The applicant union brought an application under section 63 of the Labour Relations Act alleging a sale of a business from the predecessor employer to the respondent purchaser.
The predecessor owned two office buildings and employed cleaning staff represented by the union.
Prior to the sale, the predecessor contracted out the cleaning operations to a third party and later sold the buildings to the respondent, assigning the cleaning contract.
The Board found that a sale of a business occurred and that the union's bargaining rights continued to apply to the respondent.
However, the Board held that a prior memorandum of settlement was never ratified by the predecessor, meaning the respondent was not bound by any subsisting collective agreement.
The Board deferred determining the true employer status of the cleaning staff as the third-party contractor was not a party to the proceedings.