Burswood Resort (Management) Ltd v Australian Liquor, Hospitality and Miscellaneous Workers Union, Western Australian Branch
Justice Scott, Justice Hasluck, Justice Heenan
Positively treated
Treatment by later cases (5)
5 neutral
Citation timeline
2003
2023
Appellant: Burswood Resort (management) Ltd (acn 009 396 945)
Respondent: Australian Liquor, Hospitality and Miscellaneous Workers Union, Western Australian Branch (acn 009 396 945)
Ratio
The Court held that s41(8) of the Industrial Relations Act contemplates that parties to an expired industrial agreement may obtain a new award to replace it, and that the existence of a disputed matter concerning remuneration and conditions of employment constitutes an "industrial matter" within s7 even though the prior agreement continues in force under s41(6) pending termination or replacement. The Commission therefore had jurisdiction to determine the application for a new award.
Outcome
Against applicant
dismissed
Authority signal
Positively treated
Signal-weighted score: 4.7
Derived from how later decisions have treated this case. Dark green = leading authority,
green = positively treated, grey = neutral or sparse data,
amber = caution, red = treated negatively.
Key facts · 7
- Burswood Resort (Management) Ltd was party to the Burswood International Resort Casino Employees Industrial Agreement 2001 (2001 agreement)
- The 2001 agreement expired on 30 June 2002
- The respondent union lodged an application for a new award on 10 July 2002, 10 days after expiry
- The appellant contended the 2001 agreement remained in force under s41(6) and therefore no 'industrial matter' existed
- The respondent had not filed notice of retirement from the agreement
- The proposed new award sought to replace both the 1985 Award and the 2001 agreement, with higher wage rates and additional journey cover entitlements
- A prior application by the union (A2 of 2002) seeking extra claims had been dismissed due to the 'no extra claims' clause in cl 45 of the 2001 agreement
Factors
For
- s41(8) provides that a new award or agreement in substitution cancels the old agreement and contemplates Commission jurisdiction to make such replacement instruments
- There is a live dispute between the parties concerning remuneration and conditions of employment
- Matters relating to wages, hours of work, leave and other entitlements are 'industrial matters' within s7
- The Act's structure contemplates that parties will need to make fresh arrangements as circumstances change
- The union's claim that it is not precluded from seeking extra entitlements brings an industrial matter into issue
Against
- s41(6) provides that an agreement continues in force notwithstanding expiry until retirement or replacement, suggesting the parties' relationship remains settled
- The union had not retired from the agreement under s41(7) procedures
- The no extra claims clause (cl 45) in the 2001 agreement applied 'whilst it continues in force', potentially precluding the application
- Allowing the union to enjoy benefits of the 2001 agreement while simultaneously seeking a new award appears to take unfair advantage
- Permitting re-opening of settled matters could create uncertainty contrary to the legislation's objects
Concept tags · 4
Principles · 11
articulates para 15
Section 41(6) serves two purposes: (1) to extend the operation of an industrial agreement beyond its expiry date until replaced by a new agreement or award, and (2) to act as a transitional provision governing the parties' relationship between expiration and replacement.
articulates para 15
Section 41(8) provides that once a new agreement, award or enterprise order comes into effect, the earlier agreement is 'taken to be' cancelled, except to the extent the new instrument preserves provisions of the earlier agreement.
articulates para 17
An industrial agreement may be terminated in two ways: (1) by retirement under s41(7) with 30 days' notice, or (2) by the coming into existence of a new award under s41(8).
articulates para 21
The structure of s41 precludes both the expired agreement and the proposed new award from operating at the same time; the new award supersedes and cancels the earlier agreement under s41(8).
articulates para 62
A dispute concerning remuneration and conditions of employment after expiry of an industrial agreement, even if the agreement continues in force under s41(6), constitutes a 'matter' that brings an 'industrial matter' into issue within the meaning of s7 and grounds Commission jurisdiction under s23.
cites para ?
Referenced for general principles but specific proposition not detailed in decision.
Registration of an industrial agreement gives it statutory force, enabling remedial action for breach. The statutory force continues notwithstanding expiry under s41(6) and does not exclude Commission jurisdiction to create a new agreement or award under s41(8).
cites para 47
Where an award and an industrial agreement cover the same ground and the agreement was made after the award, the agreement prevails unless it expressly provides otherwise.
cites para 49
The whole scheme of the Act in relation to industrial agreements is based upon the notion of consensus; there is nothing to support the notion that an industrial agreement can be created in whole or in part by coercive order of the Commission.
cites para 50
Where a union has not retired from an enterprise bargaining agreement, an order made in proceedings concerning other entitlements cannot have the effect of amending the agreement. A party must retire from the agreement before it can be modified.
cites para 52
The jurisdiction of the Commission depends upon the existence of a 'matter' between the parties of an industrial nature, that is, some issue in the nature of a justiciable dispute.
Cases cited in this decision · 11
Cited
(2000) 80 WAIG 1740
(not in corpus)
"…Solicitors: Appellant : Blake Dawson Waldron Respondent : Derek Schapper Case(s) referred to in judgment(s): Case(s) also cited: Australian Rail, Tram and Bus Industry Union of Employees, WA Branch v Western...…"
Cited
[1999] WASC 196
(not in corpus)
"…: Blake Dawson Waldron Respondent : Derek Schapper Case(s) referred to in judgment(s): Case(s) also cited: Australian Rail, Tram and Bus Industry Union of Employees, WA Branch v Western Australian Government Railways...…"
Cited
[1930] HCA 1
(not in corpus)
"…stralian Rail, Tram and Bus Industry Union of Employees, WA Branch v Western Australian Government Railways Commission (2000) 80 WAIG 1740 ; [1999] WASC 196 Caledonian Collieries Ltd & Ors v The Australian Coal and...…"
Cited
[2000] WASC 107
— Griffin Coal Mining Co Ltd v The Coal Miners Industrial Union of Workers of...
