The Supreme Court of Canada released its long awaited decision in Tervita Corporation et al v. Commissioner of Competition. In a 6-1 decision, the SCC allowed Tervita’s appeal and set aside the divestiture order made by the Competition Tribunal and upheld by the Federal Court of Appeal (FCA). The SCC agreed with the FCA’s conclusion that the merger would likely result in a substantial prevention of competition, but overruled the conclusions of the Tribunal and the FCA that the merger was not saved by the efficiencies defence.
On November 8, 2012, Ritu Mahil, Vice-Chair of the British Columbia Labour Relations Board decided that there was not a continuity between Zellers’ business at the Brentwood Mall in Burnaby, B.C. for its employees to be successively employed by Target in Canada. Although the employees would perform similar jobs at Target stores as they had at Zellers, and the transaction agreement confirmed the transfer of leases, pharmacy records and the brand waiver, these things were not sufficient to conclude that there would be a handover of these employees. As a result, the union’s application under Section 35 of the Labour Relations Code ("Code") for a declaration that Target is a successor employer to Zellers with respect to the business carried on by Zellers at the Brentwood Mall in Burnaby, B.C.was dismissed.