THE STATE SCHOOL TEACHERS' UNION OF WA (INCORPORATED) -v- PRINCIPALS' FEDERATION OF WESTERN AUSTRALIA
Justice Buss, Justice Murphy, Justice Miere
Cited 1×
Treatment by later cases (1)
1 neutral
Appellant: The State School Teachers' Union of Wa (incorporated)
Respondent: Principals' Federation of Western Australia
Ratio
The Full Bench's decision to register the respondent Principals' Federation as an organisation under the Industrial Relations Act 1979 (WA) was lawful. Section 55(5) requires the Full Bench to refuse an application only if satisfied there is no "good reason, consistent with the objects prescribed in s 6," to permit registration despite overlapping eligibility; the majority properly considered all objects in s 6, including both the discouragement of overlapping (s 6(e)) and other objects supporting representative organisation and collective bargaining, and were entitled to find good reason for registration given the unique circumstances, distinct interests of principals, and conflicts of interest in joint representation.
Outcome
Against applicant
dismissed
Authority signal
Cited 1×
Signal-weighted score: 1.2
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 · 9
- The appellant (State School Teachers' Union) is registered as an organisation under Division 4 of Part II of the Industrial Relations Act 1979 (WA), with membership including school principals, deputy principals and teachers.
- The respondent (Principals' Federation of Western Australia) comprises school principals and deputy principals only; teachers are not eligible for membership.
- On 2 December 2011, the respondent filed an application under s 53(1) for registration as an organisation.
- On 17 December 2014, the Full Bench decided by majority (Scott ASC and Kenner C; Smith AP dissenting) to authorise registration of the respondent under s 53(1).
- There was overlapping eligibility for membership: approximately 787 principals and deputy principals were members of the appellant, and about 392 were members of the respondent, out of approximately 1948 principals and deputy principals in public schools.
- Principals have sought separate representation since approximately 1995, unable to obtain a separate industrial agreement with the appellant opposed to such separation.
- The respondent's predecessors had negotiated collective agreements directly under the Workplace Agreements Act 1993 until 2002.
- The majority found that principals and teachers have conflicting interests, particularly as principals act as managers implementing departmental policies on teachers.
- Scott ASC found it was not practicable to discourage overlapping membership and identified three reservations: competition for members, conflict in enterprise bargaining, and the need for improved departmental support alongside union representation.
Factors
For
- Principals have unique and distinct roles differing significantly from teachers, with expanded responsibilities post-devolution.
- There is genuine conflict between the interests of principals and teachers, including principals' dual role as employees and managers.
- The appellant's historical position opposing separate agreement coverage has created conflict and dissatisfaction among principals.
- Approximately half the number of principals are already members of the respondent despite it not yet being registered, demonstrating strong principal support.
- Formal registration would enable the Department to negotiate directly with an organisation dedicated exclusively to principals' interests, as previously occurred under workplace agreements.
- Registration would promote collective bargaining and good faith bargaining specific to principals' distinct conditions of employment.
- The respondent and its predecessors have a lengthy history of representing principals' industrial interests.
- Registration would encourage democratic control and full participation by a group currently under-represented within the appellant's structure.
- The Australian Principals' Federation has been registered federally since 2006, consistent with s 6(g) on cooperation with federal organisations.
- Principals could avoid perceived conflicts of interest and majority voting dominated by the much larger teacher membership.
Against
- Section 55(5) and s 6(e) of the Act provide that overlapping of eligibility for membership of organisations should be discouraged so far as practicable.
- Registration would create competition for membership between two organisations, which the Act specifically seeks to avoid.
- There would be potential for industrial disharmony and conflict arising from overlapping membership and separate enterprise bargaining arrangements.
- The appellant, with over 100 years of existence and substantial incumbency advantages, would be detrimentally affected by loss of members and organisational reach.
- Principals and teachers share common interests in some areas and must cooperate in school management and educational delivery.
- Separate representation might fragment negotiating strength if the appellant and respondent do not coordinate on issues of mutual concern.
- The respondent has only approximately 392 members compared to 787 within the appellant, suggesting majority principal preference remains with the established organisation.
Concept tags · 10
Principles · 10
articulates para 62
Section 55(5) of the Industrial Relations Act 1979 (WA) expresses a prohibition in mandatory terms: registration must be refused unless the Full Bench is satisfied there is good reason, consistent with the objects in s 6, to permit registration despite overlapping eligibility for membership.
Test: s 55(5) mandatory refusal test
articulates para 64
The phrase 'good reason, consistent with the objects prescribed in s 6' encompasses all objects in s 6, not merely the object in s 6(e) of discouraging overlapping; the Full Bench must conduct a global assessment weighing all relevant objects.
Test: global objects assessment
articulates para 66
The word 'discourage' in s 6(e) does not mean 'prevent'; the phrase 'discourage, so far as practicable, overlapping' allows considerable scope for evaluation and judgment, and the second object may yield to other legitimate objects from time to time as occasion demands.
Test: practicability and scope of discretion
articulates para 67
The weight to be given to particular objects prescribed in s 6 in deciding an application under s 53(1) ordinarily involves questions of fact; if the Full Bench's considerations are factors it is entitled as a matter of law to take into account, then the determination of weight is a matter for the Full Bench's discretion.
Test: weight of objects — factual question
articulates para 107
In construing the phrase 'persons immediately concerned whether directly affected or not' in s 26(1)(c), those persons include not merely members and eligible members of the applicant organisation, but also members and eligible members of existing organisations that would be affected by the decision.
Test: breadth of 'persons immediately concerned'
cites para 19
By the Acts Amendment and Repeal (Industrial Relations) Act (No 2) 1984, the legislative intention was clearly expressed that overlapping of union membership is to be avoided unless the Full Bench is satisfied there is good reason to the contrary; the statutory test is expressed in mandatory terms such that registration is to be refused unless good cause is shown.
cites para 23
The weight to be given to particular objects in deciding a case would ordinarily be a matter of fact and hence not appealable; provided the considerations which motivated the Full Bench are matters which it could as a matter of law take into account, the weight it gives to these various matters is entirely up to the Full Bench; each of the objects of the Act is capable of being viewed as promoting the principal objects.
cites para 27
Section 6(e) contemplates that in some circumstances it might not be 'practicable' to discourage overlapping; there is nothing which limits the circumstances to which the Full Bench may have regard under s 55(5) in determining whether 'good reason' exists, save that the 'good reason' must be consistent with the objects specified in s 6; once the Full Bench decides it is not practicable in the circumstances to discourage overlapping, it can determine that there is good reason to permit registration.
cites para 34
The words 'consistent with' do not mean 'advance', and the Full Bench may have regard to matters which do not advance the objects set out in s 6, as long as those matters are consistent with those objects; section 55(5) contemplates an exercise of jurisdiction to grant an application notwithstanding that to do so will bring about complete dual coverage.
cites para 35
Section 26 of the Act operates upon the exercise of the whole of the Commission's jurisdiction; where the commands of s 26 are relevant to a particular function, they must be obeyed; the Commission's powers under s 55(5) and s 62 are to be exercised having regard for the provisions of s 26, where appropriate.
