In 2005 Austin Health entered into a contract with Northern Health to provide pathology services. The scientists at Northern Health and the MSAV worked closely with Austin Health to develop a tender for the work, to the extent that the MSAV and its members engaged a consultant to assist in the process.

There were negotiations between the MSAV and Austin Health around employment arrangements at the time, including whether scientists could be forced to move to other campuses of Austin Health if the Austin won the tender. This was a significant issue for members at Northern Health. Austin Health agreed in writing that scientists would not be relocated in the future, and would only be required to attend the Heidelberg campus for training or orientation purposes. This condition was included as a specific term in the letters of offer to the scientists whose employment was to be transferred from Northern Health to Austin Health.

In 2007 Austin Health decided to stop doing anatomical pathology work at the NorthernHospital and to have all the scientific work done at the Austin Hospital in Heidelberg. This meant that there would no longer be a 0.5 Grade 2 Cytology position at Northern Hospital.

However Austin Health argued that this did not mean that the Grade 2 Cytology position at Northern Health was redundant, notwithstanding the accepted definition of redundancy. It argued that there was a position at the Austin Hospital. The Grade 2 scientist had declined this position (which was a different position) and relied on the term of her contract. Austin Health never filled the position they claimed existed at the Austin Campus and allocated the additional work to the existing scientists.

Austin Health refused to pay a redundancy to the member who had been employed as a Grade 2 Cytologist at the Northern Campus. The Union attempted to enter into discussions with the Austin. The Austin refused to change their position, and discussions in the AIRC broke down.

As a consequence the matter went to the Industrial Division of the Magistrates Court. The Magistrate in her decision of 13 May 2009 found that the position of Grade 2 cytologist at Northern to have been made redundant.

Austin Health had offered the member a multi-skilled scientist position at the Austin Campus. The Magistrate found this position to be unsuitable given the members training and experience. (And it was never advertised or filled after it was rejected by the member.)