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.
