Stephen Darrow Stacey -v- Civil Service Association of Western Australia (Incorporated)
The Honourable M T Ritter
Not yet cited by other cases
Applicant: Stephen Darrow Stacey
Respondent: Civil Service Association of Western Australia (incorporated)
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Concept tags · 7
Cases cited in this decision · 70
Cited
(2004) 84 WAIG 790
(not in corpus)
"…14/09/03 Expiry of Workplace Agreements Act 1993 as legislated for by s4A of the Workplace Agreements Act 1993 , inserted by s31 of the Labour Relations Reform Act 2002 (Act No 20 of 2002) 05/04/04 The PSA 1992 scope...…"
Cited
(2004) 84 WAIG 2535
(not in corpus)
"…The CSA commences to pay overtime to the applicant for work done outside of his normal working hours, but the applicant’s claim for accrued overtime payments is not allowed by the CSA 28/07/04 Public Service General...…"
Cited
(2006) 86 WAIG 359
(not in corpus)
"…k, a senior industrial officer employed by the CSA . (These facts are relevant to the alleged breach). On 20 January 2006 the Commission published reasons for dismissing application 1215; Stacey v Civil Service...…"
Cited
(1993) 73 WAIG 302
(not in corpus)
"…nding/conclusion is sought in place of that made by Kenner C. (c) Is there any relevance to the applicant’s case, and if so what, that the Public Service Award 1992 in clause 18 provides for a “commuted allowance”...…"
Cited
(1981) 61 WAIG 616
(not in corpus)
"…should approach the question of the construction of the rules of an organisation is well established. Brinsden J with whom Smith J agreed in Hospital Salaried Officers Association of Western Australia (Union of...…"
Applied
[1992] HCA 53
(not in corpus)
"…lications. An example is Williams v SDAEAWA (2005) 85 WAIG 1963. A similar approach has been adopted by the High Court in the construction of union eligibility rules. In Re Anti-Cancer Council of Victoria; Ex Parte...…"
Applied
(1992) 175 CLR 442
(not in corpus)
"…xample is Williams v SDAEAWA (2005) 85 WAIG 1963. A similar approach has been adopted by the High Court in the construction of union eligibility rules. In Re Anti-Cancer Council of Victoria; Ex Parte State Public...…"
Cited
(1985) 159 CLR 323
(not in corpus)
"…union eligibility rules are to be interpreted liberally and according to their ordinary and popular meaning ”. Their Honours cited a number of decisions in support of this proposition including The Queen v Isaac ; Ex...…"
Cited
[1992] FCA 40
(not in corpus)
"…inary rules which govern the construction of written documents: Reg. v Aird; Ex parte Australian Workers' Union ; McKenzie. ” (Footnotes omitted) French J in Re Election for Office in Transport Workers’ Union of...…"
Cited
(1992) 40 IR 245
(not in corpus)
"…h govern the construction of written documents: Reg. v Aird; Ex parte Australian Workers' Union ; McKenzie. ” (Footnotes omitted) French J in Re Election for Office in Transport Workers’ Union of Australia, Western...…"
Cited
[1977] HCA 70
(not in corpus)
"…uires them to be construed not technically or narrowly but broadly and liberally and not “subjected to the same meticulous scrutiny as a deed carefully prepared by lawyers.” ”. His Honour cited R v Holmes ; Ex Parte...…"
Cited
(1977) 140 CLR 63
(not in corpus)
"…construed not technically or narrowly but broadly and liberally and not “subjected to the same meticulous scrutiny as a deed carefully prepared by lawyers.” ”. His Honour cited R v Holmes ; Ex Parte Public Service...…"
Cited
(1990) 26 FCR 499
(not in corpus)
"…as a deed carefully prepared by lawyers.” ”. His Honour cited R v Holmes ; Ex Parte Public Service Association (NSW) [1977] HCA 70 ; (1977) 140 CLR 63 per Gibbs J at 73 and Re An Election in the Australian Collieries...…"
Cited
(2004) 84 WAIG 2527
(not in corpus)
"…502. The reasons of French J were cited with approval by Mansfield J in Thomas v Hanson [2001] FCA 539 at [20] . Authorities cited by the applicant set out a similar method of approach. ( Delron Cleaning Pty Ltd T/A...…"
Cited
(1988) 68 WAIG 1010
(not in corpus)
"…ansfield J in Thomas v Hanson [2001] FCA 539 at [20] . Authorities cited by the applicant set out a similar method of approach. ( Delron Cleaning Pty Ltd T/A Delron Hospitality Management (2004) 84 WAIG 2527 at [40]...…"
Applied
(1993) 73 WAIG 301
(not in corpus)
"…ervice Commissioner had the power to appoint, transfer or promote officers and to determine remuneration. The PSA 1992 was made by order of the Commission after a consent application on 2 February 1993 ( CSA v...…"
Cited
(1997) 77 WAIG 1716
(not in corpus)
"…ed to apply to officers appointed under s14(3) of the PSA whose office continued to exist by clause 4(c) of Schedule 5 of the PSMA . This was because the scope clause of the PSA 1992 was amended by order of the...…"
Applied
(1995) 75 WAIG 2500
(not in corpus)
"…to exist by virtue of clause 4(c) of Schedule 5 to the PSMA . The Western Australian Public Sector (Civil Service Association) Enterprise Bargaining Framework Agreement 1995 ( the Framework Agreement ); CSA v...…"
Cited
(1996) 76 WAIG 951
(not in corpus)
"…e Commission as an industrial agreement under s41 of the Act . The applicant’s counsel also referred me to The Department of Resources Development Enterprise Bargaining Agreement 1995 ( the DRD agreement ) (...…"
Cited
(1990) 70 WAIG 3612
(not in corpus)
"…f employment for some public service employees. As an example she gave “ the Fisheries ”. (T317). The applicant’s counsel provided Ms Walkington with a copy of a decision of Commissioner Fielding dated 21 August 1990...…"
Cited
(1980) 60 WAIG 1487
(not in corpus)
"…as part of the then named Industrial Arbitration Act 1979 (WA) is contained in Elliott and Another v The West Australian Cleaners, Caretakers, Lift Attendants, Window Cleaners, Attendants and Watchmen’s Industrial...…"
Cited
[2003] WASCA 321
— Neville John Jones v Civil Service Association Inc
"…ession “ without limiting the generality of the foregoing ... ”. Section 66(2) is therefore drafted in very wide terms. (c) “ Relating to ” The authorities confirm that this a very broad expression. Pullin J in Jones...…"
Cited
(2003) 84 WAIG 4
(not in corpus)
"…miting the generality of the foregoing ... ”. Section 66(2) is therefore drafted in very wide terms. (c) “ Relating to ” The authorities confirm that this a very broad expression. Pullin J in Jones v Civil Service...…"
Cited
[1984] HCA 4
(not in corpus)
"…elling reasons for the contrary, be read down: Perlman v Perlman [1984] HCA 4 ; (1984) 155 CLR 474 at 489. The orders made by the President in this case relate to the non-observance of the rules of the respondent. ”...…"
Cited
(1984) 155 CLR 474
(not in corpus)
"…for the contrary, be read down: Perlman v Perlman [1984] HCA 4 ; (1984) 155 CLR 474 at 489. The orders made by the President in this case relate to the non-observance of the rules of the respondent. ” The citation of...…"
Cited
(1979) 141 CLR 672
(not in corpus)
"…er this is not always the case and in the end it was a matter of construing the particular power in the context of the legislative scheme. His Honour referred to and quoted from the reasons in Leon Fink Holdings Pty...…"
Cited
(1979) 24 ALR 513
(not in corpus)
"…he case and in the end it was a matter of construing the particular power in the context of the legislative scheme. His Honour referred to and quoted from the reasons in Leon Fink Holdings Pty Ltd v Australian Film...…"
Followed
[1932] HCA 9
(not in corpus)
"…k Holdings Pty Ltd v Australian Film Commission (1979) 141 CLR 672 and (1979) 24 ALR 513 , Cooma-Monaro Shire Council v Mannering (1986-1987) 7 NSWLR 258 at 262 and Anthony Hordern and Sons v Amalgamated Clothing and...…"
Followed
(1932) 47 CLR 1
(not in corpus)
"…Ltd v Australian Film Commission (1979) 141 CLR 672 and (1979) 24 ALR 513 , Cooma-Monaro Shire Council v Mannering (1986-1987) 7 NSWLR 258 at 262 and Anthony Hordern and Sons v Amalgamated Clothing and Allied Trades...…"
Followed
[1965] VicRp 70
(not in corpus)
"…he general power covers the particulars ... This class of case is to be contrasted with the case of general words following a series of specific instances where the ejusdem generis rule often arises ”. The like...…"
Followed
[1965] VR 523
(not in corpus)
"…overs the particulars ... This class of case is to be contrasted with the case of general words following a series of specific instances where the ejusdem generis rule often arises ”. The like effect, Gowans J in...…"
Doubted
(2003) 83 WAIG 951
(not in corpus)
"…me or of which I am aware where an order has been made for the payment of compensation for an old breach of a rule. As submitted by the applicant, I recognise that the decision of Sharkey P in Wauhop v Civil Service...…"
Followed
(1989) 70 WAIG 55
(not in corpus)
"…on v CSA (2003) 83 WAIG 3938 ; [2003] WASCA 284 , mentioned later, in my opinion the balance of this passage remains apposite. It was quoted and followed numerous times by Sharkey P, including in Singh v FMWU (1993)...…"
Followed
(2005) 85 WAIG 1963
(not in corpus)
"…passage remains apposite. It was quoted and followed numerous times by Sharkey P, including in Singh v FMWU (1993) 73 WAIG 2674 and Farrell v SSTUWA (1989) 70 WAIG 55 at 60.. In Farrell at page 59 and throughout his...…"
Followed
(2002) 82 WAIG 3226
(not in corpus)
"…the overturning of the exercise of power. In my opinion, feeding into the purpose of the s66(2) jurisdiction and powers, is the observation made by Sharkey P in Luby v Secretary, The Australian Nursing Federation,...…"
Cited
(1991) 71 WAIG 563
(not in corpus)
"…e type of orders which can be made under s66(2) of the Act . The following relevant principles can be distilled from the authorities:- (a) An order for the purposes of the section must involve a command to someone to...…"
Cited
(1992) 72 WAIG 1727
(not in corpus)
"…powers, contrary to the rules. ( Carter v Drake ( 1991) 72 WAIG 2501 at 2504) (d) Sections 66(2)(e) and (f) contain the only powers which the President may exercise under s66 in connection with election...…"
Cited
(1993) 73 WAIG 3308
(not in corpus)
"…n s66(1) have a means of enforcing the rules of an organisation. ( Robertson ) (i) Due to s26(2) the President in considering what order to make under a s66 application is not restricted to the specific claim made. (...…"
Considered
[1843] EngR 478
(not in corpus)
"…cast as it permitted orders in respect of “ an organisation ” rather than “ the rules of the organisation ”. Nicholson J then referred to a number of authorities arising out of submissions made as to the...…"
Cited
(1996) 76 WAIG 3380
(not in corpus)
"…Acting President of the LTU were “ null and void ”. This was because the appointment of Mr Carter was contrary to the rules. The terms of the IAC’s order shows it thought the powers of the President extended that...…"
Cited
(2003) 83 WAIG 3938
(not in corpus)
"…page 3382). His Honour said that if Sharkey P had exercised a discretion, it did not miscarry (page 3382). At page 3383 Kennedy J said what Sharkey P did “ was to declare to be invalid a decision which had always...…"
Cited
[2003] WASCA 284
— Robertson v Civil Service Association of Western Australia Inc
"…r said that if Sharkey P had exercised a discretion, it did not miscarry (page 3382). At page 3383 Kennedy J said what Sharkey P did “ was to declare to be invalid a decision which had always been invalid ”. (k)...…"
Cited
(1996) 76 WAIG 639
(not in corpus)
"…this context EM Heenan J referred to s61 of the Act and decided there was no power or reason to decline relief. EM Heenan J therefore allowed the appeal. Hasluck J agreed with this disposition and Anderson J...…"
Doubted
(2002) 82 WAIG 2124
(not in corpus)
"…s about complying with an express rule of an organisation. As there was no rule creating the obligation with respect to orders 2 and 3, they were set aside. (m) Luby v Secretary, The Australian Nursing Federation,...…"
Cited
(1997) 77 WAIG 3206
(not in corpus)
"…air and proper to do so (pages 2677-2678). It was held that the decision of the branch executive was not such as to require any order under s66 as a matter of equity, good conscience and the substantial merits (page...…"
Cited
[1959] HCA 51
(not in corpus)
"…-observance of the rules was contained in paragraphs [28]-[36] of his reasons as follows:- “28 In relation to the rules of an “organisation” it is not permitted by its rules to frustrate the policy and main purposes...…"
Followed
(1984) 56 ALR 379
(not in corpus)
"…SA, through the Executive and Council, and in general meetings, is also required to act intra vires, in accordance with the general concept of an organisation organised on a democratic basis, also for a bona fide...…"
Followed
(2002) 82 WAIG 2116
(not in corpus)
"…56 ALR 379 (FC FC)), and, further, fairly and reasonably to its members, as well as in their interests. (Secretaries and other officers are also required to act impartially and fairly). (See Luby v The Secretary of...…"
Followed
(1983) 63 WAIG 2230
(not in corpus)
"…he duty of the Commission, constituted by the President, to exercise the directory power conferred by s.66 of the Act where there is a substantial failure to perform or observe the rules. This discretionary power is...…"
Followed
(1993) 73 WAIG 2674
(not in corpus)
"…directory power conferred by s.66 of the Act where there is a substantial failure to perform or observe the rules. This discretionary power is well described in Park v WACJBSIU (1983) 63 WAIG 2230, (O ’Dea P) which...…"
Followed
(1968) 12 FLR 60
(not in corpus)
"…(Sharkey P). However, there must be confidence among members of an organisation that its government and administration will be carried out in accordance with the rules so that the policy of the act may be carried out...…"
Cited
(1951) 72 CAR 84
(not in corpus)
"…purpose for which the power was conferred, a member would be entitled to obtain an order under s141(1G) of the C and A Act (ALR p 386). (iii) Their Honours said there was a general principle illustrated by the facts...…"
Cited
(1992) 73 WAIG 255
(not in corpus)
"…in error. Sharkey P did not expressly base his decision in Wauhop upon the implied rules concept but there is at least a hint that he tacitly did so. It was a concept relied upon by Sharkey P from at least the...…"
Cited
[1982] FCA 262
(not in corpus)
"…the Act, upon the jurisdiction to make an order or give a direction which the President considers appropriate ” (page 270). (c) “ The order must be appropriate by reason of the President’s decision ” (see Director...…"
Cited
[1945] HCA 50
(not in corpus)
"…o ensure the proper conduct of members under the rules and the carrying out of the functions of various officers ” (page 271). In support of this observation his Honour cited R v Commonwealth Court of Conciliation...…"
Cited
(1945) 70 CLR 141
(not in corpus)
"…per conduct of members under the rules and the carrying out of the functions of various officers ” (page 271). In support of this observation his Honour cited R v Commonwealth Court of Conciliation and Arbitration ;...…"
Cited
[1976] HCA 48
(not in corpus)
"…unctions of various officers ” (page 271). In support of this observation his Honour cited R v Commonwealth Court of Conciliation and Arbitration ; Ex Parte Barrett [1945] HCA 50 ; (1945) 70 CLR 141 and R v Joske and...…"
Cited
(1976) 135 CLR 194
(not in corpus)
"…ous officers ” (page 271). In support of this observation his Honour cited R v Commonwealth Court of Conciliation and Arbitration ; Ex Parte Barrett [1945] HCA 50 ; (1945) 70 CLR 141 and R v Joske and Others, Ex...…"
Cited
(1975) 6 ALR 579
(not in corpus)
"…itration ; Ex Parte Barrett [1945] HCA 50 ; (1945) 70 CLR 141 and R v Joske and Others, Ex Parte SDA and Others [1976] HCA 48 ; (1976) 135 CLR 194. (n) “ There is power ... to deal with implied rules ”. In support,...…"
Cited
[2004] FCA 1534
(not in corpus)
"…d upon an official by the rules must be exercised bona fides for the purpose of the conferral. As stated by Cooper J in Re Application for an Inquiry in Relation to an Election for Offices in the Australian Education...…"
Cited
[2001] FCA 724
(not in corpus)
"…rules upon their true construction which may involve the implication of a limitation on a power : Porter v Dugmore [1984] FCA 75 ; (1984) 3 FCR 396 (FC) at 407 – 408; Darroch v Tanner (1987) 16 FCR 368 (FC) at 377;...…"
Cited
[2001] FCA 539
— Thomas v Hanson
"…C) at 407 – 408; Darroch v Tanner (1987) 16 FCR 368 (FC) at 377; Belan v National Union of Workers [2001] FCA 724 (FC) at [48] – [50]. Reference can also be made to the first instance judgments of members of this...…"
Cited
[2001] FCA 400
(not in corpus)
"…) at 377; Belan v National Union of Workers [2001] FCA 724 (FC) at [48] – [50]. Reference can also be made to the first instance judgments of members of this Court in Thomas v Hanson and the AWU [2001] FCA 539 at...…"
Considered
[1984] FCA 289
(not in corpus)
"…e Organisation's rules an implied provision qualifying the National Council's rule-amendment power. However, there is authority in this Court against the recognition of an implication of that kind. The point was...…"
Considered
(1984) 3 FCR 263
(not in corpus)
"…rules an implied provision qualifying the National Council's rule-amendment power. However, there is authority in this Court against the recognition of an implication of that kind. The point was discussed by Gray J...…"
Doubted
(1987) 16 FCR 368
(not in corpus)
"…exercised without adherence to the principles of natural justice. Smithers J accepted the possibility of the latter type of implication, but not the former. The implication argued in the present case is of the former...…"
Doubted
(1975) 27 FLR 129
(not in corpus)
"…[49] In Darroch v Tanner (1987) 16 FCR 368 a Full Court (Northrop, Keely and Ryan JJ) upheld the approach taken by Smithers J in Porter v Dugmore. Their Honours declined to follow the decision of the Australian...…"
Cited
[1984] FCA 75
(not in corpus)
"…cations under the C and A Act the rules cannot “ be supplemented by implied terms ” as distinct from permitting the ascertainment of “ the meaning of rules upon their true construction ”. (The latter quotation is...…"
Cited
(1984) 3 FCR 396
(not in corpus)
"…e C and A Act the rules cannot “ be supplemented by implied terms ” as distinct from permitting the ascertainment of “ the meaning of rules upon their true construction ”. (The latter quotation is from Smithers J in...…"
Cited
[2001] NSWCA 240
(not in corpus)
"…e was a conflict in that this knowledge should be disclosed to the applicant to properly represent him but at the same time would compromise Ms van den Herik’s duties to the CSA as her employer. As stated in...…"
Archived text (52707 words)
Stephen Darrow Stacey -v- Civil Service Association of Western Australia (Incorporated) [2007] WAIRComm 568 (28 June 2007)
Last Updated: 18 July 2007
WESTERN AUSTRALIAN INDUSTRIAL
RELATIONS COMMISSION
PRESIDENT
CITATION :
2007 WAIRC
00568
CORAM
:
THE HONOURABLE M T RITTER,
ACTING PRESIDENT
HEARD
:
THURSDAY, 22 JUNE 2006,
FRIDAY, 4 AUGUST 2006, FRIDAY, 1 SEPTEMBER 2006, TUESDAY, 20 FEBRUARY 2007,
WEDNESDAY, 21 FEBRUARY 2007, THURSDAY,
22 FEBRUARY 2007, WEDNESDAY, 7 MARCH
2007, THURSDAY, 26 APRIL 2007, FRIDAY, 27 APRIL 2007
, FINAL SUBMISSIONS
RECEIVED WEDNESDAY, 13 JUNE 2007
DELIVERED :
THURSDAY, 28 JUNE 2007
FILE NO. :
PRES 5 OF
2006
BETWEEN
:
STEPHEN DARROW STACEY
Applicant
AND
CIVIL SERVICE ASSOCIATION OF
WESTERN AUSTRALIA (INCORPORATED)
Respondent
CatchWords:
Industrial Law (WA) - Application
pursuant to
s66
of the
Industrial Relations Act 1979
(WA) - Alleged breach of
organisation rules - Witnesses and evidence - Objections to evidence and
application for further discovery
Industrial Law (WA) - 3 alleged breaches of rules - Whether applicant appointed
in accordance with rule "subject to the same conditions
and restrictions as an
Officer appointed under the Public Service Act" - Whether rule capable of
practicable operation - Employment
of public service officers pursuant to the
Public Service Act 1978 (WA), Public Service Award 1992,
Public Sector
Management Act 1994
(WA),
Workplace Agreements Act 1993
, and agency specific
agreements - Overtime allowances
Industrial Law (WA) - Whether failure by organisation to provide financial
resources to applicant to fund applications before Commission - Necessity to
provide fair process
Industrial Law (WA) - Remedies
sought - Construction of the rules of an
organisation - Nature of jurisdiction and powers of President under
s66
-
Statutory context
Industrial Law (WA) - Whether jurisdiction to deal with "implied rules" and make
"compensatory orders" for old
breaches of rules
Industrial Law (WA) - Conflict of interest of Workplace Delegate - Orders made
in relation to other issues -
Application otherwise dismissed
Legislation:
Industrial Relations Act 1979
(WA) (amended),
s6
, s
7
, s
26
(1)(b), s
41
, s
53
, s
54
, s
55
(1), s
56
, s
57
, s
58
, s
61
, s
62
, s
62
(3),
s
66
(1)(a), (2), (3), (4), (6)
Public Service Act 1978
(WA), s5, s14(3), s21, s22
Workplace Agreements Act 1993
(WA),
s4
, s
5
, s
6
, s
24
(1), s26, s
28
, s31,
s32, s
43
(1), (2), s
44
(1), (2), s
45
(1)s103
Public Sector Management Act 1994
(WA),
s3
, s
34
, s
35
, s
78
, s
80
,
s
112
(1)
Result:
Application dismissed
Representation:
Counsel:
Applicant : Mr D Howlett (of Counsel), by leave
Respondent : Mr P Fraser (of Counsel), by leave
Solicitors:
Applicant : Williams & Hughes, Barristers & Solicitors
Respondent : Ilberys Lawyers
Case(s) referred to in reasons:
Alexander v Perpetual Trustees WA Limited
[2001] NSWCA 240
Anthony Hordern
and Sons v Amalgamated Clothing and Allied Trades Union of Australia
[1932] HCA 9
;
(1932) 47
CLR 1
Belan v National Union of Workers
[2001] FCA 724
Byrne v Garrisson
[1965] VicRp 70
;
[1965] VR 523
Carter and Others v Drake and Others
(1993) 73 WAIG
3308
Carter v Drake
(1991) 72 WAIG 2501
CMEWUA V UFTIU
(1991) 71 WAIG
563
Conigrave v Tanner (1977) WAR 225
Cooma-Monaro Shire Council v
Mannering
(1986-1987) 7 NSWLR 258
Darroch v Tanner
(1987) 16 FCR 368
; 21 IR
284
Delron Cleaning Pty Ltd T/A Delron Hospitality Management
(2004) 84 WAIG
2527
Department of Resources Development v CSA
(1996) 76 WAIG 951
Director
General of Social Services v Hangan
[1982] FCA 262
;
45 ALR 23
Drake v Carter and Others
(1992) 73 WAIG 255
Elliot and Another v The WA Cleaners, Caretakers, Lift
Attendants, Window Cleaners, Attendants and Watchmen’s Industrial Union
of
Workers, Perth and Others
(1980) 60 WAIG 1487
Ex parte Provera; Re Wilkinson
(1952) 69 WN (NSW) 242
Farrell v SSTUA
(1989) 70 WAIG 55
FMWU v GW Smith
and KJ Rose
(1988) 68 WAIG 1010
Foss v Harbottle
[1843] EngR 478
;
(1843) 2 Hare 461
Gordon
v Carroll 91975)
6 ALR 579
;
27 FLR 129
Harken v Dornan and Others
(1992) 72
WAIG 1727
Hospital Salaried Officers Association of Western Australia (Union
of Workers) v The Hon Minister for Health
(1981) 61 WAIG 616
Jones v Civil
Service Association Inc
[2003] WASCA 321
;
(2003 84 WAIG 4
Leon Fink Holdings Pty Ltd v
Australian Film Commission
(1979) 141 CLR 672
;
24 ALR 513
Luby v Secretary,
The Australian Nursing Federation, Industrial Union of Workers, Perth
(2002) 82
WAIG 3226
Luby v Secretary, The Australian Nursing Federation, Industrial
Union of Workers, Perth
(2002) 82 WAIG 2124
Park v Secretary, Western
Australian Carpenters, Joiners, Bricklayers and Stoneworkers Industrial Union of
Workers
(1983) 63 WAIG 2230
Perlman v Perlman
(1984) 155 CLR 464
Porter v
Dugmore
[1984] FCA 75
;
(1984) 3 FCR 396
R v Commonwealth Court of Conciliation and
Arbitration; Ex Parte Barrett 91945)
[1945] HCA 50
;
70 CLR 141
R v Holmes; Ex Parte Public
Service Association (NSW)
[1977] HCA 70
;
(1977) 140 CLR 63
R v Joske and Others; Ex Parte
SDA and Others (1976) 135 194
Re An Election in the Australian Collieries
Staff Association (NSW Branch)
(1990) 26 FCR 539
Re Anti-Cancer Council of
Victoria; Ex Parte State Public Services Federation
[1992] HCA 53
;
(1992) 175 CLR 442
Re
Application for an Inquiry in Relation to an Election for offices in the
Australian Education Union, Queensland Branch, Becker
[2004] FCA 1534
Re
Election for Office in Transport Workers’ Union of Australia, Western
Australian Branch
[1992] FCA 40
;
(1992) 40 IR 245
Robertson v CSA
(2003) 83 WAIG 3938
;
[2003] WASCA 284
Scott v Jess
[1984] FCA 289
;
(1984) 3 FCR 263
;
56 ALR 379
; 8 IR 317
Short
v Wellings (1951) 72 CAR 84
Singh v FMWU
(1993) 73 WAIG 2674
The Queen v
Isaac; Ex Parte Transport Workers’ Union (1985) 159 CLR 323
The Western
Australian Public Sector (Civil Service Association) Enterprise Bargaining
Framework Agreement 1995; CSA v Agriculture
Protection Board and Others
(1995)
75 WAIG 2500
WALEDFCU v Schmid (No 1)
(1996) 76 WAIG 639
WALEDFCU v Schmid
(No 2)
(1996) 76 WAIG 3380
Wauhop v Civil Service Association of WA
(2003) 83
WAIG 951
Williams v SDAEAWA
(2005) 85 WAIG 1936
Williams v SDAEAWA
(2005)
85 WAIG 1963
Wyatt v CSA
(1997) 77 WAIG 3206
Case(s) also cited:
Application for an Inquiry Relating to an Election in the Community Public
Sector Union, WA Branch – SPSF Group; Margaret Jean
Forbes Anor v
Community Public Sector Union, WA Branch SPSF Group [1998] 1210 FCA (8 September
1998)
Bull v Attorney General (NSW)
[1913] HCA 60
;
(1913) 17 CLR 370
CSA of WA (Inc) v
Country High Schools Hostels and Authority and Others
72 WAIG 244
Frank
George Furey v CSA of WA (Inc) [1998] 733 FCA
Jones v CSA
[2003] WAIRC
08036
Kuligowski v Metrobus
[2004] HCA 34
Luby v The Secretary of the
Australian Nurses Federation
(2002) 82 WAIG 2116
Minister for Productivity
and Labour Relations v Trades and Labour Council of WA; Confederation of Western
Australian Industry (Inc)
and Australian Mines and Metals Association (Inc) (No
772 of 1991)
Stacey v CSA No 1215 of 2004, Citation No
2006 WAIRC
03501
State Wage Decision
71 WAIG 1723
State Wage Decision
74 WAIG
198
State Wage Decision
75 WAIG 23
The Civil Service Association of
Western Australia (Inc) v Western Australian Centre for Pathology and Medical
Research and The Hospital
Salaried Officers’ Association of Western
Australia (Union of Workers) (No 1348 of 1995)
The CSA of WA (Inc) v
Department of Indigenous Affairs and Others (re Public Service General Agreement
2004 PSA Ag 2 of
2004) 84 WAIG 2535
The CSA of WA (Inc) v Public Service
Board (No PSA A5 of
1986) 70 WAIG 3612
The CSA of WA Inc v Commissioner,
Public Service Commission (No P4 of 1992) 14 August 1992
The CSA of WA Inc v
N/A
65 WAIG 2045
The CSA of WA Inc v The Commissioner Public Service
Commission
(77 WAIG 1716)
The CSA of WA Inc v The Commissioner Public Service
Commission
(84 WAIG 789)
The CSA of WA Inc v The Commissioner Public Service
Commission
70 WAIG 2193
The CSA of WA Inc v The Commissioner Public Service
Commission
73 WAIG 301
Reasons for Decision
RITTER AP:
Contents
Due
to the length of the reasons I set out a list of contents for ease of
reference.
1. Contents
(paragraphs [1] and [2])
2. Summary of Outcome (paragraphs [3], [4]
and [5])
3. The Application (paragraphs [6] – [9])
4. Parties, Witnesses and Other Relevant People (paragraphs [10] –
[18])
5. Chronology (paragraph [19])
6.
Section 66
(paragraphs [20] – [25])
7. First Alleged Breach – Rule 12(l)(vi) (paragraphs [26] –
[29])
8. Second Alleged Breach – Application 1215 of 2004 (paragraphs [30]
– [35])
9. Third Alleged Breach –
Section 66
Funding (paragraph [36])
10. Remedies Sought (paragraphs [37] – [38])
11. The Answer of
the CSA
(paragraphs [39] – [45])
12. Directions Hearings Before Substantive Hearing (paragraph [46])
13. Evidence and Witnesses (paragraph [47])
14. Objections to Evidence (paragraphs [48] – [54])
(a) Mr Best
(b) Ms Robertson
15. The Adjournment of the Substantive Hearing (paragraphs 55] –
[57])
16. The Application for Further and Better Discovery (paragraphs [58] –
[74])
17. Post Hearing Communications and Submissions (paragraphs [75] –
[78])
18. Summary of Issues (paragraphs [79] – [88])
19. The Construction of the Rules of an Organisation (paragraphs [89] –
[94])
20. Organisational Structure of
the CSA
(paragraphs [95] –
[106])
21. The First Alleged Breach - Construction of Rule 12(l)(vi) (paragraphs
[107] – [112])
22. Breach of Rule 12(l)(vi) – The Evidence (paragraphs [113] –
[218])
(a) The Employment of Public Sector Employees
(b) The Appointment and Employment of the Applicant
(c) Overtime and Public Service Officers
(i)
The PSA 1992
(ii) Evidence from Witnesses
(d) The History of Rule 12(l)(vi)
(e) Ms Walkington’s Memorandum
(f) The Alteration of the Rule
(g) The Employment of CSA Employees Generally, Overtime and Rule
12(l)(vi)
23. Breach of Rule 12(l)(vi) – General Factual Findings (paragraphs
[219] – [221])
24. Was the Applicant Appointed in Accordance with Rule 12(l)(vi) (paragraphs
[222] – [223])
25. Operability of Rule 12(l)(vi) in September 1999 (paragraphs [224] –
[237])
26. Consequences of Breach of Rule 12(l)(vi) (paragraphs [238] –
[242])
27. Compensatory Orders Under
Section 66
to Remedy a Breach of Rule 12(l)(vi)
(paragraphs [243] – [248])
28.
Section 66
– The Nature of the Jurisdiction and the Powers of the
President (paragraphs [249] – [303])
(a) Background
(b) The Terms of the Section
(c) “
Relating to
”
(d) “
Without Limiting the Generality of the Foregoing
”
(e) Limits to the Powers
(f) Statutory Context
(g) The Extent of the Jurisdiction
(h) Orders Under Section 66(2) of
the Act
(i)
Carter v Drake
(1993) 73 WAIG 3308
(j)
WALEDFCU v Schmid (No 2)
(1996) 76 WAIG 3380
(k)
Robertson v CSA
(2003) 83 WAIG 3938
;
[2003] WASCA 284
(l)
WALEDFCU v Schmid (No 1)
(1996) 76 WAIG 639
(m)
Luby v Secretary, The Australian Nursing Federation, Industrial Union
of Workers, Perth and Others
(2002) 82 WAIG 2124
(n) Conclusion on Orders Sought for Alleged Breach of Rule 12(l)(vi)
29. Breach of Rule 12(l)(vi) – Summary of Conclusions (paragraphs [304]
– [306])
30. The Second and Third Alleged Breaches (paragraph [307])
31. The Meaning of Rule 3 and the Duties Relied On (paragraphs [308] –
[336])
Breach
of Rules by Inadequate Resources to Support Application 1215 – Evidence
(paragraphs [337] – [380])
(a) The Applicant
(b) Ms van den Herik
(c) Ms Robertson
(d) Mr Best
(e) Mr Ellis
(f) Mr Cusack
(g) Ms Walkington
33. Factual Findings on Second Alleged Breach of Rules (paragraphs [381]
– [387])
34. Conclusion on Second Alleged Breach of the Rules (paragraph [388])
Breach
of Rules by Failing to Provide Resources for Representation of s66 Application
– Evidence (paragraphs [389] – [408])
(a) The
Applicant
(b) Ms van den Herik, Ms Robertson and Mr Best
(c) Mr Ellis
(d) Mr Cusack
(e) Ms Walkington
36. Factual Findings on Third Alleged Breach of Rules (paragraphs [409]
– [413])
37. Conclusion on Third Alleged Breach of Rules (paragraph [414])
38. Other Issues (paragraph [415])
39. References in Rules to the
Public Service Act 1978
(paragraph
[416] – [418])
40. Workplace Delegates and Conflict of Interest (paragraphs [419] –
[426])
41. Rule 12(m) (paragraph [427])
42. Minute of Proposed Orders (paragraph [428])
Summary
of Outcome
This
application was brought pursuant to
s66
of the
Industrial Relations Act
1979
(WA) (
the Act
). The applicant sought a variety of orders
because of what was alleged to be three breaches of the rules of the respondent
(
the CSA
). The primary orders sought were for the payment of money to
the applicant to redress the consequences of those breaches. In my
opinion, the
applicant has not as a matter of law and fact established the breach of the
rules he asserted. Additionally, for the
reasons which are set out below in my
opinion the applicant cannot in these proceedings, given the limited
jurisdiction under s66,
obtain the compensatory orders he sought. The orders
sought by the applicant will therefore not be made.
