Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union v Abigroup Contractors Pty Ltd
[2013] FCAFC 148
Federal Court (Full Court)
2013-12-06
cited 9×
Buchanan, Katzmann And Rangiah Jj
Leading authority
Treatment by later cases (28)
1 positive
27 neutral
Citation timeline
2013
2016
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2026
Applicant: Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union
Respondent: Abigroup Contractors Pty Ltd
Ratio
The Federal Court (3-0 per majority Katzmann and Rangiah JJ; Buchanan J dissenting on remedies but agreeing jurisdictional error made) held that the Senior Deputy President denied the CEPU procedural fairness by refusing adjournments beyond two short periods totalling 76 minutes where the CEPU was served with 300+ pages of material only 2.5 hours before hearing, and the Full Bench committed jurisdictional error by conflating the question of whether procedural fairness was denied with the discretionary question of whether the outcome would have differed, wrongly treating the potential absence of effect on the outcome as relevant to whether procedural fairness was accorded. The majority granted certiorari quashing the orders insofar as they applied to the CEPU and prohibition preventing further proceedings.
Outcome
Resolved
partial
Authority signal
Leading authority
Signal-weighted score: 33.1
Derived from how later decisions have treated this case. Dark green = leading authority,
green = positively treated, grey = neutral or sparse data,
amber = caution, red = treated negatively.
Key facts · 14
- Queensland Children's Hospital (QCH) project valued at approximately $800 million
- Industrial action commenced 6 August 2012, initiated by CFMEU and BLF members
- CEPU members subsequently ceased work; dispute over whether cessation was due to safety concerns or industrial action
- Section 418 application filed by Abigroup on 3 September 2012 at approximately 11:30 am
- CEPU and CFMEU served with application and supporting documents approximately 2.5 hours before hearing
- Hearing commenced 3 September 2012 at 3:15 pm
- CFMEU and CEPU sought adjournment until 5 September 2012
- Senior Deputy President granted only short adjournments totalling approximately 76 minutes
- Proceedings concluded 8:53 pm on 3 September 2012
- Senior Deputy President issued decision 5 September 2012 at approximately 11:30 am
- Orders made against both CFMEU and CEPU prohibiting organisation of industrial action
- CEPU appealed to Full Bench on ground of denial of procedural fairness
- Full Bench dismissed appeal
- Evidence subsequently obtained by CEPU in Federal Magistrates Court proceedings on 5-6 September 2012 included affidavits from CEPU organisers Lynch, Ong, and McKenzie
Factors
For
- Site disruption valued at approximately $300,000 per day in losses
- Urgency of situation: Queensland Children's Hospital project stalled for substantial period
- Large number of workers (approximately 650) had ceased work by 3 September 2012
- Previous s 418 orders against CFMEU and BLF had not resulted in return to work
- Statutory 2-day determination requirement in s 420 of the Fair Work Act
- Evidence of CFMEU members engaging in picketing and industrial action
- Uncontradicted evidence from Mr Gildea regarding CEPU members' activities and union officials' statements
Against
- CEPU not provided with prior notice that s 418 application would be brought
- Service of application and substantial supporting material (approximately 315 pages) only 2.5 hours before hearing
- Additional statutory declarations provided to CEPU's representatives at bar table minutes before hearing commenced
- No opportunity to take instructions from CEPU organisers before closing of case
- Evidence against CEPU based substantially on hearsay account of statements attributed to CEPU organiser Lynch
- CEPU's counsel unable to cross-examine Abigroup's witnesses due to lack of time and instructions
- No material suggesting CEPU had advance notice to anticipate and prepare for application
- Evidence subsequently obtained by CEPU in Federal Magistrates Court showed material contradicting Abigroup's allegations
- Earliest allegations of CEPU organising industrial action dated back to 7-10 August 2012; no urgency in bringing application on 3 September
- CEPU members expressed concerns about safety (crossing picket lines) which fell within s 19(2)(c) exception to 'industrial action'
Dissenting judgments
Buchanan J disagreed with the majority on the appropriate remedy. Buchanan J held that even assuming denial of procedural fairness at first instance, the Full Bench's examination of the evidence cured any such denial, and therefore relief should be refused on discretionary grounds. However, Buchanan J agreed that the Senior Deputy President's refusal of adjournment beyond the evening of 3 September 2012 was prima facie unreasonable and constituted a denial of procedural fairness, and agreed that the Full Bench may have misapplied the test by suggesting the new evidence would not have affected the outcome. The dissent was as to remedies, not the primary jurisdictional error findings.
Legislation referenced
- Fair Work Act 2009 (Cth) s 418
- Fair Work Act 2009 (Cth) s 419
- Fair Work Act 2009 (Cth) s 420
- Fair Work Act 2009 (Cth) s 421
- Fair Work Act 2009 (Cth) s 19
- Fair Work Act 2009 (Cth) s 539
- Judiciary Act 1903 (Cth) s 39B
- Acts Interpretation Act 1901 (Cth) s 36(2)
Concept tags · 9
[P]Procedural fairness at dismissal stage
[P]Unprotected industrial action
[P]Stop order for industrial action (s418)
[S]Meaning of 'industrial matter' (WA s7)
[S]Protected industrial action
[S]Extension of time to file
[S]Leave for legal representation
[S]Jurisdictional facts
[S]Judicial review grounds
Principles · 14
articulates para 88
Procedural fairness requires that a person who may be affected by a decision be informed of the case against them and be given a reasonable opportunity to answer it. A failure to accede to a reasonable request for an adjournment can constitute procedural unfairness.
Test: Procedural fairness - reasonable opportunity to respond
articulates para 89
A denial of natural justice will not entitle an aggrieved party to a new trial if the new trial would inevitably result in the making of the same order. However, an appellant needs show only that the denial of natural justice deprived them of the possibility of a successful outcome. The court must find that a properly conducted trial could not possibly have produced a different result to negate that possibility.
Test: Natural justice - futility test
articulates para 91
What will constitute a reasonable opportunity for a party to present its case depends upon the whole of the circumstances, including the nature of the jurisdiction exercised and the statutory provisions governing its exercise. Procedural fairness requires that the statutory power be exercised fairly in accordance with procedures that are fair to each party in light of the statutory requirements and the interests of the parties.
Test: Procedural fairness - contextual reasonableness
articulates para 95
The two-day period within which an application under s 418 is ordinarily expected to be heard and determined necessarily affects what constitutes a reasonable opportunity for the respondent to present its case. Expedition does not trump procedural fairness; the legislation does not pursue expedition at all costs.
Test: Statutory time limits and procedural fairness
articulates para 100
When a court considers whether a tribunal exercising a statutory power has accorded a party procedural fairness, the court must place itself in the shoes of the tribunal to determine whether the procedure adopted was reasonable and fair. What is reasonable and fair depends on the circumstances known to the tribunal at the time of the exercise of the power or the further circumstances which, had it acted reasonably and fairly, it would then have known.
Test: Reviewing procedural fairness - objective reasonableness
articulates para 145
Procedural fairness is concerned with observance of fair decision-making procedures rather than with the character of the decision which emerges from the observance of those procedures. A trivial breach of the requirements of procedural fairness will not deny the existence of jurisdictional error. The bearing of the breach upon the ultimate decision should not itself determine whether prohibition should go.
Test: Nature of procedural fairness duty vs substantive outcome
articulates para 148
For jurisdictional error by an appellate tribunal, there must be misconception of its role, misunderstanding of the nature of its jurisdiction, misconception of its duty, failure to apply itself to the question prescribed by statute, or misunderstanding of the nature of the opinion it was to form.
Test: Appellate jurisdictional error - Coal and Allied test
cites para 88
Procedural fairness requires that a person who may be affected by a decision be informed of the case against them and given a reasonable opportunity to answer it. A failure to accede to a reasonable request for an adjournment can constitute procedural unfairness.
cites para 89
An appellate court will not order a new trial if it would inevitably result in the making of the same order. However, where denial of natural justice affects the entitlement of a party to make submissions on a factual issue, particularly witness credibility, it is more difficult for a court of appeal to conclude that compliance with natural justice could have made no difference. All that an appellant needs to show is that the denial of natural justice deprived them of the possibility of a successful outcome.
cites para 100
Procedural fairness requires that statutory power be exercised fairly in accordance with procedures that are fair to each party in light of statutory requirements, the interests of the parties, and the interests and purposes which the statute seeks to advance. When reviewing whether procedural fairness was accorded, the court must place itself in the shoes of the tribunal.
cites para 117
A denial of procedural fairness is jurisdictional error. The bearing of the breach of procedural fairness upon the ultimate decision should not determine whether prohibition should go; a trivial breach will not deny jurisdictional error. The question is whether there has been a breach of the obligation to accord procedural fairness.
cites para 121
Where a full statutory right of appeal exists on facts and law with power to admit further evidence and confirm, quash or vary the decision under appeal, and where the appeal has been conducted as a full and fair hearing, any denial of natural justice at first instance becomes irrelevant. However, this principle applies only where the appeal in fact provides a full and fair hearing that cures the procedural defect.
cites para 121
Where a party has received a full and fair hearing on appeal, any denial of natural justice at first instance becomes irrelevant. The hearing process before the decision-maker and on appeal must be examined 'as a whole' to determine if the procedural defect was cured.
cites para 148
Jurisdictional error by an appellate tribunal occurs only if it has misconceived its role, misunderstood the nature of its jurisdiction, misconceived its duty, failed to apply itself to the question prescribed by statute, or misunderstood the nature of the opinion it was to form.
Cases cited in this decision · 40
Cited
[1989] HCA 13
(not in corpus)
"…ilure to accede to a reasonable request for an adjournment can constitute procedural unfairness. (Citations omitted.) One case cited by their Honours was Re Association of Architects of Australia; Ex parte Municipal...…"
Cited
(1989) 63 ALJR 298
(not in corpus)
"…to a reasonable request for an adjournment can constitute procedural unfairness. (Citations omitted.) One case cited by their Honours was Re Association of Architects of Australia; Ex parte Municipal Officers...…"
Cited
(1988) 62 ALJR 81
(not in corpus)
"…is always relevant to enquire whether the party or his legal representative should reasonably have apprehended that the issue was or might become a live issue: see Re Building Workers’ Industrial Union of Australia;...…"
Cited
[1988] HCA 4
(not in corpus)
"…uire whether the party or his legal representative should reasonably have apprehended that the issue was or might become a live issue: see Re Building Workers’ Industrial Union of Australia; Ex parte Gallagher [1988]...…"
Cited
[2011] FCAFC 54
— Coal & Allied Mining Services Pty Ltd v Lawler
"…tance: a denial of procedural fairness? It is well established that the members of the Fair Work Commission are obliged to observe procedural fairness in carrying out their functions under the Fair Work Act : Coal &...…"
Cited
(2011) 192 FCR 78
(not in corpus)
"…f procedural fairness? It is well established that the members of the Fair Work Commission are obliged to observe procedural fairness in carrying out their functions under the Fair Work Act : Coal & Allied Services...…"
Cited
[2008] FCAFC 26
— Transport Workers' Union of New South Wales v Australian Industrial...
