"… The parties to the negotiations intend to continue to implement this agreement after the expiry of the appointment date until it is replaced by a new agreement. In the event that the company attempts to terminate the contract after the nominal expiry date, the following conditions are maintained by the company until a replacement agreement is replaced… ». "We are pleased to have been able to negotiate a new business contract with AGL Loy Yang," said Andy Vesey, AGL`s Managing Director. Full Bench focused on the employer`s commitment in Clause 4 of the agreement to maintain certain terms of employment until a new agreement is reached if it were applicable to the termination of the contract. The full bank found, Clause 4, could no longer produce legal effects after the end of the agreement, but considered that it was considered an employer`s representation that could not be ignored in determining whether the termination of the agreement was appropriate (the clause was not adequately weighted, which is an error in the trial decision). However, Full Bench`s concerns were addressed by Loy Yang`s additional commitment to maintain the terms of Clause 4 of the agreement for up to three years after the whistleblowing decision. The Full Bench noted that "the commitment made by AGL Loy Yang in the complaint… compliance with the obligation under Term 4 for as long as anyone could reasonably have been expected to do so." The full-fledged bank found that the company had the consequences of the error at trial and upheld the decision to terminate the contract. The request to terminate the agreement was heard in October 2016 and by that date there had been 37 negotiating meetings between the parties, 14 of which were conferences facilitated by the Commission as part of the Section 240 process.
Two reform proposals had been voted on and rejected by the workers, including one on the basis of the conditions recommended by the Commission. At a conference on 11 October 2016, Loy Yang told the Commission that it was not prepared to make further concessions and that it intended to "continue its wider reform agenda". Yang said the dispute should be ended, given that the dispute has become intractable and the continuation of the treaty is an obstacle to the progress of negotiations. Yang said they did not want to implement operating or unfair conditions, but were looking for changes that would improve flexibility, reduce overtime and remove restrictive covenants that are "unusual" in enterprise agreements.