1 total
Applications alleging sale of business and related employer status dismissed where dealership contracted out washing work.
The applicant union alleged that the respondent car dealership's contracting out of its rustproofing and washing work to a sub-contractor constituted a sale of a business under section 63 of the Labour Relations Act, or alternatively, that the dealership and the sub-contractor were related employers under section 1(4).
The Ontario Labour Relations Board dismissed both applications.
The Board found that the transfer of work alone did not constitute a sale of a business, as the sub-contractor merely continued a pre-existing business from a new location leased from the dealership.
Furthermore, the Board held that the two firms were not under common control or direction, as the sub-contractor independently managed its employees and performed work for other clients.
