Transfer of patents, expertise, and goodwill constituted a sale of a business under the Labour Relations Act.
The applicant trade union alleged that a sale of a business occurred between ComDev and Senstar Corporation, and sought a declaration that Senstar was bound by the existing collective agreement.
Senstar argued that only assets were transferred, that the union's geographic scope did not cover Senstar's location, and that the union's constitution did not permit Senstar employees to join.
The Ontario Labour Relations Board found that the transfer of patents, technical expertise, customer lists, and goodwill constituted a sale of a business under section 63 of the Labour Relations Act.
The Board also interpreted the collective agreement's geographic scope liberally to include Senstar's location and found the union's constitutional amendment valid.
A representation vote was ordered due to the intermingling of employees.