The applicant union alleged that the respondent employer sold a part of its business to the intervener when it contracted out the cleaning services for its office building.
The union sought a declaration under section 63 of the Labour Relations Act that the intervener was bound by the existing collective agreement.
The Ontario Labour Relations Board found that the respondent was primarily in the insurance business and that the contracting out of cleaning services was a bona fide arrangement based on economic considerations.
The Board concluded that there was no transfer of assets or employees, and thus no sale of a business within the meaning of the Act.
The application was dismissed.