The United Food and Commercial Workers International Union applied for certification for employees at various Swiss Chalet restaurants.
The respondents and interveners argued the applications were untimely due to an existing collective agreement between the Swiss Chalet Employers' Association (SCEA) and the Canadian Union of Restaurant and Related Employees (CURRE).
Local 88 intervened, claiming to be the successor to CURRE following a merger.
The Board found that the attempted merger between CURRE and Local 88 was legally ineffective due to non-compliance with CURRE's constitutional notice requirements.
The Board also determined that the SCEA was a valid employers' organization and its agreement with CURRE was a collective agreement.
However, franchisee respondents who applied for SCEA membership after its formation were not automatically bound by the agreement.
The Board further held that the franchising of locations by Foodcorp constituted a sale of a business under section 63 of the Act.