Cases cited in this decision · 5
Cited
[2014] WAIRC 1360
— Federation of Western Australia v (Not applicable)
"…PRINCIPALS' FEDERATION OF WESTERN AUSTRALIA Respondent ON APPEAL FROM: Jurisdiction : WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION Coram : J H SMITH (ACTING PRESIDENT) P E SCOTT (ACTING SENIOR COMMISSIONER) S J...…"
Cited
(1985) 65 WAIG 2033
(not in corpus)
"…rial for the purposes of this appeal or the previous decisions of this court or the Full Court of the Supreme Court which have construed s 6 or s 55. 18 In Federated Miscellaneous Workers' Union of Australia v...…"
Cited
(1990) 32 IR 287
(not in corpus)
"…d not have jurisdiction to entertain the appeal and, consequently, the appeal was dismissed as being incompetent. 21 In Construction, Mining and Energy Workers Union of Australia v Operative Plasterers and Plaster...…"
Cited
(1994) 55 IR 276
(not in corpus)
"…objects in s 6 to do so. I find it impossible to say that as a matter of law in deciding the issues before it in the way it did the Full Bench's discretion has miscarried (294 - 295). 24 In Re Sharkey; Ex parte...…"
Cited
(1993) 73 WAIG 3342
(not in corpus)
"…the Act, in that it would be in the interests of the persons immediately concerned, those being members of and those eligible to be members of, [the respondent]: Re an application by The Federated Miscellaneous...…"
Subsequent treatment · 1
Cited / considered· 1
Cited
Archived text (12937 words)
THE STATE SCHOOL TEACHERS' UNION OF WA (INCORPORATED) -v- PRINCIPALS' FEDERATION OF WESTERN AUSTRALIA [2016] WASCA 3 (8 January 2016)
Last Updated: 8 January 2016
JURISDICTION :
WESTERN AUSTRALIAN INDUSTRIAL APPEAL COURT
CITATION :
THE STATE SCHOOL TEACHERS' UNION OF WA (INCORPORATED) -v-
PRINCIPALS' FEDERATION OF WESTERN AUSTRALIA
[2016] WASCA 3
CORAM :
BUSS J
MURPHY J
LE MIERE J
HEARD :
1 SEPTEMBER 2015
DELIVERED :
8 JANUARY 2016
FILE NO/S :
IAC 2 of 2015
BETWEEN :
THE STATE SCHOOL TEACHERS' UNION OF WA (INCORPORATED)
Appellant
AND
PRINCIPALS' FEDERATION OF WESTERN AUSTRALIA
Respondent
ON APPEAL FROM:
Jurisdiction :
WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION
Coram :
J H SMITH (ACTING PRESIDENT)
P E SCOTT (ACTING SENIOR COMMISSIONER)
S J KENNER (COMMISSIONER)
Citation :
[2014] WAIRC 1360
File No :
FBM 8 of 2011
Catchwords:
Appeal - Industrial law (WA) - Application by the
respondent pursuant to
s 53(1)
of the
Industrial Relations Act 1979
(WA) for registration as an organisation under div 4 of
pt II
of the
Act - Appellant an existing organisation registered under div 4 of
pt II
- Overlapping eligibility for membership between the respondent and
the appellant - Proper construction and application of
s 55(5)
read with
s 6
of the Act - The Full Bench, by a majority, made an order, pursuant to
s 53(1)
, authorising the Registrar to register the respondent as an
organisation under div 4 of
pt II
- Whether the majority's decision
was erroneous in law in that they made an error in the construction or
interpretation of the Act
in the course of making the decision - Whether any
injustice was suffered by the appellant or any person who is a member of or
represented
by the appellant as a result of any error made by the majority
Legislation:
Acts Amendment and Repeal (Industrial Relations)
Act (No 2) 1984
(WA)
Industrial Relations Act 1979
(WA),
s 6
,
s 26
,
s 53(1)
,
s 55(5)
,
s 62
,
s 90(1)(b)
,
s 90(3a)
Industrial Relations Legislation Amendment and Repeal Act
1995
(WA)
Labour Relations Reform Act 2002
(WA)
Result:
Appeal dismissed
Category:
A
Representation:
Counsel:
Appellant : Mr M T Ritter SC & Mr S A Millman
Respondent : Mr S P Kemp
Solicitors:
Appellant : Slater + Gordon Lawyers
Respondent : Jackson McDonald
Case(s) referred to in judgment(s):
Burswood Resort (Management) Ltd v Australian Liquor Hospitality &
Miscellaneous Workers' Union (Unreported, WASCA, Library No
940280,
2 June 1994)
Construction, Mining and Energy Workers Union of Australia v Operative
Plasterers and Plaster Workers Federation of Australia
(1990) 32 IR 287
Federated Miscellaneous Workers' Union of Australia v Federated Clerks Union
of Australia
(1985) 65 WAIG 2033
Re Sharkey; Ex parte Burswood Resort (Management) Ltd
(1994) 55 IR 276
The Federated Liquor and Allied Industries Employees' Union of Australia v
The Federated Miscellaneous Workers' Union of Australia
(Unreported, WASC,
Library No 930269, 30 April 1993)
Table of Contents
1
BUSS J
: The appellant is and at
all material times was registered as an organisation under div 4 of
pt II of the
Industrial Relations Act 1979
(WA) (the Act). The
appellant's members include school principals, deputy principals and teachers.
2 On 2 December 2011, the respondent filed an
application pursuant to s 53(1) of the Act for registration as an
organisation under
div 4 of pt II of the Act. The respondent's
members comprise school principals and deputy principals. Teachers, as distinct
from
principals and deputy principals, are not eligible for membership.
3 On 17 January 2012, the appellant and a number of
other persons filed objections to the respondent's application.
4 At the hearing of the respondent's application, the Full Bench
of The Western Australian Industrial Relations Commission (the
Commission) made
an order, pursuant to s 27(1)(k) of the Act, permitting the appellant to
intervene in relation to the application.
5 On 17 December 2014, the Full Bench decided, by a
majority (Scott ASC & Kenner C; Smith AP dissenting), that an
order should
be made, pursuant to s 53(1), authorising the Registrar to
register the respondent as an organisation under div 4 of
pt II.
6 The appellant has appealed to this court against the Full
Bench's decision.
7 I would dismiss the appeal. My reasons are as
follows.
The relevant
background facts and circumstances
8 The relevant background facts and circumstances are summarised
in the reasons of Kenner C as follows:
As early as about 1995, principals in government schools have sought to
negotiate their own terms and conditions of employment with
their employer, as
they were not able at the time, to obtain an industrial agreement separate from
that applying to teachers generally.
Whilst the employer was willing, and
indeed seems to have a preference for separate agreement coverage for
principals, [the appellant]
has had a policy position of opposing any separate
agreement coverage within its ranks. As a result of this position, the previous
iteration of [the respondent], took advantage of the industrial legislation of
the day, to negotiate a collective agreement directly
with the employer. This
continued through to about 2002, after which time the then
Workplace
Agreements Act 1993
ceased to have effect. [The respondent] submitted that
this was the only option then open to it, to obtain a separate voice.
As this particular industrial legislation was strongly opposed by unions
generally in the State system at the time, the action of
the principals to
charge their own course was not a popular one. Indeed, it led to a reaction at
the time from [the appellant's]
leadership that can only be fairly described as
hostile.
Despite two previous unsuccessful applications to register as an organisation
under the Act, which failed for technical reasons,
[the respondent] now seeks
legislative recognition under the Act, to formally participate in the industrial
relations system in this
State [638] - [640].
The relevant
provisions of the Act
9 The long title to the Act states that it is an Act 'to
consolidate and amend the law relating to the prevention and resolution
of
conflict in respect of industrial matters, the mutual rights and duties of
employers and employees, the rights and duties of organisations
of employers and
employees, and for related purposes'.
10 Section 6 specifies the 'principal objects' of the Act.
Those objects include:
(aa) to provide for rights and obligations in relation to good faith bargaining;
and
(ab) to promote the principles of freedom of association and the right to
organise; and
...
(ad) to promote collective bargaining and to establish the primacy of collective
agreements over individual agreements; and
...
(af) to facilitate the efficient organisation and performance of work according
to the needs of an industry and enterprises within
it, balanced with fairness to
the employees in the industry and enterprises; and
(ag) to encourage employers, employees and organisations to reach agreements
appropriate to the needs of enterprises within industry
and the employees in
those enterprises; and
...
(e) to encourage the formation of representative organisations of employers and
employees and their registration under this Act and
to discourage, so far as
practicable, overlapping of eligibility for membership of such organisations;
and
(f) to encourage the democratic control of organisations so registered and the
full participation by members of such an organisation
in the affairs of the
organisation.
11 By s 26(1)(c), in the exercise of its jurisdiction under
the Act the Commission 'shall have regard for the interests of the
persons
immediately concerned whether directly affected or not and, where appropriate,
for the interests of the community as a whole'.
12 Division 4 of pt II is headed 'Industrial
organisations and associations', and comprises s 52 to
s 73.
13 Section 53(1) provides:
Subject to this Act, any unregistered organisation consisting of not less than
200 employees associated for the purpose of protecting
or furthering the
interests of employees may be registered by authority of the Full
Bench.
14 Section 55(5) provides:
Notwithstanding that an organisation complies with section
53(1) ... the Full Bench shall refuse an application by the
organisation
under this section if a registered organisation whose rules
relating to membership enable it to enrol as a member some or all of
the persons
eligible, pursuant to the rules of the first mentioned organisation, to be
members of the first mentioned organisation
unless the Full Bench is satisfied
that there is good reason, consistent with the objects prescribed in section 6,
to permit registration.
Case law on the
proper construction of the relevant provisions of the Act
15 The
Acts Amendment and Repeal (Industrial Relations) Act
(No 2) 1984
(WA), relevantly:
(a) repealed s 6 of the Act and substituted a new s 6;
(b) repealed s 55(1) of the Act and substituted a new s 55(1);
and
(c) repealed s 55(4) of the Act and substituted a new s 55(4) and a
new s 55(5).
16 The new s 6 introduced by the 1984 amending statute
comprised pars (b), (c), (d), (e), (f) and (g) of s 6, as currently
enacted,
and par (a), substantially as currently enacted. The
Labour
Relations Reform Act 2002
(WA) inserted pars (aa), (ab), (ac), (ad), (ae),
(af), (ag) and (ca) of s 6 as currently enacted.
17 The
Industrial Relations Legislation Amendment and Repeal
Act 1995
(WA) amended s 55(4) of the Act, and the
Labour Relations
Reform Act 2002
amended s 55(2) and s 55(3) of the Act, but none
of the amendments is material for the purposes of this appeal or the previous
decisions
of this court or the Full Court of the Supreme Court which have
construed s 6 or s 55.
18 In
Federated Miscellaneous Workers' Union of Australia v
Federated Clerks Union of Australia
(1985) 65 WAIG 2033
(
FMWU
case
), the appellant, a registered organisation of employees under the
Act, having resolved to alter rules relating to qualifications
of persons for
membership, made application to the Full Bench of the Commission to authorise
the registration of the amendment under
s 62(2) of the Act. The Full Bench
refused to authorise registration of the amendment. The appellant appealed to
this court. It
alleged, relevantly, that the Full Bench had erred in law in
that it had failed properly to consider the basis upon which the claim
was made
in ascertaining whether the requirements of s 55 of the Act had been met.
