The applicant union alleged that a sale of part of a business occurred when Ontario Hydro sold the Glen Cross Conference and Training Centre to Goldman Hotels Inc. The purchaser argued that it merely bought idle assets and started a new business.
The Board found that there was substantial continuity of enterprise, evidenced by a two-year leaseback to Ontario Hydro and continued room bookings from former clients.
The Board also found substantial continuity in the bargaining unit work performed by the front-line staff.
The Board concluded that a sale of part of a business occurred under section 69 of the Labour Relations Act and declared that the collective agreement applied to the purchaser's operation.