"…ssion jurisdiction to determine such an application after the expiration of the industrial agreement. 20 Counsel for the appellant also sought to rely upon Griffin Coal Mining Co Ltd v Coal Miners Industrial Union of...…"
Doubted
(1991) 71 WAIG 1751
(not in corpus)
"…n award and an industrial agreement cover the same ground, and where the agreement was made subsequent to the award, the agreement will prevail unless it expressly provides otherwise: Hungry Jacks Pty Ltd v Wilkins...…"
Cited
(2000) 80 WAIG 453
(not in corpus)
"…the extent that an industrial agreement is contrary to or inconsistent with an award, the industrial agreement prevails unless the agreement expressly provides otherwise." 49 In Director General of the Ministry for...…"
Cited
(2000) 80 WAIG 4994
(not in corpus)
"…coercive order of the Commission. The Commission has no power to order an organisation to become a party to an industrial agreement and the powers of the Commission to vary agreements are extremely limited. 50 In...…"
Cited
[1921] HCA 20
(not in corpus)
"…unsel went on to submit that the jurisdiction of the Commission depends upon the existence of a matter between the parties of an industrial nature, that is to say, some issue in the nature of a justiciable dispute in...…"
Cited
(1921) 29 CLR 257
(not in corpus)
"…submit that the jurisdiction of the Commission depends upon the existence of a matter between the parties of an industrial nature, that is to say, some issue in the nature of a justiciable dispute in Re Judiciary and...…"
Cited
[1999] FCA 1584
(not in corpus)
"…on depends upon the existence of a matter between the parties of an industrial nature, that is to say, some issue in the nature of a justiciable dispute in Re Judiciary and Navigation Acts [1921] HCA 20 ; (1921) 29...…"
Cited
(1999) 96 FCR 1
(not in corpus)
"…e existence of a matter between the parties of an industrial nature, that is to say, some issue in the nature of a justiciable dispute in Re Judiciary and Navigation Acts [1921] HCA 20 ; (1921) 29 CLR 257 ; Hooper v...…"
Subsequent treatment · 5
Cited / considered· 5
Cited
(2010) 90 WAIG 14
WAIRC — Full Bench
— KENNER COMMISSIONER S M MAYMAN HEARD : THURSDAY, 11 FEBRUARY 2010 DELIVERED...
Cited
(2023) 103 WAIG 7
WAIRC — Full Bench
— EMMANUEL COMMISSIONER T KUCERA HEARD : WEDNESDAY, 28 JUNE 2023, TUESDAY, 8...
Cited
[2023] WAIRC 787
WAIRC — Full Bench
— City of Cockburn v Western Australia Municipal, Administrative, Clerical and...
¶232
Cited
(2003) 83 WAIG
Industrial Appeal Court
— LTD v AUSTRALIAN LIQUOR, HOSPITALITY AND MISCELLANEOUS WORKERS’ UNION,...
Cited
Archived text (7193 words)
Burswood Resort (Management) Ltd v Australian Liquor, Hospitality and Miscellaneous Workers Union, Western Australian Branch [2002] WASCA 355 (18 December 2002)
Last Updated: 20 December 2002
JURISDICTION :
WESTERN AUSTRALIAN INDUSTRIAL APPEAL COURT
CITATION :
BURSWOOD RESORT (MANAGEMENT) LTD -v- AUSTRALIAN
LIQUOR, HOSPITALITY AND MISCELLANEOUS WORKERS UNION, WESTERN AUSTRALIAN BRANCH
[2002] WASCA 355
CORAM :
SCOTT J (DEPUTY PRESIDING
JUDGE)
HASLUCK J
EM HEENAN J
HEARD :
2 OCTOBER 2002
DELIVERED :
18 DECEMBER 2002
FILE NO/S :
IAC 9 of
2002
BETWEEN :
BURSWOOD RESORT (MANAGEMENT) LTD
(ACN 009 396 945)
Appellant
AND
AUSTRALIAN
LIQUOR, HOSPITALITY AND MISCELLANEOUS WORKERS UNION, WESTERN AUSTRALIAN BRANCH
(ACN 009 396 945)
Respondent
Catchwords:
Industrial law - Appeal - Meaning of
"industrial matter" - Respondent applied for new award 10 days after expiry of
agreement - New
award intended to replace previous agreement - Agreement still
in force despite expiry - Jurisdiction to determine application whilst
2001
agreement still in force - Definition of "matter"
Legislation:
Industrial Relations Act 1979
,
s 7
,s 23,
s
29(1)(a)
,
s 37(4)
,
s 41
,
s 90
Result:
Appeal dismissed
Category:
B
Representation:
Counsel:
Appellant : Mr T H F
Caspersz & Mr D Brajevic
Respondent : Mr D H Schapper
Solicitors:
Appellant : Blake Dawson Waldron
Respondent : Derek
Schapper
Case(s) referred to in
judgment(s):
Case(s) also
cited:
Australian Rail, Tram and Bus Industry Union of Employees, WA
Branch v Western Australian Government Railways Commission
(2000)
80 WAIG 1740
;
[1999] WASC 196
Caledonian Collieries Ltd
& Ors v The Australian Coal and Shale Employees' Federation (No 1)
[1930] HCA 1
;
[1930] 42 CLR 527
Hooper v Kirella Pty Ltd
[1999] FCA 1584
;
(1999) 96 FCR 1
Hungry
Jacks Pty Ltd v Wilkins & Office of Industrial Relations
(1991)
71 WAIG 1751
Southern Cross Beverages Pty ltd v The Federated
Engine Drivers' and Firemen's Association of Australasia, unreported; Full Bench
AIRC; Print J5075; 13 November 1990
1
SCOTT J
: The respondent to this appeal lodged an
application before the Commission in Court Session for a new award to apply to
employees
of the appellant.