Section 62(4) provides, relevantly, that s 55
applies, with such
modifications as are necessary, to and in relation to an application by an
organisation for alteration of a rule
of a kind referred to in
s 62(2).
19 Olney J (Kennedy J agreeing) noted that, by the
Acts Amendment and Repeal (Industrial Relations) Act (No 2) 1984
,
s 55(4) of the Act was amended to remove the discretionary power to refuse
registration in the event of the Full Bench being of
the opinion that it was not
necessary or desirable or would not be likely to advance the purposes or objects
of the Act and, instead,
a new s 55(5) was added (2036). His Honour then
said:
By any measure, the changes made by the 1984 amendment indicate a clear
legislative intention that for the future at least overlapping
of union
membership is to be avoided unless the Full Bench is satisfied that there is
good reason to the contrary. Some particular
features of section 55(5) warrant
consideration in this context. First, it is expressed in mandatory terms.
Registration is to
be refused unless good cause is shown. Second, the factual
criterion giving rise to the operation of the subsection is the existence
of a
registered organisation whose rules relating to membership enable it to enrol as
a member some or all of the persons eligible
to join the applicant. It is no
longer a case of considering whether 'the members or the bulk of the members'
may conveniently belong
to a registered union. It is sufficient if 'some'
potential members of the applicant body are eligible for membership of a
registered
organisation. No doubt, in any particular case the Full Bench will
take account of the extent of the potential overlapping in determining
whether
or not it is satisfied that there is good reason to permit the new registration
but that is a matter for the Full Bench to
consider and is not something which
the statute seeks to control by laying down criteria. A third feature of
section 55(5) is that
there is now a very specific object directly related to
the question of union registration and particularly overlapping of membership
between unions and that is expressed in positive terms indicating an intention
that so far as practicable overlapping should be discouraged
(2036).
20 In the
FMWU case
this court held that, in
considering the application, the Full Bench did not misunderstand either the
facts of the case or the appropriate
rule to be applied. The appellant had not
established any error of law. The court did not have jurisdiction to entertain
the appeal
and, consequently, the appeal was dismissed as being
incompetent.
21 In
Construction, Mining and Energy Workers Union of
Australia v Operative Plasterers and Plaster Workers Federation of
Australia
(1990) 32 IR 287
(
CMEWU case
), this court heard
two appeals arising out of a decision of the Full Bench of the Commission.
There were two applications before
the Full Bench, pursuant to s 62(2) of
the Act, to amend union membership rules. The applications were heard together,
each being
objected to by the other applicant. The appellant and the respondent
both sought to amend their membership rules to provide, in
general, for
constitutional coverage of wall and ceiling fixers. The Full Bench dismissed
the appellant's application and allowed
the respondent's application. The Full
Bench stated, in its reasons for judgment, that the respondent's constitution
should be amended
by adding wall and/or ceiling fixers and suggested a
definition of what a wall and ceiling fixer meant. Ground 3 in one of the
appellant's
appeals alleged that the Full Bench had erred by failing 'to give
effect to the provisions of s 55(5) and/or s 6 of the Act in the
exercise of its discretion'.
22 Brinsden P (Kennedy & Franklyn JJ agreeing) set
out the appellant's argument in relation to ground 3:
The objects of the Act are to discourage, so far as practicable, overlapping of
eligibility for membership of unions: s 6(e), s
55(5). The effect of
the Full Bench's decision is to create overlapping membership eligibility for
persons engaged upon the work
of wall and ceiling fixing. Carpenters engaged
upon that work are eligible for membership of the appellant and pursuant to the
order
of the Full Bench for membership of the respondent. Notwithstanding to do
so would create overlapping membership eligibility, the
Full Bench conferred
constitutional coverage on wall and ceiling fixers upon [the respondent]
because: there was a lineal link between
fibrous plastering and wall and
ceiling fixing; plasterers have had continual involvement with the training of
wall ceiling fixers;
and there was evidence of persons trained as wall and
ceiling fixers that they wished to be represented by the plasterers. Those
reasons are not good reasons, consistent with the objects prescribed in s 6
of the Act to permit the rule change sought by the plasterers
for these reasons.
Firstly they are not reasons consistent with the objects of the Act and in
particular the promotion of goodwill
in the industry. Secondly, the Act through
ss 6(e) and 55(5) explicitly expresses a strong intent to prevent
overlapping of membership
where practicable. Thirdly it was practicable to
prevent overlapping membership which would have been avoided by granting [the
appellant's]
application and dismissing [the respondent's] application.
Fourthly the reasons stated by the Full Bench for granting [the respondent's]
application notwithstanding it would result in overlapping membership, and
notwithstanding that both parties before the Full Bench
submitted that to permit
overlapping membership would lead to industrial disharmony, were of so little
weight that the Full Bench
must have mis-attributed the weight to be attached to
the legislative direction to avoid overlapping. Fifthly in the circumstances
the discretion of the Full Bench must have miscarried and therefore the decision
lies outside the boundaries of a sound discretionary
judgment
(294).
23 Brinsden P rejected the appellant's
argument:
As can be seen from the provisions of s 55(5) the embargo on the Full Bench
allowing an application whereby a union's rules will
enable it to enrol as
members some or all of the persons eligible to be members of another union is
not absolute since the Full Bench
is entitled to so allow overlapping coverage
if it is satisfied that there is good reason, consistent with the objects
prescribed
in s 6, to permit such overlapping. The weight to be given to
particular objects in deciding such a case would ordinarily be a matter
of fact
and hence not appealable to this Court. Provided that it can be shown that the
considerations which motivated the Full Bench
in making its decision were
matters which it could as a matter of law take into account then it seems to me
the weight it gives to
these various matters is entirely up to the Full Bench.
It is said that the reasons that the Full Bench relied upon are not reasons
consistent with the objects of the Act and in particular the promotion of
goodwill in the industry. In my opinion each of the reasons
mentioned by the
Full Bench are capable of being viewed as promoting the principal objects of the
Act. I would have thought that
it is clearly within one or more of the objects
as expressed in s 6 for the Full Bench to encourage the training of persons
engaged
in industry and to recognise by appropriate means a union which has
encouraged the training of specialists through technical colleges
and other
educational means. It would I think also be appropriate to promote goodwill in
industry and to endeavour so far as possible
to satisfy the aspirations of
workers in a particular section of industry by agreeing to them being
represented by the union of their
choice. Furthermore for the Full Bench to
refuse to recognise the progression of industrial practice from one form to
another would
fail to promote goodwill and discourage improvement of industrial
practice. Those considerations and others had to be weighed by
the Full Bench
along with the recognition by it that there was a direction in the Act not to
grant [the respondent's] application
if it would create overlapping unless there
was good reason consistent with the objects in s 6 to do so. I find it
impossible to
say that as a matter of law in deciding the issues before it in
the way it did the Full Bench's discretion has miscarried
(294 -
295).
24 In
Re Sharkey; Ex parte Burswood Resort (Management)
Ltd
(1994) 55 IR 276
(
Burswood Resort No 1
), the salient
facts were these. On 15 November 1993, the Full Bench of the Commission
decided that the Registrar be authorised to
register an alteration to the rules
of the Federated Miscellaneous Workers' Union of Australia, WA Branch (the FMWU)
under s 62(2)
of the Act. The decision enabled the FMWU to enrol as
members persons already eligible for membership of another trade union, namely
the Federated Liquor and Allied Industries Employees' Union of Australia,
Western Australian Branch, Union of Workers (the LTU).
The decision directly
affected Burswood Resort (Management) (Ltd) (Burswood), an employer of persons
who, before the decision, were
eligible for membership of the LTU and who,
thereafter, became eligible to join the FMWU.
25 On 17 December 1993, Owen J, on the application
of Burswood, granted an order nisi for a writ of certiorari requiring the Full
Bench to show cause before the Full Court of the Supreme Court why the writ
should not be issued against it for the purpose of quashing
its decision.
26 Burswood then made application to the Supreme Court for a stay
(pending the determination of the order nisi for a writ of certiorari
granted by
Owen J) of, relevantly, the operation and effect of the Full Bench's
decision. Ipp J heard and dismissed the application.
27 Ipp J held:
(a) Section 6(e) of the Act (by which the objects of the Act include 'to
encourage the formation of representative organisations of
employers and
employees and their registration under this Act and to discourage, so far as
practicable, overlapping of eligibility
for membership of such organisations')
contemplates that, in some circumstances, it might not be 'practicable' to
discourage overlapping
of eligibility for membership (280).
(b) Section 6(e) also provides that it is an object to encourage the
formation of representative organisations of employers and employees
and their
registration (280).
(c) The particular circumstances may be such that it would not be
'practicable' to discourage overlapping of eligibility for membership
and that
the registration of a competing union should be allowed (280).
(d) There is nothing which limits the circumstances to which the Full Bench
may have regard under s 55(5) of the Act in determining
whether 'good
reason' exists, save that the 'good reason' must be consistent with the objects
specified in s 6 (280).
(e) The words 'consistent with' do not mean 'advance', and the Full Bench may
have regard to matters which do not advance the objects
set out in s 6, as
long as those matters are consistent with those objects (280).