In
the course of the proceedings it became evident that there were rules and issues
about which it was appropriate to make comment
and in some cases orders and
directions. These are set out near the end of the reasons.
A
minute of proposed order is to be provided to the parties in the terms set out
in the conclusion. The parties will be requested
to advise if they wish to
speak to the minute.
The
Application
The
application was filed on 7 June 2006. The application said the applicant
had applied to the Commission for declarations and orders
pursuant to s66 of
the Act
. The grounds of the application were contained in an attached
schedule.
The
applicant is a member of
the CSA
.
The CSA
is an organisation for
the purposes of s66 of
the Act
as it is registered under Division 4
of Part II of
the Act
. (See the definition of
“
organisation
” in s7 of
the Act
). The applicant
therefore has standing to bring the present application pursuant to s66(1)(a) of
the Act
.
The
rules of
the CSA
as certified by the Registrar on 18 October 2005
were exhibit 3. The parties agreed that these were the form of the rules
which
I should have regard to in determining the present application.
The
schedule to the application contained a detailed statement of the breaches of
the rules which the applicant contended
the CSA
had engaged in and the
remedies sought. Specifically, the application complained of alleged breaches
of rule 12(l)(vi) and rule
3(c).
Parties,
Witnesses and other Relevant People
The
applicant was not only a member of
the CSA
but also employed by it in the
position of executive officer from 20 September 1999 to 24 March 2006.
Ms Toni
Walkington is presently the general secretary of
the CSA
. She holds this
position by virtue of her election as branch secretary of the Community and
Public Sector Union SPSF Group (the
CPSU). The CPSU is the counterpart Federal
body of
the CSA
. A certificate has been issued to
the CSA
and the
CPSU under s71 of
the Act
. Ms Walkington has been an employee of
the CSA in a variety of roles since 1991. Ms Diane Robertson was the
president of
the CSA
from 1993 to 2003 and Mr Colin Best was its
treasurer from 2000 to 2004. Mr Brian Ellis was a vice president of
the
CSA
from 2000 to 2006. Mr David (Dave) Robinson was the general
secretary of
the CSA
at the time the applicant was first employed.
Ms Walkington was then assistant general secretary. Mr Brendon Hewson
is the current
president of
the CSA
. Ms Jo Gaines was at all
material times and is presently the assistant secretary of
the CSA
.
Ms Mabel
van den Herik (who is known as Ms Jane van den Herik) was
employed by
the CSA
as an industrial officer/advocate from
12 February 1991 to 18 October 2006. Ms van den Herik was also a CSA
delegate for the employees
of
the CSA
at relevant times. Mr Brendan
Cusack is a senior industrial officer employed by
the CSA
. He has been
employed by
the CSA
in this and other capacities since August 2000. Ms
Pat Brewer is the human resources officer of
the CSA
and has held this
position since the time the applicant was first employed by
the CSA
.
Mr
David Howlett, the applicant’s present counsel, also represented the
applicant in a previous application before the Commission.
This was a denial of
contractual benefits claim that was designated as APPL 1215 of 2004. I will
refer to it as application 1215.
Application 1215 was against
the
CSA
and was heard and dismissed by Kenner C, as will be later set out in
detail. It is relevant to mention Mr Howlett and application
1215 at
this point as the applicant alleged
the CSA
breached its rules by the
failure to financially support him in both application 1215 and the present
application, by not agreeing
to pay for Mr Howlett’s fees. In
application 1215 Mr Cusack represented
the CSA
.
In
application 1215 the applicant sought payment from
the CSA
for overtime
that he had worked. The claim was based in part upon CSA rule 12(l)(vi).
The claim for overtime based on this rule
is also a major part of the present
application as later set out in detail.
The
applicant gave evidence in support of the present application and Ms van
den Herik, Ms Robertson and Mr Best gave evidence on
his behalf.
The
respondent’s witnesses were Mr Ellis, Mr Cusack and Ms Walkington.
The
main witness to give evidence on behalf of
the CSA
was
Ms Walkington, although she gave her evidence last. Evidence was first
given by Mr Ellis and then Mr Cusack.
The
cross-examination of Ms Walkington was very extensive. Those aspects of
Ms Walkington’s evidence which the applicant thought
were
particularly relevant were set out in an aide-mémoire which I will later
refer to. I have considered all of the references
to the evidence in the
aide-mémoire, but I do not think it necessary to set out all of that
evidence in these reasons. I
will refer to what I consider to be the main parts
of the evidence, with respect to each of the alleged breaches, when the evidence
of Ms Walkington is discussed.
Chronology
As
ordered during the course of the proceedings, a chronology of the events
considered to be relevant by the applicant was filed after
consultation with the
respondent, who also filed a chronology. The chronologies have been helpful.
Set out below is the applicant’s
chronology with a few minor corrections,
stylistic changes and additions.
16/05/1979
The
Public Service Act 1978
(WA) commences (
the PSA
)
18/01/91
Ms Walkington commences employment with CSA
18/01/91
CSA letter of offer of employment to Ms van den Herik containing the words,
"
other conditions of service are similar to those applying within the State
Public Service
"
17/06/91
State Wage Decision (Structural Efficiency Principle)
(71 WAIG 1723)
1991
Enterprise bargaining principle introduced (According to witness statement
of Ms Walkington, paragraph [9])
29/07/92
The CSA’s rules are altered to insert rule 12(1)(vi) into its
registered rules
01/12/92
Public Service Award 1992
commences to operate ((1993)
73 WAIG 301/2
(
the PSA 1992
))
12/93
Mr David Robinson becomes CSA General Secretary
01/12/93
Commencement of
Workplace Agreements Act 1993
(See
section 2
and Government
Gazette 30 November 1993 page 160)
20/06/94
Applicant joins the CSA as a member
01/10/94
The PSA
repealed by the
Public Sector Management Act 1994
(WA) (
the PSMA
) (Government Gazette 30 September 1994 page
4948)
01/10/94
The PSMA
(main provisions) commence to operate (Government Gazette
30 September 1994 page 4948)
31/08/95
The Western Australian Public Sector (Civil Service Association) Enterprise
Bargaining Framework Agreement 1995 is made ((1995)
75 WAIG 2500)
22/09/95
The Department of Resources Development Enterprise Bargaining Agreement
commences to operate ((1996)
76 WAIG 951)
18/03/96
Order made about Department of Resources Development Enterprise
Bargaining Agreement ((1996)
76 WAIG 951)
19/06/97
The PSA 1992
, scope clause amended to make reference to
the
PSMA
((1997)
77 WAIG 1716)
(effective from 01/10/94)
25/11/1998
1998 CSA Enterprise Bargaining Agreement for employees agreed to by CSA
council
23/08/99
Applicant interviewed for employment with the CSA in the position of
executive officer
10/09/99
Applicant offered employment by the CSA
14/09/99
Applicant confirms acceptance of employment with the CSA
20/09/99
Applicant commences work with the CSA
03/11/1999
1999 CSA Enterprise Bargaining Agreement for CSA employees agreed to by
council
24/05/00
The CSA codifies the overtime and time off in lieu conditions for its
employees, in accordance with the 1999 EBA
22/03/02
Public Service General Agreement 2002 commences to operate
01/05/03
Ms Walkington becomes General Secretary of the CSA
14/09/03
Expiry of
Workplace Agreements Act 1993
as legislated for by
s4A
of the
Workplace Agreements Act 1993
, inserted by s31 of the Labour Relations Reform
Act 2002 (Act No 20 of 2002)
05/04/04
The PSA 1992
scope clause amended to current form ((2004)
84 WAIG
790)
April 2004
In her role as workplace delegate, Ms van den Herik commences assisting the
applicant in his claim for the payment of overtime. She
continues to assist the
applicant until she ceases her employment with the CSA on 18 October
2006
15/04/04
The applicant makes a request for overtime payment to
Ms Walkington
16/04/04
The CSA agrees to pay overtime to the applicant from this date
onwards
19/04/04
The CSA commences to pay overtime to the applicant for work done outside of
his normal working hours, but the applicant’s claim
for accrued overtime
payments is not allowed by the CSA
28/07/04
Public Service General Agreement 2004 decision is made ((2004)
84 WAIG
2535)
30/07/04
Public Service General Agreement 2004 registered
16/09/04
The applicant files application 1215 – a denial of contractual
benefits claim for non payment of overtime, with the WAIRC
16/06/05
Ms van den Herik provides a memorandum to Ms Jo Gaines, Acting Branch
Secretary dated 16 June 2005:
(a) Advising that she feels there is a conflict between her role as a
delegate and as a member of staff to provide the role of
advocate for the
applicant in the Commission.
(b) Seeking Council approval for funds for
outside representation for the applicant.
22/08/05
The CSA’s executive considers the request by
Ms van den Herik for funds for the external representation of the
applicant and
approves funds to $2,000, upon production of an invoice
23/08/05
Ms van den Herik informed by Ms Walkington of approval of $2,000 for the
applicant
24/08/05
The CSA council adopts the funding recommendation of the executive
24/10/05
Ms Walkington revokes approval to pay the applicant overtime, which is to
be reviewed again after the decision in application 1215
is delivered
24/10/05
Hearing of application 1215 by Kenner C
11/11/05
Tax invoice issued by Mr D Howlett to the applicant for legal services in
representing him in application 1215. The amount of the
tax invoice is
$7626.61
20/01/06
Decision issued in application 1215; application dismissed
01/03/06
Ms van den Herik, by memorandum, on behalf of the applicant applies for
payment of all of the tax invoice of Mr Howlett dated 11 November
2005
17/03/06
The applicant resigns as an employee of CSA but remains a member
22/03/06
The council of the CSA authorizes proposed rule change to rule 12(l)(vi) to
be considered at next meeting.
03/04/06
Email communications between Ms van den Herik and the CSA about the request
for payment of $2000 from Ms Walkington (Exhibit 7)
12/04/06
The CSA executive rejects request for additional funding for 1215/04
26/04/06
The CSA council adopts executive decision to reject funding
02/05/06
Ms Walkington prepares a memorandum to council about alteration of
rule 12(l)(vi)
26/05/06
The CSA informs the applicant by letter that request for additional funding
denied
05/06
The applicant becomes aware of Ms Walkington’s memorandum
07/06/06
The applicant lodges the present application
07/06/06
The applicant seeks funding from the CSA for representation in present
application
21/06/06
At a Special Executive Meeting, the CSA passes a motion recommending the
CSA council decline Mr Stacey’s request for funding
in present
application
28/06/06
The CSA council adopts executive’s recommendation to reject funding
for present application
28/06/06
The CSA council approves alteration of rule 12(l)(vi)
18/07/06
The applicant receives a letter advising that application for funding for
representation in present application is rejected
22/08/06
The CSA lodges application with the Commission to alter rule 12(l)(vi) of
its rules
18/10/06
Ms van den Herik ceases employment with the CSA
15/11/06
The Commission allows application by the CSA to alter rule 12(l)(vi)
19/02/07
The applicant receives a letter and cheque from the CSA for $2,000
Section
66
The
subsections of s66 which are relevant are s66(1), (2), (3), (4) and (6).
Section 66(5) has been repealed and ss66(7)-(9) are
immaterial.
Section 66(2) includes paragraphs (e)-(f) which are not relevant to
these proceedings as they refer to enquiries into
elections for officers in
organisations registered under
the Act
. Nevertheless these subparagraphs
are quoted below as they are material to some decisions of the Industrial Appeal
Court (IAC) which
will be later referred to.
The
material parts of s66 for these proceedings therefore
are:-
“
66.
Power
of President to deal with complaints by members, certain other persons or
Registrar against organisation
(1) The following persons may apply to the President for an order or
direction under this section —
(a) a person who is or has been a member of an organisation; or
(b) a person who has applied for and not been admitted to membership in an
organisation; or
(c) the Registrar acting on the complaint of or on behalf of a person
referred to in paragraph (a) or of his own motion.
(2) On an application made pursuant to this section, the President may
make such order or give such directions relating to the rules
of the
organisation, their observance or non-observance or the manner of their
observance, either generally or in the particular
case, as he considers to be
appropriate and without limiting the generality of the foregoing
may —
(a) disallow any rule which, in the opinion of the
President —
(i) is contrary to or inconsistent with any Act or law, or an award,
industrial agreement, order or direction made, registered or
given under this
Act;
(ii) is tyrannical or oppressive;
(iii) prevents or hinders any member of the organisation from observing
the law or the provisions of an award, industrial agreement,
order or direction
made, registered or given under this Act;
(iv) imposes unreasonable conditions upon the membership of a member or
upon an applicant for membership; or
(v) is inconsistent with the democratic control of the organisation by its
members;
(b) instead of disallowing a rule under paragraph (a), direct the
organisation to alter that rule within a specified time in such
manner as the
President may direct;
(c) disallow any rule which has not been altered by the organisation after
a direction to do so pursuant to paragraph (b);
(ca) where the President disallows any rule under paragraph (a) or
(c), give such directions as the President considers necessary
to remedy,
rectify, reverse or alter or to validate or give effect to, any act, matter or
thing that has been done in pursuance of
the disallowed rule;
(d) declare the true interpretation of any rule;
(e) inquire into any election for an office in the organisation if it is
alleged that there has been an irregularity in connection
with that election and
make such orders and give such directions as the President considers
necessary —
(i) to cure the irregularity including rectifying the register of members
of the organisation; or
(ii) to remedy or alter any direct or indirect consequence
thereof;
and
(f) in connection with an inquiry under
paragraph (e) —
(i) give such directions as the President considers necessary to the
Registrar or to any other person in relation to ballot papers,
envelopes, lists,
or other documents of any kind relating to the election;
(ii) order that any person named in the order shall or shall not, as the
case may be, for such period as the President considers reasonable
in the
circumstances and specifies in the order, act or continue to act in and be
deemed to hold an office to which the inquiry relates;
(iii) declare any act done in connection with the election to be void or
validate any act so done.
(3) The decision of the President shall be signed and delivered by
him.
(4) Any person to whom an order or direction given or made under this
section applies shall comply with that order or direction whether
or not it is
contrary to or inconsistent with any rule of the organisation concerned.
...
(6) A rule disallowed pursuant to subsection (2)(a) or (c) is
void.
”
Section
66(2) describes the occasion and basis upon which the President may make orders
or directions. Orders and directions may
be made “
on
”, that
is after, “
an application made
”. They must be orders or
directions “
relating to the rules of the organisation, their observance
or non-observance or the manner of their observance, either generally
or in the
particular case..
.”
The
present application is about the alleged non-observance by
the CSA
of its
rules in the “
particular case
” of the applicant with respect
to three sets of circumstances.
Section
61 of
the Act
is relevant to understanding the purpose and effect of s66
of
the Act
. It enacts:-
“
61. Effect of
registration
Upon and after registration, the organisation and its members for the time
being shall be subject to the jurisdiction of the Court
and the Commission and
to this Act; and, subject to this Act, all its members shall be bound by the
rules of the organisation during
the continuance of their
membership.
”
As
will be referred to again later, the rules of an organisation must be lodged and
registered (ss55 and 58 of
the Act
) for an organisation to be registered
under
the Act
and may only be altered after an application to and
registration by the Commission. (See s62 of
the Act
).
First
Alleged Breach - Rule 12(l)(vi)
The
application firstly alleged that rule 12(l)(vi) had been breached by the
substantial or arguably total failure of
the CSA
to observe this rule
with respect to the applicant. The effect of the breach of rule 12(l)(vi) was,
so the applicant contended,
that he had not been paid for hours of overtime he
worked during the course of his employment with
the CSA
.
Rule 12(l)(vi)
was in the following terms during the employment of the applicant with the
respondent:-
“
12 – COUNCIL
...
(l) The Council shall have power:
...
(vi) To appoint any person whose services may be deemed necessary for the
carrying out of the purposes of the Association and at any
time to suspend or
discharge any such person and to fix the remuneration to be paid for that
person's services.
Such persons shall be appointed subject to the same conditions and
restrictions as an Officer appointed under the Public Service Act.
...
”
The
applicant’s argument was that there had been a failure to appoint him,
“
subject to the same conditions and restrictions as an Officer
appointed under the Public Service Act
”, and that if he had been so
appointed, he would have been paid overtime as this was an entitlement which he
would have had
pursuant to the terms of
the PSA
.
As
will be detailed later, the rules of
the CSA
were altered by the deletion
of the second paragraph of the rule. This alteration was registered by the
Commission on 15 November
2006. The process to alter the rule in this way
commenced in May 2006 after and because of application 1215. Therefore
although
the rule which the applicant contended was breached was operative at
the time the application was lodged, it was not so by the time
of the hearing of
the application.
Second
Alleged Breach – Application 1215 of 2004
The
applicant secondly alleged a breach of rule 3(c) of the rules of
the CSA
.
The claim arises in the following way.
Due
to the fact that
the CSA
did not pay to the applicant the overtime which
he asserted an entitlement to, he filed an application in the Commission
pursuant
to s29(1)(b)(ii) of
the Act
for denial of a contractual benefit.
Application 1215 is relevant to the present proceedings because the
applicant contends
the CSA
breached rule 3(c), by failing to ensure
he was properly represented or funded for his representation in application
1215.
This
rule is part of the objects clause of the rules of
the CSA
, which is in
the following
terms:-
“
3 - OBJECTS
The principal objects of the Association shall be, by all lawful means, to
protect and promote the interests of the membership by:-
(a) encouraging and facilitating the democratic control of the Association
by the membership and the participation of the membership
in the development of
the Association policy and action;
(b) conducting negotiations with employers, making applications to
industrial tribunals, effecting industrial regulation of the conditions
under
which members of the Association shall be employed, securing fairness and equity
in conditions of employment for all members
and ensuring that industrial
regulation is efficient and effective;
(c) representing the industrial welfare of individual members;
and, in furtherance of such principal objects:-
(d) To foster and develop the spirit of community of interest amongst the
membership, officials and employees of the Association;
(e) To manage and control a magazine, newspaper or Journal;
(f) To encourage membership in the Association and to promote the standing
of the membership within the community by all means of
communication;
(g) To initiate and implement, or assist in the implementation of
services, other than industrial services, for the benefit and/or
advancement of
the membership;
(h) To raise funds by means of contributions, subscriptions, levies or
such other means as necessary, to acquire and/or dispose of
all means of
property or other assets and to efficiently administer and account for the
property and other assets to achieve the
objects of the Association;
(i) To develop the human and information resources of the Association for
the betterment of the membership;
(j) To co-operate, affiliate or amalgamate with other industrial
organisations of employees whose objects are not inconsistent with,
or repugnant
to, the objects of the Association;
(k) To assist any movement having for its objects the public
welfare;
(l) Deleted.
(m) To enter into an agreement with the Community and Public Sector Union
pursuant to Section 202 of the Australian
Industrial Relations Act 1988
or any
statutory provision amending, replacing or supplementing that provision.
(n) To apply for membership of the Community and Public Sector Union for
and on behalf of any member who is eligible for membership
of the
Federation.
(o) To take all necessary steps to unite with and become the Western
Australian Branch of the Community and Public Sector Union.
and to do all manner of things which are right and proper to further the
objects of the Association.
”
Rule
3(c)
is one of the principal objects of
the CSA
. It is also noted that
rule 3
concludes with the statement that
the CSA
is to “
do
all manner of things which are right and proper to further the objects of the
Association
.”
Application
1215 did not settle at conciliation and was arbitrated upon by the Commission.
Kenner C heard application 1215 on 24
October 2005. At the hearing
the applicant was represented by Mr Howlett, his present counsel, when
practicing as a solicitor, and
the respondent by Mr Brendan Cusack, a
senior industrial officer employed by
the CSA
. (These facts are relevant
to the alleged breach). On 20 January 2006 the Commission published
reasons for dismissing application
1215;
Stacey v Civil Service Association
of Western Australia Inc
(2006) 86 WAIG 359.
The
CSA
made a decision, to be later detailed, that they would provide $2,000
for the representation of the applicant in application 1215.
The applicant
then retained Mr Howlett. Mr Howlett’s costs in representing
the applicant, exceeded $2,000 and totalled $7,626.61.
The applicant sought
additional funding from
the CSA
to cover this amount. This was sought
after the decision was made in application 1215.
The CSA
refused to pay
the extra amount. The applicant contends therefore
the CSA
did not
comply with the rules.
Third
Alleged Breach –
Section 66
Funding
The
applicant thirdly contended that in failing to provide him with funding to
engage Mr Howlett to represent him in the present
s66
application
the
CSA
again breached
rule 3(c).
An application for funding was made
prior to the commencement of the application and was, whilst it was pending,
rejected.
Remedies
Sought
The
remedies sought in the application as filed were as
follows:-
“
Remedies Sought
The Applicant seeks:
An
order staying any attempt by the Respondent to amend its rules, if that
amendment or amendments would prejudice the Applicant’s
case in this
application, until this application is concluded.
A
decision in the form of a declaration that the Respondent breached its rules by
not complying with
rule 12(l)(vi).
A
decision in the form of a declaration that the President of the Respondent had a
duty to enforce the Respondent’s rules and
failed in that duty.
An
order requiring the Respondent to remedy the breach of
rule 12(l)(vi)
by paying
the Applicant a sum of money to put the Applicant in the same position that he
would have been in had the Respondent not
breached its rules.
A
decision in the form of a declaration that the Respondent did not and has not
represented the industrial welfare of the Applicant
as required by
rule 3(c)
of the Respondent’s rules.
A
decision in the form of a declaration that the Respondent has treated the
Applicant unfairly and unreasonably and did not treat
the Applicant the same as
it would have treated other members by refusing to provide assistance or
resources or adequate resources
to the Applicant for the purpose of preparing
and arguing his case in application number 1215 of 2004.
An
order requiring the Respondent to make payment to the Applicant of a sum of
money equivalent to the resources that it should have
provided to him in
representing his industrial welfare and for the purpose of preparing and arguing
his case in application number
1215 of 2004.
A
decision in the form of a declaration that the Respondent has treated the
Applicant unfairly and unreasonably and did not treat
the Applicant the same as
it would have treated other members by refusing to provide assistance or
resources or adequate resources
to the Applicant for the purpose of making
application and arguing his case in this application.
An
order requiring the Respondent to make payment to the Applicant of a sum of
money equivalent to the resources that it should have
provided to him in
representing his industrial welfare and for the purpose of making application
and arguing his case in this application.
An
order that the Applicant have liberty to seek further or alternative
declarations and orders following, discovery and inspection
and the hearing of
this application, if necessary.
”
In
his closing submissions the applicant’s counsel said, with the exception
of order 1, all of the above orders should be made.
There was a slight
oversight in this submission in that no order was sought in terms of proposed
order 10.
The
Answer of
the CSA
The
CSA
, by their solicitors, filed a detailed Notice of Answer and Counter
Proposal (the answer) on 20 June 2006.
In
response to the alleged breach of
rule 12(l)(vi)
, the answer
said:-
“
Breach of Rules
...
The
Respondent
denies that there has been any failure to perform or observe
the CSA Rules by the Respondent. The Respondent says further
that:
(a) the portion of Rule 12(l)(vi) relied upon by the
Applicant is and has been uncertain, redundant and incapable of application
since
the repeal of the Public Service Act 1978 on 8 July 1994;
(b) Rule 12(m) of the CSA Rules empowers the Council to interpret doubtful
rules, and in matters to which the Constitution and Rules
are silent, the
Council may regulate its own procedure. In all such cases the decision of the
Council is to be final;
(c) In the context of the present matter the Council resolved to employ
the Applicant on 20 September 1999 on the terms of a contract
as referred
to in the decision of the Commissioner in Application 1215 of 2004;
(d) Any further attempt by the Applicant to claim for overtime
entitlements is in any event barred by the principles of res judicata
and issue
estoppel arising from the determination of the Commission in Application 1215 of
2004.
”
Rule
12(m), as referred to in the answer is:-
“
(m) The Council
shall interpret doubtful rules and in matters in relation to which this
Constitution and Rules are silent, may regulate
its own procedure. In all such
cases the decision of the Council shall be final.
”
I
mention at this stage that by the time of the final day of hearing
the
CSA
had abandoned any reliance on res judicata and/or issue estoppel. There
was some resurrection of issue estoppel however in post
hearing written
submissions which will be referred to later.
In
response to the alleged breach of rule 3(c) about the applicant’s
representation in application 1215,
the CSA
said in
paragraph [8] of the answer, under the heading “
Non Provision of
Assistance or Resources
” the following:-
“
8. The
Respondent denies that it has failed to act fairly and reasonably in the
interests of the Applicant and says that it advanced
the Applicant’s
industrial interests by:
(a) providing the Applicant with the assistance of Jane Van Den Herik an
industrial advocate employed by the Respondent and a union
delegate for staff
employed by the Respondent;
(b) making available financial assistance in the sum of $2,000.00 after a
proper consideration of the Applicant’s request for
assistance, based on
the Respondents usual considerations for dealing with a request for financial
assistance for representation
by a member;
(c) making ex gratia payments of overtime to the Applicant commencing in
April 2004 on a without prejudice basis to which, it was
ultimately found by the
Commission, the Applicant was not entitled;
(d) allowing the Applicant to prepare for and attend proceedings in
Application 1215 of 2004 during working hours without loss of
pay or
benefits.
”
The
CSA
also denied they did not properly consider the applicant’s
requests for assistance and said they were considered in detail
by the executive
committee of
the CSA
on 22 August 2005 and on 12 April
2006.
In
response to the alleged failure to provide assistance or resources to the
applicant in the present proceedings, the answer said
in paragraph [23]
under the heading “
Non Provision of Assistance or Resources
”
that the applicant did not request any assistance until 9 June 2006 when a
letter from him dated 7 June 2006 was received
by the general secretary of
the CSA
. The answer said
the CSA
had not yet considered and
determined the applicant’s request for assistance in the present
application. As stated, by the
time of the hearing,
the CSA
had decided
not to provide any assistance or resources to the applicant to support the
present application. There was evidence including
documentary evidence about
this issue which will be later considered.
Directions
Hearings Before Substantive Hearing
Directions
hearings took place on 22 June 2006, 4 August 2006 and 1 September
2006. At the directions hearings programming orders
were made about procedural
matters leading to the substantive hearing of the application. The final order
made on 5 September 2006
was that the hearing be listed for three days on
dates to be fixed. Largely due to the unavailability of counsel representing
the
parties, the substantive application could not be first heard until
20-22 February 2007.
Evidence
and Witnesses
The
evidence-in-chief of each witness largely, and on some occasions entirely, took
the form of the tender of a signed witness statement,
together with annexures,
which had been filed in compliance with one of the orders made on
5 September 2006. The witnesses attested
their statements were true,
subject to any corrections they identified. The witnesses were then
cross-examined and re-examined.
Objections
to Evidence
(a) Mr Best
Prior
to the applicant’s counsel’s opening, counsel for the respondent
made an objection to part of the witness statement
of Mr Best being
received into evidence. It was convenient to then deal with the objection.
After hearing submissions from the
parties, I ruled that paragraphs [1] to
[8] of Mr Best’s witness statement could be later admitted as an
exhibit but that paragraphs
[9] to [27] would be excluded. I gave short
reasons for reaching this conclusion and indicated I would elaborate on these
reasons
when delivering my final reasons for decision.
The
witness statement of Mr Best, says he held the position of treasurer of
the CSA
between 1997 and 2002. Mr Best’s duties under rule 16
of
the CSA
’s rules were referred to. Mr Best described his
attendance at meetings of
the CSA
executive committee and council. He
referred to his involvement in financial matters of
the CSA
.
Mr Best went on to describe some difficulty and concerns he had about the
way in which decisions were generally made by
the CSA
council. There was
at least some implicit criticism from what Mr Best said about the way in which
the council functioned when he
was the treasurer. Mr Best also referred to
some difficulties he had in performing his duties as treasurer because of the
actions
of a named official of
the CSA
.
In
my opinion these parts of Mr Best’s witness statement were irrelevant to
the present proceedings. None of these paragraphs
of Mr Best’s statement
referred to any of the council meetings which made decisions about the
applicant. Indeed, given what
Mr Best’s statement said about the years
between which he held the position of treasurer, this did not include the period
when
decisions were being made by the council or the executive of
the CSA
about the applicant with respect to his representation in application 1215 or
the present application. At its highest, these paragraphs
of Mr Best’s
witness statement contained the very generalised suggestion that because some
matters may not have been properly
considered by
the CSA
council and
executive during the period when Mr Best was treasurer, this could have occurred
when decisions were made about the applicant,
sometime later. A suggested
tenuous link of this type stretches beyond relevance so that even though
hearings in the Commission
are not bound by the rules of evidence (see s26(1)(b)
of
the Act
), it is not information which could materially assist me in
the determination of the s66 application. For these reasons I decided
that
paragraphs [9] to [27] of Mr Best’s statement could not be admitted
into evidence.
For
completeness I mention that when Mr Best did give evidence he said that his term
as treasurer was not in fact between 1997 and
2002 but between 2000 and 2004.
At that point I made enquiry of the applicant’s counsel as to whether in
light of this piece
of evidence he wished to re-open the issue of the
admissibility of paragraphs [9] to [27] of Mr Best’s statement.
He advised
that he did not wish to do so.
(b) Ms Robertson
Prior
to the applicant’s counsel’s opening, counsel for the respondent
also foreshadowed an objection to paragraphs [38]
to [40] of the witness
statement of Ms Robertson. As stated Ms Robertson was formerly the
president of
the CSA
but her witness statement did not state the years
between which she held this position.
Paragraphs
[38] to [40] of her witness statement related difficulties Ms Robertson
felt she had about obtaining information from
the CSA
and the way in
which decisions were made by
the CSA
council, including pressure being
applied to her to make decisions in a particular way. These paragraphs did not
refer to any meetings
which discussed issues relating to the applicant.
As
the statement did not refer to the period during which Ms Robertson held
office as president, it was decided to defer the objection
to these paragraphs
of her statement until she gave evidence and could indicate the dates between
which she held office. When Ms
Robertson gave evidence she advised that
she held the office of president for 10 years between 1993 and 2003. Due
to this and for
reasons very similar to those I have referred to with respect to
Mr Best, I decided that these paragraphs of Ms Robertson’s
statement would not be received into evidence. They were not relevant to the
issues to be determined in the application.
The
Adjournment of the Substantive Hearing
At
the conclusion of the three day hearing on 22 February 2007 the evidence
was not completed. The application was adjourned part
heard. This was
regrettable and it was even more regrettable that the adjournment occurred part
way through cross-examination of
Ms Walkington.
In
between the two substantive hearing dates, there was a directions hearing on
7 March 2007. The primary purpose of the directions
hearing was so that I
could hear an application by the applicant for further and better discovery.
When the hearing was adjourned
on 22 February 2007 I had a concern that
because the cross-examination had not concluded counsel for the applicant could
get a “
second wind
” which would prolong the hearing. When
considering the application for further and better discovery I expressed the
greater
concern that the “
second wind
” had intensified into a
(mythical) “
cyclone Charlie
”. The application was heard and
dismissed. I gave short reasons for this which I said would be elaborated on in
these reasons.
I have done this in section 16 below.
The
substantive application was re-listed for hearing on 26 and 27 April 2007.
The continued cross-examination of Ms Walkington took
the first of these
two days and final submissions filled the second.
The
Application for Further and Better Discovery
As
stated, this was heard and determined on 7 March 2007. The categories of
documents which the applicant sought discovery of were
set out in a letter from
the applicant’s solicitors to
the CSA
’s solicitors dated
6 March 2007. With stylistic amendments, they were described
as:-
(1) The applicant’s personal employment file containing
all his employment records and related documents.
(2) All letters written by
the CSA
offering employment and containing
the words “
Other conditions of service are similar to those applying
within the State Public Service
” or similar words of comparison to the
State Public Service from 1 January 1991 onwards and copies of all
corresponding documents
containing the “
Conditions of
Service
” referred to in those letters. (An example was given of
Ms van den Herik’s letter dated 18 January 1991).
(3) Copies of notes or documents referred to by Ms Pat Brewer at the
induction of the applicant.
(4) Copies of
the CSA
council resolutions specifying CSA conditions of
employment between January 1991 and the date of operation of the first
enterprise
agreement containing CSA staff conditions.
(5) Any files and documents not already discovered relating to the
applicant’s request to be paid overtime.
A
minute of proposed orders which was provided at the directions hearing included
an order that
the CSA
give further and better discovery in relation to
the matters referred to in the letter dated 6 March 2007, by no later than
21 March
2007.
Both
counsel made submissions about the application for further and better
discovery.
For
item 1,
the CSA’s
counsel said his instructions were that all
documents fitting the description had already been discovered.
The
CSA
’s counsel undertook however, on behalf of his client, to check
again the applicant’s file and provide to the applicant’s
solicitors
any other documents which were within this item. The undertaking was to do this
within 7 days.
As
to the second item, counsel advised that he had been told by Mr Matthew
Foley, the accountant at
the CSA
that it would take 2 people 7 days to go
through the archives, locate the relevant letters and delete any information
which it was
inappropriate to disclose on the basis of, for example, privacy.
It was submitted this was oppressive. It was also submitted that
documents
relating to how people were employed, separate and indeed prior to the
applicant, who commenced his employment in September
1999 were irrelevant.
The CSA
also made a general submission that the seeking of additional
documents by way of discovery at this point in time was unfair given
that
Ms Walkington was part way through her cross-examination.
For
item 3, counsel said
the CSA
thought all documents fitting this
description had been provided to the applicant in the course of application
1215.
The CSA
also undertook to discuss with Ms Brewer, who was
still employed by
the CSA
as the human resources officer, whether there
were any other documents which could be provided that fitted the description and
give
copies of them to the applicant’s solicitors within 3 days.
With
respect to item 4,
the CSA
’s counsel was unable to give precise
details on what would be involved in retrieving the documents sought. He
advised that
from his experience, there can be difficulty in locating past CSA
council minutes because there was then no systematic or computer
based record of
all of the council minutes. It was also submitted the documents sought prior to
the applicant’s employment
in September 1999 were irrelevant. It was
submitted the employment conditions of the applicant were in effect contained in
his letter
of appointment and enterprise bargaining agreements entered into by
the CSA
with its employees, commencing in 1998.
For
item 5,
the CSA
’s counsel advised all such documents had already
been discovered.
With
respect to the difficulty regarding Ms Walkington being under
cross-examination, the applicant’s counsel submitted Mr Cusack
effectively had the carriage of the matter on behalf of
the CSA
and he
would be able to speak to counsel for
the CSA
about any additional
documents.