2 The appellant had been a party to an industrial agreement with
the respondent known as the "Burswood International Resort Casino
Employees
Industrial Agreement 2001" ("the 2001 agreement"). That agreement expired on
30 June 2002.
3 The application for a new award to replace the 2001 agreement
bears a date stamp of the Western Australian Industrial Commission
of
10 July 2002, that is, 10 days after the expiry of the 2001
agreement.
4 In the new award the respondent seeks conditions similar to the
2001 agreement, but with a number of minor additions, including
increases to the
rates of pay and journey cover.
5 The proposed new award was to replace an earlier award called
the "Burswood Island Resort Employees Award" and the 2001 agreement.
The new
award was to commence from the first pay period after 1 July
2002.
6 In the Commission in Court Session the appellant contended that
the Court had no jurisdiction to determine the application because
the 2001
agreement remained in force. It was submitted that there was no "industrial
matter" within the meaning of that term in
s 29(1)(a)
of the
Industrial
Relations Act
1979
("the
Industrial Relations Act
") which
could be referred to the Commission for determination. The appellant's
contentions in that regard will become apparent in
the course of these
reasons.
7 The Commission in Court Session, in reasons delivered on
Wednesday, 28 August 2002, determined that there was jurisdiction and
that
the Commission had power to arbitrate and to make the award sought if the
circumstances justified that course.
8 The appellant has appealed to this Court from that decision,
contending that the Commission has no jurisdiction to deal with
the application.
The grounds of appeal are:
1. The Commission erred in law in finding that it had jurisdiction to
determine application A4 of 2002, when
(i) the things the subject of the
award sought by the application were the subject of an industrial agreement
between the parties
to the application, which industrial agreement remains in
force as between the parties;
(ii) the respondent had not filed a notice of
retirement from the industrial agreement that had taken
effect;
(iii) therefore, there was no "matter" concerning the things the
subject of the continuing industrial agreement capable of constituting
an
"industrial matter" that could be referred by the respondent to the Commission
for determination; and
(iv) the application did not otherwise refer an
"industrial matter" to the Commission for determination.
2. Ground 2 of
the grounds of appeal was abandoned at the hearing of this appeal.
3. There
is injustice to the appellant if the appeal is not upheld despite any ground of
appeal being made out in that any further
proceedings or decision or
determination of the Commission would be held or made in excess of, or without,
jurisdiction.
4. Further, and alternatively, by reason of the matters
referred to in the preceding paragraph, there is good reason not to confirm
the
decision appealed against if any ground of appeal is made out.
9 The thrust of the appellant's case before this Court was that
because the 2001 agreement had not been terminated despite its
expiration, the
parties remained governed by the agreed terms and conditions of the 2001
agreement. Accordingly, it was contended
that there was no "industrial matter"
between the parties of such a nature as to give rise to jurisdiction in the
Industrial Commission.
10 For that argument to be considered, the relevant provisions of
the
Industrial Relations Act 1979
need to be considered.
Section 29
provides:
"
29. By whom matters may be referred
(1) An industrial matter may be referred to the Commission
(a) in any case, by
(i) an employer with a sufficient interest in the industrial matter;
(ii) an organisation in which persons to whom the industrial matter relates are
eligible to be enrolled as members or an association
that represents such an
organisation
;
or
(iii) the Minister."
11 "Industrial matter" is defined in
s 7
of the
Industrial Relations Act
:
"
'
Industrial matter'
means, subject to section 7C, any matter
affecting or relating or pertaining to the work, privileges, rights, or duties
of employers
or employees in any industry or of any employer or employee therein
and, without limiting the generality of that meaning, includes
any matter
affecting or relating or pertaining to −
(a) the wages, salaries, allowances, or other remuneration of employees or the
prices to be paid in respect of their employment;
(b) the hours of employment, leave of absence, sex, age, qualification, or
status of employees and the mode, terms, and conditions
of employment including
conditions which are to take effect after the termination of employment;
(c) the employment of children or young persons, or of any person or class of
persons, in any industry, or the dismissal of or refusal
to employ any person or
class of persons therein;
(ca) the relationship between employers and employees;
(d) any established custom or usage of any industry, either generally or in the
particular locality affected;
(e) the privileges, rights, or duties of any organisation or association or any
officer or member thereof in or in respect of any
industry;
(f) in respect of apprentices or trainees −
(i) their wage rates
;
and
(ii) subject to the
Industrial Training Act 1975
-
(I) their other conditions of employment
;
and
(II) the rights, duties, and liabilities of the parties to any agreement of
apprenticeship or training agreement;
(g) any matter relating to the collection of subscriptions to an organisation of
employees with the agreement of the employee from
whom the subscriptions are
collected including −
(i) the restoration of a practice of collecting subscriptions to an organisation
of employees where that practice has been stopped
by an employer
;
or
(ii) the implementation of an agreement between an organisation of employees and
an employer under which the employer agrees to collect
subscriptions to the
organisation;
[(h) deleted]
(i) any matter, whether falling within the preceding part of this interpretation
or not, where −
(i) an organisation of employees and an employer agree that it is desirable for
the matter to be dealt with as if it were an industrial
matter
;
and
(ii) the Commission is of the opinion that the objects of this Act would be
furthered if the matter were dealt with as an industrial
matter;
and also includes any matter of an industrial nature the subject of an
industrial dispute or the subject of a situation that may
give rise to an
industrial dispute but does not include −
(j) compulsion to join an organisation of employees to obtain or hold
employment;
(k) preference of employment at the time of, or during, employment by reason of
being or not being a member of an organisation of
employees;
(l) non-employment by reason of being or not being a member of an organisation
of employees
;
or
(m) any matter relating to the matters described in paragraph (j), (k) or
(l)."