"…192 FCR 78 at [25] . That obligation extends, in the absence of any express provision to the contrary, to the exercise of the Commission’s powers under s 418: Transport Workers’ Union of New South Wales v Australian...…"
Cited
(2008) 166 FCR 108
(not in corpus)
"…] . That obligation extends, in the absence of any express provision to the contrary, to the exercise of the Commission’s powers under s 418: Transport Workers’ Union of New South Wales v Australian Industrial...…"
Cited
(2002) 209 CLR 597
(not in corpus)
"…08] FCAFC 26 ; (2008) 166 FCR 108 at [44] . Procedural fairness requires that the Fair Work Commission ensure that each party is given a reasonable opportunity to present his or her case: Minister for Immigration and...…"
Cited
(1978) 20 ALR 323
(not in corpus)
"…rk Commission ensure that each party is given a reasonable opportunity to present his or her case: Minister for Immigration and Multicultural Affairs v Bhardwaj (2002) 209 CLR 597 at [40] per Gaudron and Gummow JJ;...…"
Cited
[1999] FCA 404
(not in corpus)
"…s, but the Full Bench went on to conclude in [33] that such a reasonable opportunity was in fact given so that its error may be irrelevant. A refusal to grant an adjournment can constitute procedural unfairness:...…"
Cited
(1999) 58 ALD 373
(not in corpus)
"…ench went on to conclude in [33] that such a reasonable opportunity was in fact given so that its error may be irrelevant. A refusal to grant an adjournment can constitute procedural unfairness: Bhardwaj at [40]. In...…"
Cited
[1974] 2 All ER 1219
(not in corpus)
"…ht be asked, cannot an adjournment on appropriate terms adequately protect the interests of those parties? The Full Court cited the following passage from the decision of the English Court of Appeal in R v Thames...…"
Cited
[1993] HCA 47
(not in corpus)
"…before you are called on to present it. A mere allocation of court time is of no value if the party in question is deprived of the opportunity of getting his tackle in order and being able to present his case in the...…"
Cited
(1993) 116 ALR 625
(not in corpus)
"…called on to present it. A mere allocation of court time is of no value if the party in question is deprived of the opportunity of getting his tackle in order and being able to present his case in the fullest sense....…"
Cited
[1928] 1 KB 645
(not in corpus)
"…question is deprived of the opportunity of getting his tackle in order and being able to present his case in the fullest sense. In Sali v SPC Ltd [1993] HCA 47 ; (1993) 116 ALR 625 , the majority of the High Court...…"
Followed
(1969) 122 CLR 546
(not in corpus)
"…ent his or her case in a given situation depends upon the whole of the circumstances, including the nature of the jurisdiction exercised and the statutory provisions governing its exercise: R v Conciliation &...…"
Followed
[2006] HCA 63
(not in corpus)
"…e of the jurisdiction exercised and the statutory provisions governing its exercise: R v Conciliation & Arbitration Commission; Ex parte Angliss (1969) 122 CLR 546 at 552-553; SZBEL v Minister for Immigration and...…"
Followed
(2006) 228 CLR 152
(not in corpus)
"…ction exercised and the statutory provisions governing its exercise: R v Conciliation & Arbitration Commission; Ex parte Angliss (1969) 122 CLR 546 at 552-553; SZBEL v Minister for Immigration and Multicultural and...…"
Cited
[1985] HCA 81
— Kioa (and others) v West (Minister for Immigration and Ethnic Affairs)
"…ch party in light of the statutory requirements, the interests of the parties and the interests and purposes, whether public or private, which the statute seeks to advance or permits to be taken into account as...…"
Cited
(1985) 159 CLR 550
(not in corpus)
"…t of the statutory requirements, the interests of the parties and the interests and purposes, whether public or private, which the statute seeks to advance or permits to be taken into account as legitimate...…"
Cited
[2000] HCA 57
(not in corpus)
"…ns central to Abigroup’s case had been made. It follows that the CEPU was denied procedural fairness and the Full Bench erred in holding otherwise. A denial of procedural fairness is a jurisdictional error: Re...…"
Cited
(2000) 204 CLR 82
(not in corpus)
"…igroup’s case had been made. It follows that the CEPU was denied procedural fairness and the Full Bench erred in holding otherwise. A denial of procedural fairness is a jurisdictional error: Re Refugee Review...…"
Cited
[1986] HCA 54
— Stead v State Government Insurance Commission
"…e, relief should be refused in the exercise of the Court’s discretion on the basis that any evidence called by the CEPU if a lengthier adjournment had been granted would not have affected the outcome. In Stead v...…"
Cited
(1986) 161 CLR 141
(not in corpus)
"…be refused in the exercise of the Court’s discretion on the basis that any evidence called by the CEPU if a lengthier adjournment had been granted would not have affected the outcome. In Stead v State Government...…"
Cited
[1998] FCA 1022
(not in corpus)
"…s 39B of the Judiciary Act from the decision of Senior Deputy President Richards in circumstances where the CEPU exercised its right to apply for permission to appeal and was granted that permission. In Transport...…"
Cited
(1996) 185 CLR 149
(not in corpus)
"…d issue. It will be sufficient for certiorari to issue to Commissioner Hoffman: it is his decision to dismiss the union’s application, not that of the Full Bench affirming it, that has the legal effect on rights...…"
Applied
[1981] HCA 33
(not in corpus)
"…order is quashed: see R v Rogers (1869) 6WW & A’B 138(L) at 141. The Full Court does not seem to have been taken to the decision of the High Court in R v Marks; Ex Parte Australian Building Construction Employees’...…"
Applied
(1981) 147 CLR 471
(not in corpus)
"…: see R v Rogers (1869) 6WW & A’B 138(L) at 141. The Full Court does not seem to have been taken to the decision of the High Court in R v Marks; Ex Parte Australian Building Construction Employees’ and Builders...…"
Cited
[1941] HCA 8
(not in corpus)
"…ded on the footing that it was void, the confirmation of that decision by the Full Bench would have no operative effect at 476: This submission does not meet the point that the Full Bench decision is conclusive while...…"
Cited
[1979] UKPC 1
(not in corpus)
"…he nature of a hearing de novo and often, too, where there has been a rehearing. But is it so here? To answer that question it is necessary to examine the hearing process before the Senior Deputy President and on...…"
Considered
[1980] AC 574
(not in corpus)
"…earing de novo and often, too, where there has been a rehearing. But is it so here? To answer that question it is necessary to examine the hearing process before the Senior Deputy President and on appeal “as a...…"
Cited
[1996] HCA 6
(not in corpus)
"…t is well established that the reasons of an administrative decision-maker are not meant to be scrutinised too zealously to see if error can be gleaned from the way the reasons are expressed: Minister for Immigration...…"
Cited
(1996) 185 CLR 259
(not in corpus)
"…lished that the reasons of an administrative decision-maker are not meant to be scrutinised too zealously to see if error can be gleaned from the way the reasons are expressed: Minister for Immigration & Ethnic...…"
Cited
(1993) 43 FCR 280
(not in corpus)
"…xpressed: Minister for Immigration & Ethnic Affairs v Wu Shan Liang [1996] HCA 6 ; (1996) 185 CLR 259 at 272. The Court is not to be concerned with “looseness of language” or “unhappy phrasing”: Collector of Customs...…"
Cited
[2007] FCA 9
(not in corpus)
"…f Customs v Pozzolanic Enterprises Pty Ltd (1993) 43 FCR 280 at 287. But a beneficial approach to the reasons does not demand that any ambiguity be resolved in favour of the decision maker: SZCBT v Minister for...…"
Considered
[2000] HCA 47
— Coal and Allied Operations Pty Ltd v The Full Bench of the Australian...
"…sdictional error. Not all errors of law the Full Bench may make will be jurisdictional. In this case, however, we are satisfied that the error went to jurisdiction. In Coal and Allied Operations Pty Ltd v Australian...…"
Considered
(2000) 203 CLR 194
(not in corpus)
"…. Not all errors of law the Full Bench may make will be jurisdictional. In this case, however, we are satisfied that the error went to jurisdiction. In Coal and Allied Operations Pty Ltd v Australian Industrial...…"
Cited
[1999] FCA 847
(not in corpus)
"…jurisdictional error. The errors we have identified were not merely erroneous conclusions within jurisdiction. They were “defects in the inquiry process”: Construction, Forestry, Mining and Energy Union v Australian...…"
Cited
(1999) 93 FCR 317
(not in corpus)
"…ror. The errors we have identified were not merely erroneous conclusions within jurisdiction. They were “defects in the inquiry process”: Construction, Forestry, Mining and Energy Union v Australian Industrial...…"
Subsequent treatment · 28
Positive treatment· 1
Applied
Cited / considered· 27
Cited
Cited
[2026] FWCFB 110
FWC — Full Bench
— Australian Capital Territory (represented by ACT Education Directorate) v Jack Gibson
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Cited
[2013] FWCFB 453
FWC — Full Bench
— Appeal by Communications, Electrical, Electronic, Energy, Information,...
Cited
Cited
[2014] FWCFB 174
FWC — Full Bench
— Allen, Edwin & Armstrong, Greg and Others v Fluor Construction Services Pty Ltd
Cited
[2025] FWCFB 226
FWC — Full Bench
— 1 Fair Work Act 2009 s.604—Appeal of decision NBN Co Limited v Adam...
Cited
[2015] FWCFB 8057
FWC — Full Bench
— Maritime Union of Australia, The (182V) v ASP Ship Management Pty Ltd T/A...