Given
the submissions and undertakings of counsel for
the CSA
about items 1, 3
and 5, counsel for the applicant did not press the application with respect to
them.
Mr Howlett
also said he was to inspect the file of the Commission about the alteration of
the rules of
the CSA
which led to the insertion of rule 12(l)(vi) in
1992. Counsel for the applicant accepted that inspection of the file might
resolve
some of the issues which he thought could be assisted by the additional
discovery of documents.
In
relation to items 2 and 4, I was not prepared to make any orders because of the
time within the proceedings when the application
was made, oppression and
relevance. With respect to the former, all of the evidence had been completed
save for the cross-examination
of the main witness for
the CSA
. If
additional documents were provided and they were indicative of a broader
approach by the applicant about some of the issues
at the hearing, it would lead
to a situation where Ms Walkington could be cross-examined on documents
which she did not previously
have the opportunity to discuss with counsel for
the CSA
. This would be productive of some unfairness to both
the
CSA
and Ms Walkington as a witness.
Additionally,
the application was commenced on 7 June 2006. Directions hearings took
place on 22 June 2006, 4 August 2006 and 1 September
2006. As stated
earlier, largely due to the unavailability of one or both counsel, the
substantive application could not be first
heard until 20-22 February 2007.
Orders for informal discovery had been made at the directions hearing on
22 June 2006 and no application
for further and better discovery had been
previously made. My opinion was that the late stage of the request for
discovery of these
documents, and the length of time within which such a request
would have been made, were factors relevant to refusing to make the
order.
In
relation to oppression I have set out above the submissions which were made by
counsel for
the CSA
from the bar table without objection. In relation to
item 2 and item 4, the degree of oppression which would be suffered by
the
CSA
in complying with the request for discovery in my opinion outweighed the
forensic benefit which might be obtained from the documents
being found and
discovered.
As
to relevance items 2 and 4 sought the discovery of documents relating to a
period well prior to the commencement of the applicant’s
employment with
the CSA
in September 1999. The applicant’s case with respect to
rule 12(l)(vi) was that there was a breach by the failure to appoint
and employ
the applicant in September 1999 and thereafter, on the same conditions and
restrictions as a public service officer.
The determination of whether this did
not occur would not in my opinion be materially assisted by what happened from
1991 to 1999
in relation to other employees.
To
the extent that other employees had letters of appointment which may have been
different from that which was received by the applicant,
they were not
sufficiently material to the issues before the Commission so as to ground good
cause for the making of the discovery
order sought.
For
these reasons I declined to make any order for further and better discovery at
the directions hearing on 7 March 2007.
Post
Hearing Communications and Submissions
During
final submissions, I acceded to a request from counsel for the applicant that he
be at liberty to file an aide-mémoire
about the evidence. This document,
comprising some 30 pages, was duly filed on 11 May 2007. In the
document it said the applicant
had no objection to the respondent filing a reply
to it. Upon enquiry the respondent advised my associate it did not wish to file
a reply.
Whilst
preparing my reasons I thought there were issues which had not adequately or
with certainty been addressed during the hearing.
Accordingly, on 30 May
2007 my associate at my direction wrote to the parties requesting additional
submissions about:-
“
(a) Whether there is any issue now
taken with the findings and conclusions made by Kenner C in application 1215 of
2004 in paragraphs
[24]-[26], [29], [36] and [37], or whether the Acting
President may proceed on the basis that the findings and conclusions there
made
are not in contest.
(b) If this is not so, which findings and/or conclusions are not accepted
on what basis and what finding/conclusion is sought in place
of that made by
Kenner C.
(c) Is there any relevance to the applicant’s case, and if so what,
that the Public Service Award 1992 in clause 18 provides
for a “commuted
allowance” and “time off in lieu of overtime” [(1993)
73 WAIG
302
at 309-311].
”
It
is convenient at this point to set out paragraphs [24]-[26], [29], [36] and [37]
of the reasons of Kenner C in application 1215,
as
follows:-
“24 The meaning of “CSA Conditions of
Service” is not made clear in the letter of 10 September 1999. It seemed
to be common ground however that these conditions of service have been reflected
over the years in various instruments including
unregistered agreements and
various resolutions of the respondent's council. Copies of these documents were
annexed to Ms Walkington’s
witness statement. At the time of the
commencement of the applicant's employment in September 1999, an unregistered
agreement known
as the CSA Staff Agreement 1998 appeared to be in place. This
agreement was endorsed by the council of the respondent on 25 November
1998. The terms of the 1998 Staff Agreement are silent as to overtime payments
for employees.
At
about the time of the employment of the applicant, it appears that negotiations
were being concluded for a new staff agreement,
also unregistered, which became
the CSA Staff Agreement 1999. This agreement was endorsed by the council of the
respondent on 3
November 1999, shortly after the applicant's employment. The
evidence was and I find that the 1999 agreement was endorsed by a majority
of
the respondent's employees, and there was no suggestion on the evidence that the
applicant took any objection to it. The 1999
agreement is itself silent as to
the question of payment of overtime for working outside of ordinary hours.
However, it refers to
the “codification” of terms and conditions of
employment for staff of the respondent over the duration of the agreement.
Apparently this process took place and annexed to Ms Walkington’s witness
statement was material showing the codification
of various terms and conditions
of employment, as agreed by the joint unions representing employees of the
respondent on 12 April
2000 and ratified by the respondent's council on 24 May
2000. The particular document dealing with overtime and time off in lieu
is
described as “C 55/00” and was annexure TW 5 to Ms Walkington's
witness statement. As it is material, the terms of
this document are set out in
full as follows:
“1. In accordance with current practice, the CPSU/CSA does
not generally pay overtime or approve time off in lieu of payment
of overtime
except in extraordinary or unusual circumstances.
From
date of commencement of employment, employees appointed to identified positions
within the Union are paid an allowance in addition
to salary, in accordance with
Schedule A Salaries of the CSA Staff Enterprise Bargaining Agreement.
For
those employees appointed to identified positions in subclause (2) of this
clause, any claim for overtime or time off in lieu
would have to be in
extraordinary or unusual circumstances.
In
such extraordinary or unusual circumstances, claims for overtime or time off in
lieu of payment of overtime, shall have prior written
approval of the General
Secretary.
An
employee who has prior approval to take time off in lieu is required to make
arrangements with their supervisor to clear such time
off in lieu within two
months of the overtime being performed.
Provided
that there is written agreement between the employee and supervisor, time off in
lieu of payment for overtime may be accumulated
beyond two months from the time
the overtime is performed so as to be taken in conjunction with periods of
approved leave.
In
circumstances where the General Secretary has approved payment of overtime and
there is no agreement for time off in lieu to be
taken in conjunction with
periods of approved leave, the employee shall be paid for the overtime
worked.”
This
document is important in a number of respects. Firstly, par 1 refers to the
respondent, as a general practice, not paying overtime
or approving time off in
lieu except in extraordinary or unusual circumstances. I pause to note that
this statement of policy, formally
adopted by the council of the respondent, is
entirely consistent with the testimony of both Ms Walkington and Mr Robinson as
to the
policy and practice of the respondent not to pay overtime for work
outside of normal hours. This is also consistent with the evidence
of both
Mr Robinson and Ms Walkington as to statements they said they made at the
interview with the applicant prior to him commencing
employment, and the
respondent's practice historically, in relation to compensation for hours of
work.
...
I
am not therefore satisfied that the applicant has any contractual entitlement to
payment for overtime by reason of the CSA Conditions
of Service, as incorporated
into his contract of employment.
...
I
am therefore not satisfied that the applicant has discharged the onus upon him
to establish, on the balance of probabilities, the
existence of an entitlement
to the payment of overtime for hours worked outside of normal hours of work.
Whilst it is not strictly
necessary for me to determine the issue, on balance,
as to the conflict in the evidence between the witnesses for the applicant and
the respondent in relation to discussions prior to and during the interview
process for the applicant's employment, I prefer the
version of events as
outlined by Mr Robinson and Ms Walkington. That is, it seems to me, given the
clear policy position that the
respondent has had over the years in relation to
overtime, and the restricted availability of car parking bays, it is more likely
than not that these matters would have been raised at the time of the initial
interview. This is also entirely consistent with logic
and commonsense, that
the applicant be provided with a benefit, by way of a car parking bay that an
officer of his level would not
normally receive, as compensation for and
recognition of the requirement to regularly work out of ordinary hours for which
overtime
is generally not payable.
Finally,
I do not accept the arguments advanced by the applicant that there was, in some
way, an estoppel created by reason of the
stance adopted by the respondent in
this matter. I accept the evidence of Ms Walkington that after the applicant
initially raised
the issue of the payment for overtime, and in an endeavour to
maintain sound workplace relations, she agreed on an interim basis
from April
2004 to pay the applicant overtime pending the determination of this matter by
the Commission. No estoppel arises either
as a consequence of this act or from
any stated position of the respondent, prior to this matter being heard and
determined by the
Commission.
”
The
letter requested the parties advise by 3:00pm on 1 June 2007 when they
could provide the additional written submissions. Both
parties advised they
could do so within about a week. The applicant and respondent both filed
additional written submissions on
11 June 2007. Due to one point in the
respondent’s submissions the applicant was permitted to file supplementary
additional
written submissions on 13 June 2007. The contents of these
submissions have been considered and will be specifically mentioned when
appropriate to do so. It is only necessary at this stage to say that the
applicant did not accept all the factual findings made
by Kenner C in these
paragraphs and submitted that I needed to determine the factual issues on the
evidence adduced in these proceedings.
I accept this submission and have
proceeded on this basis. In their submissions
the CSA
submitted issue
estoppel applied to the findings about whether an entitlement to overtime was
within the terms of the contract of
employment, as this issue was decided by
Kenner C in application 1215. This may be correct, but for reasons set out
later does not
need to be determined because I am also of this opinion
based on the evidence in these proceedings.
Summary
of Issues
The
applicant’s claim about the rule 12(l)(vi) breach may be summarised
as:-
(a)
The CSA
breached rule 12(l)(vi) by not appointing
him subject to the same conditions as an officer appointed under
the PSA
1992
.
(b) If he had been so appointed the applicant would have been entitled to be
paid overtime.
(c) The breach of (a) has lead to the failure by
the CSA
to pay the
applicant for the overtime he worked in an amount which he has calculated.
(d) The breach of the rule can and should be remedied by an order under s66
that
the CSA
pay the applicant this amount of money to put him in the
same position as he would have been if
the CSA
had not breached the rule.
The
remedy sought is akin to a claim for damages for breach of duty. That this is
so is confirmed by paragraph [33] of the applicant’s
amended outline
of submissions dated 24 April 2007 where it is said that the applicant
“
incurred loss and injury as a result of
” the breach of the
rules.
In
summary the response by
the CSA
to the alleged rule 12(l)(vi) breach
is:-
(a) The second paragraph of rule 12(l)(vi) has been uncertain,
redundant and incapable of application since the repeal of
the PSA
on
19 July 1994 [sic 1 October 1994].
(b)
The CSA
has dealt with this uncertainty and redundancy via
rule 12(m).
(c) In the circumstances the failure to pay overtime to the applicant did not
constitute a breach of rule 12(l)(vi).
The
determination of the application about the alleged breach of rule 12(l)(vi)
requires consideration of:-
(a) The meaning of rule 12(l)(vi).
(b) Whether there has been a breach of the rule.
(c) If so what orders may be made within s66 of
the Act
to deal with
the breach.
(d) As part of (c) does s66 enable an order to be made of the type
sought.
(e) Issue (b) includes consideration of the response of
the CSA
.
The
applicant’s case about the alleged breaches of the rules constituted by
the failure to provide adequate financial assistance
to support application 1215
and the present application may be summarised as:-
(a) Principal
object 3(c) of the rules of
the CSA
gave rise to duties for
the
CSA
:-
(i) To represent the industrial welfare of the applicant.
(ii) To treat the applicant fairly and reasonably in the provision of
assistance and resources to support his industrial applications
in the
Commission.
(b) There was a breach of the duties set out in (a) because of the failure to
provide the applicant with adequate financial resources
to support
application 1215 and the failure to provide any financial resources to
support the present application.
(c) The breaches of the duties and therefore the rule may and should be
remedied by an order under s66 that
the CSA
pay sums of money to the
applicant to reimburse him for the legal expenses incurred in application 1215
and in the present application.
Again,
the remedies sought are akin to claims for damages for breach of a duty.
The
CSA
’s response to these two alleged breaches of the rules is in
summary:-
(a) It did not act unfairly and unreasonably towards the
applicant as it:-
(i) Provided financial assistance in support of application 1215.
(ii) Properly considered the applicant’s request for financial
assistance to pay for the additional legal costs in application
1215.
(iii) Properly considered the applicant’s request for financial
assistance to support the present application.
The
determination of the application about the alleged second and third breaches of
the rules requires consideration of:-
(a) Whether the rules of
the CSA
provide for the duties relied upon by the applicant.
(b) If so whether there has been a breach of these duties. This includes
consideration of
the CSA’s
response.
(c) Again if so what orders may be made under s66 of
the Act
to deal
with these breaches.
(d) As part of (c), whether s66 enables an order to be made of the type which
has been sought.
I
also mention that in closing
the CSA
submitted that even if any of the
breaches relied upon by the applicant were proved, I could or at least should
not make the orders
sought by the applicant. For example, for the alleged
second and third breaches,
the CSA
submitted the President in a s66
application could go no further than review the processes involved in
considering and determining
the applications for resources and if there was any
failure to follow an adequate process to make an order to remedy this.
From
the above it is plain that to decide the application it is necessary to
understand the meaning of the rules allegedly breached.
The
Construction of the Rules of an Organisation
The
way in which a Court or Industrial Commission should approach the question of
the construction of the rules of an organisation
is well established.
Brinsden
J with whom Smith J agreed in
Hospital Salaried Officers Association of
Western Australia (Union of Workers) v The Hon Minister for Health
(1981) 61
WAIG 616
at 618 said:-
“
Generally speaking the correct
approach to the interpretation of a union rule is to interpret it in the same
manner as any other document.
It must be remembered however that union rules
are not necessarily drafted by skilled draftsmen. It is therefore necessary I
think
in construing a union rule not to place too literal adherence to the
strict technical meaning of words but to view the matter broadly
in an endeavour
to give it a meaning consistent with the intention of the draftsman of the rule.
This approach has been endorsed
in relation to awards: see Geo A. Bond & Co.
Ltd. (In Liq.) v McKenzie
(1929) A.R. 499
at 503-4 referred to in Federal
Industrial Law by Mills and Sorrell 5
th
Ed. at p522. I also said
much the same thing in the unreported decision of Bradley v The Homes of Peace
1005/1978, judgment delivered
21
st
December, 1978 at
p.13-14.
”
These
observations have been cited and applied in s66 applications. An example is
Williams v SDAEAWA
(2005) 85 WAIG 1963.
A
similar approach has been adopted by the High Court in the construction of union
eligibility rules. In
Re Anti-Cancer Council of Victoria; Ex Parte State
Public Services Federation
[1992] HCA 53
;
(1992) 175 CLR 442
at 448, Mason CJ, Brennan
and Gaudron JJ said it “
is well settled that union eligibility rules
are to be interpreted liberally and according to their ordinary and popular
meaning
”. Their Honours cited a number of decisions in support of
this proposition including
The Queen v Isaac
;
Ex Parte Transport
Workers’ Union
(1985) 159 CLR 323 decision, where Wilson J at 340
said:-
“
In construing the eligibility clause in the
constitution of an organization, it is necessary to bear in mind the nature of
the instrument
in which the words appear and the purposes that it is intended to
serve. The rule now in question bears ample indication on its face
that it has
been prepared without the assistance of a skilled draftsman. It has been amended
from time to time, probably in response
to the exigencies attending the
industrial affairs of the union and without regard to the effect of the
amendment on the internal
consistency of the clause as a whole. It follows that
the words of the rule should be given a wide meaning and interpreted according
to their ordinary or popular denotation rather than by reference to some narrow
or formal construction: Reg. v Cohen; Ex parte Motor
Accidents Insurance
Board
; Reg. v McKenzie; Ex parte Actors and Announcers
Equity
. Nevertheless,
notwithstanding this generosity of approach, the meaning of the words remains a
legal question to be determined by
the application of the ordinary rules which
govern the construction of written documents:
Reg. v Aird; Ex parte
Australian Workers' Union
; McKenzie.
” (Footnotes omitted)
French
J in
Re Election for Office in Transport Workers’ Union of Australia,
Western Australian Branch
[1992] FCA 40
;
(1992) 40 IR 245
at 253 said that the
“
preferred approach to the construction of union rules which requires
them to be construed not technically or narrowly but broadly
and liberally and
not “subjected to the same meticulous scrutiny as a deed carefully
prepared by lawyers.”
”. His Honour cited
R v Holmes
;
Ex Parte Public Service Association (NSW)
[1977] HCA 70
;
(1977) 140 CLR 63
per
Gibbs J at 73 and
Re An Election in the Australian Collieries Staff
Association (NSW Branch)
(1990) 26 FCR 499
per Lockhart J at 502. The
reasons of French J were cited with approval by Mansfield J in
Thomas v
Hanson
[2001] FCA 539
at
[20]
. Authorities cited by the applicant set out a
similar method of approach. (
Delron Cleaning Pty Ltd T/A Delron Hospitality
Management
(2004) 84 WAIG 2527
at [40] and
FMWU v GW Smith and
KJ Rose
(1988) 68 WAIG 1010.
The
approach which I should follow is as set out in the passages from the cases
quoted.
Organisational
Structure of
the CSA
Before
discussing the evidence in greater detail, it is relevant to say something about
the organisational structure of
the CSA
as contained in its rules.
Rule 12(a) provides that the “
management of the Association shall
be vested in a Council which shall be elected from the financial membership of
the Association
...
”. Rule 12(a) goes on to state the council is
comprised by the president, two vice presidents, an honorary treasurer, a
general
secretary, an assistant general secretary and councillors, who are
members of an electorate they represent, and elected by the financial
members in
the electorate. The general secretary and assistant general secretary are also
both elected by financial members.
Rule
12(b)(i) provides that each electorate will be represented on council by one
councillor and one proxy councillor for each 500
financial members or part
thereof allocated to the electorate as at 31 December in the year preceding
an election. Rule 12(b)(ii)
provides that each councillor and proxy
councillor shall be elected for a term of two years. Rule 12(c)(i)
provides that
the CSA
shall be divided into electorates consisting of
such members of
the CSA
as is determined by the council from time to time
in its discretion having regard to such advice as to the views of members
affected
as is available.
Rule
12(f)(i) provides that the general elections of councillors representing
electorates shall be held every two years. Rule 12(j)(i)
provides that the
council shall meet at such times as may be deemed expedient, but not less than
10 times a year. Rule 12(j)(ii)
provides that the general secretary
shall on receipt of a requisition signed by not less than 25% of council call a
special meeting
of the council to be held not more than 14 days after receipt of
such requisition. A quorum is stated in rule 12(j)(iii) to be a
majority
of those entitled to attend and vote at the meeting.
Rule
12(l) contains the powers of the council including rule 12(l)(vi) and
rule 12(m) which have already been set out.
Rule
13 is about the executive committee of
the CSA
. Rule 13(a) provides
that the executive committee shall consist of the president, the two vice
presidents, the honorary treasurer,
the general secretary and the assistant
general secretary and six members who shall hold office for a term of two years,
elected
in August in each even numbered year by the council by its members.
Rule 13(b) provides details as to when this election is to be
held.
Rule
13(c) is as follows:-
“
The Executive Committee shall be
responsible for the management and proper conduct of the business and the
carrying out of the policy
of the Association between meetings of the Council,
subject to the resolutions and decisions of the Council and to the Constitution
and these Rules and in particular shall:-
(1) Perform the duties allotted to it by the Council.
(2) Deal with and make recommendations to the Council in regard to all
matters of finance.
(3) Examine all accounts and present them to the monthly meetings of the
Council.
(4) Advise the Council as to the financial position of the
Association.
(5) Supervise the receipt and banking of funds of the Association.
(6) Deal with such other matters as may be referred to it by the Council
from time to time.
(7) Have power to authorise payment of any amount up to a level as
determined by Council each year.
(8) Meet at least once in each month. Should the President deem it
advisable to hold a special meeting of the Executive to consider
any matter
which in his or her opinion merits the holding of such meeting, he or she may
instruct the General Secretary to summon
a special meeting, and the General
Secretary shall do so forthwith. Upon receipt of a requisition for a special
meeting giving particulars
of the nature of the business to be discussed and
duly signed by at least four members of the Executive, the General Secretary
shall
forthwith summon a special meeting. All notices convening special
meetings shall state the nature of the business to be considered
and no business
other than that mentioned in the notice summoning the meeting shall be
transacted at any such meeting.
”
By
rule 13(8) the executive committee is to meet at least once a month. This rule
provides that if the president deems it advisable
to hold a special meeting of
the executive committee to consider any matter which merits the holding of such
a meeting he or she
may instruct the general secretary to summon a special
meeting and the general secretary shall do so forthwith. A special meeting
must
also be called by the general secretary under rule 13(8) if a requisition
for a special meeting, giving particulars of the nature
of the business to be
discussed, is duly signed by at least four members of the executive committee.
Rule 13(d) provides that seven
members shall form a quorum of the executive
committee.
Rule
14 is about the president. The duties of the president are set out in
rule 14(b). Rule 14(b)(2) contains a duty of the office
of the
president to “
enforce the rules, Association policies, and Standing
Orders and have control of meetings at which he or she presides, and shall use
all necessary power to secure and enforce order and expedition in the conduct of
the business and good order of the members thereat
”.
Rule
14(b)(4) provides that the president has the duty to ensure as far as possible
that the rules of
the CSA
are performed and observed by officers and
members of
the CSA
.
Rule
17 provides for workplace delegates whose duties are described in rule 17(f).
The duties include advising members of their industrial
entitlements.
Rule
19 is about the general secretary. Rule 19(a) provides that the general
secretary is the executive officer of
the CSA
and shall be responsible
for the administration of
the CSA
, the management of
the
CSA
’s office and the direction of the employees of
the CSA
including the assistant general secretary. The duties of the assistant general
secretary are described in rule 20 and include assisting
the general
secretary and in their absence, performing the duties of the general secretary.
In
summary therefore
the CSA’s
supreme governing body is the council
which must meet at least 10 times per year. The 12 member executive committee,
comprised by
six members of council, is responsible for the management of
the
CSA
and carrying out the policy of council and must meet at least once per
month. The general secretary is the executive officer of
the CSA
and has
an assistant general secretary. The president must enforce the rules and
presides at meetings.
The CSA
council may appoint people whose services
are thought necessary to carry out its purposes.
The
First Alleged Breach - The Construction of Rule 12(l)(vi)
This
rule gave
the CSA
council the power to appoint people to provide services
for the carrying out of the purposes of
the CSA
. The rule provided that
if such persons were appointed they were to be appointed subject to the
“
same conditions and restrictions
” as a public service
officer. I agree, with respect, with the description given by Kenner C about
this rule in application
1215 at paragraph [33] where he said the
“
provision qualifies the general power of appointment
...
”.
The
relevant focus of the rule is on the “
appointment
”. To
comply with the rule the appointment was required to be on the conditions
specified. The rule assumes that it was possible
to equate the conditions and
restrictions of a CSA employee to those of a public service officer.
The
rule also assumes there was an identifiable set of “
conditions and
restrictions
”, of “
an Officer appointed under the Public
Service Act
”. The expression “
conditions and
restrictions
” is in my opinion broader than simply a level and salary
alignment with officers of the public service. The use of the word
“
restrictions
” may not add much to the rule. Although
generally each word in a rule should be given meaning, it is difficult to see
that
it adds much to “
conditions
”. This is because a
“
restriction
” will still be a
“
condition
”.
I
have considered the relevance of the time when the rule was inserted to an
understanding of its meaning and application. As set
out in the chronology the
rule was inserted on 29 July 1992. This was prior to the commencement of
the PSA 1992
on 1 December 1992. I do not think however that the
intent and meaning of the rule was to make the conditions and restrictions
applying
to public service officers at the time of the commencement of the rule
apply to the later appointment of employees of
the CSA
, even if the
conditions and restrictions of a public service officer changed. The rule was
intended to make the appointment of an
employee by
the CSA
council
subject to the same public service officer conditions and restrictions which
existed at the time of their appointment.
The
applicant contends that there was an identifiable set of conditions and
restrictions at the time of his appointment or at least
there was so with
respect to overtime payments.
The CSA
contends that there was not and
therefore it was impossible in practice to comply with the rule.
I
will next consider the evidence relevant to this and other issues involved in
the alleged breach of rule 12(l)(vi)
Breach
of Rule 12(l)(vi) – The Evidence
(a) The Employment of
Public Sector Employees
The
PSA
commenced on 16 May 1979. Section 20 provided that the public
service would be constituted by departments and sub departments and
some
“
posts
” in organisations, as defined. Departments and sub
departments were defined in s5 of
the PSA
to be branches of the public
service established under ss21 and 22 respectively. Organisations, generally,
were defined in s5 to
be state trading concerns, state instrumentalities, state
agencies or public statutory bodies established or continued by or under
a
written law and specified in column 2 of the schedule to
the PSA
.
An
“
officer
” was defined in s5 of
the PSA
to mean someone
“
in relation
” to a department, “
employed in the
department under and subject to this Act
”. With respect to an
organisation it meant a person who was employed in the organisation and was a
member of the senior executive
service. Pursuant to s14(3) of
the PSA
the Public Service Commissioner had the power to appoint, transfer or promote
officers and to determine remuneration.
The
PSA 1992
was made by order of the Commission after a consent application on
2 February 1993 (
CSA v Commissioner, Public Service Commission
(1993) 73 WAIG 301/302).
It superseded and replaced the
Public Service
Salaries Agreement 1985
and the
Public Service General Conditions of
Service and Allowances Award 1989
. Pursuant to clauses 3, 4 and 5,
the
PSA 1992
applied throughout Western Australia to all government officers
employed under
the PSA
and operated from the first pay period commencing
on or after 1 December 1992. Clauses 10-18 of
the PSA 1992
together
with the relevant schedules were respectively about salaries, salaries in
specified callings, annual increments, payment
of salaries, higher duties
allowance, deduction of association subscriptions, hours, shift work allowance
and overtime allowance.
More will be said about the overtime allowance
later.
Despite
the presence of
the PSA 1992
, there was at least the theoretical
possibility that the conditions of employment of public service officers could
be changed under
a registered industrial agreement pursuant to s41 of
the
Act
. This type of agreement could be made between
the CSA
, as an
organisation, and the employer of public service officers (s41(1)). When
registered by the Commission the industrial agreement
would
“
prevail
” over any inconsistency with an award unless the
agreement expressly provided otherwise (s41(9)).
Since
1993 the employment of public sector employees in Western Australia has changed
in accordance with the policies of the day of
the differently constituted state
governments. In 1993 the then Coalition government effected a paradigm shift in
the employment
of public sector and other employees by the enactment of the
Workplace Agreements Act 1993
(WA). As noted in the chronology the
Workplace Agreements Act
commenced on 1 December 1993. The
Workplace Agreements Act
permitted
employers and employees to enter into a workplace agreement which took
precedence over any award whilst the workplace agreement
remained in force.
(Sections 5
,
6
). The
Workplace Agreements Act
by
s4
took priority
over
the Act
. Pursuant to s19(2) of the
Workplace Agreements Act
an individual workplace agreements generally had effect from when it was signed
by the parties to the agreement or from some later
day as provided for in the
agreement.
Part
3
of the
Workplace Agreements Act
set out its application to the public
sector.
Section 43(1)
enacted that a person who was appointed under a written
law to a position as an officer or employee; employed by the Crown; or the
holder of an office or position in or under a public authority, may be a party
to a workplace agreement as an employee.
Section 43(2)
said that subsection (1)
applied whether or not in law a person had a contract of employment.
Section
44(1)
provided that in respect of the employees to whom
s43(1)
applied, the
employer for the purpose of the
Workplace Agreements Act
was to be a
person prescribed by the regulations in respect of that employee or class of
employee.
Section 45(1)
provided that any matter that was excluded from the
operation of the part by
the PSA
(including regulations under
the
PSA
) could not be varied or affected by agreement between the parties to a
workplace agreement. Schedule 3 to the
Workplace Agreements Act
set out
consequential amendments in accordance with s103 of that Act. By clause 6 of
schedule 3,
the PSA
was amended to insert s53A which excluded from the
operation of
part 3
of the
Workplace Agreements Act
“
any matter
concerning the management or structure of the Public Service that is prescribed
for the purposes of this section
”.
One
effect of the enactment of the
Workplace Agreements Act
, with respect to
public service officers, was that it permitted such employees and their notional
employer to enter into individual
contracts which could be at variance from
the PSA 1992
.
The
Workplace Agreements Act
also allowed for collective workplace
agreements. These agreements had to be registered to be effective after
lodgement with the
Commissioner of Workplace Agreements. (ss26, 31, 32). The
Commissioner kept a register of workplace agreements.
(s28).
Pursuant to
s39
of the
Workplace Agreements Act
an agreement lodged with or registered by
the Commissioner was generally not open for inspection. This did not apply
however to
a workplace agreement referred to in
s43(1)
that was lodged with or
registered by the Commissioner. These workplace agreements were open for
inspection by any person and could
be disclosed to any person who in the opinion
of the Commissioner made a request for information that could reasonably be
complied
with by the Commissioner.
(s40).
Although
s43(3)
of the
Workplace
Agreements Act
was amended by the
Industrial Legislation Amendment Act
1995
, this did not change the essential nature of the
Workplace
Agreements Act
with respect to public service officers.
The
PSMA
commenced to operate on 20 August 1994 and 1 October 1994
respectively. (See
s2
of
the PSMA
and the Government Gazette,
19 August 1994, page 4155 and 30 September 1994, page 4948).
The PSMA
repealed
the PSA
.
The
PSMA
continued the
existence of an office created under
s14(3)
of
the PSA
(see clause 4
of Schedule 5 of
the PSMA
). Section 112(1) of
the PSMA
provided that a reference in a “
written law or book, document or
writing to the Public Service Act 1978 or the
Public Service Act 1904
is, unless
the contrary intention appears or it is otherwise provided under the Acts
Amendment (Public Sector Management) Act 1994,
to be construed as if it had been
amended to be a reference to this Act
”. Both parties accepted this
section applied to rule 12(l)(vi) of
the CSA
rules.
Under
the PSMA
a “
public service officer
” was someone
employed in the “
public service
” (s3). The public service,
under s34 of
the PSMA
was constituted by, amongst other entities, state
government departments established under s35 of
the PSMA
.
The
PSMA
provided for the administration of the “
public
sector
”, which as defined in s3 included the
“
agencies
” which in turn included
“
departments
”.
The PSMA
contained general principles
for the public sector about public administration, management and conduct
(Part 2).
The PSMA
provided for a Commissioner for public sector
standards to prescribe standards and codes of ethics.
The PSMA
also
established a process for dealing with a “
breach of
discipline
” by a public service officer (s80). Under s78 a public
service officer who was a “
government officer
” could appeal
to the Commission constituted by a Public Service Appeal Board against decisions
made in the exercise of specified
powers in
the PSMA
.
After
the commencement
of
the PSMA
,
the PSA 1992
continued to
apply to officers appointed under s14(3) of
the PSA
whose office
continued to exist by clause 4(c) of Schedule 5 of
the PSMA
.
This
was because the scope clause of
the PSA 1992
was amended by order of the
Commission made on 19 June 1997. (See
(1997) 77 WAIG 1716).
The
order was said to operate from 1 October 1994. The amended scope clause
referred to public service officers appointed under
Part 3 of
the PSMA
and also to officers appointed under s14(3) of
the PSA
whose office
continued to exist by virtue of clause 4(c) of Schedule 5 to
the
PSMA
.
The
Western Australian Public Sector (Civil Service Association) Enterprise
Bargaining Framework Agreement 1995
(
the Framework Agreement
);
CSA
v Agriculture Protection Board and Others
(1995) 75 WAIG 2500
was also
brought to my attention by counsel for the applicant. Pursuant to
clause 4(1),
the Framework Agreement
applied to
the CSA
and
to the employing authorities in the public sector agencies listed in
Attachment 2. As stated in clause 3(1) the purpose of
the
Framework Agreement
was to put in place “
a process for agencies to
negotiate agreements which achieve improvements in productivity and efficiency
and the enhanced performance
of agencies covered by it and allows the benefits
from those improvements to be shared by employees, agencies and the Government
on behalf of the Community
”. Clause 3(2) provided that
the
Framework Agreement
“
places priority on the parties at the agency
level taking responsibility for their own labour relations affairs and reaching
agreements
appropriate to their agency
”. The Framework Agreement was
registered with the Commission as an industrial agreement under s41 of
the
Act
.
The
applicant’s counsel also referred me to
The Department of Resources
Development Enterprise Bargaining Agreement 1995
(
the DRD agreement
)
(
Department of Resources Development v CSA
(1996) 76 WAIG 951).
This was also registered as an industrial agreement under
the Act
and is
an example of an agency specific agreement. As stated in clause 3,
the DRD
agreement
was binding upon
the CSA
and the Department of Resources
Development and it was estimated that 40 employees would be bound by
the DRD
agreement
upon registration. By clause 4,
the DRD agreement
was
to operate from the commencement of the first pay period on or after
22 September 1995. Clause 5 provided that
the DRD agreement
would
be read in conjunction with
the PSA 1992
“
which applies to the
parties bound by this document
.
In the case of any inconsistencies this
Agreement shall have precedence to the extent of the inconsistencies
”.
Following
the election of the Australian Labour Party as the State Government in 2001,
steps were taken to repeal the
Workplace Agreements Act
, including in its
application to public sector employees. This was effected by the
Labour
Relations Reform Act 2002
(WA); Act No. 20 of 2002. The thrust of that
Act was, by way of repeals and amendments to the
Workplace Agreements
Act
, to remove the capacity to enter into workplace agreements which had
precedence over the awards of the Commission. The
Labour Relations Reform
Act
also contained transitional provisions for the continued operation in
some circumstances of workplace agreements which were still
current.
Section 4H
of the
Workplace Agreements Act
provided that certain conditions of
workplace agreements continued as part of a contract of employment between the
employer and the
employees. With respect to public sector officers,
s44(2)
was
amended so that an employee and notional employer could pursuant to
s24(1)
of
Workplace Agreements Act
enter into an agreement in writing cancelling
the workplace agreement.
Ms Walkington
also described the changes in the employment of public service officers,
dependent upon changing governmental policy,
from 1991 to 2006.
