The applicant union sought a related employer declaration under section 1(4) and a sale of business declaration under section 69 of the Labour Relations Act, 1995, concerning Sobeys and several of its franchisees.
The franchisees acknowledged they were successors under section 69 and bound by the collective agreement.
The union argued that Sobeys exercised such extensive control over the franchisees, particularly Category 3 franchisees, that they should be considered a single employer.
The Board found that while Sobeys exercised significant financial control to protect its loans and maintain franchise standards, the franchisees operated as independent businesses with control over their own labour relations.
The Board declined to exercise its discretion to make a related employer declaration, noting the absence of anti-union animus and finding that the union's bargaining rights were not eroded by the franchise arrangements.
The section 1(4) application was dismissed, and the section 69 declaration was granted.