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AllowedCanada Industrial Relations Board·

Canada Industrial Relations Board Rules on Sale of Business and Bargaining Unit Transfer

Case No.

📌 In brief

The Canada Industrial Relations Board decided that a sale of business under the Canada Labour Code transfers the bargaining unit to a new employer. This decision affects the rights and obligations of workers and employers in such transactions.

⚖️ Legal holding

A sale of business under the Canada Labour Code triggers the transfer of a bargaining unit to a new employer.

Topics

sale of businessbargaining unit transfer

Provisions

📖 What the law says

Canada Labour Code s.44 — Definitions

This section explains that 'business' refers to any federal work, undertaking, or business, or any part of it. It also clarifies that 'sell' includes transferring or disposing of a business, and even leasing a business is considered selling it. When a business is sold, the union representing its employees remains their bargaining agent.

Plain-English explanation — does not replace advice from a lawyer.

📖 Technical summary

The Canada Industrial Relations Board declared a sale of business under the Canada Labour Code, transferring the bargaining unit to a new employer.

📜 Headnote Official document

The Canada Industrial Relations Board declared a sale of business under the Canada Labour Code, transferring the bargaining unit to a new employer, effective January 1, 2026.

📚 Full judgment Official document

Order No.: 12155-U Supersedes: 10525-U; 10605-U IN THE MATTER OF THE Canada Labour Code - and - [NAME], [COMPANY]., Unifor, Dorval, Quebec, applicants. WHEREAS the Canada Industrial Relations Board (the Board), by order no. 10525-U dated February 17, 2014, superseding order no. 9660-U, certified Unifor as the bargaining agent for a unit of employees of [COMPANY]. ([NAME]) comprising: all employees of [COMPANY]., within the territorial limits of Canada, primarily engaged in customer sales and service functions, or in discrete units primarily performing such functions, excluding any persons performing management functions, or employed in a confidential capacity in matters relating to industrial relations as required by the Canada Labour Code . (the [NAME] unit) AND WHEREAS the Board, by order no. 10605-U dated August 12, 2014, superseding order no. 8011-U, certified Unifor as the bargaining agent for a unit of employees of [NAME] comprising: all employees of [NAME], within the territorial limits of Canada, primarily engaged in customer sales and service functions, or in discrete units primarily performing such functions, excluding any persons performing management functions, or employed in a confidential capacity in matters relating to industrial relations as required by the Canada Labour Code . (the [NAME] unit) AND WHEREAS the Board has received a joint application from [NAME], pursuant to sections 18, 18.1, 44 and 45 of the Canada Labour Code (the Code ), seeking a declaration that the sale of [NAME] to [NAME] constitutes a sale of business within the meaning of the Code ; AND WHEREAS , in 1984, [NAME] created the [NAME] frequent flyer program as a promotional tool, which had as its prime objective to build and retain customer loyalty; AND WHEREAS the employees working at [NAME] locations were represented by the International Union, United Automobile, Aerospace and Agriculture Implement Workers of America, the predecessor to the National Automobile, Aerospace, Transportation and General Workers Union of Canada ([NAME]), which itself is the predecessor to Unifor; AND WHEREAS , in August 2000, [NAME] announced the reorganization of [NAME] as a new division of [NAME]; AND WHEREAS , on January 1, 2001, the [NAME] division became a separate limited partnership, wholly owned by [NAME]; AND WHEREAS , in 2004, [NAME] restructured under the protection of the Companies’ Creditors Arrangement Act , and [COMPANY]. (ACE) was incorporated on June 29, 2004, thus becoming the parent holding company of the reorganized [NAME] and certain other subsidiaries, including [NAME]; AND WHEREAS , at that time, [NAME] and [NAME] concluded a Memorandum of Agreement that governed the terms and conditions relating to the temporary assignment to [NAME] of all [NAME] represented employees employed by [NAME] in the [NAME] unit who provided services to [NAME] customers; AND WHEREAS , in June 2005, ACE sold 12.5 percent of [NAME] through an initial public offering, creating the [NAME]; AND WHEREAS , on May 28, 2008, ACE sold its remaining stake in [NAME]; AND WHEREAS , between 2008 and 2012, the [NAME] operated as a publicly traded entity and was widely held by the public; AND WHEREAS , on May 4, 2012, [NAME] formally changed its name and continued operating under the name [COMPANY].; AND WHEREAS , on November 26, 2018, [NAME] acquired all issued shares of [COMPANY]., the entity that owned and operated the [NAME] loyalty business, and all unionized employees of [NAME] were transferred to [NAME] at that time; AND WHEREAS , as of November 26, 2018 , or about that date, the employees in the bargaining unit described hereunder, who previously worked for [NAME], are now working for [NAME]; AND WHEREAS , after investigation of the application and consideration of the submissions of the parties concerned, the Board has determined that the business of [NAME] was transferred to [NAME] and that a sale of business has occurred within the meaning of section 44 of the Code . NOW, THEREFORE , the Board declares that a sale of business has occurred within the meaning of the Code , that the consequences of that sale, as set out in section 44(2) of the Code , took effect as of January 1, 2026, that [NAME] is the successor employer, and that Unifor continues to be the certified bargaining agent for a bargaining unit comprising: all employees of [NAME], within the territorial limits of Canada, primarily engaged in customer sales and service functions, or in discrete units primarily performing such functions, excluding any persons performing management functions, or employed in a confidential capacity in matters relating to industrial relations as required by the Canada Labour Code . FURTHERMORE , the Board declares that, effective January 1, 2026, the employees in the former [NAME] unit are to merge into and become members of the former [NAME] unit; AND FURTHERMORE , the Board declares that, pursuant to section 44(2)(c) of the Code , the collective agreement currently in force between [NAME] for the former [NAME] unit applies to the new above-noted bargaining unit, without modification, effective January 1, 2026. ISSUED at Ottawa, this 12th day of February, 2026, by the Canada Industrial Relations Board. [NAME]-Chairperson Reference: File No. 039223-C