A
summary of Ms Walkington’s evidence on these issues
is:-
(a) Enterprise bargaining principles emerged in Western
Australia in 1991 when there was a state ALP government. Following discussions
between union bodies and the government, government departments that had similar
functions were to be grouped together to negotiate
enterprise bargaining
agreements.
(b) Shortly after these discussions there was a change of state government
and the Coalition government passed the
Workplace Agreements
Act
.
(c) The only collective agreements reached by
the CSA
and the State
government under the
Workplace Agreements Act
were for the Water
Authority and the Department of Transport and Main Roads. These agreements had
different conditions.
(d) In 1996 an agreement was reached with the state government so that
collective bargaining occurred within individual departments
in the public
sector and enterprise bargaining agreements were then registered. (This may
have been a reference to
the Framework Agreemen
t).
(e) Additionally most government departments offered workplace agreements to
individual employees under the
Workplace Agreements Act
so that
individuals within departments had terms and conditions applicable to them that
varied from otherwise applicable collective
agreements.
(f) By 2001 there were approximately 352 collective and individual agreements
dictating the terms and conditions of employment for
officers in the public
service. A database of these agreements was maintained by
the CSA
and
annexed to Ms Walkington’s witness statement.
(g) There were no standard terms and conditions of employment within these
agreements.
(h) In 2001 an ALP state government was elected. By 2002 the Public Service
General Agreement was negotiated and commenced operation
on 22 March 2002.
The General Agreement removed many but not all of the departmental collective
agreements and aligned employment
conditions within departments to
the PSA
1992
.
(i) Subsequent to the commencement of the General Agreement the terms and
conditions of employment for people employed under
the PSMA
are
determined by:-
(i) The General Agreement.
(ii)
The PSA 1992
.
(iii) Agency specific agreements in some departments which operate in
conjunction with
the PSA
. An example was an agreement for the
agriculture department. Ms Walkington said there were currently about 40
agency specific agreements.
In
cross-examination, Ms Walkington was asked whether she considered the conditions
of employment of public service officers and workplace
agreements to see if
there were common conditions and what was different. She said that there were
no common conditions including
overtime. Ms Walkington did not accept that
overtime remained a common theme throughout the relevant period of time.
(T325).
Ms
Walkington also said that as at July 1992 when
rule 12(l)(vi)
was inserted there
were different conditions of employment for some public service employees. As
an example she gave “
the Fisheries
”. (T317). The
applicant’s counsel provided Ms Walkington with a copy of a decision of
Commissioner Fielding dated 21
August 1990 in application PSA 5 of
1986;
(1990) 70 WAIG 3612.
This involved an application for a new award
prescribing allowances for Fisheries and Wildlife Officers, Technical Officers
and
Technical Assistants employed in either the Department of Conservation and
Land Management or the Department of Fisheries. The award
was intended to
replace the
Fisheries and Wildlife Commuted Overtime and Seagoing Allowances
Agreement 1983
. The new award made provision for commuted overtime.
(b) The Appointment and Employment of the Applicant
The
applicant commenced his employment with
the CSA
on 20 September
1999. The applicant had been a member of
the CSA
since 20 June
1994. To obtain his employment with
the CSA
the applicant responded to
an advertisement in The West Australian newspaper. The advertisement said that
some after hours work
was required. The applicant was interviewed for the
position on 23 August 1999. Present at the interview were Mr David
(Dave) Robinson,
the then general secretary of
the CSA
,
Ms Robertson, the then president of
the CSA
and Ms Walkington,
who was then the assistant general secretary of
the CSA
.
During
the interview the applicant was told the position required the taking of minutes
at meetings and that many of the meetings
would take place out of usual working
hours. The applicant said there was no mention of overtime payments during the
interview.
During
the interview the applicant was not shown any documents containing conditions of
employment nor was he aware at the time of
the content of the rules of
the
CSA
.
The
applicant said that following the interview but before receiving an offer of
employment, Mr Robinson telephoned him to advise
that he would like to
offer the applicant the job. Salary and availability for commencement were
discussed. The applicant said
he was not at any stage told he would be given a
car parking space instead of being paid for overtime or instead of being given
time
off in lieu of overtime.
A
letter of offer of employment dated 10 September 1999 was received by the
applicant on or about 14 September 1999. The letter was
signed by
Mr Robinson as the general secretary of
the CSA
. The letter
informed the applicant that he had been selected for appointment to the position
of executive officer effective from
20 September 1999. The letter
said:-
“
... appointment will be at level 3:4 initially,
which is a fortnightly salary of $1,405.93 ($36,671 per annum) and is subject to
a
three (3) month probably (sic) period. Following satisfactory completion of
the probationary period, you will be eligible for permanency
and membership of
the staff superannuation scheme and your salary will increase to level 4:1.
This is a fortnightly salary of $1,458.08
($38,032 per annum). You will be
eligible for a yearly salary increment, on your anniversary date of appointment,
subject to satisfactory
performance to a maximum of $40,195 per annum. CSA
Conditions of Service will apply and there is also the option to work a nine
day
fortnight. A car parking bay will be provided for your use. Should you wish to
terminate your employment with the CPSU/CSA,
four weeks’ notice will be
required.
”
There
was no document which the applicant received which set out the “
CSA
conditions of service
”. Also the letter did not, in its terms, or by
reference to or in conjunction with some other document, clearly explain the
reference to levels. There was no mention of overtime in the letter.
As
stated earlier the applicant commenced employment on 20 September 1999.
Either during the course of an induction conducted by
Ms Brewer, or later,
Ms Brewer said something to the effect that
the CSA
did not usually
pay overtime but that people take time off in lieu. The applicant said he
understood Ms Brewer to mean that in general
terms
the CSA
did not
pay overtime but that time off in lieu of overtime would be approved.
The
applicant said that during the course of his duties as executive officer he
worked many hours “
outside of my usual working hours
”. The
applicant said his overtime hours were recorded in his claim for overtime
payments in application 1215. Most of this
work involved preparing for and
attending at meetings. In a witness statement filed on 19 October 2005 and
which was part of exhibit
12 in the present proceedings the applicant said his
usual hours were 8:00am to 5:00pm with 40 minutes for lunch, allowing him to
work 75 hours per fortnight and take the tenth day off.
The
applicant said that during the course of his duties as executive officer he saw
that applications for overtime payments were approved
for other CSA employees.
Specifically he mentioned Ms Sue Burlinson, a training officer and
Mr Tony Spencer a building supervisor.
On
or about 15 April 2004 the applicant made what he described as a formal
claim to
the CSA
for payment for the hours he had worked outside of his
“
prescribed hours
”. The applicant said it was about this
time he became aware of
the CSA
rules regarding conditions of employment.
He was also having discussions about these matters with
Ms van den Herik. As stated she
was employed by
the CSA
as an industrial officer/advocate and was also a CSA delegate for the employees
of
the CSA
.
The
applicant said an agreement was reached so that he would be paid overtime.
(Ms Walkington’s evidence was that this was
without prejudice). An
email from Ms Walkington dated 19 April 2004 evidenced this. After
this the applicant was paid overtime
and he was still permitted to use the car
parking bay.
There
were discussions involving Ms van den Herik and
Ms Walkington about the applicant’s claim for overtime but the claim
was
not resolved. The applicant said that on or about 22 April 2004 there
was further communication and email correspondence between
himself and
Ms Walkington. The applicant said Ms Walkington sent an e-mail to him
dated 22 April 2004 in which she said the applicant
had been told that the
provision of the car parking bay was in lieu of overtime payments. The e-mail
also referred to things allegedly
said at the employment interview by
Mr Robinson. The e-mail also recorded the applicant saying he did not
recall these things being
said.
After
further correspondence which did not settle the claim, application 1215 was
filed on 16 September 2004. One of the letters
was from Ms van den Herik
as CSA staff workplace delegate to Ms Walkington dated 1 July 2004. In
this letter it was asserted the
CSA “
custom and practice
” was
that
the PSA 1992
rates were applicable and this “
is currently
enshrined
” in
rule 12(l)(vi).
The
total amount claimed in application 1215 was $9,850.29. The calculations
made by the applicant were not disputed by
the CSA
in
application 1215 or this application. The applicant gave details about his
representation in application 1215, which will be
summarised later when setting
out the evidence about the second alleged breach of the rules.
In
the present application, the applicant contended his employment with
the CSA
should have been on the same conditions as an officer appointed under
the
PSA
, in accordance with
the CSA
rules, and that those conditions
would have given him the benefit of overtime payments on the terms contained in
the
PSA 1992
.
The
applicant also contended that by not making overtime payments a condition of his
employment,
the CSA
had breached its rules. The applicant said the
result of
the CSA
breaching its rules was that he had not received
significant payments for the work he did outside of his ordinary working hours
which
he believed would have been payable to a CSA member employed in the public
service. The applicant said he believed he had been treated
less favourably
than other persons employed by
the CSA
who were given overtime payments
or were allowed to take time off in lieu of overtime payments.
The
applicant then said that in early May 2006 he became aware of a memorandum and
notice to members written by Ms Walkington as general
secretary of
the
CSA
. It was upon seeing the terms of this memorandum that the applicant
decided to commence the
s66
proceedings. The applicant said his understanding
of the purpose of the memorandum and an attached draft notice to members was
that
it was information to
the CSA
council in support of a proposal to
change
the CSA
rules by the deletion of part of
rule 12(l)(vi).
The
applicant said the memorandum and notice to members appeared to be a direct
response to the outcome in application 1215.
Ms Robertson
referred to the job interview with the applicant on 23 August 1999. She
said that each candidate at the interview was
told of the requirement to take
minutes of meetings and that many of the meetings would take place out of the
usual working hours.
Ms Robertson said she did not recall Mr Robinson
outlining the general conditions of service. Ms Robertson said she was certain
there was no mention of overtime during the interviews. It was however
mentioned to each candidate that a car parking bay would
be made available to
them. Ms Robertson did not recall any documents relating to terms or
conditions of employment being given to
any applicant for the position.
Most
of the evidence of
Ms van den Herik
was about the second alleged breach of
the CSA
rules. With respect to
the alleged breach of
rule 12(l)(vi)
Ms van den Herik said she
had known the applicant since he was first employed at
the CSA
. She said
the executive officers before the applicant were female.
Ms van den Herik said her understanding of why the car parking
bay was provided to executive officers was as a security and safety measure.
The car parking bay was provided to the then female
executive officer when in
1991 or 1992 there were reports that a woman had been raped near Royal Perth
Hospital. Ms van den Herik
said her understanding was that the
car parking space continued to be provided to executive officers after that,
whether male or
female.
Ms
Walkington disagreed with the evidence of Ms van den Herik that the car
parking space was made available for safety reasons. This
was because the
parking bay had been located in the basement beneath the CPSU/CSA building and
until approximately four years ago
the basement was not enclosed, was in an
isolated location and could be accessed by any member of the public.
Ms Walkington also
said
the CSA
make available to its employees taxi
vouchers in the event they are required to work past normal working hours, for
personal safety
reasons.
After
Ms van den Herik gave evidence and in the course of the cross-examination of
Ms Walkington, exhibit 13 was tendered which was
a copy of the letter of
appointment to
the CSA
of Ms van den Herik dated 18 January 1991.
This said she had been appointed an industrial officer at a level 4.2. This
level and
the salary mentioned in the letter were shown to be equivalent to the
then applicable public sector award rate. The letter also
said that other
conditions were similar to the state public service and a “
Position
Data Form
” and a sheet briefly outlining conditions of service
“
were attached
”. An email from Ms Brewer to Ms van den Herik
dated 27 February 2007 said the latter documents could not be found in her
personal
file held by
the CSA
. I mention that although I received the
letter and email as exhibits I do not find them of assistance in determining the
issues
in the application – they relate to a time before the relevant rule
was inserted and are about the appointment of someone other
than the
applicant.
Ms
Walkington referred to the employment of the applicant and the issue of his
entitlement to overtime. Ms Walkington was present
at the employment
interview with the applicant. She said he was told the position required work
outside ordinary hours to record
minutes for meetings and overtime was not paid,
but in lieu of paid overtime the successful applicant to the position would be
allocated
a car parking bay. Ms Walkington also said that although the
applicant was employed as a level 4 employee, people employed by
the
CSA
at lower than level 6 were rarely afforded a benefit like
this.
She
was also referred to paragraph [7] of her statement in
application 1215, which became exhibit 10 in these proceedings, where
she
said that at his interview the applicant was told by Mr Robinson the
successful applicant would not be paid overtime for work but
would be allocated
a free car parking bay on the premises in lieu of overtime being paid.
Ms Walkington agreed with the proposition
that a public service officer
could not substitute a car parking bay for an entitlement to overtime unless a
specific arrangement
to do that occurred through an agency specific agreement.
(T343/344). She agreed there was no reference in the applicant’s
letter
of appointment to traded off overtime for the free use of the car parking bay.
(T345). It was put to Ms Walkington that
the offer of employment to the
applicant, on her version of events, was not fair in that he did not get a
choice of having been paid
overtime or use of the car parking bay.
Ms Walkington said that she did not know if it would have been fair or not
because this
depended upon more than a comparison between the monetary value of
the car parking bay and paid overtime. Ms Walkington said “
in some
cases it might be monetarily worth less, but it might actually be for your
lifestyle and convenience worth more to you to
have that
”. She
confirmed however that a choice was not in the offer of employment. (T347).
As
to the overtime the applicant worked, Ms Walkington confirmed the position that
she had held in application 1215 which was that
she accepted on the basis of the
advice of Ms Brewer, that the applicant’s calculation of the value of
the overtime worked
was correct. It was correct in the sense of the hours which
the applicant said he worked. (T167). Ms Walkington also thought the
calculations, which were checked by Ms Brewer, came from
the PSA
.
(T167).
Ms
Walkington also detailed in her witness statement the first approach by the
applicant to her in 2004 about an entitlement to overtime,
leading to the
commencement of proceedings in application 1215.
(c) Overtime and Public Service Officers
(i)
The PSA 1992
Clause
18 of
the PSA 1992
contains an entitlement to the payment of an overtime
allowance. From clause 18(2) the entitlement to overtime was referable to
an
officer’s “
prescribed hours of duty
”. This expression
was defined in clause 18(1) to mean “
the officer’s normal working
hours as prescribed in clause 16 ...
”. In turn, clause 16(1) said
that “
prescribed hours of duty to be observed by officers shall be
seven hours thirty minutes per day to be worked between 7.00am and 6.00pm
Monday
to Friday as determined by the chief executive officer with a lunch interval of
forty-five minutes to be taken between 12.00noon
and 2.00pm. Subject to the
luncheon interval prescribed hours are to be worked as one continuous
period
”. Clause 6 defined the “
Chief Executive
Officer
” to mean the person immediately responsible for the general
management of the department to the Minister of the Crown for the
time being
administrating the department. Clause 16(2) provided for other working
arrangements. This allowed for variation of the
prescribed hours of duty within
a department or branch or section thereof so as to make provisions for the
attendance of officers
on Saturday, Sunday, public holidays or on a public
service holiday; the performance of shift work and [sic] “
the nature of
the duties of an officer or class of officers in fulfilling the responsibilities
of their office
”. Clause 16(2)(b) provided for the possibility of
alternative working arrangements involving flexitime, a nine day fortnight,
permanent part-time employment or such other arrangements as approved by the
Public Service Commissioner. Clause 16(3) provided
for flexitime arrangements
and clause 16(4) for a nine day fortnight. Clause 17 provided for a shift work
allowance.
Clause
18(2) provided for work which was “
deemed as overtime
”. This
was work performed “
by direction of the Chief Executive
Officer
” which was “
before or after the prescribed hours of
duty on a week day
” or “
on a Saturday, Sunday or public
service holiday, other than during prescribed hours of duty
”. Clause
18(2)(a) provided that the overtime would be paid at the hourly rate prescribed
by paragraph (b) of the subclause.
This subclause provided formulae to
calculate the payment for overtime on an hourly basis on week days, Saturdays,
Sundays and public
service holidays. For example, with respect to weekdays
there was one formula for the first 3 hours of overtime and another for
any time
worked after that. For the first 3 hours the formula was:-
“
Fortnightly Salary
x
3
75
2
”
The
formula for work after that on a week day
was:-
“
Fortnightly Salary
x
2
75
1
”
Clause
18(2)(c) provided for time off in lieu of overtime being granted by the Chief
Executive Officer subject to prior agreement
in writing. This subclause also
provided for a basis to determine the length of time off in lieu of overtime.
It also required
the employee to generally clear accumulated time off in lieu
within two months of the overtime being performed. Clause 18(2)(d)
provided
that any commuted allowance and/or time off in lieu of overtime, other than that
provided for in paragraph (c) of the subclause
was to be negotiated only between
the CSA
and the Chief Executive Officer. Clause 18(2)(e) provided that
no claim for payment or time off in lieu would be allowed in respect
of any day
in which the additional time worked was less than 30 minutes. Other subclauses
of clause 18(2) applied to returning to
duty, working overtime at a place other
than usual headquarters, limitations upon payments for overtime or granting time
off in lieu
of overtime, entitlement to absence in certain circumstances after a
continuance period of duty and overtime calculations where the
work extended
past midnight. Generally clause 18(2)(j) provided that overtime or the granting
of time off in lieu of overtime could
not be approved where a maximum salary or
maximum salary and allowance in the nature of salary exceeded that as determined
for level
5 as prescribed in clauses 10 and 11; and for officers whose work was
not subject to close supervision.
(ii) Evidence from Witnesses
Ms van den Herik
attested to her belief that CSA members employed in the public sector, as
defined in
the PSMA
, are entitled to be paid for overtime when they are
required to work outside of their normal working hours, and that they have
always
had that entitlement. Ms van den Herik said that as far
as she was aware
the CSA
had not traded off, on behalf of its members
employed in the public service or outside of the public service, entitlements to
be
paid for overtime.
I
have earlier set out that
Ms Robertson
was the president of
the
CSA
from 1993 until 2003. Ms Robertson also gave evidence about her
employment as a public service officer. She is presently employed
by the
Government Employees Superannuation Board (GESB) as a senior policy officer.
She said that she commenced employment with
the Western Australian Government
with the Public Service Board in 1984. In 1984 she was employed under
the
PSA
. Ms Robertson said that as far as she was aware
the
PSA
1992
applied to her employment both prior to and following the repeal of
the PSA
. Ms Robertson said that
the PSA
was repealed in or
about 1994 and was replaced by
the
PSMA
. Ms Robertson
asserted that
the PSMA
applied to her.
Ms Robertson
attested that public service officers employed by the GESB were entitled to
overtime payments if the conditions of
the PSA 1992
were met.
Mr Best
said he commenced his employment with the Western Australian Government with the
Public Service Board
in May 1987. Mr Best said that as far as he
was aware
the
PSA 1992
applied to his employment both now and
before
the PSA
was repealed. Mr Best also said he believed
the
PSMA
now applied to him. Mr Best was presently employed as a public
service officer, as a senior reporting officer at the Department
of Education
and Training (DET). Mr Best said that he was aware that he and other
public service officers employed in DET were entitled
to overtime payments if
the conditions of
the PSA 1992
were met.
Ms
Walkington
said that at the time
rule 12(l)(vi)
was inserted, public service
officers had an entitlement to be paid overtime under
the PSA 1992
.
(T149). Ms Walkington disagreed with the proposition put to her that enterprise
bargaining had not started by that time. Ms Walkington
asserted that
enterprise bargaining commenced in 1991 and the process commenced with
negotiations with the government as to how enterprise
bargaining was going to
proceed. (T149). It was put to Ms Walkington that although there was
the
PSA 1992
, public service general agreements and in some agencies, agency
specific agreements, in all of those cases there is still an entitlement
to
overtime for public service officers. Ms Walkington answered that it
“
does vary though from department to department so in some cases there
is an entitlement prescribed by the general agreement. For
some state
government departments there is further an agency specific agreements [sic] that
alters that entitlement. And if you’re
employed by the Department of Main
Roads, you are not covered by the general agreement and other provisions that
relate to the enterprise
bargaining agreement specifically applied to Main Roads
exist
”. (T149/150). Ms Walkington also confirmed that “
Main
Roads
” employees are public service officers under
the PSMA
.
Ms Walkington said that they get overtime in some instances but have an
annualised process whereby they work 40 hours per week
and not 37.5. Ms
Walkington said their overtime provisions were different because their
enterprise bargaining agreement was different.
(T150).
Ms
Walkington said she also knew that in a couple of other government departments
they have changed hours and that had an effect on
overtime entitlements.
Ms Walkington then said that different terms and conditions of public
service officers started to emerge
in the early 1990’s and continued until
2001 where at the end of that year there were, as she said in her statement,
about
352 agreements. It was within this process in about 1998 that
the
CSA
council commenced an enterprise bargaining process with
the CSA
staff. Ms Walkington agreed with the proposition that her evidence was the
council was aware of the existence of
rule 12(l)(vi)
but felt it was unable
to satisfy it. (T150).
Later,
Ms Walkington said with respect to public service officers that overtime
“
was subject to a variety of different arrangements in the public
service and one of those arrangements can be a benefit in lieu of
the payment,
if that’s what’s struck and arranged, and that was what was done.
Many employees have different arrangements
”. (T340). Ms Walkington
said that some agreements take away overtime completely and give it as a salary.
This was not in
terms of a commuted allowance but a salary increase. An example
of this was The Department of Land and Administration where there
were 12
agreements which did that. The effect of these agreements was that you work
Saturday and Sunday and you do not get overtime.
You might not work Monday and
Tuesday but you do not get overtime.
After
the 2002 general agreement came into being Ms Walkington said there was more
commonality across public service officers’
terms and conditions but there
were still differences. Ms Walkington disagreed with the proposition that
at that point
the CSA
could have “
gone back to comply with the
rule
”. Ms Walkington said
the CSA
could not do that because if
they did it would have reduced employees’ terms and conditions. She gave
as an example the introduction
of an attraction retention benefit which was paid
to a number of public servants. (T349). Ms Walkington also said it was
common
for public sector employees to have long service leave after 7 years
whereas employees of
the CSA
were entitled after 5 years. CSA employees
were also entitled to take time off work when they were rostered between
Christmas and
New Year and to be paid as though they were at work. Ms
Walkington said
the CSA
“
would have had to go and adopt what
happens in TAFEs where people have to actually use their time in lieu or annual
leave or something
for closedowns
”. (T349).
Ms
Walkington also said the 2004 general agreement did not make any overriding
provisions for overtime. (T351). Therefore the entitlement
to overtime was
still generally covered by
the PSA 1992
. (T351).
Mr
Ellis
said whether an officer in the public service was entitled to overtime
payments when the applicant was first appointed in September
1999 depended
“
on what agreement you were under, what agency specific agreement you
were under, what workplace agreement you were under. Depends.
There were so
many, there were hundreds of those that I couldn’t say”
.
(T75/76). Mr Ellis said that within 18 months of the industrial relations laws
amendments in Western Australia in 1995/1996 there
were numerous different
conditions and enterprise bargaining agreements and workplace agreements
throughout the entire public sector.
(T76). (I note the date may have been in
error given the
Workplace Agreements Act
was passed in 1993). Mr Ellis
said it was not unusual for clauses in workplace agreements to include a lack of
entitlement to overtime.
(T76). Mr Ellis also made the point that if
conditions and restrictions of public service officers applied to employees of
the CSA
then CSA employees would have lost entitlements gained through
their EBA process. (T77).
Mr
Ellis also gave some evidence about overtime being generally an entitlement of
public service officers save for the possibility
of workplace agreements still
applying which contained an exclusionary clause, which he had not seen, or some
agency specific agreements,
but said he could not be definitive as it was not
his area of expertise. (T87/88).
Mr
Cusack
when being cross-examined said he was “
aware of employees
who are employed subject to the
Public Sector Management Act
as public servants
who are not, as a matter of course, entitled to overtime payments in the general
run of events
”. Mr Cusack referred to the agency specific
agreement of the Department of Planning and Infrastructure which provided for
the alternative benefit of a commuted overtime allowance. Mr Cusack also
referred to the technical officers in the Department of
Fisheries who also had a
commuted overtime allowance; in the sense of it being rolled up into their
salary and paid as part of their
fortnightly pay. (T123). Mr Cusack said those
agreements would “
overwrite
” the overtime provisions in
the PSA 1992
. (T123). Mr Cusack also said he was “
not sure how
many people in the public sector receive overtime. I know that the vast
majority are entitled to receive overtime if
they work extra hours. I do state
that the people who are employed under those agency specific agreements are a
small percentage
of the public service workforce
”. (T123). At T124
Mr Cusack said the agency specific agreements he referred to had not been
in existence when the applicant
was first employed in September 1999. There
were individual EBAs though that related to agencies in the sense that there was
negotiated
a new agreement for each agency. He was not aware of the conditions
of those agreements because it was prior to his employment with
the CSA
.
(d) The History of Rule 12(l)(vi)
As
set out earlier the rule was inserted in July 1992. Following the decision in
application 1215 however Ms Walkington took steps
to have the second sentence of
the rule deleted. The first step in this process seems to have been the
circulation of the memorandum
the applicant became aware of in May 2006.
(e) Ms Walkington’s Memorandum
This
memorandum dated 2 May 2006 was from Ms Walkington to
the CSA
council. (I will refer to it as the “
Walkington
memorandum
”).
The purpose of the Walkington memorandum was to
provide notice of a proposal to make an alteration to the rules of
the
CSA
. The proposed rule alteration was about rule 12(l)(vi) and the
memorandum said this would be dealt with at a meeting of council
set down for
24 May 2006.
Under
the heading “
Background
”, the memorandum set out the terms of
rule 12(l)(vi). The memorandum said that in “
accordance with this
rule
” the terms and conditions for employees of
the CSA
were
determined by the council and are found in various resolutions and policy
statements. The memorandum said that since 1998 the
council endorsed a process
of enterprise bargaining resulting in an agreement between the council and the
delegates/representatives
of
the CSA
members who were also CSA
“
staff
”. The memorandum said that the agreements had been
codified in documents entitled “
CSA Staff Wages and Conditions
Agreements
” (agreements). The memorandum said that the terms and
conditions of the agreements were not the same as the terms and restrictions
that apply to officers appointed under
the PSA
and its successor
the
PSMA
.
Although
not mentioning application 1215 by name or application number, the memorandum
then clearly referred to that application and
the reasons for decision of Kenner
C. The memorandum summarised and quoted from the reasons. The memorandum said
that a copy of
the reasons was issued to councillors previously and said if a
copy was required it could be obtained from the then executive officer.
The
memorandum said the council “
has not engaged employees on the same
conditions and restrictions as Officers appointed under the
Public Sector
Management Act
. Compliance with this rule would reduce a number of terms and
conditions, such as long service leave, closedown arrangements and
access to
higher duties for the staff of the CSA
”.
The
memorandum said the matter had been canvassed at a meeting of staff. The
memorandum said that whilst a formal position had not
been presented on behalf
of staff, a view that the rule provided a “
safety net for the minima
for staff conditions was advanced
”. The memorandum said this view was
derived from the advice of the advocate representing the applicant in
application 1215.
The memorandum said however that “
a
‘plain meaning’ interpretation of the Rule does not accord with this
view
”
.
The memorandum said that
“
the rule
provides for the
same
conditions and restrictions – the rule does
not use words such as ‘
at least
’ nor as a ‘
safety
net
’
” (emphasis in original). The memorandum also pointed
out that the use of the word “
restrictions
” means that
limitations apply also.
The
memorandum said the rule was incorporated into the constitution of
the
CSA
in 1992 along with amendments to effect the amalgamation into the State
Public Services Federation. The notice which was then sent
out to members with
the then proposed rule 12(l)(vi) said it was to ensure “
that CSA staff
are appointed subject to conditions and restrictions which mirror those for
public servants, however, as employees
of the union, they are not public
servants
”. The memorandum then said the council should consider the
current relevance of the rule.
The
memorandum said the introduction of
the PSMA
and the
Public Sector
Standards
in 1994 resulted in processes, conditions and restrictions that
were neither available nor capable of being applied to the staff of
the
CSA
. It pointed out that matters which prior to 1994 had been contained in
industrial instruments were now contained in legislation.
These were not
processes
the CSA
was able to adopt.
The
memorandum went on to say that through the 1990’s the terms and conditions
that applied to officers appointed under
the PSMA
varied significantly as
a result of agency based bargaining for agreements and the use of individual
employment contracts outside
this process.
The
memorandum said there was a range of conditions currently enjoyed by CSA staff
significantly different from those applying to
the public service. It was said
that the “
differences are a result of the different operating
environments and contexts for employees of the union
”. It said the
differences in terms and conditions of employees eligible to join the union and
the union staff had increasingly
diverged.
Under
the heading of “
Rule Amendment
”, the memorandum then said
that Ms Walkington proposed council amend the rule by deleting the second
paragraph of rule 12(l)(vi).
It was suggested the amendment would ensure that
the “
lack of clarity
” observed by the Commission in its
recent decision would be remedied.
The
memorandum then described the process for making a rule change and concluded
with a recommendation to that effect. Attached to
the memorandum was a draft
notice to members which set out the proposed alteration. By way of
justification for the alteration the
draft notice said as there “
are
many industrial instruments applying to persons employed in the public sector,
including the Award, many industrial agreements
and other forms of industrial
instrument, in accordance with the current Rule, it is difficult to determine
what the terms and conditions
of appointment for individuals at the CSA should
be. Secondly, the CSA Conditions of Service sets out the express terms of
employment,
which may contradict conditions of employment in accordance with the
Public Sector Management Act 1994
”.
(f) The Alteration of the Rule
A
copy of a Certificate of Registration of Alteration of Rules dated
15 November 2006, signed by a Deputy Registrar of the Commission,
was
received into evidence as exhibit H. This certified that the second
paragraph of rule 12(l)(vi) had been deleted. Attached
was the decision
record of the Deputy Registrar. This referred to s62 of
the Act
in its
title and described application “
71/2006
”, as
“
In the matter of an application by The Civil Service Association of
Western Australia (Incorporated) for alteration of registered
rules
”.
The decision was that:-
“
Having read the application, there
being no person desiring to be heard in opposition thereto, after consulting
with the President,
and upon being satisfied that the requirements made
thereunder have been complied with, I have this day registered an alteration
to
rule 12 of the registered rules of the applicant union in the terms of the
application as filed on 22 August 2006.
”
As
I am aware from my involvement in application 71/2006 under s62(3) of
the Act
, and as recorded in and from the fact of the decision, the
recommendation of Ms Walkington to alter the rule was accepted by council
and the membership of
the CSA
. The decision to alter the rule was duly
carried out by
the CSA
council officers by lodging the relevant documents
with the Commission.
(g) The Employment of CSA Employees Generally, Overtime and Rule
12(l)(vi)
In
her witness statement Ms Walkington set out the background to the amendment
to
the CSA
rules to include rule 12(l)(vi). This was generally
consistent with the Walkington memorandum. Ms Walkington said that based
on
her knowledge and involvement with
the CSA
at the time, the intention
of rule 12(l)(vi) was to protect CSA staff in the event of a national takeover.
Ms Walkington said there
was little or no effect on existing CSA employees
as a result of the initial inclusion of rule 12(l)(vi). This was because
employment
conditions had already been established and were similar to the
public service.
Within
the changing industrial landscape for State employees in the relevant period,
Ms Walkington set out the steps
the CSA
took to “
define the
terms and conditions applicable to CSA staff
”.
Paragraphs [21]-[23] of Ms Walkington’s witness statement were
as follows:-
“
21. Council was aware of the existence of
Rule 12(l)(vi) but felt that it was unable to satisfy it because there were such
a large
number of different instruments determining the terms and conditions
applicable throughout the Public Service. It would not have
been possible for
the CSA to implement terms and conditions that were consistent with each of
these awards/agreements. This made
it impossible for the CSA to comply with
Rule 12(l)(vi) because it was not able to clearly define any standard terms and
conditions
of employment for persons employed under the
Public Sector Management
Act
.
By
reason of the matters identified at paragraph 21, the Council believed that it
was empowered by Rule 12(m) to engage in a process
with a view to clearly
defining the terms and conditions of employment of CSA staff.
In
view of the above, the CSA commenced Enterprise Bargaining negotiations with its
staff in or about 1998. Enterprise Bargaining
Agreements (“EBA”)
were reached between CSA and its staff in 1998 and 1999. Council endorsed each
EBA.
”
Both
the EBAs in 1998 and 1999 were silent on the question of overtime. In her
witness statement in application 1215, which the applicant
tendered as an
exhibit in the present application, Ms Walkington described the process
which lead to the making of these agreements
and annexed copies of them. Both
the 1998 and 1999 EBAs were unregistered agreements. The 1998 EBA was endorsed
by
the CSA
council on 25 November 1998. A copy of the minutes of
that council meeting were annexed to Ms Walkington’s witness
statement
in application 1215. The minutes said that the 1998 EBA was
endorsed by a majority of employees. At that time, the applicant was
not an
employee of
the CSA
.
The
1998 EBA was said to apply to all employees and full-time paid officials of
the CSA
including the general secretary and assistant general secretary.
The parties to the agreement were the council of
the CSA
,
the CSA
and the Australian Services Union. The agreement contained clauses about
“
work practice changes
”, “
organising
culture
”, “
administrative efficiencies
”,
“
pay increases and conditions of service
” and
“
dispute settlement procedures
”. Clause 9(1) set out
that the parties recognised that given the current financial position of
the
CSA
that
the CSA
was unable to fund a wage increase. Accordingly,
the clause said the existing salary rates contained in schedule A would
apply during
the life of the agreement. Clause 9(2) provided that where
“
safety net adjustments or living wage adjustments apply to the Public
Service Award and result in a higher award rate of pay than
the rates contained
in schedule A then the Award rate of pay will apply
”.
Clause 10 referred to the formalising of conditions of employment in a
single document prior to 31 December 1998. Ms Walkington
in her
statement in application 1215 said this did not occur during the life of
the agreement but occurred during the life of the
1999 EBA.
Ms
Walkington said that as at the date of her witness statement in
application 1215, dated 19 October 2005, the current conditions
of
service for CSA employees were prescribed by the 1999 EBA, which was also an
unregistered agreement. Ms Walkington said the 1999
EBA was endorsed at a
council meeting on 3 November 1999. The minutes said that at a recent
staff meeting
the CSA
staff voted to accept the terms of the agreement by
a majority of 41 to 3. At that time the applicant was a member of
the
CSA
staff although there is no evidence of whether he attended at the
meeting referred to.
