Common employer declaration

A buyer of one of several linked businesses may find that a union, or an employer, asks a board to treat them as one. Ontario’s Labour Relations Act, 1995, s.1(4), says that where, in the Board’s opinion, associated or related activities or businesses are carried on, whether or not simultaneously, by or through more than one corporation, individual, firm, syndicate or association, or any combination, under common control or direction, the Board may treat them as one employer for the purposes of the Act and grant relief by declaration or otherwise.

Who can ask, and where else it appears

In Ontario the application may be made by any person, trade union or council of trade unions concerned. British Columbia’s Labour Relations Code s.38 has a similar power for associated or related activities or businesses under common control or direction. The Canada Labour Code s.35(1) lets the federal Board, on application by an affected trade union or employer, declare a single employer for federal works, undertakings or businesses operated by two or more employers having common control or direction. This entry covers those three; check the rules where you are.

What to ask

• Whether the businesses share ownership, control or direction with any business the seller keeps.
• Whether a union certification or collective agreement already covers any of them.
• Whether any application for a declaration has been filed or threatened.