The applicants sought a declaration under the Successor Rights (Crown Transfers) Act that a transfer of an undertaking had occurred from the Crown to the municipality.
The Crown had conveyed the administration of a part of its Family Benefits Act program to the municipality, and six former Crown employees accepted employment there.
The respondent union argued no transfer occurred because the Crown lacked statutory authority to have the work performed by non-Crown employees.
The Board held that the legal authority of the Crown to effect a transfer is not determinative of whether a transfer occurred under the Act.
Finding that a transfer and intermingling of employees had occurred, the Board declared that the municipality was no longer bound by the respondent union's collective agreement and that the applicant union was the bargaining agent for all employees in the unit.
