The Zellers Inc. and Target Canada Co. decision
establishes that collective bargaining rights will not necessarily
follow the enterprise when a company acquires something previously
used or possessed by the unionized business. Although the case
considers the application of the British Columbia Labour
Relations Code (Code), the principles contained in the
decision have broader application across Canada.
This decision is important to any employer considering expanding
operations through acquiring an existing, comparable
enterprise.
Background
Target's well-publicized entry into Canada was made
possible, in part, by its decision to acquire Zellers.
A key component of that acquisition was Target's right to
assume the leases of retail locations formerly occupied by
Zellers.The ability to assume the Zellers leases was an important
benefit to Target, which sought to operate in a number of
geographic areas already populated by Zellers stores.Target was
also