28 His Honour continued:
Nevertheless, once permission to register an organisation will result in
overlapping of eligibility for membership, before the Full
Bench can determine
that there is 'good reason' within the meaning of s 55(5) to permit
registration, it has to determine that it
is not practicable, within the meaning
of s 6(e), to discourage overlapping. Upon the Full Bench deciding that it
is not practicable,
in the circumstances, to discourage overlapping, it can
determine that there is good reason, consistent with the objects prescribed
in
s 6, to permit registration. On the other hand, if it is practicable to
discourage overlapping, then, in my view, there could
not be good reason,
consistent with s 6(e), to permit registration (280).
29 Ipp J was of the opinion that the Full Bench therefore
had to consider whether it was practicable, in the particular circumstances,
to
discourage overlapping between the FMWU and the LTU (280). The Full Bench had
to decide that question before going on to decide
whether 'good reason' existed
to allow the registration of the alteration to the FMWU's rules
(280).
30 In
Burswood Resort (Management) Ltd v Australian Liquor
Hospitality & Miscellaneous Workers' Union
(Unreported, WASCA,
Library No 940280, 2 June 1994) (
Burswood Resort No 2
),
the Full Court of the Supreme Court (Pidgeon, Rowland & Anderson JJ)
heard the return of, relevantly, the order nisi for a
writ of certiorari granted
by Owen J on 17 December 1993, which was the subject of the application for
a stay that Ipp J heard and
dismissed in
Burswood Resort No
1
. The Full Court discharged the order nisi.
31 Anderson J (Pidgeon J substantially agreeing) said
there was 'a real question whether s 55(5) [of the Act] prescribes
jurisdictional
limits or merely imposes procedural requirements on the exercise
of power to refuse an application' (10). His Honour cited the observations
of
Kennedy J on the point in
The Federated Liquor and Allied Industries
Employees' Union of Australia v The Federated Miscellaneous Workers' Union of
Australia
(Unreported, WASC, Library No 930269, 30 April 1993)
6 - 7. Anderson J said there was no need to decide the point in
Burswood Resort No 2
(10).
32 His Honour recorded the submission of Burswood and the LTU
that the Full Bench could never be satisfied in accordance with
s 55(5) of
the Act that there was good reason, consistent with the second of the two
objects set out in s 6(e), to allow any substantial
overlapping of
eligibility for membership because that would be 'inimical with that object'
(11). His Honour also recorded the submission
of Burswood and the LTU that, in
any event, the Full Bench misconceived its function and entered upon the wrong
inquiry as to 'good
reason' by having regard for the matters contained in
s 26 of the Act, when that provision had no or a very limited application
to
a proceeding under s 62.
33 Anderson J rejected the submissions made on behalf of
Burswood and the LTU.
34 As to the first submission, his Honour said there was 'more
than a hint of a suggestion' in the submission that s 55(5) is
to be
construed as limiting the objects to which the Commission must have regard (in
the exercise of the power to authorise an alteration
to the rules concerning
eligibility for membership) to the second of the two objects described in
s 6(e) (12 - 13). His Honour said
there was no warrant for
placing such a restricted construction upon the Act. He
explained:
Section 55(5) expressly brings in all of the objects prescribed in
s 6. There is no warrant to read down the phrase 'good reason,
consistent
with the objects prescribed in section 6 ... ' so as to mean 'good
reason, consistent with the second of the two objects
prescribed in section
6 (e).' As one might expect, the second object prescribed in s 6(e)
is only one of the matters to be taken
into account by the Commission in
reaching a state of satisfaction that there is a good reason to permit the
registration. The authority
of the Commission is not to be confined by placing
a construction upon s 55(5) and s 6 which has the effect that, as a
matter of
law, there can never be 'good reason' to register an alteration that
has the effect of affording substantial dual coverage.
The proposition that the requirement to discourage overlapping so far as
practicable must necessarily prevent the Commission from
reaching the required
state of satisfaction whenever there will be a substantial overlap of
eligibility is open to the further objection
that it elevates s 6(e) beyond
its true function. The subsection is plainly not intended to have the effect of
a prohibition against
a grant of dual coverage. The expression
' ... and to discourage, so far as practicable, overlapping ...'
in its very terms indicates
that this particular object may yield to other
legitimate objects from time to time and as the occasion demands. The word
'discourage'
is not synonymous with 'prevent' and the phrase 'discourage, so far
as practicable' allows much room for evaluation and judgment.
That the
evaluation and judgment may even, in appropriate cases, properly lead to the
grant of complete dual coverage is anyway
shown by the terms of s 55(5)
itself. Reference to the provisions of the subsection make it clear that the
Full Bench is entitled
to be satisfied that there is 'good reason' to allow a
rule change even when it will enable the applicant organisation to enrol all
of
the persons eligible to be enrolled in another registered organisation. The
section plainly contemplates an exercise of jurisdiction
to grant an application
notwithstanding that to do so will bring about complete dual coverage
(13 - 14).
35 As to the second submission, his Honour said that 'by no
process of construction can s 26 be excluded from application in the
way
suggested' (12). Section 26 operates upon the exercise of the whole of the
Commission's jurisdiction and 'where the commands
of s 26 are relevant to a
particular function, they must be obeyed' (12). His Honour was of the opinion
that the Commission was
correct to hold that its powers under s 55(5) and
s 62 are to be exercised having regard for the provisions of s 26,
where appropriate
(12).
36 Rowland J (Pidgeon J substantially agreeing)
said:
The only way in which the jurisdiction of the Full Bench to determine this
matter can be challenged relevant to this case is if the
words in s 55(5),
'the objects provided in section 6', can be read down to mean 'the object
provided in section 6(e)'. If that argument
could be sustained, then it seems
to me that, in accepting that it took into account other objects, the Full Bench
would have exceeded
its jurisdiction because, in exercising power, it would have
gone beyond the charter given to it by Parliament. However, for the
reasons
given by Anderson J, I agree that there can be no warrant for reading down
such clear unambiguous words in the way suggested.
In my view, the order nisi should be discharged because it is incompetent. In
the event that that conclusion be wrong, then I should
indicate that I agree
with the reasons of Anderson J that the Full Bench has not erred in the
manner of its dealing with the application
(3).
The reasons of
Scott ASC
37 Scott ASC described the approach which the Full Bench was
required to adopt in considering the respondent's application:
The statute requires that where there is overlapping membership, the Full Bench
must consider whether there is good reason to permit
registration, not only by
reference to the object of discouraging, so far as practicable, overlapping
membership (s 6(e)). The Full
Bench is to consider that issue on the basis
of whether there may be good reason, consistent with the other objects of the
Act.
The legislative directive contained in s 55(5) is not that any
application for registration is to be refused where there is overlapping
of
eligibility for membership. If the legislature had intended this to be the
case, it could have clearly and simply said so. However,
it is clear that
competition for membership is generally undesirable, and therefore, there must
be good reason, most likely in a
rare case, for registration to be approved
[568].
38 Scott ASC concluded that 'it is not practicable to
discourage overlapping membership in that the registration of [the respondent]
would create an organisation with coverage of an area forming a part of the
current exclusive coverage of [the appellant]' [576].
She
elaborated:
There is no suggestion that [the appellant] would vacate the field in so far as
[the respondent] is concerned. Further, [the appellant]
has a substantial
number of members within this class of employee. In fact, both organisations
would be entitled to enrol principals
as members. There would be competition
for membership of principals between the two organisations. [The appellant]
would retain
exclusive coverage of the great bulk of its existing potential
membership, in the teacher class [576].
39 Scott ASC said that, '[h]aving considered all of the
evidence', she concluded, on balance, that 'there is good reason consistent
with
the objects of the Act' to grant the respondent's application [579]. She
added:
It is not without some reservations that I have reached this conclusion,
however, the following issues constitute that good reason
in spite of those
reservations:
The role of principal;
Conflict between the interests of teachers and principals;
A conflict of interests in [the appellant] representing principals;
Negotiations for a separate agreement [579].
40 As
to 'the role of principal', Scott ASC stated it was clear that 'the role of
principal has expanded and changed, and become
more complex' and that principals
'now have many areas of different responsibilities and interests when compared
with teachers' [589].
