents argued that they had merely acquired assets and changed the character of the business from a 'punk rock' venue to a 'country and western' lounge.
The Board found that the transaction constituted a continuation of the predecessor's business, noting that the tavern operated at the same location, under the same name, and that the 'punk rock' format was merely a brief interlude in the tavern's long history as a country and western centre.
The Board declared that a sale of a business had occurred and that the union's bargaining rights continued to bind the respondents.