Clause 3
of the 1999 EBA set out that it applied to all employees and full-time officials
of
the CSA
including the general secretary and assistant general
secretary. The parties to the agreement were
the CSA
council,
the
CSA
and the Australian Services Union. Clause 9 of the 1999 EBA refers
to salaries. It refers to two salary adjustments to the salaries
contained in
schedule A of the 1999 EBA during the life of the agreement. The clause
also provided that where safety net adjustments
or living wage adjustments apply
to
the PSA 1992
and result in a higher award rate of pay than the rates
contained in schedule A, then the award rate of pay would apply.
Clause
10 set out that the conditions of service and schedule B should
be read in conjunction with the existing conditions of service contained
in a
range of documents, resolutions and decisions of council. It said that in the
case of any inconsistencies the agreement would
have precedence to the extent of
those inconsistencies. Clause 10(2) provided that the parties agreed to
continue negotiations to
codify those conditions of employment contained in
policies and decisions of council. Clause 10(3) said that where the terms
of
codification of conditions were agreed between the parties and approved by
council the agreed terms shall be included in schedule
B of the
agreement.
Annexure
3 to Ms Walkington’s witness statement in application 1215 was
two tables related to the codification of the conditions
of employment of CSA
employees. Table 2 set out that a codified condition relating to overtime
and time off in lieu was agreed by
the CSA
and the Australian Services
Union as the joint unions representing CSA employees on 12 April 2000 and
was endorsed by
the CSA
council on 24 May 2000.
Ms Walkington’s statement also annexed a copy of the minutes of
the CSA
council on 24 May 2000 which endorsed the codified overtime
and time off in lieu provision. This document headed “
Overtime and
Time Off in Lieu
” dated 4 May 2000 was also annexed to
Ms Walkington’s statement in application 1215. Its terms
were:-
“
1. In accordance with current practice, the
CPSU/CSA does not generally pay overtime or approve time off in lieu of payment
of overtime
except in extraordinary or unusual circumstances.
From
date of commencement of employment, employees appointed to identified positions
within the Union are paid an allowance in addition
to salary, in accordance with
Schedule A Salaries of the CSA Staff Enterprise Bargaining Agreement.
For
those employees appointed to identified positions in subclause (2) of this
clause, any claim for overtime or time off in lieu
would have to be in
extraordinary or unusual circumstances.
In
such extraordinary or unusual circumstances, claims for overtime or time off in
lieu of payment of overtime, shall have prior written
approval of the General
Secretary.
An
employee who has prior approval to take time off in lieu is required to make
arrangements with their supervisor to clear such time
off in lieu within two
months of the overtime being performed.
Provided
that there is written agreement between the employee and supervisor, time off in
lieu of payment for overtime may be accumulated
beyond two months from the time
the overtime is performed so as to be taken in conjunction with periods of
approved leave.
In
circumstances where the General Secretary has approved payment of overtime and
there is no agreement for time off in lieu to be
taken in conjunction with
periods of approved leave, the employee shall be paid for the overtime
worked.
”
The
applicant said in a witness statement in application 1215 that he did not
receive the allowance referred to in paragraph [2].
Neither
the 1998 nor 1999 EBAs made any reference to rule 12(l)(vi) of the rules of
the CSA
or incorporated into the conditions of employment of CSA
employees the same “
conditions and restrictions
” of public
service officers.
The
applicant did not give evidence about any knowledge of the 1998 EBA when he
commenced his employment with
the CSA
. Additionally he did not give any
evidence about his involvement in the making of the 1999 EBA or knowledge of its
terms and conditions.
The same applied with respect to the May 2000
codification of overtime and time off in lieu of overtime.
In
Ms Walkington’s evidence in these proceedings she said that despite
the commencement of the General Agreement in 2002, rule
12(l)(vi) remained
impractical in application because although the
Workplace Agreement Act
was repealed and workplace agreements were abolished, individuals who had been
on workplace agreements retained the most beneficial
conditions offered by that
agreement or any collective agreements applicable to them. The consequence was
that individuals working
within the same department had differing terms and
conditions of employment. Additionally agency specific agreements could vary
the terms and conditions provided for by the General Agreement.
In
paragraph [28] of her witness statement Ms Walkington
said:-
“
28. Council did not anticipate that the employees
of CSA would want the conditions of their employment aligned with the Public
Service
Award. If the CSA were to align with a Public Service Award it would
have had to do so in respect of all the terms and conditions
offered within that
Award. While there may have been some benefits offered to our staff in doing
so, the overall effect would have
been largely detrimental. Council did not
feel that it could unilaterally alter the term and conditions of employment of
its staff.
Council also felt that it was in the interests of its staff to
maintain its EBA and continued with that practice. Subsequent EBA’s
have
been reached in 2003 and 2006, both of which have been endorsed by
Council.”
Ms
Walkington also referred to negotiations between
the CSA
council and
staff union in 2006, where Ms van den Herik raised the issue of the
application of rule 12(l)(vi). Ms van den Herik
was leading the
negotiations on behalf of the staff. Ms Walkington said the council put to
the delegates that the application of
rule 12(l)(vi) would put at risk a
number of the terms and conditions of employment available to staff. The
suggestion that rule
12(l)(vi) would be deleted was put to the staff and
Ms Walkington said the delegates did not oppose or consent to the
suggestion.
In
cross-examination, Ms Walkington said that when she prepared the Walkington
memorandum she checked the factual details referred
to. (T197). Ms Walkington
was referred to that part of the Walkington memorandum which referred to the
notice to members about
rule 12(l)(vi) when it was proposed to be inserted,
which said CSA staff conditions were to mirror those of a public servant. Ms
Walkington said there should have been a mirroring but there was not. (T358).
Similarly at T350 Ms Walkington was asked about compliance
with
rule 12(l)(vi) by
the CSA
. It was put to Ms Walkington that
the CSA
had not “
complied with that rule, I think, between 1993
and November 1998 had it?
”. Ms Walkington said that “
it
didn’t apply those limitations and it didn’t mirror the
conditions
”. (I note that this was prior to the employment of the
applicant.)
Ms Walkington
confirmed that as far as she was aware
the CSA
council had never made a
formal decision about the interpretation of rule 12(l)(vi). (T136, 137 &
155). During the same cross-examination
Ms Walkington said that there was
no documented record of a decision about rule 12(m) applying to any
difficulties in the application
of rule 12(l)(vi). With respect to the
reference in rule 12(m) about the regulation of procedure,
Ms Walkington explained that her
understanding was it was about how
meetings were conducted and processes of authorisation and decision making.
(T152).
In
the context of the contents of the Walkington memorandum, Ms Walkington
described rule 12(l)(vi) as being “
impractical in the first
place
”. (T175). Ms Walkington also said that when
rule 12(l)(vi) was first inserted into
the CSA
rules, when she was
working for
the CSA
as an industrial officer, she thought that in
discussions with her senior industrial officer and perhaps some other colleagues
she
said that “
I thought that it was not a rule that you could apply
and it wasn’t a rule that was being applied
”. (T316).
Ms
Walkington confirmed that she was not paid overtime from the date of
commencement of her employment with
the CSA
to the date that rule
12(l)(vi) was inserted. (T148). She also agreed that there was no change to
the terms and conditions of her
employment as a consequence of the insertion of
rule 12(l)(vi). (T148). The reason for this, she explained, was that her terms
and conditions were already similar to the public service. Ms Walkington did
not accept however that her terms and conditions of
employment were identical to
the public service. (T148).
Ms
Walkington said that in her experience
the CSA
has only paid overtime to
employees in extraordinary and unusual circumstances. (T148). Ms Walkington
agreed that at the time when
rule 12(l)(vi) was inserted in 1992, public
servants or public service officers had an entitlement to overtime. Ms
Walkington could
not say, from her consideration of the matter, when
the
CSA
commenced its practice of not generally paying for overtime.
(T201).
Ms
Walkington was shown a copy of the letter of appointment of Ms van den Herik,
which became exhibit 13. As stated earlier, the
letter from the then
general secretary to Ms van den Herik dated 18 January 1991
and said her appointment was as an industrial officer
at level 4.2. The letter
said the appointment was subject to a three month probationary period after
which she would be available
for permanency and a membership of the staff
superannuation scheme. The letter said that other conditions of service are
similar
to those applying within the public service. The letter said there was
also the option of the working of a nine day fortnight.
The letter also said a
copy of the position data form and a sheet briefly outlining conditions of
service was attached. Ms Walkington
said that at this time the salary
structure and salary points for CSA employees were identical to those which
applied to public servants.
(T306).
Ms
Walkington said the council did not consider whether it was possible to appoint
the applicant subject to the same conditions and
restrictions as a public
service officer because council did not consider individual appointments in that
context. (T232).
Ms
Walkington was also cross-examined about the reason she had given for the
CSA’s entering into of the EBA with their employees
in 1998. In her
statement Ms Walkington said in effect that because of the difficulty with
complying with rule 12(l)(vi) and the
belief of council that it was acting in
accordance with rule 12(m) to do so, it engaged in a process to define the terms
and conditions
of employment of CSA staff. To do this
the CSA
commenced
enterprise bargaining negotiations with its staff in or about 1998. Ms
Walkington then said that EBAs were reached between
the CSA
and its
employees in 1998 and 1999 and that each EBA was endorsed by council.
At
T347 Ms Walkington was shown a copy of the minutes of
the CSA
council
meeting on 25 November 1998 which was annexed to her statement in
application 1215 which is exhibit 10 in the present proceedings.
In item
8.1, a copy of a draft EBA was referred to. The minutes recorded the parties
recognised that because of the financial situation
of
the CSA
it was not
able to fund a wage increase. The minutes recorded that therefore the existing
wage rates would continue to apply. The
minutes then said that as a result the
parties looked at conditions of employment and listed items which were agreed
upon. There
was no reference to overtime but there was reference to long
service leave after 5 years’ pro rata and extra days being taken
off at
Christmas/New Year which were referred to in Ms Walkington’s evidence
mentioned earlier. The council minutes recorded
that the staff EBA was adopted.
The
applicant’s counsel also took Ms Walkington to appendices from the WAIG
which recorded the membership numbers of
the CSA
from 1985 to 1999 which
as Ms Walkington agreed showed a “
fairly dramatic drop in membership
levels at around that time
”. (T348). Ms Walkington agreed that
this tallied with the financial situation of
the CSA
as referred to in
the minutes. Ms Walkington also agreed that there was no record in the minutes
about the impracticalities of structuring
terms and conditions of CSA employees
on the same basis as public service employees. It was later put to Ms
Walkington that what
was contained in the minutes was the real reason for the
entering into of the enterprise bargaining agreements. Ms Walkington said
that there were a “
number of factors
”. Ms Walkington denied
that her witness statement was misleading because it mentioned one of the
relevant “
factors
”. Ms Walkington maintained there was
a difference between why terms and conditions were codified as opposed to why
the lack
of a pay increase was agreed. (T359).
Mr
Ellis when cross-examined was asked about whether there was an interpretation by
the CSA
council of the meaning of rule 12(l)(vi). Mr Ellis said
the CSA
council had not directly interpreted the rule but it had
indirectly. As to whether there was a formal decision of
the CSA
council
interpreting what rule 12(l)(vi) meant Mr Ellis said it was a point of
conjecture because the council endorsed a number of
enterprise bargaining
agreements, which indicate they felt that was an appropriate way to demonstrate
they were improving the conditions
for their employees. This commenced with the
1998 EBA. (T74/75).
Later
Mr Ellis said that every time the council passed an EBA in his view it indicated
the council were exercising their powers under
rule 12(m). Mr Ellis was taken
to the terms of rule 12(m) and when asked whether the council made a
decision that rule 12(l)(vi)
was doubtful Mr Ellis said they may not have
so stated but by passing EBAs they were of the view that those were the
conditions and
“
we were exercising our appropriate
responsibilities
”. Mr Ellis said that although he could not
speak for the rest of the council this was how he viewed it. Mr Ellis agreed
therefore
that there was no formal decision of council declaring or deciding
rule 12(l)(vi) was doubtful. (T100). Mr Ellis also said he was
not aware
of any legal opinion the council received about the meaning and interpretation
of rules 12(l)(vi) and 12(m) prior to the
filing of the present
application. (T100/101).
At
T94 Mr Ellis reiterated that there were so many instruments around since
September 1999 that rule 12(l)(vi) could not be complied
with because there
was no “
base standard to refer to
”.
Mr
Cusack when cross-examined was referred to paragraph [17] of the outline of
submissions of
the CSA
in application 1215 where it said that the
intent of the rule 12(l)(vi) was to “
provide for broad conditions
of employment similar to and on a whole not less than its members employed in
the public sector
”. Mr Cusack said he was not aware of any decision
or interpretation by council to that effect. (T117). As to the basis upon
which he included paragraph [17] in the outline of submissions he said that he
discussed the matter with CSA branch officials. Mr
Cusack said he did this
given he had only been an employee of
the CSA
since 2000. He also knew
the recent history of the enterprise bargaining agreements, agency specific
agreements, the fact that there
were improvements in conditions over a number of
years and also his knowledge of
the CSA
unregistered EBA which provided
conditions of employment superior to those in the public service general
agreement or other industrial
instruments applying to people employed under
the PSMA
. He also had discussions with Ms Walkington about the
history of the rule. (T117).
In
her evidence, Ms Robertson mentioned the payment of overtime to
Ms Burlinson and said the executive officer engaged prior to the
applicant
had taken time off in lieu of overtime payments for the hours that she had
worked.
Ms
Walkington responded to the evidence of Ms Robertson about the payment of
overtime to Ms Burlinson. Ms Walkington said that payments
of
overtime were made to Ms Burlinson only in unusual or exceptional
circumstances.
Ms Walkington
then confirmed that a commuted overtime allowance had been paid to some
employees of
the CSA
but not to the applicant. (T318). Further, the use
of a commuted overtime allowance did not occur prior to the codification of
overtime provisions for CSA employees in May 2000. (T318).
Ms
Walkington agreed with the proposition that
the PSA 1992
does not contain
a commuted overtime allowance. (T319). (The proposition which was put was not
strictly accurate in light of clause
18(2)(d) of
the PSA 1992
). In
relation to paying overtime in the exceptional circumstances when it was paid to
CSA employees, such as Ms Burlinson, Ms Walkington
said this was not
necessarily done with reference to
the PSA 1992
but was negotiated at the
time. (T319). Ms Walkington said she did not think she could point to any
occasion where
the CSA
paid overtime in accordance with
the PSA
1992
. (T319/320).
The
applicant also tendered an email from Ms Brewer to the applicant dated 6 April
2004. This was just prior to the time the applicant
made his
“
formal
” claim for overtime payments. The email relevantly
said, “
Overtime clause herewith. You have the choice of seeking
payment for overtime or time off in lieu Clause 2(a) and (b)
”. The
terms of clause 18 of
the PSA 1992
were then included in the email.
There was also an earlier email from the applicant to Ms Brewer of the same
date which said “
need to see you as soon as
”. I mention now
that contrary to the closing submissions of the applicant’s counsel I do
not think these documents are
telling in any way – they do not throw any
light on the meaning of rule 12(l)(vi), or whether it could or was complied
with.
Breach
of Rule 12(l)(vi) – General Factual Findings
The
general factual findings that I make relevant to this alleged breach of the
rules are as follows:-
(a) The applicant commenced his employment
with
the CSA
as the executive officer on 20 September 1999.
(b) The applicant’s contract of employment did not include a condition
that he be paid for overtime. I find this because of
the lack of mention of
overtime in the letter of appointment and what Ms Brewer told the applicant at
or after his induction about
the non payment of overtime, which the applicant
must be taken to have agreed to by his conduct in commencing or continuing with
his employment on that basis.
The CSA
submitted, in its additional
written submissions, for the first time that there was issue estoppel about this
point arising from
the decision in application 1215. I do not need to
decide this as I am satisfied on the evidence that no such condition of
employment
existed.
(c) In my opinion it is not determinative to this alleged rule breach whether
or not the applicant was told at his interview he was
to have the car parking
bay in lieu of overtime. There was little emphasis on this point in the
hearing. The issue does not resolve
the question of the meaning of and
compliance with rule 12(l)(vi) and the consequences of any non compliance.
(d) The applicant made a claim for payment for overtime to
the CSA
on
or about 15 April 2004.
(e) There were discussions and correspondence about this claim involving the
applicant, Ms Walkington and Ms van den Herik. The claim
was not resolved and
consequently application 1215 was commenced on 16 September 2004.
(f) It is unnecessary in the determination of the present application to
decide whether the agreement by Ms Walkington to pay the
applicant overtime from
19 April 2004 was or was not without prejudice. This has no bearing upon
whether the rule in question was
breached.
(g) The applicant regularly worked outside ordinary hours to record minutes
for meetings. He was not paid overtime for this.
(h) The amount which the applicant sought to be paid for overtime, based on
the formulae set out in
the PSA 1992
, was calculated by him to be
$9,850.29.
(i) The Walkington memorandum was prepared in response to the decision in
application 1215. In the Walkington memorandum Ms Walkington
genuinely attempted to set out her opinion of the facts and issues for the
benefit of
the CSA
council. If the contents of that memorandum are in
conflict with any aspects of the evidence of Ms Walkington the contents of
the
memorandum are to be preferred given its purpose and the fact that
Ms Walkington said she checked the facts contained in the memorandum
before
preparing it.
(j) At least Ms Walkington and Mr Ellis, as officers of
the CSA
, were
aware that there was difficulty in complying with the letter of rule 12(l)(vi).
They therefore felt that the council was justified
in not doing so. This did
not occur however by way of the process set out in rule 12(m). There was
no resolution by council that
rule 12(m) applied to rule 12(l)(vi)
which therefore justified the council in acting contrary to the terms of
rule 12(l)(vi). The
suggestion that rule 12(m) was invoked was an ex post
facto rationalisation to explain the terms and conditions of employment of
CSA
employees not being in accordance with rule 12(l)(vi). I accept the
applicant’s submission that the interpretation of
the rule was not
doubtful, but its application was.
(k) The commencement of enterprise bargaining agreements between
the
CSA
and its employees did not therefore directly arise out of any decision
by council that rule 12(m) applied to rule 12(l)(vi) and that
therefore it was appropriate to engage in enterprise bargaining agreements with
CSA staff.
(l) Unregistered enterprise bargaining agreements were reached between
the
CSA
council and
the CSA
and Australian Services Union on behalf of
the CSA
staff in 1998 and 1999.
The CSA
council endorsed each EBA
but they did not mention overtime.
(m) During the period of employment of the applicant by
the CSA
,
the CSA
did not generally pay overtime to employees. It only did so in
extraordinary or unusual circumstances. This practice had applied
from a time
earlier than the employment of the applicant, based on the evidence of Ms
Walkington and Ms van den Herik.
(n) There was codification of an overtime provision for CSA employees in May
2000 by a document which was incorporated into the 1999
EBA. In this document
it said that in accordance with current practice
the CSA
did not
generally pay overtime or approve time off in lieu of payment of overtime except
in extraordinary or unusual circumstances.
EBAs in 2003 and 2006 have also been
endorsed by the council, but there was no evidence that they changed the
codification of overtime/time
off in lieu.
I
should also comment upon the implicit and at times explicit criticism by the
applicant of the credibility of the evidence given
by Ms Walkington and Mr
Ellis. In my opinion both of these witnesses gave evidence in a cautious if not
cagey fashion. They were
careful to limit their answers to the specific
questions asked and almost always wanted to look at documents which were
referred
to in questions, before answering. This of course does not of itself
indicate any lack of desire to give genuine testimony, but
in my opinion was
symptomatic of their careful method in giving evidence. It may be that their
style of giving evidence was the
product of many and varied industrial tussles
and court battles and so I should not be overly critical of it. Ms Walkington
in particular
was very measured in the framing of her answers to questions so as
to generally give them in a way which was consistent with the
case being
presented on behalf of
the CSA
. There were times when I thought that
this involved some moulding of what happened or her opinions to enable the
presentation of
a position which now best suited the purposes of
the CSA
.
I do not think however that the evidence of either Ms Walkington or Mr Ellis was
generally misleading or deliberately unhelpful
to the resolution of the issues
before me. Indeed, in relation to the history of employment of public sector
employees and the employment
of CSA employees I found Ms Walkington’s
evidence to be particularly useful.
There
was no general criticism of the credibility of the other witnesses who gave
evidence for either party and in my opinion they
did their best to answer
questions honestly so as to assist in the determination of the application.
Was
the Applicant Appointed In Accordance with Rule 12(l)(vi)
To
consider whether this occurred involves looking at what happened in September
1999, nearly eight years ago. As I will later set
out, it seems quite contrary
to the purpose of s66 to see if there was a breach of rules so long ago.
In
my opinion, the applicant has established that he was not so appointed. I have
earlier quoted from the applicant’s letter
of appointment. This makes no
reference to the appointment being subject to the same conditions and
restrictions as a public service
officer. There is a reference to the
“
CSA Conditions of Service
”, but the evidence is that despite
the best efforts of the applicant and his counsel, there is no record of any
document existing
which sets these conditions out. This evidence includes not
only that of the applicant himself but also the evidence of Ms Walkington
and Ms van den Herik about their own appointment as employees of
the
CSA
. It may be that the phrase was intended to mean the 1998 EBA, but this
is not at all apparent. Alternatively it may have been a
collective reference
to the range of documents, resolutions and decisions of council as mentioned in
the 1999 EBA. Although the
reference to “
levels
” within the
applicant’s letter of appointment is suggestive of a pay alignment with a
public service officer this is
not the same thing as an appointment subject to
the same “
conditions and restrictions
” as such an officer.
The expression “
conditions and restrictions
” is broader than
simply involving a level and salary alignment.
Operability
of Rule 12(l)(vi) in September 1999
The
more pertinent question though is whether the rule was capable of practical
operation by the time of the applicant’s appointment.
In
September 1999 the conditions and restrictions of an officer appointed under
the PSMA
were those set out in:
(a)
The PSMA
.
(b)
The PSA 1992
.
(c) Any variation from
the PSA 1992
legally effected by:-
(i) an individual workplace agreement
(ii) a collective workplace agreement
(iii) a registered industrial agreement.
The
conditions of a public service officer included the duties to comply with
standards established by the public service commissioner
and the benefit and
burden of the disciplinary and appeal processes of
the PSMA
.
These
could not apply to employees of
the CSA
.
Additionally
there are aspects of
the PSA 1992
which are not readily transferable to
employees of
the CSA
. For example, clause 18(2)(d) contained the
prospect of a commuted overtime allowance or time off in lieu to be negotiated
between
the CSA
and the “
Chief Executive Officer
”.
This could not sensibly operate with respect to the employees of
the
CSA
.
In
addition to these problems the rule assumes there is an identifiable set of
conditions and restrictions of a public service officer.
By 1999 there was
nothing which met this description.
As
set out earlier the position of
the CSA
was that at least by the time of
the appointment of the applicant in September 1999 it was impossible in practice
to comply with
the second paragraph of rule 12(l)(vi). This was because there
was nothing which could be identified that met the description contained
in the
rules. It was this aspect of the application which involved by far the greater
amount of the hearing time, via the cross-examination
of
Ms Walkington.
I
have earlier set out the application of the
Workplace Agreements Act
to
public sector officers so that such officers could enter into an agreement with
their notional employer which varied from and
took priority over
the PSA
1992
. There were also agency specific collective agreements which were
registered with the Commission under s41 of
the Act
and had the same
effect. There was evidence from Ms Walkington about the proliferation of
collective agency specific and individual
agreements under which the employment
conditions of public service officers were set. The evidence was there was no
commonality
of conditions, including about overtime.
The
DRD agreement
for example provided that a subset of employees employed under
the PSMA
had “
conditions and restrictions
” of service
which were different from the remaining set of employees and
the PSA
1992
. There was therefore no one set of generic “
conditions and
restrictions
” of an officer appointed under
the PSMA
so as to
make rule 12(l)(vi) capable of ready application. If there was, or was no
longer, a generic set of “
conditions and restrictions
” held
by officers appointed under
the PSMA
, which conditions and restrictions
applied to a public sector officer, to make rule 12(l)(vi) workable?
The
applicant pointed out that in for example,
the DRD agreement
there was an
allowance for overtime and so there was no variation from a standard public
service officer condition about an entitlement
to the payment of overtime. In
my opinion however, this submission does not solve the problem of practical
compliance with the rule.
As
stated in my opinion the rule meant that employees of
the CSA
“
shall
” be appointed subject to the “
same conditions
and restrictions as a public service officer
”. For the rule to be
workable it had to be possible to identify what the conditions and restrictions
of a public service officer
were, not just one of them.
In
closing the applicant contended that:-
(a) As the rule has been
amended to delete the second paragraph the interpretation of it is
“
largely academic
”. I am not sure how this submission might
assist the applicant who has by this application attempted to make the
interpretation
other than academic.
(b) The case is only about one condition, being overtime. It is therefore
unnecessary to consider what other conditions
the CSA
should or should
not have applied. I have already referred to this. As stated I do not accept
this based on the construction of
the rule.
(c)
The CSA
asserted that rule 12(m) was used informally to
interpret rule 12(l)(vi) or regulate its own procedure by the creation of
alternative
employment conditions, commencing with the EBA on 25 November
1998, as the rule was incapable of being complied with. The applicant
submitted
in response:-
(i) If it was impossible to comply with the rule in 1998 it was also
impossible to comply with it when it was inserted because in
1990 fisheries and
wildlife officers had commuted overtime allowances. If that is so however it
does not assist the applicant.
It merely supports the view that
rule 12(l)(vi) may always have been incapable of being complied with.
(ii) The applicant asserted that if (i) is so, it makes fallacious the
explanation of
the CSA
that the rule was not complied with because of the
proliferation of industrial arrangements covering the employment of public
service
officers between about 1996 and 2001. However, even if the explanation
is proved to be fallacious, this does not mean the rule could
have been complied
with. Also the proliferation of industrial arrangements may simply have made
more apparent the difficulty presented
by compliance with the rule.
(iii) Any differences between salaries and conditions for officers in the
public service largely if not entirely disappeared on 22
March 2002 by the
commencement of the
Public Service General Agreement 2002
. Again, if
this is so it has nothing to do with the question of the applicant’s
appointment in September 1999. This argument
of the applicant seems to
encompass the prospect that
the CSA
would be in breach of the rule even
if it was incapable of application at the commencement of an appointment but was
so later. I
do not accept this. The obligation sought to be created by
rule 12(l)(vi) did not drift along to cling to a contract of employment
if
and when the rule was capable of being complied with and then bind
the
CSA
to change or alter the conditions of employment of its employees or face
the consequence that the rule was breached.
(iv) The explanation for non-compliance with the rule has changed between
application 1215 and the present. In the former in paragraph
[17] of
the CSA’s
outline of submissions it was contended that the intent
of the rule was to provide broad conditions of employment similar to and
on the
whole not less than those employed in the public sector. Paragraphs [19]-[22]
of the outline of submissions in application
1215 were (with the reference
to the “
Award
” being to
the PSA 1992
):-
“
19. The rules of the CSA is not an industrial instrument. The
rules apply to the union and its members, not employees.
If
the Commission holds that the rules require the Respondent to provide employment
conditions identical to those persons employed
pursuant to the PSM Act, then the
fact remains the CSA has not done that.
In
that case there may have been a breach of the Rules of the CSA, and we say that
there hasn’t, but it is not within the jurisdiction
of the Commission (as
it is currently constituted) to determine this.
If
an application had been made to the Commission pursuant to
s.66
of the
Industrial Relations Act 1979
(IR Act), then His Honour, the President would
have jurisdiction to deal with that matter. In any event, that would not change
the
situation that the conditions of employment of Mr Stacey do not include
those of the Award.
”
(v)
The CSA
did not contend in application 1215 that there
needed to be “
identical
” terms for the rule to be complied
with.
The CSA
also contended in application 1215 that if there was
an entitlement to overtime it was traded for the car parking bay.
In
reliance on the Walkington memorandum
the CSA
now asserted the
requirement was to “
mirror
” public service officer conditions
and this could not be achieved. Also, it was asserted in this application, in
closing at
least but not previously, that the entering into of the EBAs,
commencing in 1998 encompassed the spirit of rule 12(l)(vi) as public
service officers at that time had the entitlement to engage in enterprise
bargaining. In my opinion however these differing explanations
do not mean that
the rule could have been complied with from September 1999 to
March 2006 (when the applicant resigned from
the CSA
)
or was
breached. In an application of this type it is for the Commission to interpret
the meaning of the rules.
The CSA’s
prior position on the meaning
of the rule is of not much, if any, assistance to this process. I have already
made a finding that
the suggested reliance on rule 12(m) to justify
the
CSA’s
actions was an ex post facto rationalisation. This does not
however determine whether the rule was or was not complied with.
(d) The fact that Ms Walkington agreed, even on a without prejudice
basis, to pay the applicant overtime meant it was possible to
do so. Again this
might be so, as an agreement could and apparently was reached on what overtime
could be paid; but this is not
the issue. The application rests on an asserted
breach of a particular rule, not whether a calculation and payment for overtime
could occur in a practical sense.
There
are other difficulties in applying the rule. One is what would happen if there
was a change in the conditions and restrictions
of a public service officer. To
comply with the rule, would this change then apply to existing employees,
whether or not they consented
to a variation of their contract?
Also,
if the applicant’s argument is accepted, what would the position be where
the conditions of employment of CSA employees
were more beneficial than those of
the PSA 1992
. Examples of long service leave and stand down during the
Christmas/New Year period were given in the evidence. Does this mean
that these
conditions should, because of rule 12(l)(vi) been removed from
the
CSA
employee’s conditions of employment? The applicant submitted it
did not because public service officers could be employed
on more beneficial
conditions than
the PSA 1992
. Whilst this may be so, the issue again
illustrates there are difficulties and complexities in the application of the
rule in the
way contended for. All of the above leads to the conclusion that as
said by the respondent’s counsel in closing, the rule
was probably
misconceived from the start. This echoed Ms Walkington’s
evidence.
Consequences
of Breach of Rule 12(l)(vi)
The
applicant’s case also assumes that a consequence of the breach of
rule 12(l)(vi) contended for is that he has suffered a
loss by the non
payment of overtime and that he may be compensated for this by an order under
s66 of
the Act
.
Whether
there was a loss caused by the non payment of overtime may depend on whether the
provision of the parking bay was agreed to
be in lieu of any entitlement to
overtime. There is no need to further consider that issue however to determine
this application.
What
is more problematic is the effect of any breach of rule 12(l)(vi). If
rule 12(l)(vi) was capable of being but not complied with,
this might
effect the validity of the appointment of an employee. This is because the rule
contains a condition on the power to
appoint employees. It is not apparent
however that any breach, even if it caused loss to the applicant, was remediable
by an order
under s66. The decision in application 1215 was that the
contents of rule 12(l)(vi) were not imported into the contract of
employment
of the applicant and the applicant eschewed the suggestion that he
was attempting to re-run that case.
The
question then is whether there is jurisdiction under s66 to make the order
sought. It was not suggested that there was any tortious
or other cause of
action known to the law which gave a person in the position of the applicant an
entitlement to a compensatory order
to remedy a breach of an
organisations’ rules, which could be the subject of an order under
s66.
In
my opinion, as set out in the next section of these reasons, the jurisdiction
under s66 does not extend to making a compensatory
order of the type sought by
the applicant.
Compensatory
Orders Under Section 66 to Remedy a Breach of Rule 12(l)(vi)
The
primary remedy which the applicant sought for the alleged breach of rule
12(l)(vi) was a payment to him for the overtime which
he calculated he would
have earned if it was paid to him in accordance with
the PSA 1992
.
In
my opinion however, even if the applicant had established
that:-
(a) To comply with its rules
the CSA
was obliged to
appoint him upon conditions which included an entitlement to be paid overtime;
and
(b)
The CSA
had failed to pay him for overtime worked throughout his
employment from 1999 to 2006, then the applicant would still not be entitled
to
an order under s66(2) that
the CSA
now pay him the amount that it should
have done as a consequence of being appointed in accordance with the rules.
This
is because I do not think the powers of the President under s66 of
the
Act
extend to the making of orders of the type sought. That is, s66 does
not provide for the President to make an order almost akin
to an award of
damages or a compensatory order for a breach of a rule of the type relied on in
this application. Accordingly, the
applicant cannot in any event succeed in
obtaining the final orders he seeks for this alleged breach.
It
is regrettable that there has been a five day hearing leading to such an
outcome. I point out however that:-
(a) At all times the applicant
has been represented by solicitors of some experience.
(b) There was no interlocutory application made by
the CSA
for the
dismissal or striking out of all or part of the substantive application.
(c) At the first directions hearing on 22 June 2006 I said to the
applicant’s counsel:-
“
[W]hen I read through the application I did have some concerns as
to whether the type of orders that you sought would fall within
the
President’s jurisdiction and the type of orders which are envisaged by
section 66 of the Act, but I do no more than mention
that at this stage as a
matter that you’ll no doubt need to consider, or have considered and will
need to consider as the matter
progresses
.” (T13).
The
opinion expressed in the previous but one paragraph is based upon my
understanding of the purpose and limits of the jurisdiction
and powers of the
President under s66(2) of
the Act
.
To
understand why I have come to this conclusion it is necessary to refer to the
relevant sections of
the Act
and authorities in some detail.
Section
66 - The Nature of the Jurisdiction and the Powers of the
President
(a) Background
In
my respectful opinion, the drafting of s66 of
the Act
does not clearly
lead to an understanding of the nature and extent of the President’s
jurisdiction or powers. There is also
nothing in the second reading speech when
s66 was enacted which provides any insight into the intentions of the
legislature. A little
of the history of the section when enacted as part of the
then named
Industrial Arbitration Act 1979
(WA) is contained in
Elliott and Another v The West Australian Cleaners, Caretakers, Lift
Attendants, Window Cleaners, Attendants and Watchmen’s
Industrial Union of
Workers, Perth and Others
(1980) 60 WAIG 1487
at pages 1487 and
1493.
Although
I have not thoroughly researched the matter it seems there was a link between
s66 and a similar albeit not identical federal
counterpart in s141(1G) of the
Conciliation and Arbitration Act 1904
(Cth) (“
the C and A
Act
”). The history of that section, when transformed into
s209
of the
Industrial Relations Act 1988
(Cth) was described by (the then)
Mr Tracey in the now superseded Federal Industrial Law Service,
Butterworths, paragraphs [s209.5]
ff.
(b) The Terms of the Section
Section
66(1)
is clear enough in that it sets out those parties who may make an
application under the section and that the purpose of the application
is
“
for an order or direction under this section
”. There is a
link between
s66(1)
and (2) in that
s66(2)
sets out the orders which the
President may make on an application pursuant to the section.
