“Our company is currently in negotiations to acquire a competitor. We intend to operate the new business as a separate division, but this will involve a number of staffing changes and transfers. We are looking for some assistance in developing and implementing a strategy to standardize the employment contracts between the firms.”
“We have been looking to sell a unionized division of our company to a non-union company that does similar work. As a successor employer, the other company has expressed concerns that this might expose them to unionization. What are the risks?”
When businesses are bought, sold, closed, relocated or restructured, there are potential implications on the workforce. These include transfers, reclassifications, and even voluminous lay-offs or terminations. Moreover, an assortment of federal and provincial legislation imposes certain obligations on employers, such as:
In addition, where unionized companies are merging into one entity, further consideration must be given to competing seniority claims, early termination of collective agreements, and the potential presence of multiple unions.
Our lawyers have extensive experience in advising and representing employers on all labour and employment issues arising from restructuring, lay-offs, plant closures and relations and sales of businesses. We draft and advise on the labour and employment clauses of purchase and sale agreements. Where the vendor company is unionized, we advise employers on successorship issues, including the flow-through of obligations under collective agreements.