Cited
[2019] FWCFB 690
FWC — Full Bench
— Sodexo Remote Sites Australia Pty Ltd v Construction, Forestry, Maritime,...
Cited
[2019] FWCFB 2925
FWC — Full Bench
— Cole, John Gerard v Roy Hill Station Pty Ltd T/A Roy Hill Station
Cited
[2020] FWCFB 638
FWC — Full Bench
— United Voice (108V) v Wilson Security Pty Ltd T/A Wilson Security
Cited
Cited
[2026] FWCFB 95
FWC — Full Bench
— Application by Transport Workers’ Union of Australia and Australian Road...
Cited
[2026] FWCFB 10
FWC — Full Bench
— The Trustee for the V&V Unit Trust & Vernon Walsh Pty Ltd trading as V&V...
Cited
[2026] FWCFB 4
FWC — Full Bench
— Bevan Geoffrey Roberts v Quantum-Systems Pty Ltd, Michael Lilleghagen, Kim...
Cited
Cited
[2019] FWCFB 6430
FWC — Full Bench
— Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) v DP...
Cited
[2026] FCAFC 62
Federal Court — Full Court
— Ambulance Employees Association of Western Australia Incorporated v United...
Cited
Cited
[2024] FWC 924
FWC
— Sophia (Marttea) Baker v Bodhicorp Pty Ltd ATF The Gadens Service Trust No 2...
Cited
[2024] FWC 133
FWC
— Construction, Forestry and Maritime Employees Union v DP World Brisbane T/A DP World
Cited
Cited
[2023] FWC 2456
FWC
— Australian Manufacturing Workers’ Union (AMWU) v The Trustee for Engineering...
Cited
Cited
Cited
Cited
Archived text (24531 words)
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union v Abigroup Contractors Pty Ltd [2013] FCAFC 148 (6 December 2013)
Last Updated: 6 December 2013
FEDERAL COURT OF AUSTRALIA
Communications, Electrical, Electronic,
Energy, Information, Postal, Plumbing and Allied Services Union v Abigroup
Contractors Pty
Ltd
[2013] FCAFC 148
Citation:
Communications, Electrical, Electronic, Energy, Information, Postal,
Plumbing and Allied Services Union v Abigroup Contractors Pty
Ltd
[2013] FCAFC
148
Parties:
COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY,
INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION v ABIGROUP CONTRACTORS
PTY
LTD and FAIR WORK COMMISSION
File number:
QUD 87 of 2013
Judges:
BUCHANAN, KATZMANN AND RANGIAH JJ
Date of judgment:
6 December 2013
Catchwords:
INDUSTRIAL LAW
– union alleged to
have engaged in industrial action at construction site – application under
s 418
of the
Fair Work Act 2009
(Cth) for an order that industrial
action stop or not be organised – whether union denied procedural fairness
at first instance
hearing before Fair Work Commission – whether failure of
Fair Work Commission to grant adjournment constituted a denial of
procedural
fairness – whether any jurisdictional error addressed or cured by appeal
– whether jurisdictional error by
Full Bench on
appeal
ADMINISTRATIVE LAW
– application for constitutional
writs – whether denial of request for an adjournment amounted to a denial
of procedural
fairness – whether denial of procedural fairness at first
instance hearing cured by appeal – character of appeal –
whether
jurisdictional error committed by Full Bench of Commission on appeal –
orders whether certiorari should be granted.
Legislation:
Acts Interpretation Act 1901
(Cth),
s 36(2)
Fair Work Act
2009
(Cth),
ss 19
,
418
,
419
,
420
and
421
Judiciary Act 1903
(Cth)
s 39B
Cases cited:
Abigroup Contractors Pty Ltd v Construction,
Forestry, Mining and Energy Union
[2012] FWA 7654
reversed
Calvin v
Carr
[1979] UKPC 1
;
[1980] AC 574
applied
Carryer v Kelly
(1969) 90 WN
(Pt 1)
NSW
566 cited
Coal & Allied Services Pty Ltd v Lawler
[2011] FCAFC 54
;
(2011) 192 FCR
78
cited
Coal and Allied Operations Pty Ltd v Australian Industrial
Relations Commission
[2000] HCA 47
;
(2000) 203 CLR 194
Communications, Electrical,
Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of
Australia v Abigroup Contractors
Pty Ltd
[2013] FWCFB 453
reversed
Kioa v West
[1985] HCA 81
;
(1985) 159 CLR 550
cited
Minister for
Immigration and Multicultural Affairs v Bhardwaj
(2002) 209 CLR 597
applied
R v Conciliation & Arbitration Commission; Ex parte Angliss
(1969) 122 CLR 546 cited
R v Marks; Ex Parte Australian Building
Construction Employees and Builders Labourers’ Federation
[1981] HCA 33
;
(1981) 147
CLR 471
applied
Re Association of Architects of Australia; Ex parte
Municipal Officers Association of Australia
[1989] HCA 13
;
(1989) 63 ALJR 298
cited
Re Refugee Review Tribunal; Ex Parte Aala
[2000] HCA 57
;
(2000) 204 CLR 82
applied
Sali v SPC Ltd
[1993] HCA 47
;
(1993) 116 ALR 625
cited
Scott v
Handley
[1999] FCA 404
;
(1999) 58 ALD 373
cited
Stead v State Government Insurance
Commission
[1986] HCA 54
;
(1986) 161 CLR 141
applied
Sullivan v Department of
Transport
(1978) 20 ALR 323
applied
Transport Workers’ Union of
New South Wales v Australian Industrial Relations Commission
[2008] FCAFC 26
;
(2008) 166 FCR
108
cited
Transport Workers’ Union v Mayne Nickless Ltd
[1998]
FCA 1022
not followed
Date of hearing:
19 August 2013
Place:
Brisbane
Division:
FAIR WORK DIVISION
Category:
Catchwords
Number of paragraphs:
201
Counsel for the Applicant:
Mr W L Friend SC and Mr E White
Solicitor for the Applicant:
Hall Payne Lawyers
Counsel for the First Respondent:
Mr J E Murdoch QC
Solicitor for the First Respondent:
Minter Ellison
Second Respondent:
The Second Respondent filed a submitting notice save as to costs
IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY
FAIR WORK DIVISION
QUD 87 of 2013
BETWEEN:
COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY,
INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES
UNION
Applicant
AND:
ABIGROUP CONTRACTORS PTY LTD
First
Respondent
FAIR WORK COMMISSION
Second
Respondent
JUDGES:
BUCHANAN, KATZMANN AND RANGIAH JJ
DATE OF ORDER:
6 DECEMBER 2013
WHERE MADE:
BRISBANE
THE COURT ORDERS THAT:
A
writ of certiorari issue to the Fair Work Commission removing into this Court
the order made at Brisbane on 5 September 2012 in
C2012/5149 recorded in
PR528753 and quashing orders 3.2, 3.4 and 6.1 insofar as they apply to the
Communications, Electrical, Electronic,
Energy, Information, Postal, Plumbing
and Allied Services Union (“CEPU”) and order 6.2.
A
writ of certiorari issue to the Fair Work Commission removing into this Court
the order made at Sydney on 25 January 2013 in decision
[2013] FWCFB 453
insofar
as it dismisses the CEPU’s appeal and quashing that order.
A
writ of prohibition issue to the Fair Work Commission prohibiting it from
proceeding further on the decision and order made at Brisbane
on 5 September
2012 in C2012/5149 insofar as it relates to the CEPU, its officers and members.
Note: Entry of orders is dealt with in Rule 39.32 of the
Federal Court
Rules 2011
.
IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY
FAIR WORK DIVISION
QUD 87 of 2013
BETWEEN:
COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL,
PLUMBING AND ALLIED SERVICES UNION
Applicant
AND:
ABIGROUP CONTRACTORS PTY LTD
First
Respondent
FAIR WORK COMMISSION
Second
Respondent
JUDGES:
BUCHANAN, KATZMANN AND RANGIAH JJ
DATE:
6 DECEMBER 2013
PLACE:
BRISBANE
REASONS FOR JUDGMENT
BUCHANAN J:
The present application
This
is an application in the original jurisdiction of the Court. The questions for
decision are whether
Senior
Deputy President Richards (a member of the Fair Work Commission)
(“the FWC”) and a Full Bench of the FWC each committed
jurisdictional error in the discharge of their respective functions under the
Fair Work Act 2009
(Cth) (“the Act”).
In
the case of the Senior Deputy President, the contention of the applicant
(“the CEPU”) is that the Senior Deputy President
denied the
CEPU procedural fairness when he dealt with an application by the first
respondent (“Abigroup Contractors”)
which had sought orders
that industrial action cease at a major project. In the case of the Full Bench,
the argument is that the
Full Bench committed a jurisdictional error, when
it heard an appeal against the decision and orders of the Senior Deputy
President,
by applying the wrong test to the assessment of the challenge that
the Senior Deputy President had denied the CEPU procedural fairness.
Although
the application before this Court sought orders in the nature of certiorari to
quash both decisions and a writ of prohibition
directed against the FWC, it was
accepted at the hearing that it would sufficiently vindicate the CEPU’s
position (if its arguments
were upheld) if the decision and orders of the Senior
Deputy President, so far as they concerned the CEPU and its members, were
quashed
and if further proceedings on the decision or orders, so far as they
concerned the CEPU and its members, were prohibited.
The application to the Fair Work Commission
The
application to the FWC with which the Senior Deputy President dealt was made by
Abigroup Contractors under
s 418
of the Act.
Section 418(1)
provides:
FWC
must order that industrial action by employees or employers stop
etc.
(1) If it appears to the FWC that industrial action by one or more employees or
employers that is not, or would not be, protected
industrial action:
(a) is happening; or
(b) is threatened, impending or probable; or
(c) is being organised;
the FWC must make an order that the industrial action stop, not occur or not be
organised (as the case may be) for a period
(the
stop period
) specified in the order.
Note: For interim orders, see
section 420.
Section
420
(1) and (2) of the Act direct the FWC in the following terms:
Interim
orders etc.
Application must be determined within 2 days
(1) As far as practicable, the FWC must determine an application for an order
under
section 418
or
419
within 2 days after the application is made.
Interim orders
(2) If the FWC is unable to determine the application within that period, the
FWC must, within that period, make an interim order
that the industrial action
to which the application relates stop, not occur or not be organised (as the
case may be).