The
general power provided by
s66(2)
is to make orders or give directions
“
relating to the rules of the organisation, their observance or
non-observance or the manner of their observance
”.
Section 66(2)(a)
-(f) provide examples of orders or directions which may be
made by the President. That they are only examples and do not cover the
field
is apparent from the preceding expression “
without limiting the
generality of the foregoing ...
”.
Section 66(2)
is therefore drafted
in very wide terms.
(c) “
Relating to
”
The
authorities confirm that this a very broad expression. Pullin J in
Jones v Civil Service Association Inc
[2003] WASCA 321
;
(2003) 84 WAIG 4
at
[16]
referred to the opening words of
s66(2)
providing a “
general conferral
of power
”. At paragraph [19] his Honour
said:-
“
19 The opening words to
s 66
(2),
which contain the general power in this case, make it clear that orders can be
made "relating to the rules of the organisation,
their observance or
non-observance or the manner of their observance ... as [the President]
considers to be appropriate ...". The
words "relating to" are words of the
widest import and should not, in the absence of compelling reasons for the
contrary, be read
down: Perlman v Perlman
[1984] HCA 4
;
(1984)
155 CLR
474
at 489. The orders made by the President in this case relate to the
non-observance of the rules of the respondent.
”
The
citation of
Perlman v Perlman
[1984] HCA 4
;
(1984) 155 CLR 474
by Pullin J
was to the reasons of Gibbs CJ about the expression “
in relation
to
”. As is implicit from the reasons of Pullin J just quoted,
there is no material distinction between this phrase and “
relating
to
”.
(d) “
Without Limiting the Generality of the
Foregoing
”
As
stated above the use of this expression prior to
s66(2)(a)
-(f) means that they
are only examples of the orders or directions which may be made by the
President.
The
IAC in
Harken v Dornan and Others
(1992) 72 WAIG 1727
decided
however that
s66(2)(e)
and (f) contained all of the President’s
jurisdiction and powers to make orders or directions about election
irregularities.
Rowland J (with whom Franklyn and Ipp JJ agreed) said
that although there are cases where the grant of particular powers will not
fetter the ambit of a general power this is not always the case and in the end
it was a matter of construing the particular power
in the context of the
legislative scheme. His Honour referred to and quoted from the reasons in
Leon Fink Holdings Pty Ltd v Australian Film Commission
(1979)
141 CLR 672
and
(1979) 24 ALR 513
,
Cooma-Monaro Shire Council v
Mannering
(1986-1987) 7 NSWLR 258
at 262 and
Anthony Hordern and
Sons v Amalgamated Clothing and Allied Trades Union of Australia
[1932] HCA 9
;
(1932)
47 CLR 1
at 7.
In
Leon Fink Holdings
Mason J at page 678 (ALR 518) said that
where a legislative provision contains “
one power in general terms
followed by specific powers
”, the latter “
may be no more than
particular expressions or exemplifications of what may be done in the exercise
of the general power
”. His Honour said the “
critical
question is whether there is any implied restriction upon the general power to
be derived from the presence of
” the specific power. Mason J at
page 679 (ALR 519) decided that in the statute in question the expression
evinced an intention
that the general power was not to be restricted by
reference to the more specific power which followed. His Honour said at
page
679 (ALR 519) that he did not “
wish to be taken as suggesting
that a clause of this kind will always be effective to prevent the making of a
restrictive implication
derived from the presence of a specific power which is
expressed to be subject to limitations, qualifications, restrictions or
conditions.
In every case it will depend on the precise character of the
relevant provisions and on the context in which they are found
”.
Aickin
J to similar effect at page 679 (ALR 519) said “
without limiting
the generality of the foregoing
”, at “
first sight it would
appear to indicate a parliamentary intention that the general words which
precede the expression should be construed
as if the more particular words which
follow were not there. That, however, is too wide a proposition for in every
case it must
depend on the whole of the context. In some cases the particular
words which follow may be such as necessarily to indicate an intention
to
restrict the operation of the preceding general words. In each case it will be
a matter requiring examination of the actual words
used, both general and
particular, as well as the context as a whole
”.
In
Cooma-Monara Shire Council
, McHugh JA at page 262 quoted from
the reasons of Mason J in
Leon Fink Holdings
and said the
“
object of inserting particular powers or purposes after a general
power is to ensure that the general power covers the particulars
... This class
of case is to be contrasted with the case of general words following a series of
specific instances where the ejusdem
generis rule often arises
”.
The
like effect, Gowans J in
Byrne v Garrisson
[1965] VicRp 70
;
[1965] VR 523
at 526 said
that the expression indicated that what followed were “
particular
illustrations
”
but were
“
not to be taken as the
only instances of
”
the operation of the section and are
“
therefore, not to be taken as limiting its ambit
”. His
Honour cited
Ex parte Provera; Re Wilkinson
(1952) 69 WN (NSW) 242
at 245 in support of this proposition.
Re Provera
examined the
expression in the context of a regulation making power in a statute.
In
Jones v CSA
, Pullin J at paragraphs [17] and [18] quoted from
the reasons of Mason J in
Leon Fink Holdings
and said his
Honour’s observation about the general power being given a construction in
accordance with the width of the language
applied to
s66(2).
(e) Limits to the Powers
Despite
what I have referred to in (b)-(d) above it seems to me that the powers of the
President do not extend to the making of all
of the orders which literally fit
within the expressions used. For example, applied literally
s66(2)
could
include a power for the President to make an order that an official who breached
a rule of an organisation pay to the organisation
a very large amount of money,
as “
compensation
”. This order would fit the description of
being an order “
relating to the rules of the organisation
”
and their “
non-observance
”, but in my opinion the President
would not have jurisdiction to make such an order. The limits to the
s66
jurisdiction and powers have not been precisely delineated by the IAC. For
example Nicholson J with whom Rowland and Anderson JJ
agreed, in
Carter and Others v Drake and Others
(1993) 73 WAIG 3308
although
allowing the appeal said that he would “
leave to another occasion
consideration of the extent of authority provided to the President by
s66
” (page 3311). Regrettably, a comprehensive consideration of
the “
extent of authority
” has not from my research been
undertaken by the IAC. In saying this I am not being critical of the IAC as it
can only decide
the appeals and issues which come before it.
(f) Statutory Context
In
my opinion the nature and limits of the powers contained in
s66
must be
understood from considering the text and context of the section within
the
Act
as a whole. The lynchpin of the section is the “
rules of the
organisation
”. Section 7 of
the Act
states that an
“
organisation
means an organisation that is registered under
Division 4 of Part II
”. Division 4 of Part II of
the Act
is headed “
Industrial organisations and
associations
” and comprises ss52-73 (Division 4). An important
aspect in considering the operation of Division 4 is the objects of
the
Act
. The principal objects are set out in s6. Relevantly they
include:-
“
6. Objects
The principal objects of this Act are —
...
(ab) to promote the principles of freedom of association and the right to
organise;
...
(ad) to promote collective bargaining and to establish the primacy of
collective agreements over individual agreements;
...
(ag) to encourage employers, employees and organisations to reach
agreements appropriate to the needs of enterprises within industry
and the
employees in those enterprises;
...
(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;
(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; and
...
”
The
object contained in s6(1)(e) is in particular fulfilled by Division 4.
Also
the Act
as a whole provides a pivotal role for organisations in the
representation of their members in industrial matters, (including collective
bargaining to establish conditions of employment) and within the conciliatory,
arbitral and judicial functions of the Commission.
By
Division 4 the legislature has given the Commission a regulatory role in the
formation, operation and conduct of organisations.
The effect is that an
independent body has significant control over organisations by the exercise of
the powers provided by the
legislature.
The
following table sets out the scope of Division 4 apart from s66:-
Sections
Subject Matter
53-59
Registration of organisations
60, 61 and 63
Effects of registration and the duties and functions of a registered
organisation
62, 64 and 64A
Alteration of the rules and membership of an organisation
69 and 70
Conduct of elections for offices
71 and 71A
Interaction between state organisations and federal counterparts
72, 72A and 72B
Coverage of organisations
73
Cancellation and suspension of registration
This
is this context within which s66 operates. As stated the lynchpin of the
section is the “
rules of the organisation
”.
In
my opinion it is clear from the context of the location of s66 within Division 4
that this expression means the rules of the organisation
as contained in a
document which is registered with the Commission.
Under
s55(1) of
the Act
an organisation seeking registration under ss53 or 54
must lodge in the office of the Registrar amongst other things “
3
copies of the rules of the organisation
”. The expression
“
rules of the organisation
” or similar is used in other
sections of
the Act
providing for the registration of an organisation
such as s55(2)(b), (4)(a), (b)(ii), (d) and (e); s56(1) and (2); s56A(2) and
(5);
s57(3) and s58(3). Pursuant to s58(1)(b) where the Registrar is authorised
by the Full Bench to register an organisation, he does
so by registering its
rules amongst other things.
The Act
also provides for the alteration of
registered rules in s62 and s71. The alteration as stated in s62(2) is to the
“
rules of an organisation
”.
To
summarize therefore in my opinion the reference to the “
rules of the
organisation
” in s66 is a reference to the rules as documented, lodged
with the Commission and registered by the Registrar. It does not
include any
implied rules. I will refer to this again later in my reasons.
(g) The Extent of the Jurisdiction
I
have already referred to the key role for the Commission in the establishment
and ongoing operation of a registered organisation,
by reference to its rules.
This is reinforced by s61 of
the Act
, quoted earlier. Section 66
contains one part of this role of the Commission.
Section
66(2)(a), (b), (c) and (ca) are about the disallowance or alteration of rules
which do not meet the standards set out in s66(2)(a).
Section 66(2)(d) allows
those parties set out in s66(1) to obtain the interpretation and therefore
understand the meaning of a rule.
This would generally be for the purpose of
ensuring or checking if an organisation was acting in accordance with its rules.
It is
a similar power to s46 of
the Act
, with respect to awards. Section
66(2)(e) and (f) are about inquiries into election irregularities. As held by
the IAC in
Harken v Dornan and Others
(1992) 72 WAIG 1727
this is a
discrete aspect of the section and contains all of the President’s
jurisdiction and powers on the topic of election
irregularity. Similarly,
although not necessary to express any concluded view in this application,
s66(2)(a) would seem to set out
all of the bases upon which the President could
disallow a rule.
A
significant touchstone of the general power under s66(2) is the concept of the
“
observance
” of an organisation’s rules. This
demonstrates in my opinion that a key part of the s66 jurisdiction is, to put it
colloquially,
to keep an organisation “
on track
” –
running in accordance with its rules. This also suggests some contemporary
connection between a s66 application,
any conduct said to give rise to it, and
any orders or directions to be made. The parties named in s66(1) can via s66(2)
seek the
assistance of the President to disallow/alter prohibited rules, to
declare the interpretation of rules, inquire into election irregularities
and
make other orders to assist or require an organisation to observe its rules.
The text and context suggests that any corrective
orders are limited to those
which have some present connection with the activities of the organisation and
the observance of its
rules.
In
my opinion the purpose of s66 is not to correct long ago breaches which now have
no relevance to how an organisation is running.
Also, the ordering of
compensation or damages for old breaches of the rules is beyond the scope and
purpose of a s66(2) order.
In my opinion the applicant is attempting to squeeze
out of the words of the section remedies which are beyond what the legislature
intended as being the jurisdiction, purpose and operation of the section.
There
were no authorities cited to me or of which I am aware where an order has been
made for the payment of compensation for an old
breach of a rule. As submitted
by the applicant, I recognise that the decision of Sharkey P in
Wauhop v
Civil Service Association of Western Australia
(2003) 83 WAIG 951
is close
to this but I presently put that decision to one side. I will discuss it later,
in the context of the second and third
alleged breaches. It is sufficient at
this stage to say that with respect I think that on this issue it was wrongly
decided and
does not properly support a claim for the payment of
compensation.
(h) Orders Under Section 66(2) of
the Act
As
to the sort of orders that might generally be made under s66(2), O’Dea P
in
Park v Secretary, Western Australian Carpenters, Joiners, Bricklayers and
Stoneworkers Industrial Union of Workers
(1983) 63 WAIG 2230
at 2231 said
the s66 “
power
” was “
discretionary
” and
should only be used “
where it is necessary to ensure that some wrong is
avoided or necessary to ensure that someone who has a clear obligation to do
something
under the rules or by a previous Order of the Commission, does
it
”. Although the reference to a “
discretionary
”
power is too broad given the IAC decision of
Robertson v CSA
(2003)
83 WAIG 3938
;
[2003] WASCA 284
, mentioned later, in my opinion the balance
of this passage remains apposite.
It
was quoted and followed numerous times by Sharkey P, including in
Singh v
FMWU
(1993) 73 WAIG 2674
and
Farrell v SSTUWA
(1989) 70 WAIG 55
at
60.. In
Farrell
at page 59 and throughout his decisions (eg
Williams
v SDAEAWA
(2005) 85 WAIG 1963
at [48]) Sharkey P said the onus was on an
applicant to establish an alleged breach of the rules or the overturning of the
exercise
of power.
In
my opinion, feeding into the purpose of the s66(2) jurisdiction and powers, is
the observation made by Sharkey P in
Luby v Secretary, The Australian Nursing
Federation, Industrial Union of Workers, Perth
(2002) 82 WAIG 3226
at
[44]:-
“
44 There must be confidence amongst members of an
organisation that its government and administration will be carried out in
accordance
with the rules in order that the policy of the Act will be carried
out effectively ...
”
The
cases which have been decided by the IAC provide insight into the nature of the
jurisdiction and the type of orders which can
be made under s66(2) of
the
Act
. The following relevant principles can be distilled from the
authorities:-
(a) An order for the purposes of the section must
involve a command to someone to do something. (
CMEWUA v UFTIU
(1991) 71
WAIG 563)
(b) Section 66(2)(d) empowers the President to interpret a rule for the
purpose of deciding whether to make an order or direction
(
UFTIU
at page
569
)
. Further or alternatively in the case of controversy an interested
party may seek a declaration about the true interpretation of
a rule.
(
Robertson
at paragraph [54])
(c) The President may exercise jurisdiction under s66 where there has been an
improper exercise of powers, contrary to the rules.
(
Carter v Drake
(
1991) 72 WAIG 2501
at 2504)
(d) Sections 66(2)(e) and (f) contain the only powers which the President may
exercise under s66 in connection with election irregularities.
(
Harken v
Dornan and Others
(1992) 72 WAIG 1727)
(e) Declarations about the validity of meetings by an organisation are
outside the power of the President under s66 unless as a matter
of law the
meetings were invalid. (
Carter v Drake
(1993) 73 WAIG 3308
at 3311, and
see below). Therefore the President may declare invalid resolutions passed at
meetings where the meetings were conducted
in breach of the rules and the breach
had the legal effect of invalidity. (
WALEDFCU v Schmid
(1996) 76 WAIG
3380
at 3382)
(f) An order for the purpose of requiring an organisation to act in
accordance with its rules is within power. (
WALEDFCU v Schmid
(1996) 76
WAIG 639)
(g) If the grounds have been established for the making of an order under
s66, the President does not have a discretion to refuse
to make such an order.
(
Robertson
)
(h) The purpose of the power given in s66(2) is to ensure that the persons
identified in s66(1) have a means of enforcing the rules
of an organisation.
(
Robertson
)
(i) Due to s26(2) the President in considering what order to make under a s66
application is not restricted to the specific claim
made.
(
Robertson
)
(i)
Carter v Drake
(1993) 73 WAIG 3308
This
decision of the IAC is instructive in considering the boundaries of the s66(2)
jurisdiction. It was an appeal against orders
made in a s66 application.
Nicholson
J (with whom Rowland and Anderson JJ agreed) said the orders made included an
order that all meetings of the Committee of
Management conducted after
20 June 1991 were “
declared invalid and the proceedings therein
null and void
” (page 3310). This involved meetings on 5 dates
concluding on 5 November 2001. Mr Carter chaired these meetings but
he had
been invalidly appointed as Acting President. Nicholson J said the
issue was whether Sharkey P was correct in finding that because
the
meetings were chaired by Mr Carter all the resolutions passed were void.
Nicholson J decided that Sharkey P had erred in law
in so
concluding.
The
respondent then argued that even if that was the position under the general law,
it was not the position where the President was
acting pursuant to the powers
given under s66(2) of
the Act
(page 3311). Nicholson J pointed
out that neither party contended the orders of Sharkey P were supportable
by reference to any of
the subparagraphs of s66(2).
Nicholson
J referred to the reasons of Rowland J in
Harken v Dornan and Others
, and
said that read “
in this light the scope of the opening words is not
such as to allow the President to act under them so to act in the manner now
contended
for on behalf of the respondents. Furthermore, a plain reading of the
opening words of s66 do not leave any scope for the President
making
declarations of invalidity of the outcome of the meetings in issue here. Orders
in those terms do not relate to the rules
or their observance or non-observance
or the manner of their observance either generally or in the particular case.
In my opinion,
there is nothing in s66(2) which empowers the President to act as
he did in declaring the resolutions of the meetings null and void
”
(page 3311).
Nicholson
J then referred to an argument of the respondents that where there was a
systematic and widespread breach of the rules of
the union the President should
be able to put matters right by making orders pursuant to s66 of the Act. His
Honour in response
said it was “
sufficient to state that what the
President did in this matter cannot be supported by reference to s66
”
(page 3311). His Honour also said he was not led to any contrary view by
consideration of what was done in a number of authorities
under s141 of the
C
and A Act
. This was
in part because the section was differently cast
as it permitted orders in respect of “
an organisation
” rather
than “
the rules of the organisation
”.
Nicholson
J then referred to a number of authorities arising out of submissions made as to
the applicability of the rule in
Foss v Harbottle
[1843] EngR 478
;
(1843) 2 Hare 461
and said they supported a construction of s66(2) “
giving to the
President powers related only to the objects of the clause and not vesting in
him a wide and general power of unchartered
width
”:
His
Honour then considered other grounds of appeal which were allowed. One of these
lead to the amendment of an order made by Sharkey
P that certain acts and
things done by Mr Carter when purporting to occupy the position of Acting
President of the LTU were “
null and void
”. This was because
the appointment of Mr Carter was contrary to the rules. The terms of the
IAC’s order shows it thought
the powers of the President extended that
far.
(j)
WALEDFCU v Schmid (No 2)
(1996) 76 WAIG
3380
This
is another decision confirming the existence of a similar power. The IAC
(Kennedy J, Anderson and Scott JJ agreeing) dismissed
an appeal
against declarations made by Sharkey P, including that on three days in
July-September 1995 the union and General Committee
acted in breach of
rule 46 and three resolutions passed in those months providing for the
payment of accounts rendered by the union’s
solicitors were null and void.
The IAC dismissed the appeal in part because the relevant rules had specified a
procedure for the
approval and payment of legal expenses which was not
followed.
The
IAC held there was power within s66 to make declarations as they were
“
orders
” or “
directions
”, for the purposes
of s66(2), as confirmed by s66(4) (page 3382). Kennedy J also said
rule 46 “
is in terms a mandatory rule and the General Committee
did not comply with it
” (page 3382). His Honour said that if
Sharkey P had exercised a discretion, it did not miscarry (page 3382).
At page 3383
Kennedy J said what Sharkey P did “
was to
declare to be invalid a decision which had always been invalid
”.
(k)
Robertson v CSA
(2003) 83 WAIG 3938
;
[2003] WASCA 284
In
Robertson
the applicant sought an order to the effect that
the CSA
council remove from the minute book references to a resolution carried at a
special meeting which was “
factually and legally incorrect
”.
The appeal turned on whether Sharkey P had a discretion to refuse to make
orders despite accepting the appellant’s
evidence and contentions. By
majority the appeal was allowed.
EM
Heenan J at paragraph [36] said there was no dispute at the hearing before
Sharkey P or in the Court about the power of the President
to make orders
or declarations generally of the nature sought. At paragraph [38]
EM Heenan J said the findings made by Sharkey P
appeared to constitute
a complete acceptance of the contentions of the appellant advanced on the s66
application - that the terms
of the resolution of the council involved or
reflected an erroneous view of the rules of the organisation resulting in action
by
the council which constituted a non-observance or erroneous observance of
those rules. At paragraph [39] his Honour said that while
“
it may not
have been possible for the learned President to make any order directing that
the resolution should be struck out of the
minutes of the respondent, it was,
nevertheless, within his Honour’s power to make a declaration or
declarations to the effect
that the appellant, as president, was entitled under
the rules of the respondent organisation to act as she did, and that the
resolution
of the Council constituted an erroneous application of those rules
and an attempt to curtail the exercise of functions entrusted
by the rules to
the president, which she was empowered to exercise
”.
EM Heenan J then considered whether there was any power or reason for
Sharkey P to decline to grant relief. In this context
EM Heenan J referred to s61 of
the Act
and decided there was no
power or reason to decline relief. EM Heenan J therefore allowed the
appeal. Hasluck J agreed with this
disposition and Anderson J
dissented.
(l)
WALEDFCU
v Schmid (No 1)
(1996) 76 WAIG 639
There
are two cases I am aware of which specifically consider whether the s66
jurisdiction can be used only to secure the performance
of existing obligations
under the rules or extends to making orders for the purpose of remedying past
breaches of the rules. In
WALEDFCU v Schmid (No 1)
, the IAC
partially allowed an appeal to the extent of “
striking out
”
two of the three orders made by Sharkey P in a s66 application. The three
orders made were that:-
THAT the respondent
through its general committee forthwith order the trustees of the respondent
organisation to institute legal proceedings
in a competent court within 14 days
of 21st day of September 1995 to recover the sums paid by the respondent to
Mr K Campbell, General
President and Mr M Ryan and
Mr K Jarrett, General Vice-Presidents, to which they were not entitled
by way of honorarium in the years
1991, 1992, 1993 and 1994 should any such
amount not be paid to the respondent within seven days of 21st day
of September 1995.
THAT in the event that
such monies are not repaid or such proceedings are not so instituted by the said
trustees then the respondent
organisation shall itself institute such
proceedings in a competent court within 21 days of 21st day of September
1995.
THAT the said respondents shall, at all
times, in any event, take all steps and do all things necessary to recover such
monies from
the said General President and General Vice-Presidents as
expeditiously as is possible.
”
There
were joint reasons for decision of the Court (Kennedy, Franklyn and Anderson
JJ).
The
rules of the union provided that each of the general president and general vice
president were to be paid an annual honorarium.
The amount of the honorarium
was increased in 1991 at a triannual delegates’ conference. It was common
ground that this resolution
was not effective to amend the rules because the act
governing amendments to union rules was not complied with. The increased
honorariums
were paid from 1991 to 1994. These payments were not authorised.
Mr Schmid and 18 other members of the union applied to the President
for,
in effect, enforcement of the rules on the ground that the rules were not being
observed. The specific rule said to not be
observed was rule 22. This rule as
relevantly quoted by the IAC at page 640
was:-
“
22. POWERS OF GENERAL COMMITTEE
The members of the General Committee shall in the interim between Delegate
meetings:
Manage and superintend all
affairs of the Union, perform all duties allotted to them by these Rules, so as
to further the objects
of the Union.
Protect the
funds from misappropriation.
Direct the actions
of the General Trustees.
Be held responsible for
the right administration of the funds of the
Union.
Control all property of the
Union.
-
Institute
legal proceedings (except as provided in Rule 40) on behalf of the
Union.
Direct the General Trustees to take legal
proceedings against any officer or member of the Union guilty of
misappropriating any of
its funds.
”
Sharkey
P found the general president and two general vice presidents of the union had
been paid money which they were not entitled
to and that there had been
“
a misappropriation of funds in that funds were put to use in a way
which the rules did not and do not authorise them to be put
”
(page 640). As stated by the IAC at page 640, Sharkey P held the
general committee had a duty under rule 22 to recover the
amounts paid by
directing the general trustees to take legal proceedings against the officers or
members guilty of the misappropriation.
Accordingly and purporting to exercise
the power conferred by s66(2) of
the Act
Sharkey P made the orders
appealed from.
As
explained by the IAC the primary attack made against the first order was that
there was no power for the President to make the
order under s66(2) of
the
Act
. It was submitted the power to compel observance of rules could only be
exercised to secure performance of existing obligations
under the rules and did
not extend to the making of orders for the purpose of remedying past breaches of
the rules. Reliance was
placed upon
Darroch v Tanner
(1987) 16 FCR
368
; 21 IR 284 . As explained by the IAC at page 640, in that case a union
had used funds and resources to produce election material
to advance the
interests of particular candidates. The resolution to expend the funds in this
way was held to be beyond power and
it was held the expenditure was
unauthorised. An application was made under s141(1G) of the
C and A Act
for an order requiring the members of the state executive responsible for
authorising the payment to perform and observe the rules
of the union by
repaying the amount. As set out by the IAC, s141(1G) of the
C and A Act
was that: “
An order under this section may give directions for the
performance or observance of any of the rules of an organisation by any person
who is under an obligation to perform or observe those rules
”. In
Darroch v Tanner
the Full Court of the Federal Court decided, applying
R v Commonwealth Court of Conciliation and Arbitration
;
Ex Parte
Barrett
[1945] HCA 50
;
(1945) 70 CLR 141
per Latham CJ at 156-157, and Dixon J at 163, that
the section did not empower the Court to do other than secure the performance
of
an existing obligation.
Relevantly,
the IAC did not decide this aspect of the appeal on the basis that
Darroch v
Tanner
involved the application of the differently worded s141(1G) of the
C and A Act
. Instead, it applied another aspect of
Darroch v
Tanner
which was as stated by the IAC that “
the court made it clear
the result would have been different had the court concluded that, on a proper
construction of the rules,
there was a continuing obligation on the persons to
whom the directions had been given, and the direction was given to secure the
performance of that continuing obligation
” (page 640).
The
IAC then said that in their opinion, rule 22 did impose a continuing obligation
upon the general committee of the union generally
to protect its property and
funds from misappropriation and specifically by rule 22(j) to direct the general
trustees to take legal
proceedings against any officer or member of the union
guilty of misappropriating any of its funds. Accordingly, the Court decided
order (1) was within the power conferred on the President by s66(2) of
the Act
.
The
Court then rejected a contention that rule 22(j) did not come into operation
unless the particular officers had been found guilty
of misappropriating union
funds by a court exercising criminal jurisdiction.
The
IAC upheld however the attacks on both the second and third orders made by the
President. This was because “
the rules cast no obligation on anyone
but the general trustees to institute recovery proceedings in a case of
misappropriation
”. As opposed to this, the second order made would
have compelled the union itself to institute the proceedings if the general
trustees refused to do so.
The
IAC decision suggests the powers of the President under s66 were limited to,
relevantly, the making of orders about complying
with an express rule of an
organisation. As there was no rule creating the obligation with respect to
orders 2 and 3, they were
set aside.
(m)
Luby v Secretary, The Australian Nursing Federation,
Industrial Union of Workers, Perth
(2002) 82 WAIG 2124
In
Luby
Sharkey P said:-
“
164 The power conferred
on the Commission, constituted by the President, is not restricted as it was, in
relation to the Court, under
s.141G of the Conciliation and Arbitration Act 1904
(Cth). That provision was considered in Darroch v Tanner
[1987] 21 IR 284
at
289 (FC FC), because s.66(2) of the Act is much broader and provides that the
President may make such order or give such directions
relating to the rules of
the organisation, their observance or non observance or the manner of their
observance either generally
or in the particular case. The words
“relating to” are particularly broad. Thus, directions may be given
or orders
made relating to the past non-observance of a rule. Generally,
however, and practically, that will not often occur. If at the time
the
directions are given or the orders made impose an obligation on the persons to
whom they were given and the orders and directions
are for the purpose of
securing the performance of an existing obligation, then such an order will be
made relating to past non observance
of a rule.
The
Council’s responsibility is similar to that of a Board of Directors (see
Schmidt and Others v WALEDFCU (Pres) (op cit) (see
also Allen v Townsend and
Others (FC FC) (op cit) at page 349 per Evatt and Northrop JJ, and see also per
Nicholson J in Carter and
Others v Drake and Others
73 WAIG 3308
at 3311
(IAC)).
”
Although
not all of what Sharkey P there said may withstand scrutiny in the light of
subsequent authorities, there is like
Schmid
the opinion expressed that
orders will be made relating to a past non-observance of a rule where the
purpose is to secure the performance
of an existing obligation.
(n) Conclusion on Orders Sought for Alleged Breach of Rule
12(l)(vi)
These
authorities confirm in my opinion that the orders sought by the applicant for
the alleged breach of rule 12(l)(vi) are beyond
the jurisdiction and power
of the President under s66 of
the Act
. This is because the breach of the
rule was alleged to have first taken place in September 1999, continuing until
March 2006. The
present application was not commenced until June 2006 and
first heard in February 2007. The relevant paragraph of the rule was deleted
from the rules of
the CSA
in November 2006. In this combination of
circumstances I do not think the s66(2) jurisdiction extends to the making of an
order
akin to that of the payment of compensation for loss caused by the breach
of a rule which if complied with could or would have lead
to payments being made
to the applicant. Such an order has no contemporary relevance to the activities
of
the CSA
or the observance of its rules and does not in purpose or
effect secure the performance of an existing obligation.
Breach
of Rule 12(l)(vi) – Summary of Conclusions
The
applicant’s claim as identified earlier is reliant on establishing
that:-
(a) He was not appointed in accordance with
rule 12(l)(vi).
(b) If he had been he would have been entitled to payment for overtime via
the PSA 1992
.
(c) He worked overtime but was not paid for this.
(d) The failure to appoint according to the rules caused the failure to pay
overtime.
(e) The loss of the non payment of overtime may be remedied by the President
making an order under s66(2).
I
do not consider that I can or should make the orders sought. The reasons for
this are:-
(a) I am not satisfied that (a) above was possible in
practice when the applicant was appointed.
(b) Even if it was, this did not mean that the terms of
the PSA
were
imported into the terms of the applicant’s contract of employment.
(c) There is an issue as to whether the applicant’s loss was the amount
of the overtime as calculated by the applicant, given
the evidence of the
provisions of a car parking bay in lieu of overtime.
(d) I am not satisfied, even if a breach of the rule and consequent loss is
proved, there is any legal basis on which the compensatory
payment sought could
be ordered. The applicant eschewed any reliance upon contract and in any event
this issue was determined in
application 1215. Further the applicant did
not attempt to argue that there was some tortious or other cause of action.
(e) In any event my opinion is that the jurisdiction and powers under s66(2)
do not extend to the making of a compensatory order for
the breach of a rule
which occurred in 1999, and on the applicant’s case, to and including
17 March 2006. The s66 jurisdiction
is limited to the making of orders
with a contemporary relevance to the activities of an organisation and the
observance of its rules.
For
the reasons set out I am not persuaded that orders in the terms of those sought
in paragraphs 2, 3 and 4 of the remedies claimed
in the application as filed can
or should be made.
The
Second and Third Alleged Breaches
I
have set out in paragraph [
86
] above the issues to be determined to
decide if these breaches occurred. The first issue to determine is whether what
is alleged
as a breach of the rules is properly so characterised.
The
Meaning of Rule 3 and the Duties Relied On
I
have set out earlier the duties relied upon by the applicant. They were said to
stem from rule 3(c) and the decision of Sharkey
P in
Wauhop
.
The
first problem facing the applicant is the nature and terms of rule 3(c).
It is a “
principal objects
” rule. Given that and the way the
rule is drafted, the non-observance of the rule is not capable of being readily
established.
How can you prove an organisation is not following a principal
object, particularly when it is simply the actions of the organisation
with
respect to one member that is brought before the President?
The
structure of rule 3 is to firstly say that the principal objects shall be to
“
protect and promote the interests of the membership
” by what
is set out as (a)-(c). It is implicit that (a)-(c) represents methods by which
the interests of the membership are
to be promoted.
The
reference is to the “
membership
” as a whole at this point and
not individual members. Rule 3(c) does however refer to individual members
and “
representing [their] industrial welfare
”. The effect of
the sub-rule is therefore that by the representation of the industrial welfare
of members the interests of
the membership as an object will be
“
protected and promoted
”.
This
meaning of rule 3(c) is understandable, but the rule does not specify what
activities constitute “
representing
”. The rule does not
require a particular standard of representation of all of the industrial welfare
of each member to the
extent considered to be appropriate by that member to
satisfy the specified method of the carrying out of the object. The difficulty
of setting a bar or standard of compliance in what is a broad motherhood type
statement of intent shows the difficulty in proving
an organisation is not
acting in accordance with the rule.
In
my opinion
the CSA
in deciding not to fully fund the applicant’s
legal costs in application 1215 and this application did not fail to act in
accordance
with this object. Not funding the applications of one member does
not show
the CSA
was acting contrary to the purpose specified in rule
3(c).
It
has also been said that there can be no breach of an objects rule. In
Singh
v The Federated Miscellaneous Workers Union of Australia, WA Branch
(1993)
73 WAIG 2674
, there was a s66 application in which it was alleged the
respondent had breached rule 3(16) which was part of the
“
Objects
” rule. The stated object was to provide funds and
by other lawful means, to amongst other things, provide legal assistance
for
members in employment or industrial matters. The applicant claimed he had not
been provided with legal assistance to support
Equal Opportunity Act
and/or workers compensation claims arising out of things that happened at work.
The respondent opposed the claim on the basis that
the applicant had been given
some assistance and his claim for further assistance had been thoroughly
considered. At page 2677,
Sharkey P said:-
“
It
was for Mr Singh to establish upon the balance of probabilities those facts upon
which he claimed relief.
His claim was that the FMWU had breached rule 3(16), or acted
contrary thereto, because it had a duty to give him legal assistance.
What the
Branch Executive was required to do was to make its decision intra vires the
rules, to act bona fides, and to act reasonably
and fairly in making its
decision. It was required to act so as to advance the FMWU objects contained in
its rules also. That does
not mean that it can or is bound to assist every
person who applied or applies for legal assistance, as Mr Singh properly
conceded
(see Saraceni Enterprises Pty Ld v. Baking Industry Employers’
Association of WA (Application No 740 of 1993) (unreported)
dated 31 August
1995, citing Scott and Others v. Jess
(1984) 56 ALR 379
at 385 and 403).
It is an object of the rules to provide legal assistance. It is not mandatory
in every case, nor could it be.
Sharkey
P referred to the duty of the respondent’s branch executive, under
rule 43 to hold money as trustees and the fiduciary
duty to expend the
monies properly. Sharkey P held the respondent provided the assistance to
the applicant that it was fair and
proper to do so (pages 2677-2678). It
was held that the decision of the branch executive was not such as to require
any order under
s66 as a matter of equity, good conscience and the substantial
merits (page 2678).
