Unconscionable conduct during negotiations
21 Unconscionable conduct during negotiations
In its application to forestry contractors, subclause (2) of the additional guidance notes in clause 4 is to be read as including the following example—
Example 4.6 to Sch. 1 Pt 5 cl. 21 amended by S.R. No. 4/2021 reg. 7(i).
Example 4.6
There is only one forestry manager engaging harvesting contractors in a particular region of Victoria, and it is not practicable for the contractors to travel to other regions or to work for anyone else. If the forest management company was to use its strong market position to extract an unduly harsh and one-sided deal from harvesting contractors (having regard to all relevant factors including international market conditions) this is likely to constitute unconscionable conduct under section 31 of the Act. Conversely, if the harvesting contractors were to join together and threaten to boycott the hirer unless the hirer agreed to a harsh or one-sided deal in the harvesting contractors' favour, this is likely to constitute unconscionable conduct by the contractors under section 32 of the Act. The affected party could notify a dispute to the Small Business Commission.
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