12 In s 7C of the
Industrial Relations Act
the
definition of "industrial matter" is limited to the extent that matters governed
by workplace agreements are excluded from the
definition.
13 The next provision of the
Industrial Relations Act
of
importance to the appellant's contention is
s 41
which
provides:
"
41. Industrial agreements
(1) An agreement with respect to any industrial matter or for the prevention or
resolution under this Act of disputes, disagreements,
or questions relating
thereto may be made between an organisation or association of employees and any
employer or organisation or
association of employers.
(1a) An agreement may apply to a single enterprise or more than a single
enterprise.
(1b) For the purposes of subsection (1a) an agreement applies to more than a
single enterprise if it applies to −
(a) more than one business, project or undertaking
;
or
(b) the activities carried on by more than one public authority.
(2) Subject to subsection (3) and
sections 41A
and
49N
, where the parties to an
agreement referred to in subsection (1) apply to the Commission for
registration of the agreement as an
industrial agreement the Commission shall
register the agreement as an industrial agreement.
(3) Before registering an industrial agreement the Commission may require the
parties thereto to effect such variation as the Commission
considers necessary
or desirable for the purpose of giving clear expression to the true intention of
the parties.
(4) An industrial agreement extends to and binds −
(a) all employees who are employed −
(i) in any calling mentioned in the industrial agreement in the industry or
industries to which the industrial agreement applies
;
and
(ii) by an employer who is −
(I) a party to the industrial agreement
;
or
(II) a member of an organisation of employers that is a party to the industrial
agreement or that is a member of an association of
employers that is a party to
the industrial agreement;
and
(b) all employers referred to in paragraph (a)(ii),
and no other employee or employer, and its scope shall be expressly so limited
in the industrial agreement.
(5) An industrial agreement shall operate −
(a) in the area specified therein
;
and
(b) for the term specified therein.
(6) Notwithstanding the expiry of the term of an industrial agreement, it shall,
subject to this Act, continue in force in respect
of all parties thereto, except
those who retire therefrom, until a new agreement or an award in substitution
for the first-mentioned
agreement has been made.
(7) At any time after, or not more than 30 days before, the expiry of an
industrial agreement any party thereto may file in the office
of the Registrar a
notice in the prescribed form signifying his intention to retire therefrom at
the expiration of 30 days from the
date of such filing, and such party shall on
the expiration of that period cease to be a party to the agreement.
(8) When a new industrial agreement is made and registered, or an award or
enterprise order is made, in substitution for an industrial
agreement (
'the
first agreement'
), the first agreement is taken to be cancelled, except to
the extent that the new industrial agreement, award or order saves the
provisions of the first agreement.
(9) To the extent that an industrial agreement is contrary to or inconsistent
with an award, the industrial agreement prevails unless
the agreement expressly
provides otherwise."
14 Counsel for the appellant contends that the effect of
s 41(6)
is that the 2001 industrial agreement in this case continued in
force, notwithstanding that it had expired. As I have said earlier
in these
reasons, that agreement expired on 30 June 2002, but it was submitted that
by reason of
s 41(6)
of the
Industrial Relations Act
, the agreement
continued in force notwithstanding its expiration. It was therefore submitted
that because the 2001 agreement continued
in force, there was no matter of
contention between the parties of such a nature as to come within the definition
of "industrial
matter" so as to ground jurisdiction in the
Commission.
15 In my opinion,
s 41(6)
of the
Industrial Relations
Act
serves two purposes, namely:
(1) that it extends the operation of an industrial agreement beyond its
expiry date in circumstances where the parties have not retired
therefrom until
a new agreement or award has been made. In other words, the agreement does not
expire on its termination, but continues
until it is replaced by any one of the
methods contemplated by the section.
(2) To act as a transitional provision
governing the parties' relationship between the expiration of the agreement and
the time when
a new agreement or award is made. The section acts as a
transitional provision which is reflected in
s 41(8)
set out earlier in
these reasons. The effect of that subsection is, that once either the new
industrial agreement, new award, or
new enterprise order replaces the existing
industrial agreement, then the earlier agreement is taken to be cancelled,
except to the
extent that the new agreement, award or order preserves any of the
provisions of the earlier agreement.
16 In my view,
s 41(8)
provides the answer to the
plaintiff's submissions in this regard. The
Industrial Relations Act
clearly contemplates that the parties to an industrial agreement which remains
in force despite its expiry can obtain a new agreement,
award or enterprise
order. Once that agreement, award or enterprise order comes into effect, then
the earlier agreement is "taken
to be" cancelled, subject to the exception
contained in
s 41(8).
17 Counsel for the appellant contended that the only way in which
a party to an industrial agreement could terminate the agreement
is under the
provisions of
s 41(7)
set out earlier in these reasons. It was contended
that for a party to "retire" from such an agreement 30 days' notice must be
given
and upon the expiration of that period, the party ceases to be a party to
such an agreement. In my view,
s 41(7)
sets out but one of the ways in
which an industrial agreement may be terminated. Contrary to the appellant's
submission, in my view,
that is not the only way. Alternatively, as happened
here, the agreement may be terminated by the coming into existence of a new
award.
Section 41
provides for such a contingency.