⚖️ What tends to weigh in cases like this

✅ Tends to be accepted

  • The Board determined that the business of a company was transferred to another company and that a sale of business has occurred within the meaning of section 44 of the Canada Labour Code.
  • The Board declared that the consequences of the sale, as set out in section 44(2) of the Code, took effect as of January 1, 2026.
  • The Board declared that the successor employer is the new company and that Unifor continues to be the certified bargaining agent for the bargaining unit.
  • The Board declared that, effective January 1, 2026, the employees in the former unit are to merge into and become members of the new unit.
  • The Board declared that the collective agreement currently in force applies to the new bargaining unit, without modification, effective January 1, 2026.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The Canada Industrial Relations Board declared that a sale of business under the Canada Labour Code transfers the bargaining unit to a new employer.

What was the dispute about?

The dispute was about whether the sale of a business to a new entity constituted a sale of business under the Canada Labour Code, which would require the transfer of the bargaining unit to the new employer.

How did the court decide, and why?

The court decided that the sale of business to the new entity constituted a sale of business under the Canada Labour Code, triggering the transfer of the bargaining unit to the new employer.

Which laws or rules were applied?

The Canada Labour Code, specifically section 44, was applied.

What was the argument that mattered most?

The argument that mattered most was that the sale of business to the new entity met the criteria for a sale of business under the Canada Labour Code.

Was the decision for or against the person who brought the case?

The decision was for the person who brought the case, confirming the transfer of the bargaining unit to the new employer.

What does this mean for someone in a similar situation?

For someone in a similar situation, a sale of business under the Canada Labour Code will trigger the transfer of the bargaining unit to the new employer.

What evidence or documents mattered?

The judgment does not specify the evidence or documents that mattered.

Official source: Canada Industrial Relations Board headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the Canada Industrial Relations Board and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.