Don Dewar

The applicant union sought a declaration that a sale of a business occurred when the Town of Ajax terminated its transit operation contract with Charterways Transportation Limited and directly hired the majority of the former Charterways employees to continue operating the transit system.

The Ontario Labour Relations Board found that Charterways' business consisted primarily of providing a skilled workforce, which was its most valuable asset.

By acquiring this workforce, the Town transferred to itself an essential element of Charterways' business.

The Board concluded that a sale of a business had transpired within the meaning of section 64 of the Labour Relations Act.

Furthermore, the Board held that section 64.1(1) applied because the sale occurred on or after January 1, 1993, allowing for successorship from a federal to a provincial undertaking.

The Minister of Labour referred a question to the Ontario Labour Relations Board regarding whether the labour relations between Charterways Transportation Limited and its unions fall within federal or provincial jurisdiction.

Charterways operates bus services across Ontario, including regular extra-provincial charters.

The unions argued that each local branch constituted a separate provincial undertaking.

The Board applied the test for federal undertakings and concluded that the core undertaking is the province-wide bus services, not the individual branches.

Because the province-wide undertaking includes regular and continuous extra-provincial charter activity, the Board advised that the labour relations between the parties fall within federal jurisdiction.