No Logical Response Required: the Full Bench Explains Genuine Operational Reasons

By Louise Keats

In Carter v Village Cinemas Australia Pty Ltd [2007] AIRCFB 35 the full bench of the AIRC set out the meaning of genuine operational reasons and unfair dismissal and gave a clear statement of how the WorkChoices legislation had eroded employee access to the federal unfair dismissal regime.

The bench took a broad view of the exclusion of access provided by the "genuine operational requirements. The decision of Watson SDP was overturned and the bench said that as long as at least one of the reasons for termination was operational (such as, in this case, the closing down of the cinema complex), then the exemption will apply, regardless of alternative options which may have been available to the employer.

The decision on 2-7-07 in Dean Rawolle and Don Mathieson & Staff Glass Pty Ltd [2007]AIRC446 (29 June 2007) used the Village case and the Priceline decision (A Cruickshank v Priceline Pty Ltd [2007] AIRCFB 513 (27 June 2007)) as the basis for refusing to hear the claim, saying the operational reasons overruled any claim about freedom of association that the employee was claiming he was denied.

(Australian Journal of Labour Law; vol 20, no.1, April 2007. pp104-11)