It
is convenient, at this point, to draw attention to the fact that
s 19
of
the Act assigns a meaning to the term “industrial action” and
provides for exceptions to the general meaning.
Section 19(1)
and (2) of the
Act provide (relevantly here):
Meaning
of
industrial action
(1)
Industrial action
means action of any of the following kinds:
(a) the performance of work by an employee in a manner different from that in
which it is customarily performed, or the adoption
of a practice in relation to
work by an employee, the result of which is a restriction or limitation on, or a
delay in, the performance
of the work;
(b) a ban, limitation or restriction on the performance of work by an employee
or on the acceptance of or offering for work by an
employee;
(c) a failure or refusal by employees to attend for work or a failure or refusal
to perform any work at all by employees who attend
for work;
...
(2) However,
industrial action
does not include the following:
...
(c) action by an employee if:
(i) the action was based on a reasonable concern of the employee about an
imminent risk to his or her health or safety; and
(ii) the employee did not unreasonably fail to comply with a direction of his or
her employer to perform other available work, whether
at the same or another
workplace, that was safe and appropriate for the employee to perform.
As
will be seen, in the present case it was claimed by the CEPU, in answer to the
application under
s 418
, that its members were failing to perform their
usual work because of concerns about their safety. No suggestion was made that
alternative
work was available or directed.
Background to the
s 418
application
The
application made by Abigroup Contractors under
s 418
of the Act concerned
industrial action at a construction site called the Queensland Children’s
Hospital project (“the
QCH”) in Brisbane. The industrial
action included strikes and picketing. The Full Bench, in its decision,
recorded the following
matters:
Background and the decision under appeal
[3]
The QCH Project is a major public health asset project valued at
approximately $800m. During the course of 2012 it has been subject
to
significant disruption from industrial action.
[4]
On 10 February 2012 Senior Deputy President Richards made orders
under
s.418
of the Act that industrial action on the site stop. Those orders
expired on 1 March 2012. His Honour made further
s.418
orders on
11 May 2012 that expired on 11 June 2012. On 6 August 2012, his
Honour made a third set of orders that were expressed to
apply until 5.00pm on
3 September 2012.
[5]
His Honour subsequently dealt with a large number of dispute
notifications lodged by subcontractors in relation to stoppages at the
site.
On
29 August 2012, the Senior Deputy President issued a statement which
included the following:
[5]
I issued orders (in PR527575) on 6 August 2012 against various
employees (of Abigroup and its subcontractors) who are members of
the CFMEU who
had ceased work on the site (including the related Energy Plant Project) at that
time.
[6]
Proceedings designed to enforce the orders and for some wider
purposes against the CFMEU were also initiated in the Federal Magistrates
Courts, and an interim injunction remains in place, pending final trial
(possibly in the new year).
[7]
Though Abigroup has declared the site open for work and safe,
seemingly no work is being performed on a daily basis. Access to the
three site
entry points (the main entry site and two other smaller access points) appears
restricted by congregations of persons,
whose presence appears ensconced. The
Applicants describe these as pickets.
[8]
It also appears the CEPU Divisions, while declaring the site open,
have cautioned their members about the ramifications of seeking
entry in these
circumstances. It is not said, as I understand the applications, that the CEPU
Divisions themselves have any physical
role in restricting access to the site.
Indeed, the CEPU Divisions contend they are in no dispute with the various
employers (subcontractors).
[9]
The dispute is entering its fourth week.
[10]
A dispute of this duration is now generating entirely undesirable
outcomes. The subcontractor businesses are facing significant commercial
risk:
with reduced cash flow repayments on plant and equipment are becoming more
difficult. Some subcontractor businesses face closure.
Skills are being lost to
the businesses and to the site as trades seek alternative, secure employment.
The completion of the hospital
may be delayed.
[11]
The subcontractor businesses employ workforces of up to 110
employees, with the average being around 30-40 employees. It appears
to me that
a significant number of these employees who have been without wages face
hardship and are in an increasingly financially
distressed position. No doubt
this is of concern to the employees’ representative organisations.
[12]
Productive work on the site needs to resume as quickly as possible.
It
emerges sufficiently from this statement that the impression of the Senior
Deputy President, at that stage at least, was that
members of the CFMEU were not
working, pickets were blocking access to the site and members of the CEPU were
not picketing but were
not working. It may be accepted from this and other
material that members of the CEPU would not “cross the picket line”.
There was an active contest in the proceedings before the Senior Deputy
President about the reason for that.
Timing of the
s 418
application
Abigroup
Contractors was a principal contractor at the QCH. The application under
s 418
of the Act was filed at about 11.30 am on Monday
3 September 2012. In accordance with
s 420
of the Act, the FWC was
required to deal with the application within two days unless it was not
reasonably possible to do so, in
which case an interim order was required to be
made.
Because
the direction in
s 420
of the Act imposed a time limit stated in a number
of days, it seems that the time limit would expire at midnight on Wednesday
5
September 2012 (see
Acts Interpretation Act 1901
(Cth),
s 36(2)).
The Senior Deputy President may have thought that a period of
only 48 hours was allowed and it may not have been a coincidence,
therefore, that he gave his decision at about 11.30 am on 5 September
2012. Not much turns on this misunderstanding (if it occurred),
although it may
have contributed further to a sense of urgency in dealing with the application.
Proceedings at first instance in the Fair Work Commission
Solicitors
for the CEPU received a first group of documents in support of the s 418
application at about 12.30 pm on 3 September
2012. They were
documents which had been also provided to the CEPU on 28 August 2012 in
connection with proceedings for injunctive
relief in the Federal Magistrates
Court of Australia. It should be noted, however, that the s 418
application filed on 3 September
2012 was the first such application which
had sought s 418 orders against the CEPU, and the CEPU was given no prior
notice that such
orders would be sought at about that time.
Also
at about 12.30 pm on 3 September 2012, the CEPU was notified that the
s 418 application would be heard that day, commencing
at 3 pm. When
the CEPU’s representatives arrived at the premises of the FWC for the
hearing, they were provided with further
material by representatives of Abigroup
Contractors.
When
the hearing commenced, another union against which the s 418 orders were
sought (“the CFMEU”) sought an adjournment
until the morning of
5 September 2012 on the basis that the matter could still be determined
within the two day period directed by
s 420 of the Act, saying:
MR O’BRIEN: ... Now the CFMEU would like to bring significant
material to bear on the application that’s before you.
We haven’t
had an opportunity to put that together. There are lengthy submissions that we
would like to make in this regard.
We won’t be in a position to do that
this afternoon. As I have said, there is no prejudice to the applicant’s
position
if the matter was to be adjourned until Wednesday morning. It is
within your power to do so and still determine the matter within
the two days as
required by the Act. In those circumstances, your Honour, I would ask that the
matter be adjourned until Wednesday
morning.
The
application was supported by the CEPU. Counsel said:
MR WHITE: ... For our part, the CEPU, given the relatively [short] service
and in fact the service whilst we’ve been in this
court room of subsequent
material on which we’ve had no instruction, we submit it’s
appropriate that it be adjourned
so that proper consideration to a response can
be given.
Counsel
for Abigroup Contractors conceded that a short adjournment could not be resisted
but opposed an adjournment until 5 September
2012. Counsel asked to be
allowed to put the case in support of the s 418 application, saying:
MR MURDOCH: What I would suggest, with respect, is that I be given the
opportunity to read the application, read the material that’s
relied on by
way of evidence to enable the tribunal to [be] properly appraised of the
material and to be properly [appraised] of
the serious situation which is
presently prevailing in relation to the Children’s Hospital site. Without
the tribunal being
fully appraised of the situation, I’d submit that it
would be difficult for you to consider the application for adjournment.
...
But I emphasise, your Honour, that it would be inappropriate, I say that with
respect, to rule on the adjournment application
without our first having the
opportunity to read the evidentiary material which discloses the depth and the
breadth of the conduct
being undertaken on behalf of the union respondents at
the site.
Initially
an adjournment of 30 minutes was afforded. A short time later a further
45 minutes was allowed to view some video footage,
although it then
transpired that it was not relevant to the CEPU.
By
this time it had become clear that the CFMEU and the CEPU had different
positions about the s 418 application. The CFMEU was
already subject to a
s 418 order which was to expire later that day. The CFMEU indicated that
it would consent to an interim order
if the matter was adjourned until
5 September 2012 and indicated that it did not suggest that industrial
action by its members was
not occurring.
The
CEPU made it clear, however, that it did not accept that the absence from work
of its members represented industrial action.
This may be understood as a
contention that members of the CEPU were failing to attend work out of concern
for their safety. It
became clear that the concern for their safety was because
of a fear of reprisal if they crossed the picket line.
After
the second adjournment, the Senior Deputy President indicated that Abigroup
Contractors should put its case, saying:
THE SENIOR DEPUTY PRESIDENT: Mr Murdoch, I think you should open your case
and run your evidence and we’ll see where it takes
us.
After
some formal objections to affidavit material (which objections were rejected),
the representatives of the unions indicated
they would not cross-examine the
deponents of any affidavit, counsel for the CEPU saying:
MR WHITE: We are not in a position to be able to cross-examine, your
Honour.
In
one of the affidavits, a series of statements were attributed to an organiser of
the CEPU (“Mr Lynch”) based on a
hearsay account of statements
allegedly made by an unidentified representative of a sub-contractor. This was
amongst the material
to which an unsuccessful objection was taken. To answer
this hearsay material, an industrial officer of the CEPU was called to depose
to
a conversation with Mr Lynch that evening in which he provided a rebuttal
of the statements attributed to him. Mr Lynch was said
to be at home and
to be unwell.
By
this time, it appeared to be understood by the parties that no further
adjournment would be granted. Although no further formal
application for an
adjournment was made, counsel for the CEPU, referring to suggestions that the
evidence from the witnesses for
Abigroup Contractors was essentially
uncontested, said:
MR WHITE: ... can I make another couple of general observations in
relation to some opening observations of my learned friend.
First, my learned
friend submitted that the evidence was essentially uncontested and that the
declarants were available for cross-examination.
Can we make a couple of observations in relation to that first, your Honour. We
have submitted, and you will have seen from the
late receipt of the material,
that the submission is not so far fetched that we’re not in a position to
cross-examine witnesses.
