Canada Industrial Relations Board Updates Certification Order Due to Sale of Business
📌 In brief
The Canada Industrial Relations Board recognized a sale of business and updated the certification order for a group of air cargo screening employees, ensuring their union representation remained intact.
⚖️ Legal holding
A sale of business can be recognized under section 44 of the Canada Labour Code.
📖 What the law says
This section explains that a 'business' can be any federal operation or part of one. It also clarifies that 'selling' a business includes transferring or disposing of it, and even leasing it is considered a sale. When a business is sold, the union representing its employees continues to be their bargaining agent.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Board recognized a sale of business and updated the certification order.
📜 Headnote Official document
The Board recognized a sale of business involving air cargo screening employees and updated the certification order accordingly, maintaining the union's status as the bargaining agent.
📚 Full judgment Official document
Order No.: 12189-U Supersedes: 11443-U IN THE MATTER OF THE Canada Labour Code - and - International Association of Machinists and Aerospace Workers, applicant, - and - [COMPANY]., Toronto, Ontario, employer. WHEREAS the Canada Industrial Relations Board (the Board), by order no. 11443‑U dated August 30, 2019, certified the International Association of Machinists and Aerospace Workers (the union) as the bargaining agent for the following unit of employees: all employees of [NAME]. conducting air cargo screening and providing access control services at the Montréal–[NAME], excluding supervisors and those above the rank of supervisor. AND WHEREAS , on April 27, 2026, the Board received an application from the union for a declaration of sale of business and for an update of the above certification order pursuant to sections 18 and 44 of the Canada Labour Code (the Code ); AND WHEREAS , in its application, the union asked the Board to recognize that, as a result of a sale of business, [COMPANY]. has become the employer of the employees covered by order no. 11443-U pursuant to section 44 of the Code ; [COMPANY]. consents to the union’s application and confirms that it is the legal successor, by corporate amalgamation, to [COMPANY].; [COMPANY]. accepts that the corporate amalgamation of April 1, 2020, constitutes a sale of business within the meaning of section 44 of the Code ; AND WHEREAS , as a result of corporate transactions, [COMPANY]. continued the operations of [COMPANY]. without interruption, and the employees in the above-described bargaining unit continued to perform their functions under the terms and conditions of the applicable collective agreement. NOW, THEREFORE , after investigation of the application and consideration of the submissions of the parties, the Board has determined and declares that a sale of business has occurred within the meaning of section 44 of the Code , that [COMPANY]. is the successor employer to [COMPANY]. and that the International Association of Machinists and Aerospace Workers is the bargaining agent for a unit comprising: all employees of [COMPANY]. conducting air cargo screening and providing access control services at the Montréal–[NAME], excluding supervisors and those above the rank of supervisor. FURTHERMORE , the Board declares that, effective April 1, 2020, section 44(2) of the Code applies to the relationship between [COMPANY]. and the International Association of Machinists and Aerospace Workers. ISSUED at Ottawa, this 5th day of June, 2026, by the Canada Industrial Relations Board. [NAME]: File No. 039934-C
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The Board recognized that a sale of business occurred within the meaning of section 44 of the Canada Labour Code.
- The Board determined that the company is the successor employer to the previous company.
- The Board confirmed that the International Association of Machinists and Aerospace Workers remains the bargaining agent for the unit of employees.
- The Board declared that section 44(2) of the Canada Labour Code applies to the relationship between the company and the union effective April 1, 2020.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Board recognized a sale of business and updated the certification order for a group of air cargo screening employees.
What was the dispute about?
The dispute was about whether a sale of business had occurred and if the certification order should be updated.
How did the court decide, and why?
The court decided that a sale of business had occurred and updated the certification order because the new employer accepted the union's role.
Which laws or rules were applied?
Section 44 of the Canada Labour Code was applied.
What was the argument that mattered most?
The argument that mattered most was that the new employer accepted the union's role and the sale of business was recognized.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, recognizing the sale of business and updating the certification order.
What does this mean for someone in a similar situation?
For someone in a similar situation, it means that if a sale of business occurs and the new employer accepts the union's role, the certification order may be updated.
What evidence or documents mattered?
The judgment does not specify the evidence or documents that mattered.