Additionally,
Wyatt v CSA
(1997) 77 WAIG 3206
was a s66 application involving
the CSA
and its rules. Although not factually similar to the present
application Sharkey P said that “
rule 3(a) could not be
breached since it is an object
”. Whilst this proposition might
conceivably be too broad in very unusual circumstances, it is material to the
facts and issues
in this application.
The
duties relied on by the applicant do not arise from the text of the
“
rules of the organisation
” but from the
Wauhop
decision.
This
decision therefore was heavily relied upon by the applicant. In part this was
because it had some factual similarities to the
present application. These
facts were:-
(a) Mr Wauhop was both a member and employee of
the respondent which was
the CSA
. Mr Wauhop was employed by
the
CSA
as a research officer on a series of fixed term contracts until he was
informed that his employment would be terminated at the end
of one of the fixed
term contracts.
(b) Mr Wauhop commenced the s66 application for the purpose of requiring
the CSA
to fulfil its “
constitutional obligations
” to
make “
resources
” available for his representation for a claim
of unfair dismissal against
the CSA
lodged in the Commission.
(c) Accordingly, Mr Wauhop sought the assistance of
the CSA
in
proceeding with a claim against
the CSA
.
(d)
The CSA
executive and then council carried a resolution that the
application by Mr Wauhop for legal funding for his unfair dismissal claim
be rejected.
Sharkey
P concluded that
the CSA
did not give Mr Wauhop’s claim proper
consideration, nor were his interests as a member properly considered. His
Honour said
Mr Wauhop had not been treated as a member of
the CSA
but as
an employee ([46]). Sharkey P also said the decision was reached in an unfair
manner ([48]). Sharkey P said the decision
to refuse
Mr Wauhop’s legal assistance was “
unfair and unreasonable
and did not advance the objects contained in the rules. It represented a
failure by Council and Executive
to carry out their duties as required under
Rules 12 and 13 respectively
” ([49]).
The
orders and directions made by Sharkey P were:-
“
(1) THAT
the Civil Service Association of Western Australia Incorporated failed to
observe its rules and to act in accordance with
the same; and in particular
rules 12 and 13 respectively in that the Executive and the Council failed to
fairly and reasonably and
in such a manner as to advance the interests of the
applicant, its member, consider his application for legal assistance on the
9
th
and 22
nd
days of January 2003
respectively.
(2) THAT the Civil Service Association of Western Australia Incorporated be
required to pay and do pay for an independent legal opinion,
by a legal
practitioner of the applicant’s choice, in relation to the
applicant’s unfair dismissal claim against it and
the likelihood of the
success of such a claim.
(3) THAT within 14 days of the receipt of the above-mentioned independent
legal opinion, the Civil Service Association of Western
Australia do and shall
consider afresh the applicant’s application for legal representation by
the organisation and in accordance
with its rules, its obligations thereunder
and the reasons for decision herein.
”
I
was informed that Mr Wauhop’s application in the Commission was
discontinued and that there was no further s66 application
made by him.
During
the closing submissions of the applicant’s counsel, I said I had some
concerns about the correctness of the reasoning
and conclusions reached by
Sharkey P. In particular, whether there could be a breach of the rules of
the CSA
in the manner which Sharkey P determined and if so whether the
powers of the President within s66 permitted the making of the orders
which his
Honour made.
At
paragraph [2] of
Wauhop
, Sharkey P summarised that Mr Wauhop alleged
the CSA
acted contrary to rule 3 of its rules by failing to observe
principal objects (a)-(c). At paragraph [27] Sharkey P said there
“
could not be a breach of rule 3 because that is an
“object
”
rule
.
The “object” rule directs
the CSA to the objects which it is required to achieve in its activities and by
its decision
for its members
”. The way in which Sharkey P moved from
that statement to a position where he thought there had been a non-observance of
the
rules was contained in paragraphs [28]-[36] of his reasons as
follows:-
“28 In relation to the rules of an
“organisation” it is not permitted by its rules to frustrate the
policy and main
purposes of the Act (see Williams v Hursey
[1959] HCA 51
;
[1959] 103 CLR
30
at 68). Subject to this, the rules may not provide for any other matter
contrary to law.
Further,
the rules of an organisation will be read down so far as they purport to
authorise the pursuance of objectives cast in very
broad and general terms.
Thus, when rules are used to state “objects” in such general
expressions as “the interests
of the members”, such expressions must
be read as referring to the interests of members as members of the union and in
their
occupation, and in relation to their welfare as members accordingly. (See
Williams v Hursey (op cit) per Fullagar J at page 57).
Fullagar J made it clear, however, that there was a great deal of latitude
within that principle for construing the rules and that
which could be done
under them. (See also per Fullagar J in Williams v Hursey (op cit) at
page 57).
The
CSA, through the Executive and Council, and in general meetings, is also
required to act intra vires, in accordance with the general
concept of an
organisation organised on a democratic basis, also for a bona fide purpose (see
Scott and Others v Jess
(1984) 56 ALR 379 (FC
FC)), and, further, fairly and
reasonably to its members, as well as in their interests. (Secretaries and
other officers are also
required to act impartially and fairly). (See Luby v
The Secretary of the Australian Nurses Federation
(2002) 82 WAIG 2116
at 2121
(Sharkey P)).
An
organisation must also act in accordance with rules which serve the object of
the Act and by actions which further those objects.
These views are fortified
in various ways and reinforced by such provisions as s.26(1)(a), s.26(1)(c) and
s.110 of the Act. Most
cogent however, is s.61 of the Act which provides as
follows:-
“Upon and after registration, the organisation and its
members for the time being shall be subject to the jurisdiction of the
Court and
the Commission and to this Act; and, subject to this Act, all its members shall
be bound by the rules of the organisation
during the continuance of their
membership”.
It
is the duty of the Commission, constituted by the President, to exercise the
directory power conferred by s.66 of the Act where
there is a substantial
failure to perform or observe the rules.
This
discretionary power is well described in Park v WACJBSIU
(1983) 63 WAIG 2230,
(O
’Dea P) which is quoted in turn in Singh v FMWU
(1993) 73 WAIG 2674
(Sharkey
P).
However,
there must be confidence among members of an organisation that its government
and administration will be carried out in accordance
with the rules so that the
policy of the act may be carried out effectively (see Ellis v Willis
(1968)
12 FLR 60
at 71). It is the duty of the Commission constituted by the
President to so ensure.
The
Commission, as constituted by the President, is, however, I emphasise, as I have
often done, not the surrogate manager of a registered
organisation.
What
was really alleged, in this case, was that the CSA, through its Executive and
Council, failed to act fairly, and in the interests
of its
member.
”
I
note that Sharkey P did not specifically refer to the duties of the council and
the executive as contained in rules 12 and 13 and
set out what aspect of the
duties had not been met in the case of Mr Wauhop. Additionally Sharkey P did
not articulate at any stage
the source of the power in s66 to make the orders
which his Honour did.
The
following are my respectful comments about paragraphs [28]-[36] of his
Honour’s reasons:
(a) Paragraphs [28] and [29] seem, with
respect, to be irrelevant to the s66 application which was before the
Commission.
(b) It is not immediately clear what relevance Sharkey P thought the
observations made in paragraph [30] had. Section 66 applications
are for orders
or directions “
relating to the rules of the organisation
...
”. Such applications do not, separate to what an organisation has
or has not done in the observance or non-observance of its
rules, involve in my
respectful opinion, generalised precepts of acting intra vires, or “
in
accordance with the general concept of an organisation organised on a democratic
basis
”, or fairly and reasonably to its members or their interests.
The limitations to the s66 powers and jurisdiction that I noted
earlier are here
relevant in my opinion.
(c) In
Scott v Jess
[1984] FCA 289
;
(1984) 3 FCR 263
,
56 ALR 379
, 8 IR
317 relied upon and cited by Sharkey P at [30], the Full Federal Court
considered s141(1G) of
the C and A Act
. The context was the use of union
resources for dissemination of information favouring particular election
candidates. Evatt and
Northrop JJ wrote joint majority reasons.
Relevantly their Honours said:-
(i) Officers of an organisation are under a duty to exercise powers conferred
upon them by the rules of the organisation bona fide
for the purposes for which
the powers are conferred (ALR p 385).
(ii) If the members of the Committee of an organisation or an officer of an
organisation resolved to exercise a power conferred upon
them by the rules of
the organisation otherwise than bona fide for the purpose for which the power
was conferred, a member would
be entitled to obtain an order under s141(1G) of
the C and A Act
(ALR p 386).
(iii) Their Honours said there was a general principle illustrated by the
facts and decision in
Short v Wellings
(1951) 72 CAR 84, and referred to
in other authorities which their Honours cited, that even if there is no express
provision in an
organisation’s rules, there is an implicit prohibition on
the use of the resources or funds of an organisation to support one
candidate in
an election in circumstances where they have been or will be denied to another
candidate (ALR p 386).
(iv) Their Honours said that if this occurred directions may be given under
s141(1G) of
the C and A Act
that they perform and observe the rules of
the organisation by refraining from so expending the resources of the
organisation. Their
Honours also said the rules could not provide for that type
of expenditure and any rule purporting to authorise that type of expenditure
would in all probability be in contravention of s140(1) of the
C and A
Act
(ALR p 386-388).
(d) Therefore there was a narrow context for the discussion in
Scott v
Jess
.
(e) For the reasons I have set out earlier to the extent that Sharkey P
supported his decision in
Wauhop
on the basis that
the CSA
was an
organisation with implied rules which could be enforced pursuant to s66, in my
respectful opinion his Honour was in error.
Sharkey
P did not expressly base his decision in
Wauhop
upon the implied rules
concept but there is at least a hint that he tacitly did so. It was a concept
relied upon by Sharkey P from
at least the decision in
Drake v Carter and
Others
(1992) 73 WAIG 255.
This was successfully appealed against to the
IAC in
Carter v Drake
1993, cited and quoted from above. As stated the
IAC expressed doubts about what Sharkey P said about the extent of the s66
powers.
There was therefore no support in this decision for the use of the s66
jurisdiction to correct breaches of implied rules.
Additionally,
in my respectful opinion the reasoning of Sharkey P on the issue in
Drake v
Carter
is flawed. Sharkey P commenced his discussion about the scope
of s66 at page 270. His Honour described s141 of the
C and A Act
and
s209
of the
Industrial Relations Act 1988
as being similar but not
identical. Sharkey P said that as a result not all authorities in relation to
the “
Australian Commission
” and its jurisdiction and power
were apposite although many were. Sharkey P also
said:-
(a) The jurisdiction conferred by
s66(2)
contained 4
components, which he listed as:-
(i) Relating to the rules of the organisation.
(ii) Relating to the observance of rules of the organisation.
(iii) Relating to the non-observance of the rules of the organisation.
(iv) The manner of the observance of the rules of the organisation
(page 271).
(b) Sharkey P then said “
there is no limitation otherwise,
except within the perimeters of the Act, upon the jurisdiction to make an order
or give a direction
which the President considers appropriate
”
(page 270).
(c) “
The order must be appropriate by reason of the
President’s decision
” (see
Director General of Social
Services v Hangan
[1982] FCA 262
;
45 ALR 23
at 35 per Toohey J) (page 270).
(d) In context the use of the expression “
relating to
”
meant there must exist a connection or association between the orders and the
rules (page 270).
(e) The objects of
the Act
are advanced by orders which have a
connection or association with the rules (page 270).
(f) The examples of the sorts of orders which might be made under s66 do not
serve to limit the generality of the jurisdiction and
power conferred by s66(2)
because s66(2) specifically prescribes otherwise (page 270).
(g) The position of the commas in s66(2) “
plainly
indicates
” orders and directions “
relating to the
rules
”, “
is one head of jurisdiction and power
”,
citing
Conigrave v Tanner
(1977) WAR 225 at 230 “
as to the use
of the comma
” (page 271).
(h) With respect to the jurisdiction and power to make orders or directions
about the observance of the rules, his Honour said that
s66(2)(e) and (f) were
examples (page 271).
(i) There was no restriction placed upon what orders may be made as to the
manner of observance of rules, except within the perimeters
of
the Act
.
The “
real and ultimate consideration is clearly what s26(1)(a) of the
Act requires
.
S66(2)(f) in particular, would assist in determining what
orders should be made
” (page 271).
(j) With reference to s66(4) Sharkey P said it “
predicates a wide
power to remedy practical situations relating to the rules or to their
observance or to their non-observance or
to the manner of their
observance
” (page 271).
(k) By the reference in s66 to orders being made “
generally or in a
particular case
”, Sharkey P said there was “
an apparatus
to remedy, within s66, problems in the conduct of affairs of unions
”
(page 271).
(l) Sharkey P said that contrary to s141(1G) of the
C and A Act
, and
by reference for example to s66(2)(a), (c), (ca), (d), (e) and (f), there does
“
not require a breach of rules to be established for the exercise of
jurisdiction and they are not an exhaustive description of the
orders which can
be made”
(page 271).
(m) Orders may be “
made which are not directly referable to a
specific rule in order to ensure the proper conduct of members under the rules
and the
carrying out of the functions of various officers
”
(page 271). In support of this observation his Honour cited
R v
Commonwealth Court of Conciliation and Arbitration
; Ex
Parte Barrett
[1945] HCA 50
;
(1945) 70 CLR 141
and
R v Joske and Others, Ex Parte SDA and Others
[1976] HCA 48
;
(1976) 135 CLR 194.
(n) “
There is power ... to deal with implied rules
”. In
support, his Honour cited
Gordon v Carroll
(1975) 6 ALR 579
,
27 FLR 129.
His Honour also cited
Scott v Jess
for the proposition
that “
the powers of the union officials should be used fairly by virtue
of an implied rule
”.
(o) Sharkey P then set out some principles in the exercise of the discretion
under s66 which in my opinion are not controversial but
with respect do not
assist greatly in ascertaining the scope of the powers under s66.
With
respect to proposition (c), having looked at the reasons of Toohey J in
Hangan
, I regrettably do not understand this sentence. In my opinion
propositions (f), (h), (i) and (l) cannot now stand in their entirety
in light
of the IAC decision of
Harken v Dornan
, referred to above.
Additionally
I do not accept the breadth of propositions (a), (h), (i), (j), (l) and (m). In
my opinion s66 does not provide a general
vehicle to “
remedy
”
“
problems in the conduct of officers of Unions
”, unless the
“
problem
” and the “
remedy
” is in
“
relation to the rules of an organisation
”. It is the
“
rules
” and not “
the organisation
” which
is the lynchpin of the jurisdiction and powers. Insofar as (l), (m) and (n)
rely upon the concept of “
implied rules
”, as set out earlier
I think orders based on “
implied rules
” are beyond the scope
of s66.
Moreover
in the Commonwealth sphere, as set out below,
Gordon v Carroll
has not
been followed on this issue. Also, in my respectful opinion
Scott v Jess
as discussed above does not stand for so broad a proposition as stated by
Sharkey P. The Full Federal Court in
Scott v Jess
was dealing with a
specific situation, within the Commonwealth legislative framework, of the
implicit prohibition of the use of union
funds for the purpose of favouring one
candidate over another in an election campaign. This decision must be viewed
very cautiously
in the context of s66 of
the Act
, given the content of
s66(2)(e) and (f) and the decision of the IAC in
Harken v Dornan and
Others
. The decision in
Scott v Jess
has more recently been held to
be authority for the proposition that a power conferred upon an official by the
rules must be exercised
bona fides for the purpose of the conferral.
As
stated by Cooper J in
Re Application for an Inquiry in Relation to an
Election for Offices in the Australian Education Union, Queensland Branch;
Becker
[2004] FCA 1534
[21]-[22]:-
“
21 There is nothing
in the joint judgment of Evatt and Northrop JJ in Scott v Jess to support any
principle other than that a power
conferred by a rule of an organisation may
only be exercised by the recipient of the power bona fide for the purpose for
which the
power was conferred and that principle is applicable to the use of the
funds and resources of an organisation in relation to an election
for an office
in the organisation. Importantly for present purposes,
the majority did not
hold that independent rules may be implied into the rules of a registered
organisation and Gray J was against
any such power of implication
: at 283
– 284.
(Emphasis added)
There
is ample authority that the rules of a registered organisation
cannot be
supplemented by implied terms as distinct from permitting the ascertainment of
the meaning of the rules upon their true
construction which may involve the
implication of a limitation on a power
: Porter v Dugmore
[1984] FCA 75
;
(1984) 3 FCR 396
(FC)
at 407 – 408; Darroch v Tanner
(1987) 16 FCR 368 (FC)
at 377; Belan v
National Union of Workers
[2001]
FCA 724
(FC)
at
[48]
– [50]. Reference can also be made to the
first instance judgments of members of this Court in Thomas v Hanson and the AWU
[2001]
FCA 539
at
[34]
– [35]; Kingham v Sutton (No 2)
[2001]
FCA 400
at
[32]
.
” (Emphasis added)
It
is also instructive to quote from paragraphs [48]-[49] of the Full Federal Court
(Wilcox, Ryan and Marshall JJ) in
Belan v National Union of Workers
,
referred to by Cooper J as follows:-
“
[48] ...
Counsel for the appellants in essence argue that cl6 of Annexure A to the
Memorandum of Agreement effectively inserts into
the Organisation's rules an
implied provision qualifying the National Council's rule-amendment power.
However, there is authority
in this Court against the recognition of an
implication of that kind. The point was discussed by Gray J in Scott v Jess
[1984] FCA 289
;
(1984) 3 FCR 263
at 282-284. Gray J pointed out that, in Porter v Dugmore
[1984] FCA 75
;
(1984) 3 FCR 396
at 407-408, Smithers J (with whom Sheppard J agreed)
made a distinction that Gray J described as between "[t]he idea that
implied
terms can be found in the rules of organisations, and that those implied
terms are capable of enforcement pursuant to s141 of the
Act [the predecessor to
s209 of the WR Act]", and implications "from the express terms of the rules, the
terms of the Act and the
Regulations, and the nature, function and purpose of
the organisation concerned ... which limit what might otherwise be the extent
of
the express terms of the rules". Gray J illustrated the latter type of
implication by reference to the implication that penal
powers will not be
exercised without adherence to the principles of natural justice. Smithers J
accepted the possibility of the
latter type of implication, but not the former.
The implication argued in the present case is of the former type.
[49] In Darroch v Tanner
(1987) 16 FCR 368
a Full Court (Northrop, Keely
and Ryan JJ) upheld the approach taken by Smithers J in Porter v Dugmore.
Their Honours declined to
follow the decision of the Australian Industrial Court
in Gordon v Carroll
(1975) 27 FLR 129.
They said at 377:
"... we prefer the view that the rules cannot 'be supplemented by implied
terms', as distinct from permitting the ascertainment of
'the meaning of the
rules upon their true construction': per Smithers J in Porter v Dugmore
[1984] FCA 75
;
(1984) 3
FCR 396
at 408."
”
In
Darroch v Tanner
which has been referred to earlier the Full Federal
Court also decided that for the purpose of applications under the
C and A
Act
the rules cannot “
be supplemented by implied terms
”
as distinct from permitting the ascertainment of “
the meaning of rules
upon their true construction
”. (The latter quotation is from
Smithers J in
Porter v Dugmore
[1984] FCA 75
;
(1984) 3 FCR 396
at 408; quoted
by the Full Federal Court at page 377.) The Full Federal Court also said
that even if there may be implied terms
in the rules of registered organisations
generally and if the relevant implied term could be spelled out of the rules of
the union,
for the purposes of the present case the “
rules of an
organisation
” referred to in s141(1G) of the
C and A Act
did
not include any such implied term. This supports my view about s66 set out
above.
As
stated, in my opinion
Gordon v Carroll
has been overruled and should not
now be relied on in s66 applications. Also with respect the observation by
Sharkey P about the
effect of
Scott v Jess
overstates what the
decision (at least now) stands for.
For
all of these reasons therefore, in my opinion
Wauhop
was with respect
wrongly decided insofar as it asserts that the duties relied on by the applicant
are contained in the “
rules of the organisation
” and may be
enforced in a s66 application.
In
case this opinion is found to be in error in any appeal I will nevertheless
consider the evidence about the second and third breaches.
Breach
of Rules by Inadequate Resources to Support Application 1215 -
Evidence
(a) The Applicant
The
applicant said his formal claim to
the CSA
for payment for hours of
overtime worked was made on 15 April 2004. He said at that point he was
having discussions with Ms van
den Herik who was the union representative
for CSA staff members. The applicant had asked her to help in relation to a
problem about
increments and he also asked her about overtime. Ms van den
Herik continued to assist the applicant on the issue of his overtime
claim prior
to, at the time of and subsequent to the commencement of application 1215.
The
applicant said before the hearing of application 1215 he understood that
Ms van den Herik was told by
the CSA
to stop representing him.
Ms van den Herik had assisted him in obtaining an alternative
representation. The applicant was then
represented by his current counsel,
Mr Howlett, when practicing as a solicitor.
The
applicant said Ms van den Herik requested
the CSA
to provide funds
to pay for his representation on the basis that he was a CSA member and had a
strong case. The applicant said
the CSA
did not provide him with a
representative and had not provided him with funds to pay for his representation
in application 1215.
The applicant said he understood
the CSA
council
had approved payment of $2,000 towards his representation but he had not
received any payment from
the CSA
. (It appears that this was an
administrative oversight. The payment of this amount was made just prior to the
s66 hearing). The
applicant asserted he had not had the opportunity to discuss
with
the CSA
the issue of his representation in application 1215. The
applicant made reference to the fact that
the CSA
was represented in the
hearing of application 1215 by a senior employee, Mr Cusack.
The
applicant also gave evidence about his understanding that Ms van den Herik
had requested
the CSA
make additional funds available to him to cover the
costs of his representation insofar as they exceeded the $2,000 allowed for.
The CSA
refused to allocate any further money. This was confirmed by a
letter to the applicant from Ms Walkington dated 26 May 2006.
The
applicant said he was aware that in relation to members not employed by
the
CSA
,
the CSA
represents its members or provides funds or
representation for its members in relation to employment or industrial relations
disputes.
The applicant considered he had been treated differently from other
CSA employees because his dispute was with
the CSA
.
(b) Ms van den Herik
Ms
van den Herik said her first involvement with the applicant about his overtime
claim in about April 2004, was a consequence of
being the workplace delegate of
employees of
the CSA
. Ms van den Herik said her role as workplace
delegate was described in
the CSA
’s rules in rule 17(f). This
rule is as follows:-
“
(f) Workplace Delegates
shall:
(1) Distribute written material authorised by the Association to members
in the workplace.
(2) Promote knowledge and an understanding of Association policies and
activities.
(3) Advise the EDC and Association staff of the views of the members in
the workplace and any important issues or changes in the workplace.
(4) Hold meetings of members in the workplace to discuss matters of common
interest or concern.
(5) Make representations to management and take action in accordance with
these rules and Association policy to resolve matters affecting
members in the
workplace only.
(6) Refer unresolved workplace matters, or matters affecting members
outside the delegate's own workplace, to Association industrial
staff and/or to
the EDC, who may in turn refer the matter to the Council via the Electorate's
Councillor.
(7) Advise members of their industrial entitlements.
(8) Endeavour to protect the working conditions and award rights of
members in the workplace.
(9) Strengthen union organisation in the workplace by recruiting potential
members, and informing members about actions taken on their
behalf.
(10) Advise of changes of membership in the workplace.
(11) Attend all meetings of the EDC.
”
Ms
van den Herik asserted she only assisted the applicant in her capacity as a
workplace delegate and not in her capacity as an industrial
officer/advocate.
She was employed by
the CSA
on the latter basis until 18 October
2006. (I will later make some observations about the issues of conflict of
interest which emerged
on the evidence).
Ms
van den Herik said she was not instructed or directed by
the CSA
to
assist the applicant. Her initial assistance was in formalising the request for
payment of overtime and in negotiations with
the CSA
and principally
Ms Walkington. Ms van den Herik said she understood she had the right to
assist the applicant when she was at work
and working for
the CSA
and
that she was not told not to do this. As she continued to assist the applicant
however she did it mostly in her own time and
away from work.
Ms
van den Herik said that in or about January 2005 she became concerned about her
role and capacity to continue to represent the
applicant and to
“
advocate
” his case. Despite these concerns Ms van den Herik
did not do initially anything because she hoped the claim would be settled.
However, it did not settle, the concerns remained and she sent a memorandum
dated 16 June 2005 to Ms Gaines. A copy of the memorandum
was annexed
to Ms van den Herik’s statement.
The
document was headed “
Urgent Confidential Memorandum
”. The
memorandum was two pages in length and as stated in the first paragraph sought
council approval for outside representation
for the applicant in his claim
against
the CSA
for paid overtime. The memorandum addressed a council
policy of “
Representation of the CSA in the Industrial Relations
Commission
”. The submissions in the memorandum were said to address
the factors in the policy. The memorandum said that whilst Ms van
den Herik
would have the skills to represent the applicant in applicant 1215 “
I
feel there is a conflict between my role as delegate and as a member of staff to
provide the role of advocate in the Industrial
Relations Commission
.
Clearly representation in the WA Industrial Relations Commission is not in
keeping with the organising role and focus of a delegate
so that leaves me in
the role of staff member. Here I also feel a conflict
”.
The
memorandum then set out a number of issues relevant to the conflict which
Ms van den Herik then perceived. The thrust of the
rest of the
memorandum was that unless the applicant received advice and representation from
a source outside of
the CSA
he would not receive the same level of
representation as any other member of
the CSA
. The memorandum said that
two days of hearing in July/August 2005 had been set aside and a directions
order had been issued. The
memorandum said that based “
on rates
charged by industrial representatives at $80 to $150 per hour I would estimate
the cost to be approximately $5,000
”. The memorandum also provided Ms
van den Herik’s opinion that the applicant’s claim had merit and a
good chance
of success.
In
response,
the CSA
approved payment of a maximum of $2,000 for
representation of the applicant on production of an invoice from the
applicant’s
representative. This was communicated in an email from
Ms Walkington to Ms van den Herik dated 23 August 2005. The email
referred
to a meeting of the CSA executive on 22 August 2005. The email
said the executive committee considered the submission of Ms van
den Herik, the
duty to individual members and the membership as a whole and the conflict of
interest arising from representation
by an employee of
the CSA
and the
alternative representation available. The email said the executive committee
resolved to provide financial assistance to
a limit of $2,000 to enable the
applicant to engage alternative representation.
Ms
van den Herik said she then arranged for representation. She had some
difficulty in doing so because of issues of availability,
cost and experience.
However Mr Howlett was then retained to represent the applicant in
application 1215. Ms van den Herik said
because of the funding limit it
was agreed she would try to do most of the background work and Mr Howlett
would try to limit his
efforts to any necessary strategic advice and
representation at the hearing.
Ms
van den Herik said that initially she thought the question to be determined by
the Commission was relatively straightforward but
later, and after she had been
told that she could not do any further work for the applicant,
the CSA
took a different approach. This combination of factors meant that
Mr Howlett had to do more work than had been originally anticipated.
Ms
van den Herik said as far as she was aware
the CSA
did not have a written
policy regarding representation of people who were employees of
the CSA
and members of
the CSA
. Ms van den Herik also said
that prior to the publication of an industrial representation policy on
13 April 2005 she was not aware
of the specific criteria
the CSA
applied to whether or not a CSA member would be represented. A copy of the
industrial representation policy was annexed to Ms van
den Herik’s
statement.
Ms
van den Herik said that on no other occasion had she been instructed not to
represent a CSA member. She was aware
the CSA
represented many members
who were not employed by
the CSA
in circumstances where it did not think
the member had a very strong case or chance of success. She could not remember
the CSA
deciding not to represent a member including those with little
chance of success. Ms van den Herik provided some examples of this.
Ms
van den Herik offered the opinion that there was “
no doubt in my mind
that [the applicant] would have been provided with resources and representation
had his dispute been with an employer
other than the CSA
”.
Ms
van den Herik also said Mr Cusack had given an opinion to
the CSA
that the applicant did not have a good chance of success in application 1215.
Ms van den Herik said that although he was a Senior
Industrial Officer she did
not believe he was more experienced than her in industrial relations matters and
did not believe Mr Cusack
was in a better position than her to make a
judgment about the success of application 1215.
On
1 March 2006 Ms van den Herik sent a confidential memorandum to
Ms Walkington requesting payment of the amount of $2,000 to the
applicant
with respect to his representation in application 1215 and for the payment of an
additional amount. The memorandum said
the amount of $2,000 was insufficient to
provide adequate representation and additional funding of $5,626.61 was sought.
The memorandum
attached Mr Howlett’s bill dated 11 November
2005. The memorandum provided an explanation of the request for additional
funding.
The memorandum addressed factors considered in finding an advocate to
represent the applicant which were availability, cost, familiarity
with
the
CSA
as an organisation and its rules and reputation of effectiveness of the
advocate. The memorandum said that in the end “
the primary factor was
availability of the advocate
”. The memorandum said
Mr Howlett’s bill was calculated on his lowest
“
hardship
” rates. By way of comparison, the memorandum
provided the costs per hour of two registered agents who regularly appeared in
the Commission which were $170 and $100 per hour respectively. The request
contained in this memorandum was not approved.
Ms van den Herik
said she recalled once discussing application 1215 with Mr Cusack in his
office when Mr Cusack said words to the
effect that he believed
the CSA
had acted in breach of its rules, but that if she repeated this he would
deny having said it.
(c) Ms Robertson
Ms
Robertson gave evidence that
the CSA
has often represented members in
circumstances where they had little prospect of succeeding. Two specific
examples of this were
provided.
Ms Robertson
said that although she took her position as president of
the CSA
very
seriously and was aware she had a duty to enforce the rules, there were many
occasions where she felt she was not provided with
sufficient information or
resources to make an informed decision or judgement about issues.
Ms Robertson did not give any evidence
that this observation was relevant
to any decisions made about the applicant.
(d) Mr Best
Mr
Best gave no evidence relevant to this alleged breach of the rule.
(e) Mr Ellis
Mr
Ellis said that in or about 2002
the CSA
developed a policy outlining a
series of guidelines and matters to be considered by council in determining
whether or not it was appropriate
for resources for external representation to
be provided by
the CSA
to any of its members. Attached to the statement
of Mr Ellis was a copy of
the CSA
minutes of a council meeting held
on 28 August 2002 in which the policy for the representation of
the
CSA
in the Commission was adopted by council. The policy set out a
preference by
the CSA
for an integrated approach to organising,
campaigning and providing services to members. However, it said in
circumstances where
members requested representation from a person other than
officers of
the CSA
represent them,
the CSA
would consider and
determine the request on a case-by-case basis and each action would be
“
authorised discretely
”. The policy set out a number of
factors in determining the request. They were under the headings of
Determination to Commence
a Claim, Representation and Authorisation. The policy
set out factors which would be considered and assessed by
the CSA
council
when making a determination to commence proceedings before the Commission. This
included the issue preventing the member
being represented by a CSA appointed
advocate, the benefit to the individual and
the CSA
at large, the merits
of the claim, prospect of appeals, prospect of recovery of costs, resources and
funding, and relevant CSA policies.
Mr Ellis
said he was present at a special executive meeting on 22 August 2005 when
Ms van den Herik’s first request for funding
for the
applicant for application 1215 was considered. Mr Ellis said the
executive had received advice from Mr Cusack and thought
the applicant’s
claim had little prospect of success. Mr Ellis said that in discussions it was
recognised there was potential
for a conflict of interest given the matter
concerned an employee of
the CSA
seeking to take action against
the
CSA
. The executive therefore felt it was appropriate for external
representation to be granted. Mr Ellis said the executive erred on
the side of
caution by recommending to council that the applicant be provided with funds
towards external representation. Mr Ellis
then said the bulk of the discussion
was focused on the amount of the funds to be granted. Mr Ellis referred to the
obligation of
council to spend union funds wisely. Mr Ellis referred to the
submission from Ms van den Herik about costs and also that a member
of the
executive had costed representation at about approximately $1,000. (This was
Ms Walkington). Mr Ellis said the executive
had regard to the fact that if
the applicant was not an employee of
the CSA
a matter of this nature
would be handled internally. It was decided that on this basis the calculation
of the amount of the grant,
based on the rates applicable to internal industrial
officers was appropriate. However, the executive also understood that external
representation would cost more than if the matter was handled internally and
therefore it was recommended that the applicant be provided
with funds in the
amount of $2,000. Mr Ellis said this recommendation was subsequently referred
to and adopted by council.
Mr
Ellis said he was also present at the executive meeting on 12 April 2006 where
the executive considered Ms van den Herik’s
request for funds in addition
to the $2,000 already provided. In considering this request Mr Ellis said the
executive reviewed the
original grant of funds and was satisfied with the amount
of that grant and the basis upon which it was determined. Mr Ellis said
the
executive felt it had given a clear and specified allowance to the applicant
which did not confer upon him an open chequebook
for his legal costs. The
executive was not satisfied the application for additional funding established
that the additional costs
incurred were reasonable for the claim. The executive
recommended the request for additional assistance be declined and this was
subsequently referred to and adopted by council.
More
generally, Mr Ellis said that matters involving the allocation of industrial
resources only come before the executive or council
for consideration in
situations where external representation is sought. Mr Ellis referred to
the
CSA
in 2005 developing a policy for members seeking industrial
representation. This was entitled the
Industrial Services Group Industrial
Representation Policy
. Mr Ellis said the policy was developed to ensure
that industrial resources were being used efficiently and in the best interests
of the membership base as a whole. Mr Ellis said the policy sought to
reformulate and enforce the following practices:-
(a) That all
disputes be determined at the organising level first, and only be referred to
the industrial level if appropriate.
(b) That matters should only be accepted at industrial level if:-
(i) There is an interest to the broader membership base in the outcome of the
case or secondarily;
(ii) If there are very strong merits to the claim.
In
cross-examination Mr Ellis denied that
the CSA
knew the applicant could
not obtain representation at the cost of $43.27 per hour which was the rate
relevantly applicable to Mr
Cusack’s representation of
the CSA
in application 1215. (T89). Mr Ellis said the council took on board that he
may not. Mr Ellis said he did not know what rates
industrial agents charged
because he did not use them. (T90). He said that the executive believed the
$2,000 which the council
decided to provide was appropriate. (T90). With
respect to the request for the additional amount sought on top of the initial
$2,000
allocation Mr Ellis said the executive thought there was an excessive
period of preparation. Mr Ellis said they would not have allowed
their
industrial officers to spend that length of time on a matter of this nature.