Secondly, of course it is almost impossible sensibly
to cross-examine witnesses who give hearsay evidence. Thirdly, in respect
of
any criticism of not cross-examining, you will note that we had sought, but were
refused, an adjournment so that we were in a
position to better respond.
Submissions
were then taken about the evidence which had been placed before the Senior
Deputy President. The proceedings adjourned
just before 9 pm on 3
September 2012.
The
decision was given at about 11.30 am on 5 September 2012. Orders were
made against both the CFMEU and the CEPU and their members.
The
Senior Deputy President was satisfied that some members of the CEPU had taken
industrial action which was not the result of concern
about safety. However, he
could not exclude that explanation altogether and the orders he then made
against members of the CEPU
only applied to industrial action which was not
“protected” industrial action. The orders in relation to members of
the CEPU thus excluded action falling within
s 19(2)(c)
of the Act, namely
action based on reasonable concern about an imminent risk to health and safety.
The
Senior Deputy President said:
[8]
Generally, it further appears from Mr Gildea’s
observations, a large gathering of workers across the structural and services
trades assembles each morning (other than on rostered RDOs), and then disperse,
with no work being performed.
[9]
It is difficult, however, on the evidence and the precision of those
claims as made to identify that group sufficiently for purposes
of an order so
that those employees are distinguishable from those employees who are not
performing work for reason of concerns for
their safety and the inability to
access the site owing to the presence at the various gates. More is needed
before such time as
I would make a stop order in the general terms as sought
against employees of the subcontractors who are members of the CEPU (in
either
of its divisional guises). But having found that industrial action is happening
and is being carried out by employees of the
services trades who are members of
or are eligible to be members of the CEPU, the Act requires that I must make a
stop order as consequence.
[10]
I will make an order, therefore, in relation to the industrial
action that is happening and will make that order so that it applies
to those
employees who are members of or are eligible to be members of the CEPU, and who
are employees of the subcontractors to the
Company who are taking industrial
action that is not protected industrial action. The order is therefore somewhat
self-limiting.
(Citation omitted.)
More
significantly, however, the Senior Deputy President found that the CEPU had
organised industrial action. That conclusion was
based in part upon the hearsay
attribution of remarks to Mr Lynch. The conclusions appear in the
following paragraphs of the decision:
[27]
The evidence in this matter does not all lead in one direction.
There is evidence that the CEPU at one point stated at a meeting
of the service
trades that it did not support the industrial action being carried out by the
BLF and the CFMEU. At the same meeting
I note the CEPU organisers concerned did
not recommend that their members cross the picket line owing to concerns with
the consequences
of so doing.
[28]
On the evidence before me, however, the conduct of Mr Lynch, an
organiser for the CEPU, moved beyond the simple communication of
an observation
made in the interest of public safety, that being the potential implications of
crossing a picket line. Instead, Mr
Lynch’s comments (being
paragraphs (b) and (c) as cited earlier), when read together, constitute a
communication the intent
of which is to cause employees not to perform their
duties in the ordinary manner and not to access their place of work for that
very purpose. Indeed, Mr Lynch’s comments here may more appropriately
characterise the actual intent of his other comments.
[29]
It also appears to me from the evidence that the CEPU generally is
conducting itself over time in a manner that is intended directly
to dissuade
its own members (and others) from performing work in the ordinary manner and
accessing the QCH site for that very purpose.
At times it has called meetings
away from the site at which the employees ordinarily perform work. At other
times, services trades
employees left the site after being addressed by
representatives (of both divisional branches) of the CEPU.
[30]
In the contexts I have set out above, and notwithstanding the manner
in which some of the relevant information has been conveyed
to the Company, the
presence of the CEPU on site has not been and is not a passive or disinterested
one. Rather, it continues to
be for a particular purpose: to advance and lend
support to an industrial objective. The CEPU’s overall conduct on site
cannot
reasonably be explained otherwise.
[31]
It appears to me therefore that by its conduct, the CEPU is
organising industrial action for the purposes of s.418(1)(c) of the Act.
And
because I so find, I must make a stop order for a prescribed period of
operation. I add that I have discussed in some limited
way below the scope of
meaning of the verb “organising” (for purposes of s.418(1)(c) of the
Act) in the context of comments
by a recent Full Bench of FWA.
(Citations omitted.)
There
is no suggestion in the present case that the Senior Deputy President
misunderstood the matters for his decision. The complaint
is that by refusing
any further adjournment he did not allow the CEPU a proper opportunity to
consider the case against it and respond.
It
is significant, in my view, that s 418 compels the making of an order if it
appears to the FWC that industrial action is being
organised. That is a
circumstance which must be taken into account when assessing whether the outcome
of the proceedings might have
been affected if a further adjournment was
granted. It is a matter to which I will return.
The appeal to the Full Bench of the Fair Work Commission
Both
the CFMEU and the CEPU appealed the orders. One of the grounds (the only one
relevant here) was that the Senior Deputy President
had denied the unions
procedural fairness by refusing the adjournment.
By
the time of the appeal, there had been proceedings in the Federal Magistrates
Court of Australia raising similar issues against
the CEPU, also brought on at
short notice. With the benefit of an overnight adjournment, the CEPU had been
able to obtain four affidavits
(including one from Mr Lynch) to respond to
the evidence from Abigroup Contractors. Those events occurred on 5 and 6
September 2012.
Before
the Full Bench, and on the present application, the CEPU relied on this material
to indicate the kind of material which it
could have obtained if given an
opportunity to do so.
The
Full Bench described the test it was required to apply as follows:
[25]
... The test in this appeal is whether the consequence of that
denial was that it denied the unions the possibility of a successful
outcome.
(Citation omitted.)
That
statement was supported by a reference to
Stead v State Government Insurance
Commission
[1986] HCA 54
;
(1986) 161 CLR 141
(“
Stead
”). It was accepted
on the present application that the test was correctly stated, but the CEPU
argued that it was wrongly
applied because the Full Bench went on to say:
[32]
Significantly, we are not persuaded that the evidence which would
have been brought with the benefit of an adjournment, reflected
in the
additional evidence filed by the CEPU in the Federal Magistrates Court on
6 September 2012, following an adjournment granted
on 5 September
2012,
would have
affected the decision and order of Senior Deputy
President Richards.
(Emphasis added.)
The
CEPU argued that in this passage the Full Bench misapplied the test it
earlier distilled and distracted itself from its true
effect, with the result
that the Full Bench also committed jurisdictional error.
Distinguishing between the alleged jurisdictional errors
Attention
to the respective jurisdictions and powers exercised by the Senior Deputy
President at first instance, and by the Full
Bench on appeal, is necessary
and supported by authority. In particular in the present case, examination of
whether the Full Bench
committed a jurisdictional error requires particular
attention to its functions on appeal. In
Coal and Allied Operations Pty Ltd
v Australian Industrial Relations Commission
[2000] HCA 47
;
(2000) 203 CLR 194
, the
High Court, when dealing with the appellate jurisdiction of a statutory
predecessor of the FWC, said (at [31]):
There
would only have been jurisdictional error on the part of the Full Bench if
it had misconceived its role or if, in terms used
by Jordan CJ in
Ex parte Hebburn Ltd; Re Kearsley Shire Council
, it
“misunder[stood] the nature of [its] jurisdiction ... or
‘misconceive[d] its duty’ or ‘[failed] to apply
itself to the
question which [s 45 of the Act] prescribes’ ... or
‘[misunderstood] the nature of the opinion which it
[was] to form’.
The Full Bench did none of those things.
(Citations omitted)
Apart
from the question of whether the Full Bench approached the exercise of its
appellate function with a correct appreciation of
the task to be performed, and
the tests to be applied to the appeal before it, there is also a question which
must be resolved in
the present case concerning whether the appeal before the
Full Bench “cured” any denial of procedural fairness committed
by the Senior Deputy President. It will be seen in due course that, in my view,
it is not possible to finally decide whether there
was a denial of procedural
fairness justifying some form of relief in the present proceedings without
giving some consideration to
whether the outcome of the proceeding before the
Senior Deputy President might have been different. As the argument suggesting
that
possibility depends on the material put before the Full Bench, it will
be necessary to consider the substance of the conclusions
by the Full Bench
about that material, in the context of the operation of s 418 of the Act.
However,
analysis must start with the failure of the Senior Deputy President to grant an
adjournment beyond the evening of 3 September
2012.
Whether denial of procedural fairness
The
test to be applied to the evaluation of this issue by the Full Bench was
not in doubt, although its application to the facts
of a particular case may not
always be straightforward.
In
Stead
, a case which concerned a denial of natural justice where a party
was denied a proper opportunity to make submissions on an important
issue of
fact, the High Court said (at 145146):
...[A]n appellate court will not order a new trial if it would inevitably result
in the making of the same order as that made by
the primary judge at the first
trial. An order for a new trial in such a case would be a futility.
For this reason not every departure from the rules of natural justice at a trial
will entitle the aggrieved party to a new trial.
...
Where, however, the denial of natural justice affects the entitlement of a party
to make submissions on an issue of fact, especially
when the issue is whether
the evidence of a particular witness should be accepted, it is more difficult
for a court of appeal to
conclude that compliance with the requirements of
natural justice could have made no difference. ...
...It is no easy task for a court of appeal to satisfy itself that what appears
on its face to have been a denial of natural justice
could have had no bearing
on the outcome of the trial of an issue of fact. And this difficulty is
magnified when the issue concerns
the acceptance or rejection of the testimony
of a witness at the trial.
At
147, in a passage to which reference is frequently made, the High Court
said:
...All that the appellant needed to show was that the denial of natural justice
deprived him of the possibility of a successful outcome.
In order to negate that
possibility, it was, as we have said, necessary for the Full Court to find
that a properly conducted trial
could not possibly have produced a different
result.
This
principle has been applied in many cases, including cases concerning the work of
administrative tribunals, rather than courts
(see e.g.
Re Refugee Review
Tribunal; Ex parte Aala
[2000] HCA 57
;
(2000) 204 CLR 82
(“
Aala
”) at
[4], [80], [104], [131], [172], [211]).
In
the present case, the denial of a proper opportunity to put the CEPU’s
case was said to be the result of the failure to
grant a more substantial
adjournment than the two short adjournments to which I earlier referred.
It
is well established that refusal of an adjournment may constitute a denial of
procedural fairness if the refusal is not reasonable.