18 Counsel for the appellant relied upon the decision of the
Commission in Court Session in the matter of
Australian Liquor,
Hospitality & Miscellaneous Workers Union, WA Branch v Activ Foundation
Inc
(2000) WAIRC 00472
;
80 WAIG 4994.
That case involved an enterprise
bargaining agreement which was registered under the provisions of
s 41
of
the
Industrial Relations Act
. During the course of the agreement one of
the parties sought to introduce into the enterprise bargaining agreement a
provision
relating to salary packaging. Another of the parties had already
given notice of retirement from the agreement, as provided for
by
s 41
of
the
Industrial Relations Act
. The second party, the Hospital Salaried
Officers Association of Western Australia ("the HSOA"), had not given notice to
retire
from the agreement and was still bound by the agreement as its term had
not expired. In those circumstances the Commission in Court
Session held that
until the HSOA took steps to withdraw from the enterprise bargaining agreement,
the salary package provision could
not be inserted.
19 The distinction between that case and the one presently under
consideration is apparent. The enterprise bargaining agreement,
so far as the
HSOA was concerned, was still current at the time when the HSOA sought to insert
the salary packaging provision into
the award. In those circumstances, in my
view, it was open to the Commission in Court Session to conclude that such a
provision
should not be inserted until the HSOA had taken steps to withdraw from
the enterprise bargaining agreement. As I understand the
reasons of the
Commission in Court Session in that case, so far as the HSOA was concerned, it
was still bound by the terms of the
agreement which did not include the salary
package agreement. It remained bound by that agreement until it took steps to
retire
therefrom. Those steps had not been taken and the agreement was still
current. In my view, that is factually different to the case
presently under
consideration. Here the 2001 agreement had expired at the time at which the
respondent lodged its application for
the award. Accordingly, in my view, the
provisions of
s 41(8)
of the
Industrial Relations Act
set out
earlier in these reasons conferred upon the Commission jurisdiction to determine
such an application after the expiration
of the industrial
agreement.
20 Counsel for the appellant also sought to rely upon
Griffin Coal Mining Co Ltd v Coal Miners Industrial Union of Workers of
Western Australia
[2000] WASC 107 (Scott
J) where it was held that
the registration of an industrial agreement gave the agreement statutory force.
The corresponding legislation
in that case gave the contractual agreement
primacy over an award. In my view, the same can be said of the industrial
agreement
in this case during its term. The effect of giving the agreement
statutory force was to enable remedial action to be taken in the
event of
breach. That is not to say that the statutory force ceased to have effect at
the date of expiry of the agreement. The
effect of
s 41(6)
of the
Industrial Relations Act
is to continue the statutory force
notwithstanding expiry and until termination. That provision would not exclude
the Commission
from exercising jurisdiction in relation to the creation of a new
industrial agreement, a new award or a new enterprise order, as
authorised by
s 41(8)
of the
Industrial Relations Act
.
21 The structure of
s 41
of the
Industrial Relations
Act
precludes both the 2001 agreement and the proposed new award from
operating at the same time.
Section 41(8)
of the
Industrial Relations
Act
makes it clear that when the award comes into effect, the industrial
agreement ceases. As the Act expresses it, the agreement "is
taken to be
cancelled" except to the extent that the new award saves the provisions of the
agreement.
22
Griffin Coal Mining Co Ltd v Coal Miners Industrial
Union of Workers of Western Australia
involved an agreement made under
the provisions of the
Coal Industry Tribunal of Western Australia Act
1992
which, by
s 17
of that Act, gave to the agreement the force
and effect of an award made under the provisions of the
Industrial Relations
Act
. Again, in the context of those statutory provisions, the statutory
status of the agreement was important in relation to the enforcement
of the
contractual terms because breach proceedings were available in the Industrial
Magistrates Court. There is nothing in that
decision, in my view, which is
contrary to any of the views that I have reached in this case. The terms of the
2001 agreement were,
and remained, enforceable until such time as the agreement
was terminated either by retirement or because it was superseded under
the
provisions of
s 41(8)
of the
Industrial Relations
Act
.
23 Similarly, in
Director General of the Ministry for
Culture and the Arts v The Civil Service Association of Western Australia
Incorporate
(2000) 80 WAIG 453
Anderson J referred to the
non-coercive nature of industrial agreements. In that context Anderson J
referred to the fact that industrial
"agreements" cannot be imposed upon the
parties by coercive order of the Commission. Those agreements are agreements
freely and
voluntarily made and registered. Once registered, however, the
enforcement provisions of the
Industrial Relations Act
take effect so as
to give to the agreement statutory force. In that context Anderson J
concluded that it was not appropriate for
the Commission to order that an
agreement operate from a date earlier than the date agreed between the
parties.
24 The fact that the terms of the award in this case proposed to
deal with a number of matters not covered by the 2001 agreement
was, in my view,
of little relevance. It is not necessary to consider those separate matters in
determining whether or not the Industrial
Commission has jurisdiction in
relation to the matter.
25 In my view, no error has been demonstrated in the decision of
the Commission in Court Session in determining that the Commission
has
jurisdiction to deal with the application. I would therefore dismiss this
appeal.
26
HASLUCK J
: The appellant, Burswood Resort (Management)
Pty Ltd, seeks to set aside certain declarations made by the Industrial
Relations Commission
in Court Session on 28 August 2002, namely, that the
respondent's application for a new award raises an industrial matter within
the
meaning of the
Industrial Relations Act 1979
; that the Commission has
power under the Act to make a new award in the terms sought by the respondent to
this appeal.
27 The appeal is brought pursuant to
s 90
of the
Industrial Relations Act
which provides for an appeal to the Industrial
Appeal Court from any decision of the Commission in Court Session on the ground
that
the decision is in excess of jurisdiction in that the matter the subject of
the decision is not on an industrial matter or is erroneous
in
law.