41 As to 'conflict between the interests of teachers and
principals' and 'a conflict of interests in [the appellant] representing
principals', Scott ASC said:
(a) there is both conflict between the interests of principals and teachers
generally and a conflict of interest on the part of the
appellant in
representing the interests of teachers as well as principals [590];
(b) it is clear that 'it is not always possible for [the appellant] to
resolve disputes between teachers and principals' [595];
(c) she had given consideration to whether principals require the support and
assistance of the Department and the Director General
'rather than seeking to be
represented by their union in dealing with another employee', but '[t]his is not
a matter generally of
two unions in conflict, rather it is an employer-employee
dispute where the principal is representing the Director General' [596];
(d) it is not always practicable for principals to rely on the Department
'for advice, support and representation' rather than 'having
a separate union to
represent them' [597];
(e) principals have common interests which are 'at odds' with the interests
of the 'great bulk' of the appellant's members, and those
interests include as
employees dealing with their employer regarding their own conditions of
employment and as managers of other
staff and resources [598];
(f) there is 'good reason for principals to want support and guidance from a
union which will have their interests exclusively at
heart, and which does not
have to compromise those interests in favour of the interests of another group'
[599];
(g) there are 'circumstances where it is inimical to the interests of
principals that they will be represented by [the appellant]'
[599];
(h) the evidence demonstrates that 'only in those areas where there is no
conflict between the interests of the principal and the
interests of the
teachers can [the appellant] properly represent the principals' [599];
(i) there are 'real areas where the interests are either in direct conflict
or different, in which circumstances the principals ought
to be able to have
representation from a union which has as its exclusive focus, looking after
their interests' [599];
(j) there is 'a significant body of principals who choose not to be members
of [the appellant] because of the historical disagreements
and due to what they
see as them being outnumbered by teachers, both in total numbers of members
within [the appellant] ... and at
each school branch' [600];
(k) the principals have 'a genuinely held view that [the appellant] has not
represented their interests when those interests conflict
with the interests of
teachers' [600];
(l) those views are not only 'genuinely held views on the part of [the
respondent's] witnesses, but ... they may be seen objectively
to be
the basis for genuine conflict between them and [the appellant]' [601];
(m) the different roles of principals and teachers, 'particularly with the
changes in the role of principal, bring a greater potential
for conflict and
actual conflict than has been the case prior to devolution' [602]; and
(n) there is no reason why, where there are areas of mutual interest,
principals and teachers, through their respective organisations,
will not join
together to take appropriate action [602].
42 As to 'negotiations for a separate agreement', Scott ASC
noted:
(a) The respondent wanted to be able to negotiate on behalf of its members
for an agreement to cover their conditions, particularly
where their conditions
are or, in their view, should be, different from the conditions for teachers.
The respondent's position was
that principals and deputy principals should not
'simply be treated as teachers with some minor differences' [607].
(b) The appellant did not agree with the respondent's proposal that there
should be a separate agreement for principals and deputy
principals. It was
concerned 'at the potential for the positions of both teachers and principals to
be weakened in the negotiating
process by them being divided' [609].
43 Scott ASC concluded:
(a) The circumstances of the respondent's application were 'unique' and
related to 'a lengthy history, both of coverage by [the appellant]
and a period
of the class of employees who seek registration having previously had an
opportunity to and did represent that group,
which through changed policy and
legislation, it has subsequently been denied' [625].
(b) There were good reasons, 'consistent with the objects of the Act', to
grant registration despite 'the overlapping membership and
competition which
will follow' [625].
(c) It was appropriate, in accordance with the object set out in s 6(a),
(ab), (ad), (ag), (e) and (f) of the Act, that 'school principals
and deputy
principals have a union dedicated to their unique interests and concerns'
[626].
44 Scott ASC added, however, that she had decided that an
order should be made, pursuant to s 53(1) of the Act, authorising the
Registrar to register the respondent as an organisation, 'after having balanced
a number of issues' [626]. It had not been 'a clear
cut, unequivocal decision'
and she had 'some reservations about three issues in particular'
[626].
45 The three issues were as follows.
46 First, there would be 'two unions competing for members, which
the Act specifically seeks to discourage' and that would be
'an unusual
situation' with 'real potential for conflict' [627]. However, there had been
potential for conflict since the 1990s
when the founders of the respondent had
left the appellant 'due to their genuinely held views that [the appellant] did
not meet their
needs' [627]. There was some conflict during the period when
workplace agreements were in place [627]. Further, there was 'potential
and
actual conflict in the day-to-day work of teachers and principals, and in [the
appellant's] own role' [628].
47 Secondly, there was 'real potential for conflict' arising from
'how enterprise bargaining involving two organisations on behalf
of principals
will operate' [629]. The Department and the respondent prefer a separate
agreement for principals, but the appellant
does not [629].
48 Thirdly, the Commissioner thought that 'what principals need'
was
both
'greater support and assistance from the Department in their
role as managers' and 'a union to which they can turn' [630]. She
added:
Some issues are of a management nature such as examples given of developing
contingency plans to mitigate disruption when teachers
take industrial action.
That should not be a matter for principals to have to seek their own union's
support, albeit that they would
liaise with fellow principals. The Department
ought to be pursuing measures for better management of schools in negotiation
with
the relevant organisations. This is not a matter for inter-union
negotiation. It is quite right for principals as managers to raise
those
matters with the Department.
However, it is appropriate for principals to seek support from a union of their
own to deal with their own working conditions. Having
said that, I recognise
that some of the issues relating to working conditions of principals arise due
to that work involving managing
changes to the conditions of teachers, for
example, additional complexity and workload to manage class sizes and DOTT time
changes
for teachers [630] - [631].
49 Scott ASC then reiterated that 'even in the face of those
reservations and on balance ... registration would ameliorate the
inherent conflict of interests of [the appellant] in representing employees and
their managers'; it would 'provide for a representative
organisation which could
focus exclusively on a group with unique concerns and interests'; and its
members 'would be able to participate
in an organisation where their interests
are not competing with nor subsumed by a significantly larger group, thus
fostering democratic
control and freedom of association' [632]. The
Commissioner continued:
Most significantly, it would promote goodwill in industry by enabling a distinct
group to negotiate with their employer in a way
they were previously entitled to
do during the era of workplace agreements and under the Federal registration
arrangements, and they
did so. On balance, I am not satisfied that it would
damage goodwill in industry by creating conflict between principals and
teachers.
That conflict already exists due to the conflicting interests and
obligations their roles bring with them. However, there is also
evidence to
strongly suggest that where there is a community of interests, they could work
together. There is also evidence of principals
and teachers working
cooperatively in undertaking their work to ensure the best outcomes for their
schools and students. In fact,
the evidence of witnesses for both [the
respondent and the appellant] demonstrates that a significant part of the role
of principal
involves negotiation with teachers and the community.
Registration would enable the particular interests of principals to be addressed
without them being subject to another, more numerous,
group's interests.
Currently [the appellant's] attitude towards principals having separate
conditions specified in a schedule to
the agreement, which applies to all of its
members in the public school sector, means that principals are essentially
treated as
being teachers with some additional consideration required, as
opposed to being a group with genuinely different and in some cases
conflicting
interests to those of the bulk of teachers (s 6(a), (ab), (af) and (ag) of the
Act).
It would promote collective bargaining in that principals would be able to
negotiate directly with their employer on those matters
which are of
significance to them and their particular role (s 6(ad)). Importantly,
registration would encourage the formation of
a representative organisation of
employees, and in accordance with s 53(1), those employees being associated
for the purpose of protecting
and furthering their interests.
It would encourage the formation of representative organisations under
s 6(e). It would also encourage the democratic control of
the organisation
by encouraging participation by a group currently excluded from full
participation in a representative organisation
due to historical conflict and
genuine conflicting interests (s 6(f)) [633] - [636].
The reasons of
Kenner C
50 After discussing some of the decided cases on the proper
construction and application of s 55(5) of the Act, in the context
of the
objects set out in s 6 of the Act, Kenner C observed:
It is not the case that the Full Bench must determine, as a necessary first
step, whether it is impractical to discourage overlapping
in eligibility for
membership, before considering any other matters relevant to the exercise of the
broad discretion given to the
Full Bench by s 55(5) of the Act. Although
s 6(e) is important, s 55(5) plainly directs the exercise of the
discretion of the Full
Bench to a global assessment, taking into account all of
the objects in s 6 of the Act, not just some of them. Whilst the
overlapping
of eligibility of membership is to be discouraged, the legislative
scheme should not be applied in such a way to elevate 'discouragement',
into an
effective prohibition [720].
51 Kenner C rejected a submission by the appellant that 'it
is only in the case of "exceptional circumstances", such as the prospect
of
minimal overlap in eligibility for membership, [that] the Full Bench [will]
exercise [its] discretion to register' [724]. The
Commissioner said that the
statutory scheme 'requires the Full Bench to form the view that there is "good
reason" to register an
organisation, in the case of overlapping of membership
coverage', and that '[a] gloss should not be placed on the language used in
the
Act' [724].
52 Kenner C accepted that there was overlapping of
eligibility for membership between the appellant and the respondent [727].
He
added:
On the evidence, of around 1948 principals and deputy principals in public
schools, some 787 are members of [the appellant] and about
392 are members
of [the respondent]. [The appellant] sought to highlight this fact, as support
for [the appellant] by principals.
However, what is also illustrated is that as
opposed to [the appellant], which has had over 100 years of existence and many
decades
as a formal participant in the industrial relations system in this
State, with all of the benefits that incumbency brings, [the respondent]
has
over half the number of members of principals, as has [the appellant], without
yet even achieving registration under the Act.
In my view, this points to
strong support by principals for [the respondent] as an organisation.
Furthermore, whilst something
was sought to be made of the numerical position in
the proceedings, in my view, matters such as this are not ultimately, just about
'the numbers'. The only number that is material in my view, is that set by the
Parliament in s 53(1) of the Act, as being at least
200, as the minimum
number of members of an unregistered organisation that may apply for
registration. Even then s 53(2) of the
Act enables the Full Bench to
approve the registration of an organisation with less than 200 members, if it
considers there are good
reasons, consistent with the objects of the Act, to do
so [728].
