The union brought an application under section 63 and a complaint under section 89 of the Labour Relations Act against two banks and their privately appointed receivers following the insolvency of Windsor Packing Company Limited.
The union argued that the receivers were successor employers and were liable for unpaid union dues and other collective agreement obligations.
The Board held that the private appointment of a receiver-manager does not constitute a sale or transfer of a business under section 63.
However, the Board found that the receiver, acting as an agent of the insolvent company, violated section 64 by failing to deduct and remit union dues and ignoring the collective agreement while employing bargaining unit members to wind down operations.
The receiver was ordered to pay the union dues for the period it acted as the employer.