Grounds of Appeal
28 The grounds of appeal are that the Commission erred in law in
finding that it had jurisdiction to determine application A4
of 2002
when:
"(i) the things the subject of the award sought by the application were the
subject of an industrial agreement between the parties
to the application, which
industrial agreement remains in force as between the parties;
(ii) the respondent has not filed a notice of retirement from the industrial
agreement that had taken effect;
(iii) therefore, there was no 'matter' concerning the things the subject of the
continuing industrial agreement capable of constituting
an 'industrial matter'
that could be referred by the respondent to the Commission for determination;
and
(iv) the application did not otherwise refer an 'industrial matter' to the
Commission for determination."
29 The principal issue raised by the grounds of appeal is whether
certain matters that are said to have been covered by an industrial
agreement
that is still in force between the parties can be dealt with by the Commission
as "industrial matters".
30 The appellant seeks orders that application A4 of 2002 be
dismissed; or, alternatively, that the appeal be upheld and the matter
be
remitted back to the Commission in Court Session to be determined according to
law.
Background
31 Employees of the appellant company were subject to the terms
of the Burswood Island Resort Employees' Award A23 and A25 of
1985 ("the 1985
Award"). There have been variations and adjustments to the award but it was
common ground between the parties to
the appeal that the 1985 Award remains in
force.
32 In the manner allowed for by
s 41
of the
Industrial
Relations Act
the parties subsequently negotiated various industrial
agreements. It appears from an order made by Commissioner Wood on
24 August
2001 that in due course these agreements were replaced by an
agreement which was entitled the Burswood International Resort Casino
Employees'
Industrial Agreement 2001 ("the 2001 Agreement"). It is apparent from cl 2
of the 2001 Agreement that it purports to
cover the full range of matters
usually contained in an award. The Agreement is said to be binding upon all
employees employed by
the appellant in its capacity as manager of the Burswood
Property Trust.
33 Clause 4 provides that the term of the 2001 Agreement
shall be from the date of registration to 30 June 2002. By cl 45 the
company and the union agree that there will be no extra claims for the term of
this Agreement and whilst it continues in force.
34 It seems that early in 2002, prior to the expiry of the 2001
Agreement, negotiations commenced between the parties for a replacement
agreement. These negotiations were unsuccessful. The respondent's application
A2 of 2002 for a new award was dismissed on the grounds
that the parties
had agreed to defer extra claims for the term of the 2001
Agreement.
35 Shortly after the term of the 2001 Agreement expired, on
10 July 2002, the respondent union filed an application for a new
award to
be called "Burswood Island Resort Employees' Award 2002" (the "proposed 2002
Award"). This application, A4 of 2002, is
the subject of the present
appeal.
36 It appears from Sch B to the respondent's application
that, in effect, the union seeks a new award to replace both the 1985
Award and
the 2001 Agreement. The document in question contends that the respondent
sought to negotiate a new industrial agreement
but the respondent refused to
enter into an agreement of the kind proposed. Against this background, and
having regard to the expiry
of the 2001 Agreement on 30 June 2002, the
respondent seeks a new award.
37 It is apparent from the terms of the proposed 2002 Award that
the Award covers essentially the same matters as the 2001 Agreement.
On the
hearing of this appeal counsel for the appellant submitted that the only real
differences between the 2001 Agreement and
what is sought to be covered by the
proposed 2002 Award are, first, the wage rates in the proposed new award are
higher; second,
the proposed award provides for an item called "journey cover";
third, the "no extra claims" clause is omitted.
38 It emerges, then, that as a consequence of a difference of
opinion or dispute between the parties concerning the respondent's
claim for
higher wages and extra entitlements, an application was lodged with the
Commission for resolution of what purports to be
an industrial matter. The term
"industrial matter" is defined in
s 7
of the
Industrial Relations
Act
to include any matter affecting or relating to the work, privileges,
rights, or duties of employers or employees. The definition
encompasses any
matter relating to the wages or other remuneration of employees.
39 The appellant filed and served a notice of answer and
counter-proposal. It is not necessary for present purposes to traverse
the
entirety of the appellant's notice of answer. The appellant alleged,
inter
alia
, that the respondent's application for relief was in breach of
cl 45 of the 2001 Agreement concerning no extra claims. The appellant
submitted a counter-proposal directed to the employees' conditions of employment
which I will call the "Burswood Proposed Award".
40 The appellant then contended, as a matter of law, that the
Commission had no jurisdiction to determine the respondent's application.
The
appellant said that all matters in issue between the parties had been settled by
the 2001 Agreement which, notwithstanding expiry
of the prescribed term,
remained in force under and by virtue of
s 41(6)
of the
Industrial
Relations Act
. In the absence of any live issue or "matter" between the
parties the Commission did not have jurisdiction to deal with the application,
for
s 23
of the Act, which defines the jurisdiction of the Commission,
limits the jurisdiction of the Commission to enquiring into and dealing
with any
"industrial matter". If the application was not made in respect of a "matter"
then it could not be said to be in respect
of an industrial
matter.
41 On 28 August 2002 the Commission in Court Session
declared that the respondent's application for a new award raised an industrial
matter and the Commission had power to make a new award in the terms sought by
the union. The question of whether a new award should
be made in the terms
sought will not be decided until the jurisdictional issue has been
resolved.
42 Before turning to the contentions of the respective parties,
it will be useful to look briefly at the relevant statutory provisions
and some
of the decided cases bearing upon the jurisdictional issue.