53 Kenner C decided that, on the information before the Full
Bench, the grant of the respondent's application would be consistent
with the
objects of the Act [729]. He explained:
[The respondent], its predecessors, and the principals' bodies that [the
respondent] will ultimately represent, have had a long history
of representing
the interests, including the industrial interests, of their members in this
State. It is not a matter of mere convenience
or choice, which would not be
enough, given the terms of s 55(5) of the Act. As principals and deputy
principals are only a small
subset of the present eligibility for membership of
[the appellant], an organisation specifically dedicated to the industrial
interests
of principals and deputy principals should not be shut out of the
State industrial system. Their participation under the Act, in
relation to
industrial relations, will enable an organisation dedicated to their interests,
to provide representation and to formally
negotiate on behalf of principals and
deputy principals.
As a registered organisation, the Government, through the Department, will be
able to negotiate directly, and independently, with
[the respondent] on behalf
of principals, as it has wished to do so in the past, for an industrial
agreement. It will enable [the
respondent] and its members to have a direct say
over their terms and conditions of employment, undistracted by the majority
wishes
of members of [the appellant], or any actual or perceived conflicts of
interest. It would be entirely consistent with the objects
of the Act, in
particular, ss 6(aa), (ad), (ae), (af), and (ag), for [the respondent] and
the Department to have the opportunity
to reach an industrial agreement
reflecting the particular interests, and terms and conditions, relevant to
principals and deputy
principals.
Furthermore, there is good reason to grant the application because to do so, on
all of the materials before the Full Bench, would
be in accordance with
s 26(1)(c) of the Act, in that it would be in the interests of the persons
immediately concerned, those being
members of and those eligible to be members
of, [the respondent] [729] - [731].
54 Next, Kenner C addressed the likely interaction between
the appellant and the respondent if the respondent was registered as
an
organisation under the Act:
The fact is that principals are now seen as the representative of the employer
in their dealings with teaching staff and others in
schools. They are required
to implement departmental policies and ensure that teachers do too. It is in my
opinion, inevitable
that conflicts of interests and outcomes will arise.
However, simply because a separate organisation may represent the industrial
interests of principals, does not mean in my view, that there will be, ipso
facto, disharmony or the destruction of goodwill in schools
as organisations.
There is no reason to suggest that principals and teachers will not continue to
get on with the task of educating
students and managing schools in the best
interests of their students, as they have done to date.
What will change however is that [the respondent] will, for the first time, have
a formal voice in the industrial relations system
in this State
[733] - [734].
55 Finally, Kenner C noted, in the context of the criteria
for registration of organisations under the Act being different from
those
applying when the Australian Principals' Federation (APF) was registered by the
Australian Industrial Relations Commission
in January 2006:
Furthermore, the fact that the APF is registered federally, and has a Branch in
Western Australia, although not a major factor, is
of some weight. Such a
consideration is consistent with s 6(g) of the Act, in relation to
cooperation with federal organisations
and institutions [735].
The ground of
appeal
56 Section 90(1)(b) of the Act provides, relevantly, that an
appeal lies to this court from any decision of the Full Bench on
the ground that
'the decision is erroneous in law in that there has been an error in the
construction or interpretation of any Act
... in the course of making
the decision appealed against'.
57 The appellant relies solely on that provision in support of
its contention that this court has jurisdiction to entertain the
appeal on its
ground of appeal.
58 The ground of appeal alleges that the majority of the Full
Bench erred in 'the construction or interpretation of the expression
"good
reason", consistent with the objects prescribed in s 6 ... ',
contained in s 55(5) of the Act.
59 The appellant has provided particulars of the ground, which
read:
(a) Scott ASC erred in that the existence of the three issues identified at
[627] - [630] of her reasons precluded the conclusion,
in law, that
there was such a 'good reason'.
(b) Scott ASC erred at [626], [635] and [636] in her reasons in deciding
that registration of the respondent was consistent with
the objects set out in
section 6(ad), (ag), (e) and (f) of the [Act], in that such registration was not
capable of fulfilling these
objects, properly construed.
(c) Kenner C erred at [729] - [730] of his reasons in failing to
consider all of the objects of the [Act] in determining whether
there was the
requisite 'good reason', and in particular in failing to consider the object in
section 6(e) of the [Act].
(d) Kenner C erred at [730] of his reasons in deciding that registration of
the respondent was consistent with the objects set out
in section 6(aa),
(ad), (af) and (ag) of the [Act], in that such registration was not capable of
fulfilling these objects, properly
construed.
(e) Kenner C erred at [731] of his reasons in considering that the terms of
s 26(1)(c) of the [Act] favoured the registration of
the respondent, in
that:
(i) [Abandoned at the hearing];
(ii) In any event, the 'persons immediately concerned' in accordance with
s 26(1)(c) of the [Act], were not only the members or those
eligible to be
members of the respondent, but included the members of the appellant who would
necessarily be affected by the decision
to be made by the Full
Bench.
60 Counsel for the appellant submitted that:
(a) if there is any incompatibility or inconsistency between any of the
objects prescribed in s 6, on the one hand, and the registration
of the
applicant organisation, on the other, then s 55(5) cannot be satisfied
(appeal ts 8, 14); and
(b) if the Full Bench fails to take into account the second object in
s 6(e), in analysing whether there is 'good reason' within s
55(5),
that failure will, of itself, involve an error in the construction of
s 55(5) because s 55(5) requires the Full Bench to take
into account
all relevant objects (appeal ts 6 - 9).
The merits of the
ground of appeal
61 A number of propositions in relation to s 55(5), read
with s 6, of the Act may be discerned from the language of those
provisions,
in the relevant statutory context, and the decisions of this court
in the
FMWU case
and the
CMEWU case
and the decision
of the Full Court in
Burswood Resort No 2
.
62 First, by s 55(5), the Full Bench must refuse an
application by an organisation if an existing registered organisation whose
rules relating to membership enable it to enrol as a member some or all of the
persons eligible, pursuant to the rules of the applicant
organisation, to be
members of the applicant organisation, 'unless the Full Bench is satisfied that
there is good reason, consistent
with the objects prescribed in s 6, to
permit registration'.
63 Secondly, the prohibition in s 55(5) is not absolute
because the Full Bench is entitled to grant an application by an organisation
under s 55(5), even though the grant will result in total or partial dual
coverage, if it is satisfied that 'there is good reason,
consistent with the
objects prescribed in s 6, to permit registration'.
64 Thirdly, s 55(5) expressly refers to all of the objects
prescribed in s 6. The phrase 'good reason, consistent with the objects
prescribed in s 6' does not mean 'good reason, consistent with the second
of the two objects prescribed in s 6(e)'.
65 Fourthly, the second object in s 6(e) is 'to discourage,
so far as practicable, overlapping of eligibility for membership of
[representative organisations of employers and employees]'. That object is only
one of the matters to be taken into account by the
Full Bench in deciding
whether it is satisfied, within s 55(5), that there is 'good reason,
consistent with the objects prescribed
in s 6, to permit registration'.
The words 'consistent with' do not mean 'advance', and the Full Bench may have
regard to matters
which do not advance the objects prescribed in s 6,
provided those matters are consistent with those objects. The Full Bench's
power
under s 55(5) to permit registration is not to be confined by a
construction of s 55(5), read with s 6, which has the effect that,
as
a matter of law, there can never be 'good reason' to register an organisation if
the effect of the registration is to afford total
or partial dual
coverage.
66 Fifthly, s 6(e) is not intended to prohibit total or
partial dual coverage. The phrase 'and to discourage, so far as practicable,
overlapping' indicates that the second object in s 6(e) may yield to other
legitimate objects from time to time and as the occasion
demands. The word
'discourage' does not mean, and is not synonymous with, 'prevent'. The phrase
'and to discourage, as far as practicable,
overlapping' allows considerable
scope for evaluation and judgment. It is open to the Full Bench, in an
appropriate case, to grant
an application by an organisation under s 55(5)
even if the grant will result in total dual coverage. Section 55(5)
contemplates
an exercise of power under that provision to grant an application
by an organisation even though the grant will result in total dual
coverage.
67 Sixthly, the weight to be given to particular objects
prescribed in s 6, in deciding an application filed pursuant to
s 53(1),
ordinarily involves questions of fact. If the considerations
which the Full Bench takes into account in making its decision are
factors which
it is entitled, as a matter of law, to take into account, then it is for the
Full Bench to decide upon the weight to
be given to those
matters.
68 I turn to the particulars of the ground of
appeal.
69 As to particular (a) of the ground of appeal, the appellant
alleges that Scott ASC erred in that the existence of the three
issues she
identified at [627] - [630] precluded, in law, the conclusion that
there was 'good reason, consistent with the objects
prescribed in s 6', to
permit registration.
70 Particular (a) must be read and understood in the context of
the ground of appeal and s 90(1)(b) of the Act. On that basis,
the
appellant's allegation in particular (a) is, in substance, that:
(a) Scott ASC made an error in construing or interpreting the phrase
'good reason, consistent with the objects prescribed in s 6',
in
s 55(5); and
(b) the Commissioner's findings in relation to the three issues she
identified at [627] - [630] precluded, in law, the conclusion
that
there was 'good reason, consistent with the objects prescribed in s 6',
properly construed and interpreted, to permit the registration
of the respondent
as an organisation under div 4 of pt II of the Act.
