The Teamsters Union filed the motion for contempt and injunctive relief after Flexjet and Flight Options failed to comply with a May 2016 court order requiring it to negotiate in good faith
The purpose of the implied covenant of good faith is "to protect the reasonable expectations of the contracting parties.
The implied covenant of good faith "is a gap filling default rule" which comes into play "when a question is not resolved by the terms of the contract or when one party has the power to make a discretionary decision without defined standards.
While the obligation of good faith under subsection 2(d) is carried
in good faith developed under the Wagnerian model of Canadian labour
in good faith because such an action would fill the preliminary
good of a position as if the breaching party acted in good faith, since
There is nothing new or particularly innovative about good faith provisions in bargaining, either in Australia or internationally.
From March 1994 to December 1996, s 170QK of the Industrial Relations Act 1988 contained specific provisions giving the Australian Industrial Relations Commission (AIRC) the power to issue good faith bargaining orders, which were intended to assist negotiations that had already commenced (see Rathmell 2008) However, there was no enforceable requirement in the Act to bargain in good faith.
Although the 'covenant' of good faith
and fair dealing probably is law in most jurisdictions, there are very few cases where that principle, by itself, has led to a ruling favourable to a franchisee.