The union filed an unfair labour practice complaint alleging that the respondent, a successor employer, refused to recognize the union, apply the collective agreement, or retain the predecessor's employees.
The Board held that under section 63 of the Labour Relations Act, a successor employer inherits the predecessor's obligations, including the collective agreement.
The Board found that the predecessor's employees could not be terminated without just cause merely because of the impending sale, and the successor was obligated to retain them in accordance with the collective agreement's seniority provisions.