71 Counsel for the appellant referred to the following passage in
Scott ASC's reasons:
'Practicable' means 'capable of being put into practice, done, or effected,
especially with the available means or with reason or
prudence; feasible' (see
Macquarie Dictionary). I conclude that it is not practicable to discourage
overlapping membership in that
the registration of [the respondent] would create
an organisation with coverage of an area forming a part of the current exclusive
coverage of [the appellant]. There is no suggestion that [the appellant] would
vacate the field in so far as [the respondent] is
concerned. Further, [the
appellant] has a substantial number of members within this class of employee.
In fact, both organisations
would be entitled to enrol principals as members.
There would be competition for membership of principals between the two
organisations.
[The appellant] would retain exclusive coverage of the great
bulk of its existing potential membership, in the teacher class [576].
72 It was argued that this passage demonstrates that
Scott ASC misconstrued s 55(5) because:
(a) the Commissioner said the registration of the respondent would result in
an overlapping of eligibility for membership of the appellant
and the
respondent;
(b) she said it was therefore not practicable to discourage overlapping
membership between those organisations; and
(c) as a result, she excluded, and did not take into account, the second
object in s 6(e) in deciding whether there was 'good reason,
consistent
with the objects in s 6', within s 55(5), to permit registration of
the respondent (appeal ts 16 - 18, 20 - 22).
73 It is true that, at [576] of her reasons, Scott ASC said
'it is not practicable to discourage overlapping membership in that
the
registration of [the respondent] would create an organisation with coverage of
an area forming part of the current exclusive
coverage of [the appellant]'.
That sentence suggests, at least in isolation, that she reasoned, erroneously,
that because there
was overlapping membership between the appellant and the
respondent it was impracticable to discourage overlapping membership, within
the
second object in s 6(e). Reasoning to that effect would be erroneous in
that the second object in s 6(e), namely that it is
a principal object of
the Act to discourage, so far as practicable, overlapping of eligibility for
membership of such organisations,
is a relevant consideration which
Scott ASC was bound to take into account in deciding, pursuant to
s 55(5), whether there was good
reason, consistent with the objects
prescribed in s 6, to permit registration of the
respondent.
74 However, I am not persuaded that Scott ASC excluded, and
did not take into account, the second object in s 6(e) in deciding
whether
there was good reason, consistent with the objects prescribed in s 6, to
permit registration of the respondent.
75 Indeed, I am satisfied, when [576] is read in the context of
Scott ASC's reasons as a whole, that she did take into account
all relevant
objects (including the second object in s 6(e)) in deciding whether there
was good reason, consistent with the objects
prescribed in s 6, to permit
registration of the respondent.
76 I refer, in particular, to the following:
(a) The Commissioner said, at [568], that 'where there is overlapping
membership, the Full Bench must consider whether there is good
reason to permit
registration,
not
only
by reference to the object of discouraging,
so far as practicable, overlapping membership' (emphasis added).
(b) The Commissioner said, at [579], that, '[h]aving considered all of the
evidence', she concluded, on balance, that 'there is good
reason
consistent
with the objects of the Act
' to grant the respondent's application (emphasis
added).
(c) The Commissioner said, at [625], that there were good reasons,
'
consistent with the objects of the Act
', to grant registration, despite
'the overlapping membership and competition which will follow' (emphasis
added).
(d) The Commissioner said, at [626], that she had decided, 'after having
balanced a number of issues', that the respondent should
be registered as an
organisation, but it had not been 'a clear cut, unequivocal decision' and she
had 'some reservations about three
issues in particular'. One of the issues,
which the Commissioner discussed at [627], was in essence the second object in
s 6(e),
namely that there would be 'two unions competing for members,
which the Act specifically seeks to discourage
' and that would be 'an
unusual situation' with 'real potential for conflict' (emphasis added).
(e) The Commissioner set out and discussed each of the three issues about
which she had some reservations. She then reiterated in
effect that, 'even in
the face of those reservations and on balance', registration of the respondent
should be permitted [632].
See also the Commissioner's reasons at
[633] - [636].
77 There is no reasonable basis for interpreting Scott ASC's
statements, at [579] and [625], to the effect that there was good
reason
'
consistent with the objects of the Act
' to grant the respondent's
application, to mean 'the objects of the Act
apart from the second object in
s 6(e)
'.
78 I am satisfied that Scott ASC did not make an error in
construing or interpreting the phrase 'good reason, consistent with
the objects
prescribed in s 6', in s 55(5), as alleged by the appellant. The
Commissioner referred to, and did not misapply, the
reasoning of Olney J
(Kennedy J agreeing) in the
FMWU case
. The weight to be
given to particular objects prescribed in s 6 involved questions of fact
and it was for the Commissioner to decide
upon the weight to be given to matters
relevant to one or more of those objects. She took into account, in making her
decision,
the factors which she was bound, as a matter of law, to take into
account. She did not take into account, in making her decision,
any factors
which she was not entitled, as a matter of law, to take into account. There was
no reason, in law, why the Commissioner
could not conclude that there was 'good
reason, consistent with the objects prescribed in s 6', to permit the
registration of the
respondent, despite the reservations she had expressed.
79 Particular (a) has not been made out.
80 As to particular (b) of the ground of appeal, the appellant
alleges that Scott ASC erred in deciding, at [626], [635] and [636],
that
registration of the respondent was consistent with the objects in s 6(ad),
(ag), (e) and (f) of the Act in that 'such registration
was not capable of
fulfilling [those] objects, properly construed'.
81 Particular (b), like particular (a), must be read and
understood in the context of the ground of appeal and s 90(1)(b) of the
Act. Accordingly, the appellant's allegation in particular (b) is, in
substance, that:
(a) Scott ASC made an error in construing or interpreting the phrase
'good reason, consistent with the objects prescribed in s 6',
in
s 55(5); and
(b) the Commissioner's findings at [626], [635] and [636] were not open to
her on a proper construction or interpretation of s 55(5)
and the objects
in s 6(ad), (ag), (e) and (f).
82 The principal objects set out in s 6(ad), (ag), (e) and
(f) read:
(ad) to promote collective bargaining and to establish the primacy of collective
agreements over individual agreements; and
...
(ag) to encourage employers, employees and organisations to reach agreements
appropriate to the needs of enterprises within industry
and the employees in
those enterprises; and
...
(e) to encourage the formation of representative organisations of employers and
employees and their registration under this Act and
to discourage, so far as
practicable, overlapping of eligibility for membership of such organisations;
and
(f) to encourage the democratic control of organisations so registered and the
full participation by members of such an organisation
in the affairs of the
organisation.
83 Scott ASC said it was appropriate, in accordance with the
objects in s 6(a), (ab), (ad), (ag), (e) and (f), that 'school principals
and deputy principals have a union dedicated to their unique interests and
concerns' [626]. The Commissioner also said:
(a) registration of the respondent would enable the particular interests of
principals to be addressed without them being subject
to another, more numerous,
group's interests [634];
(b) currently, the appellant's attitude towards principals having separate
conditions specified in a schedule to the agreement which
applies to all of the
appellant's members in the public school sector, means that principals are
treated, in essence, as being teachers
with some additional consideration
required, as distinct from being a group with genuinely different and, in some
cases, conflicting
interests to those of the bulk of teachers [634];
(c) the registration of the respondent would promote collective bargaining in
that principals would be able to negotiate directly
with their employer on those
matters which are of significance to them and their particular role [635];
(d) registration of the respondent would encourage the formation of a
representative organisation of employees and those employees
being associated
for the purpose of protecting and furthering their interests [635];
(e) registration of the respondent would encourage the formation of
representative organisations [636]; and
(f) registration of the respondent would also encourage the democratic
control of the organisation by encouraging participation by
a group currently
excluded from full participation in a representative organisation as a result of
historical conflict and genuine
conflicting interests [636].
84 As I have mentioned, Scott ASC did not make an error in
construing or interpreting the phrase 'good reason, consistent with
the objects
prescribed in s 6', in s 55(5). I am also satisfied that the
Commissioner did not make an error in construing or interpreting
the objects in
s 6(ad), (ag), (e) and (f), as alleged by the appellant.
85 In my opinion, the points made by Scott ASC, which I have
set out at [83] above, are reasonably capable of being viewed as
consistent with
(indeed, promoting) one or more of the principal objects of the Act as
prescribed in s 6. In particular:
(a) the points set out at pars (a) and (b) are reasonably capable of being
viewed as within the first limb of s 6(e);
(b) the point set out at par (c) is reasonably capable of being viewed as
within s 6(ad) and s 6(ag);
(c) the points set out at pars (d) and (e) are reasonably capable of being
viewed as within the first limb of s 6(e); and
(d) the point set out at par (f) is reasonably capable of being viewed
as within s 6(f).
86 Each of the points in question, together with other
considerations, had to be weighed by Scott ASC, including the
consideration,
within the second limb of s 6(e), that it is a principal
object of the Act to discourage, so far as practicable, overlapping of
eligibility
for membership of representative organisations of, relevantly,
employees, unless there is, within s 55(5), 'good reason, consistent
with
the objects prescribed in s 6', to permit registration.
87 Scott ASC's exercise of the power conferred by
s 55(5) did not miscarry, and her decision to permit registration of the
respondent
was not erroneous, in law, as a result of an error in the
construction or interpretation of any provision of s 55(5) or
s 6.
