The complainant union alleged that the respondent employer bargained in bad faith by repudiating a memorandum of agreement.
The parties had resolved all outstanding issues and signed a memorandum subject to ratification.
Before ratification, the respondent acquired a related company and subsequently refused to ratify the agreement unless the union agreed to amend the recognition clause to explicitly exclude the employees of the newly acquired company.
The Board held that the respondent's insistence on altering the recognition clause to avoid the potential application of the related employer provisions of the Labour Relations Act was inconsistent with the scheme of the Act and constituted a breach of the duty to bargain in good faith.
