Sale of Business Transfers Bargaining Rights Under Canada Labour Code
📌 In brief
In this case, the Canada Industrial Relations Board decided that a sale of business under the Canada Labour Code transfers the bargaining rights to the new employer. The ruling confirmed the new employer's obligations under the existing collective agreement.
⚖️ Legal holding
A sale of business under the Canada Labour Code transfers the bargaining rights to the new employer.
📖 What the law says
This section defines 'business' as any federal work, undertaking, or business, or any part of it. It also states that 'sell' includes transferring or disposing of a business, and leasing a business is considered selling it. When an employer sells a business, the union representing the employees in that business remains their bargaining agent.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
A sale of business occurred under the Canada Labour Code, transferring the bargaining rights to the new employer.
📜 Headnote Official document
The Canada Industrial Relations Board declared a sale of business occurred under the Canada Labour Code, transferring the bargaining rights to the new employer. The ruling confirmed the new employer's obligations under the existing collective agreement.
📚 Full judgment Official document
Order No.: 12147-U Supersedes: 10143-U IN THE MATTER OF THE Canada Labour Code - and - [COMPANY] ([NAME]), applicant, - and - [COMPANY]., Regina, Saskatchewan, [COMPANY]., Foothills, Alberta, [COMPANY]., Chilliwack, British Columbia, employers. WHEREAS the Canada Industrial Relations Board (the Board), by order no. 10143‑U, dated February 16, 2012, certified the [COMPANY] ([NAME]) as the bargaining agent for a unit of employees of [COMPANY]., comprising: all production and maintenance employees working at the [COMPANY]. feed mill in Chilliwack, British Columbia, excluding all office staff and office supervisors, all customer service staff and customer service supervisor, all sales and business development staff, senior nutritionists, nutritionists, sales manager, ingredients buyer, mill supplies buyer, retail sales and store staff, retail store warehouse staff, mill store manager, quality control & production manager, production manager, assistant production managers, maintenance supervisor, mill food safety coordinator, and those above. AND WHEREAS the Board received an application, pursuant to sections 18 and 44 of the Canada Labour Code (the Code ), seeking a declaration that: the sale of [COMPANY].’s feed mill business located in Chilliwack, British Columbia (the feed mill business), to [COMPANY]., which then sold the feed mill business to [COMPANY]., constitutes a sale of business within the meaning of the Code ; [COMPANY]. is now the employer of the employees in the bargaining unit covered by order no. 10143-U; and [COMPANY]. is bound by the currently applicable collective agreement between [COMPANY]. and the [COMPANY] ([NAME]) for the bargaining unit covered by order no. 10143-[COMPANY]. now operates as [COMPANY].; [COMPANY]. does not oppose the application to the extent that it would remove its name from order no. 10143-U; [COMPANY]. confirms that it transferred the feed mill business to [COMPANY]. on or about April 2, 2012, and that, at that time, it did not maintain any ownership interest in the feed mill business or continue to employ the employees working in the feed mill business; [COMPANY]. states that it was not involved in the sale of the feed mill business from [COMPANY]. to the current employer, [COMPANY].; [COMPANY]. does not oppose the application; AND [COMPANY]. does not oppose the application and confirms that it is the employer of the employees in the bargaining unit covered by order no. 10143‑U and that it is bound by its current applicable collective agreement with the [COMPANY] ([NAME]); AND WHEREAS , following investigation of the application and consideration of the submissions of the parties concerned, the Board has determined that feed mill business was transferred from [COMPANY]. to [COMPANY]. on April 2, 2012, and then to [COMPANY]. on June 29, 2017, and that a sale of business has occurred within the meaning of section 44 of the Code ; AND WHEREAS , since June 29, 2017, or about that date, the employees in the bargaining unit described hereunder, who previously worked for [COMPANY]. and then [COMPANY]., are now working for [COMPANY]. NOW, THEREFORE , the Canada Industrial Relations Board declares that a sale of business has occurred within the meaning of the Code , that [COMPANY]. is the successor employer and that the [COMPANY] ([NAME]) continues to be the certified bargaining agent for a bargaining unit comprising: all production and maintenance employees working at the [COMPANY]. feed mill in Chilliwack, British Columbia, excluding all office staff and office supervisors, all customer service staff and the customer service supervisor, all sales and business development staff, senior nutritionists, nutritionists, the sales manager, the ingredients buyer, the mill supplies buyer, retail sales and store staff, retail store warehouse staff, the mill store manager, the quality control & production manager, the production manager, assistant production managers, the maintenance supervisor, the mill food safety coordinator, and those above. FURTHERMORE , the Board declares that, pursuant to section 44(2)(c) of the Code , [COMPANY]. and the [COMPANY] ([NAME]) continue to be bound by the current collective agreement applicable to the above bargaining unit. ISSUED at Ottawa, this 19 th day of January, 2026, by the Canada Industrial Relations Board. [NAME]-Chairperson Reference: File No. 038115-C
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The feed mill business was transferred from one company to another on April 2, 2012.
- The feed mill business was subsequently transferred to a third company on June 29, 2017.
- The Board determined that a sale of business occurred according to the Code.
- The current employer confirmed it is the employer of the employees in the bargaining unit and is bound by the collective agreement.
- The employees in the bargaining unit who previously worked for the former employers are now working for the current employer.
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 occurred under the Canada Labour Code, transferring the bargaining rights to the new employer.
What was the dispute about?
The dispute was about whether the sale of a business to a new employer would transfer the bargaining rights under the Canada Labour Code.
How did the court decide, and why?
The court decided that the sale of business transferred the bargaining rights to the new employer because the sale met the criteria defined in the Canada Labour Code.
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 met the criteria defined in the Canada Labour Code, thus transferring the bargaining rights to the new employer.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, confirming the new employer's obligations under the existing collective agreement.
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 transfer the bargaining rights to the new employer, subject to meeting the criteria defined in the code.
What evidence or documents mattered?
The judgment does not specify the evidence or documents that mattered.