88 Particular (b) has not been made out.
89 As to particular (c) of the ground of appeal, the appellant
alleges that Kenner C erred in failing to consider, at
[729] -
[730], all of the objects of the Act in determining whether
there was the requisite 'good reason', within s 55(5), and, in particular,
in failing to consider 'the object in s 6(e)'. It is apparent from the
appellant's submissions that the reference to 'the object
in s 6(e)' is
intended to be a reference to the second limb of s 6(e).
90 Particular (c), like particulars (a) and (b), must be read and
understood in the context of the ground of appeal and s 90(1)(b)
of the
Act. So, the appellant's allegation in particular (c) is, in substance, that
Kenner C made an error in construing or interpreting
the phrase 'good
reason, consistent with the objects prescribed in s 6', in s 55(5),
and that the Commissioner, as a result of his
having misconstrued or
misinterpreted s 55(5) or s 6, failed to consider all of the objects
of the Act (in particular, the second
limb of s 6(e)) in determining
whether there was the requisite 'good reason', within
s 55(5).
91 Kenner C said:
(a) although s 6(e) is important, s 55(5) directs 'the exercise of
the discretion of the Full Bench to a global assessment, taking
into account all
of the objects of s 6 of the Act, not just some of them' [720];
(b) although the overlapping of eligibility for membership is to be
discouraged, 'the legislative scheme should not be applied in
such a way to
elevate "discouragement", into an effective prohibition' [720];
(c) the appellant's submission that 'it is only in the case of "exceptional
circumstances", such as the prospect of minimal overlap
in eligibility for
membership, [that] the Full Bench [will] exercise [its] discretion to register',
should be rejected [724];
(d) the legislative scheme requires the Full Bench to form the view that
there is 'good reason' to register an organisation, 'in the
case of overlapping
of membership coverage', and a 'gloss' should not be placed on the statutory
language [724];
(e) the registration of the respondent would be 'consistent with the objects
of the Act' [729];
(f) as principals and deputy principals are only 'a small subset of the
present eligibility for membership of [the appellant]', an
organisation
'specifically dedicated to the industrial interests of principals and deputy
principals' should not be shut out of the
State industrial system [729];
(g) the participation of principals and deputy principals in industrial
relations under the Act will enable 'an organisation dedicated
to their
interests, to provide representation and to formally negotiate on [their]
behalf' [729];
(h) if the respondent is registered then the Government, through the
Department, will be able to negotiate directly, and independently,
with the
respondent on behalf of principals [730];
(i) this will enable the respondent and its members 'to have a direct say
over their terms and conditions of employment, undistracted
by the majority
wishes of members of [the appellant] or any actual or perceived conflicts of
interest' [730]; and
(j) it would be 'entirely consistent with the objects of the Act, in
particular s 6(aa), (ad), (ae), (af) and (ag)', for the respondent
and the
Department to have 'the opportunity to reach an industrial agreement reflecting
the particular interests, and terms and conditions,
relevant to principals and
deputy principals' [730].
92 I am not persuaded, on a fair reading of Kenner C's
reasons as a whole, that the Commissioner made an error in construing or
interpreting the phrase 'good reason, consistent with the objects prescribed in
s 6', in s 55(5), or that the Commissioner, as a
result of his having
misconstrued or misinterpreted s 55(5) or s 6, failed to consider all
of the objects of the Act (in particular,
the second limb of s 6(e)) in
determining whether there was the requisite 'good reason', within
s 55(5).
93 Kenner C cited the
FMWU case
. The
Commissioner reproduced relevant passages from, and did not misapply, the
reasons of Olney J (Kennedy J agreeing) in that case
[716], [721].
Kenner C referred expressly to the importance of s 6(e) [720]; to
taking into account all of the objects of s 6 and
not just some of them
[720]; to the registration of the respondent being consistent with the objects
of the Act [729]; and to it
being 'entirely consistent with the objects of the
Act' for the respondent and the Department to have 'the opportunity to reach an
industrial agreement' [730].
94 Particular (c) has not been made out.
95 As to particular (d) of the ground of appeal, the appellant
alleges that Kenner C erred in deciding, at [730], that the registration
of
the respondent would be consistent with the objects in s 6(aa), (ad), (af)
and (ag) in that 'such registration was not capable
of fulfilling [those]
objects, properly construed'.
96 Particular (d), like particulars (a), (b) and (c), must be
read and understood in the context of the ground of appeal and s
90(1)(b)
of the Act. So, the appellant's allegation in particular (d) is, in substance,
that Kenner C made an error in construing
or interpreting the objects in
s 6(aa), (ad), (af) and (ag) in that the registration of the respondent was
incapable of fulfilling
any of those objects, properly
construed.
97 The principal objects set out in s 6(aa), (ad), (af) and
(ag) read:
(aa) to provide for rights and obligations in relation to good faith bargaining;
and
...
(ad) to promote collective bargaining and to establish the primacy of collective
agreements over individual agreements; and
...
(af) to facilitate the efficient organisation and performance of work according
to the needs of an industry and enterprises within
it, balanced with fairness to
the employees in the industry and enterprises; and
(ag) to encourage employers, employees and organisations to reach agreements
appropriate to the needs of enterprises within industry
and the employees in
those enterprises.
98 I am not persuaded, on a fair reading of Kenner C's
reasons as a whole, that the Commissioner made the alleged error in construing
or interpreting the objects in s 6(aa), (ad), (af) and
(ag).
99 The statutory scheme does not require that the registration of
the respondent be capable of 'fulfilling' those objects and,
therefore, the
assertion in particular (d) that the registration of the respondent was
'incapable of fulfilling any of these objects'
is misconceived.
Section 55(5) merely requires that the Full Bench be satisfied that there
is good reason, 'consistent with' the
objects in s 6, to permit
registration.
100 In my opinion, on the basis of Kenner C's findings and
observations (in particular, the findings and observations I have set
out at
[91] above), it was open to the Commissioner to conclude that the registration
of the respondent would be consistent with
the objects in s 6(aa), (ad),
(af) and (ag). The Commissioner did not misconstrue or misinterpret any of
those objects in arriving
at his conclusion.
101 Particular (d) has not been made out.
102 As to particular (e) of the ground of appeal, the appellant
alleges that Kenner C erred 'in considering that the terms of
s 26(1)(c) of the [Act] favoured the registration of the respondent', in
that the 'persons immediately concerned' in accordance with
s 26(1)(c) were
not only the members or those eligible to be members of the respondent, but
included the members of the appellant
who would necessarily be affected by the
Full Bench's decision.
103 Particular (e), like particulars (a), (b), (c) and (d), must
be read and understood in the context of the ground of appeal
and
s 90(1)(b) of the Act. On that basis, particular (e) alleges, in
substance, that Kenner C made an error in construing or interpreting
s 26(1)(c).
104 Section 26(1)(c) provides that, in the exercise of its
jurisdiction under the Act, the Commission:
shall have regard for the interests of the persons immediately concerned whether
directly affected or not and, where appropriate,
for the interests of the
community as a whole.
105 Kenner C said [731]:
Furthermore, there is good reason to grant the application because to do so, on
all of the materials before the Full Bench, would
be in accordance with
s 26(1)(c) of the Act, in that it would be in the interests of the persons
immediately concerned, those being
members of and those eligible to be members
of, [the respondent]:
Re an application by The Federated Miscellaneous
Workers' Union of Australia, WA Branch
(1993) 73 WAIG 3342.
106 Counsel for the appellant submitted that Kenner C
misconstrued s 26(1)(c) because he limited 'the
people ... immediately concerned
in the matter to ... the
members of [the respondent]' and, consequently, failed to take into account the
interests of those principals
and deputy principals who would remain members of
the appellant and the interests of teachers (as distinct from principals and
deputy
principals) who are members of the appellant (appeal
ts 30 - 31).
107 In my opinion, Kenner C made an error in identifying
'the persons immediately concerned whether directly affected or not',
within
s 26(1)(c), in the course of exercising the Full Bench's jurisdiction under
the Act in relation to the respondent's application.
Those persons included,
not merely 'members of and those eligible to be members of [the respondent]',
but also members of and those
eligible to be members of the appellant. The
error in identification appears to have arisen in consequence of a
misconstruction
or misinterpretation of the breadth or ambit of the phrase 'the
persons immediately concerned whether directly affected or not' in
s 26(1)(c).
108 Particular (e) has been made out.
109 However, I am satisfied that 'no injustice has been suffered
by the appellant or a person who is a member of or represented
by the
appellant', within s 90(3a) of the Act. The decision of the majority, the
subject of the appeal, should be confirmed. There
is no 'good reason not to do
so', within s 90(3a).
110 In particular, I am satisfied that Kenner C's error was
not an essential (or even a material) aspect of his reasoning or decision-making
process. It is of significance that the passage at [731] of his reasons was
prefaced by the word '[f]urthermore'. This demonstrates
that the Commissioner's
consideration of this point was in addition to the findings he had already made
(notably, those set out at
[729] - [730]). Accordingly, the error did
not affect the outcome at which he had already arrived.
Conclusion
111 I would dismiss the appeal.
112
MURPHY J
: I agree with Buss J.
113
LE MIERE J
: I agree with Buss J.