Legal Principles
43 The
Industrial Relations Act
makes provision for the
creation and enforcement of awards and industrial agreements affecting employers
and employees. Arrangements
of this kind are undoubtedly intended to remove or
minimise areas of disputation between the interested parties. Nonetheless, in
according a particular status to organisations of employers and employees, the
legislation clearly recognises that fresh arrangements
will have to be made from
time to time as circumstances change. Various procedures are prescribed with a
view to averting and resolving
disputes.
44 Prior to 1 August 2002 the Act provided that terms and
conditions of employment could be regulated by awards made by the Commission
or
industrial agreements registered with the Commission. Since that time, the
Commission can now also make an "enterprise order"
which will prevail over an
industrial agreement or award if an issue arises.
45 The structure of the Act suggests that in contemporary times
the interested parties are at liberty to choose different legal
regimes in
carrying into effect their industrial arrangements, but they will be bound by
the regime they have chosen. The assumption
underlying the legislation clearly
is that industrial arrangements will be more productive and disputes less likely
to occur if rights
and duties are defined with certainty and not departed from
unless and until the relevant procedures have been complied
with.
46 Awards are made as a consequence of the Commission exercising
jurisdiction under
s 23(1)
of the Act to deal with industrial matters
referred to it under
s 29(1)(a)
of the Act. In the course of exercising
its jurisdiction in that regard, the Commission has power to make awards that
extend to
and bind all employees employed in the industry to which the award
applies and all employers employing those employees. By
s 37(4)
an award
shall, subject to any variation made under the Act, remain in force until
cancelled, suspended or replaced.
47 As I have already indicated, by
s 41
of the Act an
agreement may be made between employers and employees with respect to any
industrial matter or for the prevention or
resolution of disputes. The decided
cases establish that in circumstances where an award and an industrial agreement
cover the same
ground, and where the agreement was made subsequent to the award,
the agreement will prevail unless it expressly provides otherwise:
Hungry
Jacks Pty Ltd v Wilkins and Office of Industrial Relations
(1991) 71
WAIG 1751.
This precept is now reflected in
s 41(9)
of the
Industrial
Relations Act
.
48
Section 41
of the
Industrial Relations Act
reads
as follows:
41.
Industrial agreements
(1) An agreement with respect to any industrial matter or for the prevention or
resolution under this Act of disputes, disagreements,
or questions relating
thereto may be made between an organisation or association of employees and any
employer or organisation or
association of employers.
(1a) An agreement may apply to a single enterprise or more than a single
enterprise.
(1b) For the purposes of subsection (1a) an agreement applies to more than a
single enterprise if it applies to
(a) more than one business, project or undertaking
;
or
(b) the activities carried on by more than one public
authority.
(2) Subject to subsection (3) and
sections 41A
and
49N
, where the parties to an
agreement referred to in subsection (1) apply to the Commission for registration
of the agreement as an
industrial agreement the Commission shall register the
agreement as an industrial agreement.
(3) Before registering an industrial agreement the Commission may require the
parties thereto to effect such variation as the Commission
considers necessary
or desirable for the purpose of giving clear expression to the true intention of
the parties.
(4) An industrial agreement extends to and binds
(a) all employees who are employed
(i) in any calling mentioned in the industrial agreement in the industry or
industries to which the industrial agreement applies
;
and
(ii) by an employer who is
(I) a party to the industrial agreement
;
or
(II) a member of an
organisation of employers that is a party to the industrial agreement or that is
a member of an association of
employers that is a party to the industrial
agreement;
and
(b) all employers referred to in paragraph (a)(ii),
and no other employee or employer, and its scope shall be expressly so limited
in the industrial agreement.
(5) An industrial agreement shall operate
(a) in the area specified therein
;
and
(b) for the term specified therein.
(6) Notwithstanding the expiry of the term of an industrial agreement, it shall,
subject to this Act, continue in force in respect
of all parties thereto, except
those who retire therefrom, until a new agreement or an award in substitution
for the first-mentioned
agreement has been made.
(7) At any time after, or not more than 30 days before, the expiry of an
industrial agreement any party thereto may file in the office
of the Registrar a
notice in the prescribed form signifying his intention to retire therefrom at
the expiration of 30 days from the
date of such filing, and such party shall on
the expiration of that period cease to be a party to the agreement.
(8) When a new industrial agreement is made and registered, or an award or
enterprise order is made, in substitution for an industrial
agreement ('the
first agreement'), the first agreement is taken to be cancelled, except to the
extent that the new industrial agreement,
award or order saves the provisions of
the first agreement.
(9) To the extent that an industrial agreement is contrary to or inconsistent
with an award, the industrial agreement prevails unless
the agreement expressly
provides otherwise."
49 In
Director General of the Ministry for Culture and the
Arts v The CSA
(2000) 80 WAIG 453
Anderson J observed at
par 39 that the whole scheme of the Act in relation to industrial
agreements is based upon the notion of consensus.
There is nothing in
s 7
(which contains the definition of "industrial agreement") or
s 41
which
would support the notion that an industrial agreement can be created in whole or
in part by coercive order of the Commission.
The Commission has no power to
order an organisation to become a party to an industrial agreement and the
powers of the Commission
to vary agreements are extremely
limited.
50 In
ALHMWU v Activ Foundation (Inc)
(2000) 80
WAIG 4994
the Court relied upon reasoning of this kind in the course of holding
that in circumstances where a union had not retired from the
enterprise
bargaining agreement in question an order made in proceedings concerning other
entitlements could not have the effect
of amending the enterprise bargaining
agreement.