The principle was stated
in
Minister for Immigration and Multicultural Affairs v Bhardwaj
(2002)
209 CLR 597
in the joint judgment of Gaudron and Gummow JJ as follows
(at [40]:
Procedural
fairness, which is one aspect of the rules of natural justice, requires that a
person who may be affected by a decision
be informed of the case against him or
her and that he or she be given an opportunity to answer it. The opportunity to
answer must
be a reasonable opportunity. Thus, a failure to accede to a
reasonable request for an adjournment can constitute procedural unfairness.
(Citations omitted.)
One
case cited by their Honours was
Re Association of Architects of Australia;
Ex parte Municipal Officers Association of Australia
[1989] HCA 13
;
(1989) 63 ALJR
298
, where Gaudron J said (at 305):
There is a further question: was the Commission required, as a matter of
procedural fairness, to afford the parties an opportunity
to be heard upon the
issues directed by s 142 in the light of the construction adopted by it?
Ordinarily, when a decision on a question
of law will affect the nature and
range of the factual matters by reference to which the matter in issue may be
decided, considerations
of fairness require that the parties be given an
opportunity to lead evidence and make submissions by reference to the principles
of law to be applied. This must be so even if the existence of the question is
not apparent until the hearing has concluded. Although,
of course, the fact that
a hearing has taken place may have particular significance in determining
whether or not the opportunity
was given. As was pointed out by Deane J in
Sullivan v Department of Transport
(1978) 20 ALR 323
at 343, procedural
fairness requires only that a party be given “a reasonable
opportunity
to present his case” and not that the tribunal ensure
“that a party takes the best advantage of the opportunity to which
he is
entitled”. And it is always relevant to enquire whether the party or his
legal representative should reasonably have
apprehended that the issue was or
might become a live issue: see
Re Building Workers’ Industrial Union of
Australia; Ex parte Gallagher
[1988] HCA 4
;
(1988) 62 ALJR 81
at 84;
[1988] HCA 4
;
76 ALR 353
at
358.
(Emphasis in original.)
Assessment
of the question of whether a party has had a sufficient opportunity to put a
case can involve difficult questions of judgment,
and the illumination available
with the benefit of hindsight may often present a perspective not readily
available to the decisionmaker
at the time. Also, as Gaudron and Gummow JJ
said in
Aala
(at [62]):
The content of the requirement for procedural fairness may fluctuate during the
course of particular administrative decision-making.
...
(Citation omitted.)
This
statement was accompanied by a reference to
R v Marks; Ex parte
Australian Building Construction Employees and Builders Labourers’
Federation
[1981] HCA 33
;
(1981) 147 CLR 471
(“
Marks
”), to which I shall
return later.
It
is not completely clear why a further adjournment was not granted when the
unions sought it. No specific ruling was made about
that question and no
reasons were given, although it may be inferred that the Senior Deputy President
took the view that the scale
and gravity of the industrial action occurring at
the site necessitated urgent attention to the application. However, although
the
CFMEU conceded that its members were engaging in industrial action within
the meaning of
s 19
of the Act, that concession was not made by the CEPU
which maintained, then and later, that the actions of its members fell within
the exception in
s 19(2)(c).
That was, therefore, a live issue in the
proceedings and one in respect of which the CEPU was entitled to a reasonable
opportunity
to answer the case against it and advance its own case.
Self-evidently,
Abigroup Contractors had the advantage of preparing its evidence in advance and
of filing its application at a time
of its choosing. I do not suggest it took
unfair advantage of either opportunity, but in the circumstances which developed
the CEPU
was left with very little time in which to respond to the case against
it.
The
fact that the CEPU was able to call some evidence shows that some form of
response was nevertheless able to be made at short
notice and that
Mr Lynch, in particular, was available to give instructions of some kind
about factual matters. However, the time
permitted to the CEPU to consider, and
make, its final response was, as I have said, very contracted. It appears to
have been afforded
only the time the Senior Deputy President judged was
necessary to read (or view) the additional material supplied at the beginning
of
the hearing before the Senior Deputy President directed that Abigroup
Contractors put its evidence. It was not unreasonable to
take the evidence from
Abigroup Contractors on the evening of 3 September 2012. The question is
whether it was reasonable that the
proceedings then continued to finality, so
far as all the evidence and submissions were concerned.
No
doubt the Senior Deputy President was conscious of the time limit imposed by
s 420. It would also be artificial to leave out
of account his perception
that he was dealing with an apparently intractable industrial dispute which, in
the public interest, required
urgent and perhaps firm attention. Even so, it is
not readily apparent why an adjournment until at least the following morning was
not granted. There was no suggestion that such an adjournment would jeopardise
the prospect of reaching a determination within the
statutory time limit of two
days, but if that was a real risk an interim order for the short period
necessary was available.
To
be fair, it was not suggested in opposition to the present application that
there would, or could, have been any prejudice in
adjourning at least until the
following day. Mr Murdoch QC, who appeared for Abigroup Contractors
on the present application, pointed
out that neither union had sought an
adjournment for that particular period but that circumstance is not a decisive
one against which
to test the reasonableness of the decision of the Senior
Deputy President to press on to finality that evening. It is not now necessary
to examine whether an adjournment until 5 September 2012 should have been
granted, as no adjournment at all beyond the evening of
3 September 2012
was allowed, even though a decision was not necessary, and was not given, until
some days later.
In
the circumstances, I am prepared to assume that the refusal of an adjournment
until at least the following day was unreasonable,
and that it represented,
prima facie
, a denial of procedural fairness.
However,
that does not mean that any relief is available to the CEPU in the present
proceedings as a result. First, I think the
proper view of the approach taken
by the Full Bench is that it considered that a further adjournment could
have made no difference
to the outcome. Secondly, I think any denial of
procedural fairness was overcome at the appeal before the Full Bench.
The decision of the Full Bench of the Fair Work Commission
In
my view, in substance the Full Bench said that evidence of the kind
advanced by the CEPU as an illustration of the evidence it
wished to bring would
not have changed the outcome. The Full Bench stated its conclusion having
considered the evidence for itself.
No doubt the Full Bench might have
expressed itself more directly than it did in the passage I extracted earlier.
Instead of saying
it was not persuaded that the evidence would have affected the
decision, it should perhaps have said affirmatively that in its assessment
the
evidence would not have affected the decision, but in my view that is the
substance of its conclusion.
It
is worth noting some observations made by the Full Bench concerning the
material before the Senior Deputy President which are
relevant to this issue.
The Full Bench said (at [39] and [41]-[42] of its decision):
[39]
The CEPU further submits that whilst it was acknowledged that
employees were not attending work, it was a matter of contention whether
the
non-attendance was due to reasonably held health and safety concerns or whether
the non-attendance was industrial action.
...
[41]
The CFMEU conceded in the proceedings that it would be difficult to
argue that persons eligible to belong to the CFMEU were not engaging
in
industrial action. The CEPU contended that its members were not engaging in
industrial action as their stoppage was due to a perceived
risk to their health
and safety. The evidence of Mr Gildea went to the activities of CEPU
members, their participation in joint meetings
with the CFMEU, their
participation in demonstrations in support of industrial action and their
assembly at the site each morning,
often with CEPU officials, prior to
dispersing without performing any work.
[42]
His Honour acknowledged that some of the persons eligible to be
members of the CEPU may have not worked for reasons which took them
beyond the
definition of industrial action. He was not persuaded that all of those
employees could be so described. We agree that
the findings that industrial
action by persons eligible to be members of the CEPU were open on the evidence
and the Senior Deputy
President had the jurisdiction, and was obliged to issue
the orders concerning these employees. We are also satisfied that there
was
evidence to find that the CFMEU and CEPU were involved in the industrial action
and their conduct fell within the description
of organising industrial action.
The position of non-members is addressed below. We dismiss this ground of
appeal.
In
my view, the effect of the conclusion of the Full Bench was that the
material upon which the CEPU wished to rely could not entirely
displace the
evidence at first instance that many members of the CEPU appeared to respond to
factors other than concerns about safety
when they, like members of the CFMEU,
refrained from performing their normal duties; or displace the evidence (which
was in substance
not denied) that the CEPU played a role in advising its members
about the events in question.
The
orders which were made did not adversely affect members whose conduct was within
the operation of
s 19(2)(c)
of the Act, or the role played by the CEPU in
relation to such conduct. Unless the CEPU was in a position, after any
necessary adjournment,
to displace altogether the circumstances referred to
– that not all members of the CEPU were motivated by a concern for safety
and that the CEPU played an organising role with respect at least to those
employees – then an order under s 418 was obligatory.
In my view,
that was the effect of the analysis of the material made by the Full Bench.
There
is a further consequence also arising from the fact that the Full Bench
considered for itself the material illustrating the
type of evidence upon which
the CEPU would have wished to rely.
In
Marks
, consideration was given to alleged procedural errors made by a
member of the Commonwealth Conciliation and Arbitration Commission,
a statutory
predecessor of the FWC, which were alleged to constitute a denial of natural
justice. Relevantly, for present purposes,
Mason J (with whom Aickin and
Wilson JJ agreed on this point) said that any denial of natural justice was
irrelevant, having regard
to the availability and use of a full right of appeal.
His Honour said (at 484-485):
In any event, what happened before Marks J. cannot constitute a basis for
prohibition on the ground that there was a denial of natural
justice. The B.L.F.
exercised its right of appeal to the Full Bench. On an appeal the
Full Bench may admit further evidence and it
may confirm, quash or vary the
award or decision under appeal or make an award or decision dealing with the
subject matter of the
decision under appeal
(s. 35
(9) (a), (c) and (d)).
In
Twist v. Randwick Municipal Council
, this Court held that the
existence of a full statutory right of appeal on facts and law was indicative of
a legislative intention
that the citizen’s only right of redress against
the council’s failure to give him an opportunity to be heard before
making
a demolition order was by way of appeal. I refer to my judgment in that case.
See also
Australian Workers’ Union v. Bowen
[No.2].
The present case has some similarities to
Twist
. There is here a full
appeal on fact and law under
s. 35.
Moreover,
s. 35
(9) (a)
enables the Full Bench to admit further evidence. Further, by reason of
their very nature and their capacity to create unemployment,
to dislocate
industry and to disturb the life of the community including the essential
services on which the community depends, industrial
disputes call for speedy and
final determination, an object which is best achieved by recognizing that the
remedy of a party complaining
that he has been denied natural justice at first
instance is to exercise his right of appeal under
s. 35
to the exclusion of
pursuing relief by way of prerogative writ.
