The applicant union brought an application under section 55 of the Labour Relations Act, alleging that a sale of a business occurred between Vaunclair Purveyors and Vaunclair Meats, and that the latter was bound by the existing collective agreement.
Vaunclair Purveyors had shut down its meat processing operations, and its principals subsequently incorporated Vaunclair Meats, which operated as a distribution house from the same location, serving many of the same customers with some of the same employees and assets.
The Board found that while the new operation was smaller and functioned differently, it constituted a continuation of a severable part of the predecessor's business.
The Board concluded there was a sale of part of the business and that the union's bargaining rights continued.