The Appellant's Case
51 Counsel for the appellant submitted that the "matters", if
any, raised by the respondent's application for the proposed 2002
Award were
essentially the same as those covered by the 2001 Agreement. The union had not
taken any steps to retire from the agreement
with the result that the agreement
continued in force, notwithstanding the expiry of the prescribed term. This
meant that any so-called
matter between the appellant and the respondent
concerning the conditions of employment could be taken to have been settled and
would
remain in that state until the respondent retired from the industrial
agreement. It would be contrary to the objectives of the legislation
and give
rise to deleterious uncertainty if matters which were thought to have been
settled could be re-opened unilaterally.
52 Counsel went on to submit that the jurisdiction of the
Commission depends upon the existence of a matter between the parties
of an
industrial nature, that is to say, some issue in the nature of a justiciable
dispute in
Re Judiciary and Navigation Acts
[1921] HCA 20
;
(1921) 29 CLR 257
;
Hooper v Kirella Pty Ltd
[1999] FCA 1584
;
(1999) 96 FCR 1.
In the present case the
respondent's application did not bring any matter into contention because the
debate about industrial matters
that preceded the negotiation of the 2001
Agreement had been brought to an end by the making of the Agreement. Mere
dissatisfaction
with the terms of a binding arrangement is not something that
the Commission can deal with under
s 23(1)
of the
Industrial Relations
Act
.
53 Counsel said further that the respondent was seeking to take
advantage of the benefits provided by the current 2001 Agreement
by not retiring
from it, whilst concurrently applying to the Commission for a new award in
respect of essentially the same matters
that had been dealt with by the
Agreement. The no extra claims provision in cl 45 of the Agreement and the
objectives of the legislation
precluded such an approach.
54 Counsel for the appellant sought to reinforce his description
of what was the correct approach by pointing to the 1985 Award.
If the
respondent retired from the 2001 Agreement in the manner allowed for by
s 41(6)
of the Act the 1985 Award continued to apply. This was sufficient
to rebut any suggestion that it was not open to the appellant
to retire from the
2001 Agreement until a new agreement had been negotiated or a new award was
brought into existence pursuant to
an order of the Commission.
55 It followed from this line of argument that if the respondent
did retire from the 2001 Agreement it would be at liberty to
press for the
proposed 2002 Award (or an agreement in that form) and to bring an application
for relief in respect of an industrial
matter if the parties were unable to
agree. Counsel supported this contention by reliance upon the
Activ
Foundation
case (
supra
).
Conclusion
56 There can be little doubt that the respondent's application is
notionally in respect of an industrial matter and therefore,
prima facie
,
lies within the jurisdiction of the Commission. There is clearly a live issue
between the parties as to the conditions of employment
and level of
remuneration.
Prima facie
, matters of this kind are generally
characterised as industrial matters. The respondent union has advanced a claim
for a new award
and a perusal of the claim shows that each of the clauses sought
are clauses of a familiar kind concerning wages, hours of work,
leave and other
entitlements.
57 This view of the matter does not appear to be seriously
disputed. The question for determination is whether the matters supposedly
in
issue have ceased to be in issue (for the time being) having regard to the terms
of the 2001 Agreement and
s 41(6)
of the
Industrial Relations
Act
.
58 I see considerable force in the submissions made by counsel
for the appellant. In my view, the effect of
s 41(6)
of the Act is to keep
in force the 2001 Agreement until such time as a party to it retires from the
agreement in the manner provided
for by
s 41(7)
of the Act. It follows
from earlier discussion that such a construction appears to be consistent with
the scheme of the legislation.
59 When an award or an industrial agreement comes into effect
both parties should be able to assume that the relevant arrangements
will
continue to apply until new arrangements are made in accordance with the
prescribed procedure. In many cases, a new agreement
will have been negotiated
before the former agreement expires. In such a case, upon retirement from the
existing agreement, the
new agreement will come into effect immediately. If a
new agreement cannot be negotiated, as in the present case, the relationship
between the parties will be controlled by an underlying award. This will
protect the position of the employee if it becomes necessary
to retire from the
existing agreement in the manner contemplated by
s 41(7)
of the Act in
order to apply for a new award.
60 However, it seems to me that these are all matters which can
and should be taken into account if an application of the kind
in question is
brought before the Commission. I have great difficulty in accepting that the
line of argument advanced on behalf
of the appellant gives rise to a
jurisdictional issue. The undoubted reality is, in the circumstances of the
present case, that
there is a contest between the parties concerning
remuneration and conditions of employment. A controversy of this kind must
clearly
be characterised as an industrial matter.
61 It may be inconsistent with the scheme of the
Industrial
Relations Act
,
(and arguably with the no extra claims clause of the 2001
Agreement) for the respondent to raise extra claims while the 2001 Agreement
remains in force. Indeed, the no extra claims provision in cl 45 may turn
out to be a complete answer to the respondent's application
for a new award, for
cl 45 is not confined to the term of the 2001 Agreement but is said to
apply while the 2001 Agreement "continues
in force". This, in effect, was the
approach adopted by the Commission in dismissing the respondent's case with
respect to the prior
application A2 of 2002.
62 Nonetheless, if the position emerges that one party (in this
case the respondent) contends that the 2001Agreement and related
statutory
provisions should be construed in a certain way, and upon the basis that the
respondent union is not precluded from advancing
a claim for extra entitlements,
to my mind, this brings into issue an industrial matter. In
other words, there is a difference of opinion, or dispute, between
the parties about issues referable to the employment. The dispute
can properly
be characterised as a "matter", and the nature of the dispute makes it an
industrial matter. Section 23(1) provides
that the Commission has
authority to enquire into and deal with industrial matters. I am therefore not
persuaded that the Commission
does not have jurisdiction to deal with the
application in the present case.
63 I would dismiss the appeal.
64
EM HEENAN J
: I have had the advantage of reading the
reasons to be published by Hasluck J. I agree with those reasons and have
nothing further
to add.