There is a problem in saying that a member of the Commission is not under a duty
to observe the rules of natural justice and there
is a further problem in saying
that the Parliament can oust the jurisdiction of this Court under
s. 75 (v) of the Constitution to
grant relief against an officer of
the Commonwealth by way of prohibition for denial of natural justice. Even so,
the B.L.F. exercised
its right of appeal under s. 35 and the
Full Bench examined the matter for itself. The B.L.F. does not suggest that
there was any
denial of natural justice in the appeal, except in so far as it
submits that the Full Bench was wrong in upholding the decision not
to
issue the summons. In my opinion the B.L.F. received a full and fair hearing in
the appeal and in those circumstances any denial
of natural justice before
Marks J. was irrelevant (
Calvin v Carr
).
(Citations omitted.)
If
that approach is applied in the present case, it reinforces the conclusion that
examination by the Full Bench of the material
relied on by the CEPU cured
any lack of fairness in the refusal to grant an adjournment.
Scope of relief sought
Earlier
in this judgment I referred to the fact that the parties had agreed what orders
would be appropriate if the application before
the Court succeeded. Katzmann
and Rangiah JJ have decided that it would be prudent if an order was also
made granting a writ of
certiorari directed to the decision of the
Full Bench on appeal, removing that order into this Court and quashing it.
The necessity
for that order arises from their Honours’ view of a passage
in the judgment of Mason J in
Marks
. Their Honours reasoning also
involves a conclusion that an error was made by a Full Court of this Court
in
Transport Workers' Union v Mayne Nickless Ltd
[1998] FCA 1022
(“
Mayne Nickless
”).
In
the present case, it probably does no particular harm to expressly set aside the
Full Bench decision. However, one question which
is immediately presented
is - to what end? It is not suggested that the Full Bench should rehear
the appeal which it dismissed.
No order of prohibition is to be directed
against any respondent in relation to the order made by the Full Bench
either.
The
difficulty to which Mason J’s remarks were addressed (in the passage
to which their Honours have referred) was that members
of a Full Bench of
the Australian Conciliation and Arbitration Commission had not been joined as
parties to the proceedings in the
High Court. That was at a time when it
was the practice to name members of that Commission personally as parties to
proceedings
for prerogative relief. That is no longer the practice, and it was
not done in the present case because it was not necessary. All
relevant members
of Fair Work Australia will be bound by the orders made in the present case
without the necessity for any of them
to be named individually.
In
Marks
, the difficulty identified during oral argument in the
High Court was addressed by granting leave to add the members of the
Full
Bench as named parties to the proceedings. The passages in the
judgment of Mason J which were addressed to this issue (at 476) and
in
other judgments (per Aickin J at 493; per Brennan J at 499) were
addressed to this procedural question concerning proper parties
to the
proceedings, rather than to the terms of any proposed order. The order which
was then made by the High Court was not, in
terms, directed at the decision
made by the Full Bench. No writ of certiorari issued. The named members
of the Commission (including
the members of the Full Bench) were simply
prohibited from proceeding further in relation to certain matters in the
proceedings at
first instance.
For
my own part, I do not see any error in the approach taken in
Mayne Nickless
, or in the orders agreed by the parties in the
present matter which, in my respectful view, conformed to any requirement
arising
from
Marks
.
Conclusion
In
my view, it has not been established that the Full Bench failed to apply
itself to its statutory task, or that it made any jurisdictional
error in the
discharge of that task. In those circumstances, any jurisdictional error made
at first instance (making that assumption
for this purpose) was adequately
addressed, or cured, by the appeal and does not survive as a sufficient
foundation for relief in
this Court.
Accordingly,
I would dismiss the application.
I certify that the preceding seventy (70) numbered paragraphs are a true
copy of the Reasons for Judgment herein of the Honourable
Justice
Buchanan
.
Associate:
Dated: 6 December 2013
IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY
FAIR WORK DIVISION
QUD 87 of 2013
BETWEEN:
COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL,
PLUMBING AND ALLIED SERVICES UNION
Applicant
AND:
ABIGROUP CONTRACTORS PTY LTD
First
Respondent
FAIR WORK COMMISSION
Second
Respondent
JUDGES:
BUCHANAN, KATZMANN AND RANGIAH JJ
DATE:
6 DECEMBER 2013
PLACE:
BRISBANE
REASONS FOR JUDGMENT
KATZMANN AND RANGIAH JJ:
On
the morning of Wednesday 5 September 2012 Senior Deputy President Richards of
Fair Work Australia (now the Fair Work Commission)
made orders designed to bring
a halt to industrial action at a construction site in South Brisbane. The
orders relevantly prohibited
the applicant (“the CEPU”), its
officers, employees and delegates from organising industrial action and
prohibited certain
subcontractors’ employees who were members or eligible
to be members of the CEPU from engaging in industrial action. The orders
were
made on an application brought two days earlier by Abigroup Contractors Pty Ltd
(“Abigroup”), the head contractor.
The
CEPU applied for permission to appeal to a Full Bench of the Fair Work
Commission. The principal ground of the appeal was that
the CEPU and the
individuals affected by the order had been denied procedural fairness in the
hearing at first instance because the
Senior Deputy President had refused the
union’s request for an adjournment. The Full Bench granted permission to
appeal but
dismissed the appeal.
In
this Court, the CEPU sought writs of certiorari and prohibition under
s 39B(1)
of the
Judiciary Act 1903
(Cth) directed to both the Senior
Deputy President and the Full Bench.
In
broad terms, the issues raised by the parties are:
whether
the orders at first instance and on appeal were affected by jurisdictional
error;
whether,
assuming that jurisdictional error is demonstrated, this Court should exercise
its discretion in favour of granting relief.
The
CEPU contends that the jurisdictional error at first instance was denial of
procedural fairness as a result of the refusal of
the Senior Deputy President to
grant a lengthier adjournment of the hearing than it was given. It contends
that the Full Bench fell
into jurisdictional error by applying the wrong test
when it decided that evidence which could have been led by the CEPU with the
benefit of a lengthier adjournment would not have affected the primary decision.
Background
Abigroup
is the head contractor for projects involving the construction of the Queensland
Children’s Hospital and an associated
energy plant (“the QCH
Project”). The value of the QCH Project is in the order of $800 million.
The energy plant was
to be completed by the end of 2012 and the hospital by the
end of 2013.
Abigroup
directly employs some workers at the QCH Project and also engages subcontractors
who employ other workers. A dispute developed
over the entitlements of the
employees of a subcontractor that had gone into receivership. On 6 August 2012,
industrial action commenced
at the QCH Project. Initially only
subcontractors’ employees who were members of or eligible to be members of
the Construction,
Forestry, Mining and Energy Union (“the CFMEU”)
and the Australian Building Construction Employees and Builders’
Labourers’ Federation (Queensland Branch) Union of Employees (“the
BLF”) ceased work. Later, subcontractors’
employees who were
members of or eligible to be members of the CEPU also stopped work, but the
reasons they did so were very much
in dispute in the hearing before Fair Work
Australia on 3 September 2012. By that date some 650 workers had ceased
work.
Officials
of the CFMEU and the BLF and a number of the employees who had stopped work
operated pickets at each of the entrances to
the QCH Project. The cessation of
work and the pickets caused substantial disruption to the business of Abigroup.
On
6 August 2012, Abigroup sought orders against certain employees who were members
or eligible to be members of the CFMEU pursuant
to
s 418
of the
Fair
Work Act
2009
(Cth). Senior Deputy President Richards granted the
orders sought. The orders were to remain in force until 5.00 pm on 3
September
2012.
On
9 August 2012, Abigroup sought and obtained orders from the Federal Magistrates
Court (now the Federal Circuit Court of Australia)
pursuant to
ss 421(3)
and
550
of the
Fair Work Act
restraining the CFMEU and the BLF from,
inter alia
, organising any industrial action at the QCH Project. On 16
August 2012, the orders of 9 August 2012 were extended until further
order. On
21 August 2012, the Federal Magistrate made further orders against officials of
the CFMEU and BLF.
Up
to this point, there was no allegation by Abigroup in Fair Work Australia or the
Federal Magistrates Court that the CEPU was organising
industrial action or that
any of its members or persons eligible to be its members were engaging in
industrial action.
However,
on 28 August 2012 Abigroup commenced proceedings in the Federal Magistrates
Court for injunctions against the CEPU, as well
as the CFMEU and the BLF. An
application for interim relief was heard on the same day. Interim relief
against the CEPU was refused
and, on 30 August 2012, the solicitors for Abigroup
advised the CEPU’s solicitors that the application for interlocutory
relief
would not be pressed. Apparently Abigroup also brought an application
against the CEPU in Fair Work Australia at about this time,
but no orders were
made against the union. The details of that application are sketchy.
The
significance of the applications made on 28 August 2012 is that the CEPU was
then served with a series of statutory declarations,
affidavits and orders made
in the course of the proceedings previously taken by Abigroup against the CFMEU
and the BLF before Fair
Work Australia and the Federal Magistrates Court.
The hearing at first instance
On
Monday, 3 September 2012 at about 11.30 am Abigroup filed with Fair Work
Australia an application under
s 418
of the
Fair Work Act
for orders
against the CEPU, the CFMEU and the BLF and their delegates, officials and
employees and the employees of subcontractors
for the QCH Project who were
members or eligible to be members of those unions. There is no suggestion that
the CEPU was forewarned
about the application.
In
support of its application Abigroup filed statutory declarations of Brian Gildea
and Timothy McCann, both made on 3 September
2012.
Abigroup’s
solicitors served the filed material on the CEPU by emailing it to the
CEPU’s solicitors, Hall Payne. The
emailed material was received by Hall
Payne at 12.27 pm. Shortly afterwards, those solicitors were informed that
the application
was listed for hearing before Fair Work Australia at
3.00 pm that afternoon.
The
statutory declaration of Mr Gildea consisted of 60 paragraphs. It also attached
the statutory declarations, affidavits and orders
previously served on or about
28 August 2012 as well as a number of photographs. In all, Mr Gildea’s
statutory declaration
and its attachments consisted of some 315 pages. Mr
McCann’s statutory declaration was much shorter.