(T93/94). Mr Ellis said however that he did
not know how long
the CSA
preparation for application 1215 had taken and did not consider it relevant
to ascertain this in considering the extra funding request.
(T94).
(f) Mr Cusack
Mr
Cusack set out his history of employment with
the CSA
. He said he had
been employed by
the CSA
since August 2000 in the position of industrial
advocate. During the period 2000-2004 he had on several occasions held the
position
of acting senior industrial officer when the incumbent was on extended
leave. He was appointed permanently to this position in September/October
2004.
He said that in the past there had been a distinction between industrial
officers and industrial advocates. Advocates were
responsible for representing
members in tribunals and conducting negotiations in tribunal matters whereas
officers were involved
in matters before the Commission. Mr Cusack said in more
recent periods there was a merging of these two roles. Mr Cusack clarified
that
Ms van den Herik was employed as an industrial advocate and was required to
report directly to Mr Cusack as her immediate supervisor/manager.
Mr
Cusack said that to ensure
the CSA
’s industrial resources are
appropriately allocated and accessed, they encourage disputes to initially be
directed to workplace
delegates or the “
Union Link
” advisory
services. Mr Cusack said the industrial staff at
the CSA
did not as a
matter of practice accept referrals for work directly from members or delegates.
If disputes could not be resolved at
the workplace or by Union Link they could
be referred to the industrial advocates or officers.
Mr
Cusack referred to the
Industrial Services Group Industrial Representation
Policy
(
the Industrial Representation Policy
)
which was
developed in 2005. A copy of the policy was annexed to Mr Cusack’s
statement. He said the purpose of the policy
was to outline to members seeking
industrial assistance the requirements that must be satisfied before a matter
will be accepted
by the Industrial Services Group. Mr Cusack said that
since his appointment to the position of senior industrial officer he has
ensured that referrals were considered by reference to the policy. Mr Cusack
said if he decided an industrial matter should not
be taken on by his section
then the member had the right to take their case to executive for review. Other
than that the executive
and council have little involvement in the day-to-day
operations of the Industrial Services Group.
Mr
Cusack also said the council or executive may occasionally receive applications
from members seeking resources for industrial representation
external to
the
CSA
.
Mr
Cusack said Ms van den Herik became involved in the applicant’s dispute in
her capacity as the elected workplace delegate
for CSA staff. Mr Cusack also
told of his understanding about Ms van den Herik seeking external
representation for the applicant.
Mr Cusack said the applicant was not
referred to
the CSA
Industrial Services Group or allocated to
Ms van den Herik in her capacity as an industrial officer. Mr
Cusack said that subsequently
Ms Walkington told him she had communicated
to Ms van den Herik that the latter should have no further dealing in
application 1215
for the applicant. Mr Cusack told
Ms van den Herik he was aware of Ms Walkington’s
direction and Ms van den Herik needed to
be careful about the distinction
between her role as workplace delegate and that of an industrial officer in
dealing with the applicant’s
claim.
In
cross-examination Mr Cusack was asked about
the Industrial Representation
Policy
. Mr Cusack said because of issues of workload and work priority
they needed to have guidelines in place to facilitate giving consideration
to
each matter that came before the Industrial Services Group. This was part of
his role. Mr Cusack said other things could also
be done if there was capacity
to do so, but the policy was used to determine which applications are taken on.
Therefore, if an application
did not satisfy the policy as making it a priority
it did not necessarily mean
the CSA
would provide no assistance. Mr
Cusack referred to the Union Link Advisory Service which provided assistance to
members and delegates
with various industrial matters. (T108). Mr Cusack was
also asked about other applicants for industrial representation or assistance
from
the CSA
’s Industrial Services Group. With respect to one
member, Mr Cusack said he was partly represented because there was a level
of embarrassment within the organisation about errors that had been made by
the CSA
. He admitted however that the errors had been fixed by the time
the member requested
the CSA
take on the case. (T126). Representation
proceeded even though Mr Cusack formed the view that the case had little chance
of success.
In
cross-examination Mr Cusack was also asked about evidence from Ms van den Herik
that on one occasion he admitted to her
the CSA
has breached rule
12(l)(vi) in the appointment of its employees. (This
“
admission
” was said by the applicant to be relevant to the
attitude of
the CSA
to the funding of both application 1215 and the
present application). Mr Cusack recalled a conversation with
Ms van den Herik in
which he discussed the issue but denied saying
anything like that. He accepted that he could not recall the precise details of
what
he said. (T126). Mr Cusack said however he had never formed the view
that
the CSA
had breached rule 12(l)(vi). (T127).
(g) Ms Walkington
Ms
Walkington’s evidence confirmed the original claim made to her by the
applicant about payments for overtime and the discussions
with Ms van den Herik
about the issue. Ms Walkington also referred to Mr Cusack representing
the CSA
in application 1215 and Ms van den Herik’s
submission for external representation for the applicant. Ms Walkington
referred
to the memorandum of Ms van den Herik dated 16 June 2005. In
response to this Ms Walkington prepared a memorandum dated 22 August
2005 for submission at a special executive meeting of
the CSA
. Ms
Walkington calculated the financial assistance to be provided to the applicant
at the rate of a CSA employed industrial advocate.
Ms Walkington estimated
the costs, based on a two day hearing plus five day’s preparation time
were between $1,391.62 and
$1,622.63 for the use of either a CSA industrial
officer/advocate or a CSA senior industrial officer.
Ms
Walkington referred to the executive meeting on 22 August 2005. Ms
Walkington set out her opinion that in considering the request
for funding the
executive were obliged to comply with the CSA rules including the following
objectives which could be derived from
the rules:-
(a) To spend
funds wisely in a manner that balances the interests of the individual member
and the membership as a whole.
(b) To ensure that funds are not spent to benefit the executive as
individuals.
(c) To act in the interests of the individual member.
(d) To act in the interests of the membership as a whole.
(e) To act in the interests of the organisation.
Ms
Walkington referred to the policy adopted at the council meeting on
28 August 2002 which she said addressed these objectives.
Ms Walkington
said the executive considered these criteria in deciding the applicant’s
request for funding for application
1215. At the meeting the executive
thought the applicant’s claim had little or no prospect of success; that
if the application
was successful there could be a detrimental effect for CSA
membership because staff entitlements would reduce if employees of
the CSA
were aligned with conditions of the public service; and how the matter would
be approached if the request was made by a member other
than an employee of
the CSA
. Ms Walkington said the motion to provide a grant of assistance
to the applicant was passed because the applicant was an employee
of
the
CSA
and because the executive acknowledged Ms van den Herik’s view of
a perceived conflict of interest. Ms Walkington said the
amount of $2,000
was settled on after the executive balanced the estimates prepared by herself
and Ms van den Herik and the fact
that the claim was perceived to be relevantly
straightforward.
Ms
Walkington said the recommendation of the executive was accepted and adopted by
council at its meeting on 24 August 2005. She
also confirmed sending the
email to Ms van den Herik on 23 August 2005 about this.
Ms
Walkington referred in her statement to the fact that despite the perceived
conflict of interest, Ms van den Herik continued to
assist the applicant in
application 1215. The work which she then undertook was reflected in the
invoice from Mr Howlett to the
applicant.
Ms
Walkington next referred to the request for additional funding after the reasons
for decision were handed down in application 1215.
This was by way of a
memorandum from Ms van den Herik dated 1 March 2006 which enclosed the bill
from Mr Howlett dated 11 November
2005. The request for additional
funding was considered and rejected by the executive on 12 April 2006.
Ms Walkington said the
executive had regard to the fact that the parties
had considered the issues in application 1215 to be confined and
straightforward;
the fact that
the CSA
had made without prejudice offers
of settlement to the applicant which were declined and his application was then
dismissed;
the CSA
had to prompt the action to be progressed and the
situation if any other member of
the CSA
approached the executive for
assistance. The executive decided it was not appropriate to accede to the
request for additional assistance.
The recommendation of the executive was
referred to and adopted by council at its meeting on 26 April 2006.
At
the time of signing her statement Ms Walkington believed the amount of $2,000
had been paid towards the applicant’s representation.
It appeared however
that this had not been done and when it was drawn to her attention she arranged
the payment to be made. This
occurred just before the commencement of the
hearing in February 2007.
In
cross-examination Ms Walkington was asked about
the Industrial Representation
Policy
and agreed it applied to all members and would apply where
the
CSA
was not a party but an individual member was. (T333). Ms Walkington
said that consideration was given to the external representation
policy with
respect to the applicant’s request for funding. (T333/334).
Ms
Walkington also said in relation to the request for funding for application 1215
the CSA
executive considered how the request for assistance might be
dealt with if a person was not an employee of
the CSA
but there was a
different employer. At T339 Ms Walkington said that the executive attempted to
do this as in previous cases where
claims had been made against
the CSA
as an employer. One factor for
the CSA
to consider was that the
Commission had previously said
the CSA
ought to consider what it would do
if it was not the employer. (T339). Ms Walkington said that the executive took
into account
the contents of rule 12(l)(vi) and did not consider it
“
imported a term of contract into the contract of employment of
employees
”. (T340).
Factual
Findings on Second Alleged Breach of Rules
I
make the following findings relevant to this alleged breach of the
rules:-
(a) The applicant was initially assisted by Ms van den Herik
in his claim against
the CSA
for payment for overtime. This was in Ms
van den Herik’s capacity as workplace delegate. I will later consider the
conflict
of interest implications from her representation of the applicant.
(b) Ms van den Herik made a representation to
the CSA
administration
that the applicant should be provided with funding for application 1215.
(c) In her memorandum to
the CSA
administration dated 16 June 2005 Ms
van den Herik estimated the cost of representation of the applicant in
application 1215 to be
approximately $5,000.
(d) The request for funding from Ms van den Herik was considered at a special
executive meeting on 22 August 2005. Apart from Ms
van den Herik’s
assessment about costs there was an assessment by Ms Walkington that
representation would cost between about
$1300 and $1700. As this was based on
internal representation costs the executive thought an amount of $2,000 would be
appropriate
and made a recommendation to this effect.
(e) This recommendation was adopted by
the CSA
council on
24 August 2005 who approved the payment of $2,000 for the applicant’s
representation.
(f) Ms van den Herik assisted the applicant by obtaining the services of
Mr Howlett to represent him in application 1215 and provided
assistance for
Mr Howlett in representing the applicant.
(g) Application 1215 was heard and dismissed by Kenner C.
(h) After the decision in application 1215 Ms van den Herik made a request to
the CSA
on behalf of the applicant for the payment of the balance of Mr
Howlett’s fees in representing the applicant. This application
for fees
was rejected at an executive meeting on 12 April 2006.
(i) The executive used the criteria contained in the policy adopted by the
council at their meeting on 28 August 2002 to decide the
applicant’s
request for the funding of application 1215.
(j) According to Mr Ellis
the CSA
executive thought an excessive
amount of time had been spent in the preparation of the applicant’s case
in application 1215,
albeit they did not ascertain how long Mr Cusack had taken
in doing so on behalf of
the CSA
.
(k) Ms Walkington said the reasons for the rejection for the request for
additional funding for application 1215 as being that the
issues seemed to
be confined and straightforward, without prejudice offers of settlement had been
made and declined,
the CSA
had to prompt the action to be progressed and
the situation if any other member of
the CSA
had approached the executive
for assistance.
(l) The executive’s recommendation not to provide additional funding
was adopted by council on 26 April 2005.
(m) The fact that the $2,000 was not paid for the applicant’s
representation until February 2007 was by way of administrative
oversight.
(n) In considering the application for funding for application 1215 both
initially and subsequently,
the CSA
executive and council took into
account how they would approach the matter if
the CSA
was not the
employer involved.
(o) I accept however that in other cases where
the CSA
had not been
the employer they had represented members in industrial applications even though
there was perceived to be little chance
of success in the application.
(p) It is not necessary to resolve the conflict of evidence between Ms van
den Herik and Mr Cusack about whether he admitted to Ms
van den Herik that there
had been a breach of rule 12(l)(vi). It is inherently difficult for a judicial
officer to determine this
type of conflict in the evidence between two witnesses
who both appear to be doing their best to tell the truth. The capacity for
miscommunication or lack of understanding over what was said or intended in such
a conversation is high. What is more material however
is that there is no
evidence that Mr Cusack provided to
the CSA
executive or council any
opinion that rule 12(l)(vi) had been breached. Indeed all of the evidence
suggests the contrary.
In
the present context I am considering this part of the application on the
assumption that
the CSA
had duties under its rules to represent the
industrial welfare of the applicant and in doing so treat the applicant fairly
and reasonably
in the provision of assistance and resources to support
application 1215. In my opinion
the CSA
by its executive and council,
based on the evidence, acted genuinely in trying to ascertain the extent to
which they should financially
support application 1215. A decision was made to
fund representation despite the fact that
the CSA
’s advice was that
the application had little chance of success.
The CSA
took into account
that it was the respondent to application 1215.
Despite
this, I am satisfied that the process which was adopted to assess the
application for additional funding in application 1215
was flawed and in this
sense was not fair to the applicant. The reason for this stems from the
inherent conflict of interest which
the CSA
executive and council had in
assessing an application for funding for an action in the Commission against
them and in which their
chief executive, Ms Walkington, was likely to be a
key witness. The processes adopted by
the CSA
did not adequately try and
take into account or attempt to redress this conflict of interest. To do so, in
my opinion
the CSA
ought to have obtained some independent advice about
aspects of the application for additional funding. This included the complexity
of the applicant’s case; the rates which could be reasonably charged by an
industrial agent or solicitor in the representation
of the applicant; whether
the applicant was likely to better represented by a solicitor rather than an
industrial agent; why this
particular solicitor was chosen to represent the
applicant; whether the representation of the applicant by the solicitor involved
excessive preparation; and the reasonableness of the solicitor’s fee
rate.
The
applicant also submitted that his treatment was comparably less favourable than
other CSA members who requested assistance. In
my opinion this has not been
established. Each case referred to had its own characteristics and given the
lack of any detailed evidence
about them it is difficult to carry out such an
analysis.
It
was also submitted that if a member other than the applicant, as a CSA employee,
was being employed on below award conditions
the CSA
would come down upon
them “
like a ton of bricks
”. Whilst this might be so, and
understandably so, the point does not in my opinion show
the CSA
treated
the applicant unfairly. This is because there was, here, a real issue of
whether any award conditions applied to the applicant
and
the CSA
’s
advice was it did not. If
the CSA
received the same advice about a non
employee CSA member it might well respond other than like the “
ton of
bricks
”.
If
the duties which the applicant relied upon existed within the “
rules of
the organisation
”, it might be within the powers of the President
under s66 to make an order that
the CSA
take steps now to ensure
observance with the rules. I do not however consider this aspect of the matter
further because of the determination
that I have made about the non existence of
the duties within the “
rules of the organisation
”.
In
any event, for the reasons outlined earlier with respect to the alleged breach
of rule 12(l)(vi), I am not satisfied that it would
be within the
jurisdiction of the President under s66(2) of
the Act
to make an order
that
the CSA
make a payment to the applicant as compensation for any
failure to comply with any duties implied into the rules which might have
lead
to the failure to pay the balance of the fees of Mr Howlett in his
representation of the applicant in application 1215. There
are a few
issues wrapped up in this sentence, including:-
(a) The lack of
jurisdiction to award compensation for past breaches of the rules.
(b) If there was a breach it was one of a fair process.
(c) I am not in a position to assess the reasonableness of the amount charged
by Mr Howlett for his representation, although I can
see from the bill that
the hourly rate looks reasonable and on several occasions work was done and not
charged for.
Conclusion
on Second Alleged Breach of the Rules
For
the reasons set out above I am not satisfied that the applicant has established
any basis for the making of orders 5, 6 or 7 of
the remedies sought in the
application as filed.
Breach
of Rules by Failing to Provide Resources for Representation of s66 Application -
Evidence
(a) The Applicant
The
applicant explained that he had contemplated bringing a s66 application in
parallel with application 1215. He decided against
this course because he
believed he had a strong case in application 1215. Application 1215
was dismissed on 20 January 2006 and
reasons published on that date. The
primary reason for the dismissal of the application was set out by Kenner C in
paragraph [29]
quoted earlier.
After
the reasons of Kenner C were published and read by the applicant, he thought the
reasons appeared to accept
the CSA
rules may have been breached. The
applicant said Kenner C’s reasons seemed to make a distinction between the
possible breach
of
the CSA
rules and the terms and conditions of
employment which
the CSA
applied to him.
In
his reasons for decision at paragraph [4], Kenner C had referred to the
submission made by the applicant’s counsel that “
by the terms of
the Rules of the respondent, specifically Rule 12(l)(v) [sic], all employees of
the respondent are entitled to terms
and conditions of employment the same as
conditions for an officer appointed in the public service. It followed
according to this
submission, that the terms of the Public Service Award 1992
(“the Award”) had application and entitled the applicant
to overtime
payments
.”
As
stated by Kenner C in paragraph [5] of his reasons,
the CSA
in
application 1215 submitted that “
rule 12(l)(v) [sic] of the
respondent’s rules does not have the meaning contended for by the
applicant. It was submitted that
the applicant’s construction of the Rule
would be unworkable, given the proliferation of industrial instruments applying
to
public sector employees
.”
Kenner
C’s determination of the application insofar as it relied on rule
12(l)(vi) is contained in paragraphs [31] to [33] of
his reasons, which have
some relevance to the present proceedings. Accordingly, I set them
out:-
“
31 Counsel for the applicant submitted that the
effect of [rule 12(l)(vi)] at the material time was to require the
respondent to employ
the applicant on terms and conditions of employment
applicable to an officer appointed in the public service in accordance with the
“
Public Service Act
”, which should now be read as the
Public Sector
Management Act 1994
. The submission was that a person so appointed, would be
entitled to payments for overtime in accordance with the terms of the Award.
Therefore, this gave rise to a contractual benefit in favour of the
applicant.
As
to this issue, the respondent argued that the terms of Rule 12(l)(vi) of the
respondent's rules is insufficiently certain to confer
such a benefit on the
applicant because of its generality. It was said that as there are so many
industrial instruments applying
to persons employed in the public sector,
including the Award, many industrial agreements and other forms of industrial
instrument,
it would be overly complex and unworkable to ascertain what the
terms and conditions of appointment should be. It was also submitted
that even
if the applicant’s submissions on this point were sound, then at its
highest the respondent may have breached its
Rules in engaging the applicant as
it did, but that of itself does not confer a contractual benefit as
claimed.
In
my opinion the applicant's arguments on this point cannot be sustained. What in
fact and in law were the terms of the applicant's
contract of employment with
the respondent at the time he commenced employment, and what may be specified as
required in the Rules
of the respondent, are two different issues. Whilst the
terms of Rule 12(l)(vi) are less than clear, I am not of the view that such
a
Rule would support a claim for a contractual benefit for an individual employee
of the respondent. What this Rule appears to be
directed towards, is to require
the council to engage employees on terms and conditions as those applicable to
an officer in the
public service. That provision qualifies the general power of
appointment set out in the first part of the sub rule. However, it
seems to me
that rather than grounding a specific contractual entitlement between the
respondent and the employee concerned, the
sub rule provides for a mandatory
obligation on the council which if not complied with, would constitute a breach
of the Rules.
”
The
applicant said that after he commenced the
s66
application he wrote to
the
CSA
requesting for funds for representation. The letter dated 7 June
2006 was annexed to his witness statement. The letter said that
as a member of
the CSA
the applicant requested resources to fund his representation.
The applicant said that unlike application 1215 he would be grateful
if the
resources were provided prior to the hearing. The applicant said an estimate of
costs could be provided and that he had retained
Mr Howlett to again
represent him in the application. The letter set out the rate at which the
applicant was going to be charged.
The letter asserted the conduct and progress
of application 1215 demonstrated that the decisions made by
the CSA
can
have an impact on the conduct of the case and therefore costs. The applicant
requested these matters be taken into account in
considering his request.
By
letter dated 18 July 2006, Ms Gaines, as acting branch secretary said that
the applicant’s request for funding had been considered
by the executive.
The letter said the factors taken into account by the executive included the
rules of
the CSA
, the objects of the rules, the benefit the application
would have for
the CSA
and its members and the obligations of
the
CSA
to fund individual members’ applications pursuant to
s66.
The
letter said that following “
consideration of all of these matters the
Executive has declined your request
”.
The
applicant asserted
the CSA
did not inform him why it would not provide
him with funds for representation. He also said he was not invited to discuss
his representation
with
the CSA
or his application for funds. The
applicant asserted that on the basis of Ms Walkington’s memorandum dated
May 2006 there
was a strong case to argue that
the CSA
had breached its
rules. The applicant also asserted that the defence by
the CSA
of the
application and its engagement of solicitors had increased his own costs. The
applicant asserted he had been treated differently
from other CSA members
because his dispute was with
the CSA
.
The
applicant said the current president of
the CSA
had expressed some
sympathy to his claim for the payment of overtime. The applicant said that
despite this the president had not
enforced
the CSA
rules nor assisted
him.
(b) Ms van den Herik, Ms Robertson and Mr Best
None
of these witnesses gave any evidence relevant to this part of the
application.
(c) Mr Ellis
Mr
Ellis said he was present at a special executive meeting on 21 June 2006
when the applicant’s request for funding was considered.
He said the
executive applied the criteria in the external representation policy. He said
the executive noted the applicant had
pursued his contractual benefits claim in
the Commission and had been unsuccessful. Mr Ellis said on “
this
basis, we believed the
section 66
claim seeking payment of those benefits was a
‘red herring’ claim
”. Mr Ellis said the executive also
considered whether there were potential benefits for
the CSA
and its
wider membership base. Mr Ellis referred to benefits that employees of
the
CSA
enjoyed through their EBA’s which would be lost if their
entitlements were realigned to the public sector, and said that
the CSA
did not feel there was any advantage for this to their staff. Additionally, Mr
Ellis referred to the fact that by the time the applicant
lodged his
s66
application, rule 12(l)(vi) was no longer in existence. I note that strictly
this was not correct. The rule was not relevantly
altered until
15 November 2006 although steps had earlier commenced to do so.
Mr
Ellis said the executive recommended the request for the funding be declined.
The recommendation was subsequently referred to
and considered by council at its
meeting on 28 June 2006. Mr Ellis said Ms Walkington addressed
the council on the executive’s
deliberations and recommendations.
Following this, council unanimously voted to adopt the executive’s
recommendation and declined
the request for funding.
Mr
Ellis said in “
very rare circumstances
” the executive or
council would support and provide resources to assist an individual
member’
s s66
application if it was “
in line with the good order
and Articles of Association of the CSA
”. Mr Ellis said he could only
recall one occasion when this occurred.
(d) Mr Cusack
Mr
Cusack gave no evidence relevant to this part of the application.
(e) Ms Walkington
Ms
Walkington said in deciding not to recommend acceptance of the applicant’s
request for funding the executive had considered
the same policy criteria as for
the two previous requests for assistance and felt that:-
(a) The
s66
application had little or no advantageous consequences for
the CSA
membership as a whole.
(b) It was not prudent therefore to provide money to the applicant in
addition to that already provided.
Ms
Walkington confirmed the outcome of the special executive meeting on
21 June 2006 and the acceptance of that recommendation after
considerable
discussion by council at its meeting on 28 June 2006. Ms Walkington also
confirmed that the applicant was advised of
the decision of council by the
letter from Ms Gaines dated 18 July 2006.
In
cross-examination Ms Walkington denied that in considering the applicant’s
request for funding the present application
the CSA
considered only its
own interests. Ms Walkington said
the CSA
’s interests are also its
members’ interests and it also has an obligation to consider individual
members’ interests.
(T238). She said the applicant’s interest was
taken into account.
Later,
Ms Walkington said in her view the external representation policy, which
referred to a breach of rights and entitlements did
not apply to a
s66
situation
and a members’ right to have the rules of the organisation complied with.
It was about people’s industrial
rights in the sense of the terms and
conditions of their employment. (T335). Ms Walkington said the determination
of applications
for funding of
s66
applications by CSA members and employee
members was not documented in a specific policy. Ms Walkington did not accept
the applicant
had been treated less favourably because
the CSA
could not
represent him.
Ms
Walkington denied
the CSA
generally took a hostile attitude to
s66
applications against it. (T352). Ms Walkington said
the CSA
council
opposed the present
s66
application but did “
not know
” that
she would describe its attitude as hostile. (T352).
Ms
Walkington also said the executive discussed the lack of benefit to
the
CSA
members from the
s66
application. That is there could be a disadvantage
to some members who were also employees of
the CSA
if the interpretation
of the rule the applicant advocated was accepted.
Factual
Findings on Third Alleged Breach of Rules
I
make the following factual findings about this alleged
breach:-
(a) The applicant decided to commence a s66 application
after the decision in application 1215 and seeing the Walkington memorandum
in or about May 2006.
(b) The applicant sent a letter to
the CSA
requesting funds for his
representation on 7 June 2006.
(c) The applicant was informed by letter dated 18 July 2006 from
Ms Gaines as acting branch secretary that the application for funding
had
been considered and rejected by the executive. The letter said the matters
considered by the executive included the rules of
the CSA
, the objects of
the rules, the benefit the application would have for
the CSA
and its
members and the extent of the obligation of
the CSA
to fund individual
member’s applications pursuant to s66.
(d) Accordingly, contrary to the assertion of the applicant
the CSA
did inform him of the reasons why it would not fund his representation.
(e) Mr Ellis and Ms Walkington both attended the special executive meeting on
21 June 2006 when the funding application was considered.
I accept the
evidence of Mr Ellis and Ms Walkington about what was discussed and
decided at those meetings.
(f) I accept Ms Walkington’s evidence that
the CSA
executive and
council in considering the application attempted to consider not only its own
interests but those of the applicant
and also the wider membership.
(g) I accept that the executive and council endeavoured to apply the external
representation policy in considering the funding application.
I also accept
Ms Walkington’s evidence that the executive and council took into
account that if the applicant was successful
in the s66 application it may not
be beneficial to other employees of
the CSA
.
Again
I am satisfied that
the CSA
executive and council genuinely considered
the application for the applicant’s funding for representation in the
present application.
I also think the factors taken into account in making the
decision seem sound. Again however the process used to decide the funding
application was bedevilled by the inherent conflict of interest. This conflict
of interest which was quite plain was not addressed
in any specific process of
the executive or council in determining the funding application. I accept that
the council and executive
did their best to decide the application fairly but
the difficulties of doing this were ever present because of the conflict.
Again,
a fair process would in my opinion have involved the obtaining of
independent advice about the request for funding in the context
of it being a
s66 application against
the CSA
, the prospects of success of the
application, the benefits to the wider membership of
the CSA
or other
employees of
the CSA
and the application of the external representation
policy with respect to such a claim. In my opinion the fact that this did not
occur means
the CSA
did not comply with any duty it had under the
“
rules of an organisation
” to represent the industrial
welfare of the applicant by treating him fairly and reasonably in the provision
of assistance
and resources. This was because the process was not fair as
adequate steps were not taken to redress the inherent conflict
the CSA
council and executive had in considering the funding of an application against
the organisation they administered.
I
do not accept the applicant’s submission that the industrial
representation policy was misapplied because the applicant was
not considered to
be a priority case because his rights were affected. I accept
Ms Walkington’s evidence about how the policy
was intended to
operate.
For
the reasons set out earlier however, I am not satisfied that the duties relied
on are part of the “
rules as an organisation
” of
the
CSA
and therefore comprise a subject about which orders may be made under
s66(2) of
the Act
.
Additionally,
for the reasons set out earlier, even if these duties were part of the rules of
the CSA
and there had been a breach of them, I am not satisfied that the
jurisdiction under s66(2) of
the Act
would extend to the making of an
order that
the CSA
pay the costs of representation of the applicant in
the present proceedings.
Conclusion
on Third Alleged Breach of Rules
For
the reasons set out above, in my opinion the applicant has not established any
basis for the making of orders 8 and 9 as set out
in the application as filed.
For completeness I mention that the applicant did not in his final submissions
seek an order in terms
of order 1 as set out in the application and no orders
were sought with respect to order 10 as there stated.
Other
Issues
As
stated at the outset there are other issues which emerged during the hearing
which I think should be commented upon or orders or
directions made about. This
is permissible given s26(2) of
the Act
and the reasons of
EM Heenan J in
Robertson
referred to above.
The CSA
accepted that this jurisdiction existed, subject to the requirements of
procedural fairness.
References
in Rules to the
Public Service Act 1978
There
are other references in the rules to
the PSA
apart from
rule 12(l)(vi). Given the repeal of this Act and its replacement by
the
PSMA
the references to
the PSA
ought to be removed. The rules where
there is reference to
the PSA
are 6(a)(1), 19(a) and 20.
Rules 19(a) and 20 provide for the appointment of the general secretary and
assistant general secretary,
like former rule 12(l)(vi), “
subject
to the same conditions and restrictions as an Officer appointed under the Public
Service Act
”. Given that the sentence containing this condition has
been removed from rule 12(l)(vi), the practical impossibility of the
application of this expression, the repeal of
the PSA
and replacement by
the PSMA
and the non-opposition by
the CSA
, it is appropriate to
delete this part of these rules. I will therefore order that
the CSA
council make an application to the Commission to alter the rules of
the
CSA
to delete these words in both rules 19(a) and 20.
The
position relating to rule 6(a)(1) is more complicated in that it is
contained within one of the membership rules of
the CSA
. The alteration
of membership rules can only take place after authorisation by the Full Bench
and registration by the Registrar,
under s62(2) of
the Act
. Accordingly
I think the President’s jurisdiction only extends to a direction or order
that
the CSA
council and executive, in accordance with the rules of
the CSA
, take steps to alter the membership rule.
An
order to this effect should be included in the final orders.
Workplace
Delegates and Conflict of Interest
I
have earlier set out
the CSA
rule about workplace delegates. The role of
a workplace delegate is no doubt important to the structure and members of
the CSA
. It is problematic however in relation to the members of
the
CSA
who are employees of
the CSA
when there is a dispute with
the
CSA
as their employer.
Sharkey
P in
Wauhop
, with respect, identified part of this problem in paragraph
[26] of his reasons as follows:-
“ ...
In the normal course
of events, in my opinion, the fiduciary duty of the Executive and the Council to
its members would prevent someone
being assisted by the CSA to make a claim
against it. That is somewhat obvious. However, by its eligibility clause (rule
6) employees
are eligible to become members and the CSA is put in the position
by its rules where it is bound to look after the industrial welfare
of its
members even against itself. That, of course, is the inherent vice in
eligibility clauses which make employees of an organisation
also eligible to be
members of it. They have no separate representation against their employer
unless they are eligible to become
and do become members of another
organisation. That was not said to be the case here. The eligibility rule in a
case like this
renders the organisation of employees concerned, the industrial
representative of employee members against itself. It therefore
binds itself to
assist an employee against itself the employer, whilst also being their
“union”.
”
Rule
30, the final rule of
the CSA
rules is about conflict of interest and is
in the following terms:-
“
30 –
CONFLICT OF INTEREST
All officers of the Association and all officers in the employ of the
Association who have a pecuniary or other interest in any matter
which conflicts
- or can be reasonably shown to have the potential to conflict - with the
conduct of their official duties, shall
provide a written statement disclosing
the fact and nature of that interest to the Council and Annual General Meeting,
as soon as
practicable after the relevant facts have come to the officer's
attention.”
It
is not clear whether this rule applies to employees of
the CSA
and no
submissions on this issue were made.
The
conflict of interest involving Ms van den Herik’s assistance and
representation of the applicant in his claim for overtime
against
the CSA
was striking. Any assertion that she could properly act for or assist the
applicant in application 1215 as his workplace delegate
is unsound given
the CSA
was her employer, and she worked for the section of
the
CSA
that was representing it. Ms van den Herik could not, without
conflict, represent the applicant.
A
conflict of interest occurs where a person cannot at the same time act in
accordance with two duties. As the employee of
the CSA
Ms van den Herik
had duties of trust, fidelity and confidentiality. She could not properly act
for the applicant without potentially
compromising these duties. This is
because a representative of an applicant in legal proceedings must act for them
with the upmost
good faith. They must use all of their knowledge and skill to
the advantage of the person represented. In this instance
Ms van
den Herik had knowledge of the workings of
the CSA
and their industrial relations section, because of her employment. There was a
conflict in that this knowledge should be disclosed
to the applicant to properly
represent him but at the same time would compromise
Ms van den Herik’s duties to
the CSA
as her
employer.
As
stated in
Alexander v Perpetual Trustees WA Limited
[2001] NSWCA 240
, by
Davies AJA at [125]: “A
conflict of interest is an insidious
thing. It clouds the mind. Aspects of a duty of care, which ought to be seen
clearly and distinctly,
are seen in a hazy light when a solicitor seeks to
reconcile the interests of two clients who each have interests which differ from
those of the other
”. In my opinion, the same applies with respect to
a workplace delegate who seeks to represent the interests of an employee
of
the CSA
in an action against
the CSA
. It is also applicable
generally to the other conflicts of interest which prevailed in this case.
It
would be of assistance to the future operation of
the CSA
if it were to
amend its rules or develop a policy framework to enable it to deal with
conflicts of interest involving workplace delegates
of the employees of
the
CSA
and conflicts involved in any decision made by the executive or council.
In my opinion it is not appropriate to make any order or
direction to this
effect but strongly suggest it should occur.
Rule
12(m)
The
contents of rule 12(m) have been quoted earlier. The second sentence of the
rule cannot be binding upon
the CSA
, its council, executive or members if
for no other reason because of the contents of s66(2)(d) of
the Act
.
The CSA
accepted that it was appropriate to order that the second
sentence of the rule be deleted. An order to facilitate this should be
included
in the final orders.
Minute
of Proposed Orders
A
minute of proposed orders will issue that:-
Within
30 days of 28 June 2007 the executive and council of the respondent take the
necessary steps to alter rules 19(a) and 20 of
the registered rules of the
respondent by the deletion of the expression “
subject to the same
conditions and restrictions as an officer appointed under the Public Service
Act
”.
Within
30 days of 28 June 2007 the executive and council of the respondent initiate the
process set out in the registered rules of
the respondent to alter
rule 6(a)(i) to delete the reference to the “
Public Service Act
1978-1980
” and replace it with the “
Public Sector Management
Act 1994
(WA)
”.
Within
30 days of 28 June 2007 the executive and council of the respondent take the
necessary steps to alter rule 12(m) of the registered
rules of the
respondent by the deletion of the second sentence.
The
application is otherwise dismissed.