The company TCT became insolvent and an interim receiver, KPMG, was appointed.
The order appointing KPMG stated it could not be considered a successor employer and prohibited proceedings against it without leave.
KPMG terminated unionized employees and sold assets to a new company, which hired some employees without union representation.
The union sought leave under s. 215 of the Bankruptcy and Insolvency Act to bring a successor employer application before the Ontario Labour Relations Board.
The Supreme Court held that the bankruptcy court lacks jurisdiction to determine successor employer status, which belongs exclusively to the labour board.
The Court also held that the traditional Mancini test applies to s. 215 leave applications, requiring only a prima facie case, and granted the union leave to proceed.