At
the hearing, the CEPU’s electrical division was represented by Mr White of
counsel instructed by Hall Payne, while its plumbing
division was represented by
a solicitor, Ms Thornton of Maurice Blackburn Lawyers. No point was taken
about the CEPU’s split
representation. The CFMEU was represented by its
in-house lawyer, Mr O’Brien. The BLF was not represented and it is
unclear
whether it was served.
It
seems to have been accepted that the legal representatives for each union
represented the interests of the members and persons
eligible to be members of
each respective union.
While
they were seated at the bar table waiting for the hearing to begin, the legal
representatives for the CEPU and CFMEU were handed
three more statutory
declarations. These were further statutory declarations of Mr Gildea and Mr
McCann and a statutory declaration
of a Ms Seering.
The
hearing commenced at 3.15 pm. Upon the commencement, Mr O’Brien on
behalf of the CFMEU requested an adjournment until
the morning of Wednesday, 5
September 2012. Mr O’Brien submitted that there was a very large
amount of material that had only
been received by the CFMEU a short time
earlier. He noted that there were three further affidavits he had not had an
opportunity
to read. He submitted that, in view of the existing orders,
Abigroup would not be prejudiced if the matter were adjourned until
the
Wednesday morning. He said that the CFMEU would like to bring significant
material to bear upon the application but had not
had an opportunity to provide
that material.
Mr
White supported the application for the adjournment. He noted that it was only
late that morning when the first tranche of affidavits
was provided and that the
second was provided when he was in the courtroom. He submitted that given the
relatively short service
of the material it was appropriate that the matter be
adjourned so that proper consideration as to a response could be given.
Ms
Thornton for the plumbing division of the CEPU also supported the CFMEU’s
adjournment application. She added that she was
not confident that she had
copies of all of Abigroup’s material and sought time to consider that
material.
Mr
Murdoch QC, counsel for Abigroup, opposed any adjournment other than for a
period of about 30 minutes to allow the respondents
to check whether they had
all of the material. He noted that the orders previously made by Fair Work
Australia against the CFMEU
and the BLF would expire at 5.00 pm that day.
He submitted that the matter was urgent because the construction project
remained
blockaded, with workers being subjected to harassment to the point
where one person had been charged with a criminal offence. He
said the
situation was deteriorating.
The
Senior Deputy President then ruled upon the application for the adjournment as
follows:
Thank you. Look, everyone, I have examined the material that’s come in,
that’s been filed, and also of course I don’t
have a fixed
determined view on those matters as yet. It is suggestive of the fact that the
industrial action that I found last
week, at least at a preliminary level and
without reaching any fundamental findings of course is that the situation
continues to
be parlous and difficult at the particular site. As in all these
matters there is a high degree of urgency attached to these applications
when
they come in and I will attach the same degree of urgency to this particular
application, particularly in the context where
the orders which currently exist
expire later this afternoon. There may well be issues where some parties have
some concerns about
the satisfactory nature of the service to the various
documents and so forth, and the completion – whether or not the documents
they hold are complete body of materials. I’ll adjourn for the 30 minutes
that Mr Murdoch suggested and I’ll allow you
to examine the completeness
of your respective files. If in that 30 minute time one of the – someone
is of concern that they
need some small short further period of time to digest
some particular materials, then you can request that at the time. So
we’ll
adjourn for that period of time and re-resume on those
circumstances. Thank you.
The
hearing was adjourned at 3.30 pm and resumed at 4.10 pm. Mr
O’Brien again sought an adjournment until 5 September. Once
more, Mr
White and Ms Thornton supported the application. Mr O’Brien indicated
that the CFMEU would consent to an interim
order if the matter were adjourned
until the Wednesday. There was no such offer from the CEPU.
The
Senior Deputy President then proceeded with the hearing, implicitly rejecting
the further application for an adjournment. After
Mr O’Brien indicated
that he had not had an opportunity to view certain video recordings relied upon
by Abigroup the Senior
Deputy President said:
What we might do is allow you some time to have a look at this footage and to
give you the means to do that. That would require
us to source a laptop for you
and we shall do that, and we’ll make sure that you’ve had that
opportunity. So what we’ll
do is that we’ll adjourn. We’ll
source some suitable equipment for you and we’ll provide you with that
material
in the conference room to the rear of the court room and my associate
will check with you in a little while to see how you’re
going and whether
you’ve had an opportunity to see that documentation as embedded in the
CDs. So we’ll do that and we’ll
adjourn for that purpose. Thank
you.
The
hearing was adjourned at 4.26 pm and resumed at 5.12 pm. Upon the
resumption, Mr White said that, having reviewed the footage,
he was unsure
as to its relevance to the case against the CEPU. Mr Murdoch then indicated
that the footage was not relevant to the
case against the CEPU.
The
Senior Deputy President invited Mr Murdoch to open his case. Mr White objected
to some paragraphs of the material read by Abigroup
on the basis that they
contained unsourced hearsay and the Senior Deputy President ruled that such
material would be admitted and
would be given only such weight as he might
consider appropriate.
After
Abigroup had read its material, the Senior Deputy President raised the question
of whether the respondents intended to cross-examine
Abigroup’s witnesses.
Mr White said: “We are not in a position to be able to cross-examine,
your Honour”.
The
Senior Deputy President invited the respondents to call any evidence. Mr
O’Brien for the CFMEU indicated that he did not
intend to call any
evidence. Mr White called Patricia Rodgers, an industrial officer with the
CEPU. Her evidence was that she had
telephoned Mr Lynch and read to him the
first of the four statements attributed to him in the second statutory
declaration of Mr
McCann of 3 September 2012 (the one served at the bar
table).
In
that statutory declaration Mr McCann stated that on 16 August 2012 he was told
by an unnamed person that Mr Lynch had addressed
a group of workers who were
members or eligible to be members of the CEPU and
said:
(a) ‘The site is open for work’;
(b) ‘The union can’t guarantee your safety (getting bashed in dark
corners) if you cross the picket line’;
(c) In reply to a question from one of the workers regarding letters they had
received the Fair Work Building Inspectorate, Chris
said words to the effect
that the workers should ‘rip them up, pay no attention to them, and that
if you do you’ll be
in a worse position than crossing the picket
line’;
(d) ‘If they hold out Abi will be forced to come to the table and
negotiate with us’ (I took this to be a reference to
the unions wanting
Abigroup to sign a new enterprise agreement that has been proposed by the
unions); and
(e) that they would meet again tomorrow at the same time to
discuss.
Ms
Rodgers’ evidence of her discussion with Mr Lynch was as
follows:
I asked him if he remembers saying those four things that he is alleged to have
said. In relation to the first two he said he might
have done, he
couldn’t clearly recall, it’s a long time ago but in relation to the
fourth one, that is D, he specifically
said he didn’t say
it.
Ms
Rodgers was cross-examined. She said that Mr Lynch was at home, sick.
The
parties then made their submissions. The representatives of the CEPU argued
that the evidence did not establish that the action
described in the material
was “industrial action” or that the CEPU had “organised”
any industrial action
within
s 418
of the
Fair Work Act
. The points
they sought to make were that the persons who were CEPU members or eligible to
be its members were refusing to cross
the picket line because of concerns for
their safety at the hands of other workers if they did so, and that the CEPU
officials were
neither encouraging people not to work nor supporting industrial
action organised by the CFMEU and the BLF.
Section 19(2)
of the
Fair Work
Act
relevantly provides that action by an employee based on a reasonable
concern of the employee about an imminent risk to his or her
safety is not
industrial action.
In
response to a submission by Mr Murdoch that Abigroup’s evidence was
essentially uncontested despite its witnesses being
made available for
cross-examination, Mr White noted that he had sought, but had been refused, an
adjournment that would have allowed
him to be in a position to better
respond.
The
hearing concluded at 8.53 pm on 3 September 2012. Although the Senior
Deputy President had refused an adjournment to 5 September
on the basis of the
urgency of the application, and despite the fact that his previous orders
against the CFMEU expired at 5.00 pm
on 3 September 2012, he reserved
his decision and did not make any interim orders.
The
Senior Deputy President handed down his decision on Wednesday, 5 September 2012
at about 11.30 am. He made orders prohibiting
the CFMEU and the CEPU and
their officers, employees and delegates from,
inter alia
, organising or
being involved in organising any industrial action. The order also prohibited
all employees employed by a subcontractor
to Abigroup at the QCH Project who
were members or eligible to be members of the CFMEU and the CEPU and who were
taking unprotected
industrial action from engaging in any industrial action.
The order had effect against the unions for a period of six months and
against
the subcontractors’ employees for the duration of the QCH Project.
In
his reasons for decision, the Senior Deputy President emphasised the urgency of
the application, saying:
[2] The QCH is a major Queensland public health asset project, valued at some
$800 million. Little or no work has been performed
on the site since around 6
August 2012, which was the time I made orders [PR527573] (“the previous
decision”) pursuant
to an application by the Company under
s.418
of the
Act. Access to the site through the congregation of workers is severely
limited.
...
[4] This decision is expedited for reason that the stoppage and the severe
limitation on site access which have arisen is long running.
The situation is
heightened by that very fact, along with some of the conduct issues, which have
led to one arrest so far. The
communications made on the site and elsewhere are
sometimes unashamedly abusive, and there are also media and other reports of
threats
and intimidation which only fuel the current tensions. It is said by
the Company that the cost of the stoppage per day (excluding
RDOs) is in the
order of $300,000 plus any contractual damages that might be levied by the
Queensland State Government.
The
Senior Deputy President proceeded to make findings that employees who were
members or eligible to be members of the CEPU were
engaging in unprotected
industrial action:
[7] There is a claim in the current application that some of the employees of
the subcontractors are taking industrial action that
is not in all likelihood to
be protected industrial action. I agree that there is evidence of employees of
the services trades who
are members of or are eligible to be members of the CEPU
who have taken unprotected industrial action. They have left site on some
occasions for meetings with CEPU officials. They have left site and
participated in activities in support of the wider industrial
action that I have
found to be happening (see further below). Mr Brian Gildea also provided
evidence that they have participated
in a demonstration in support of the
industrial action around the site.
[8] Generally, it further appears from Mr Gildea’s observations, a large
gathering of workers across the structural and services
trades assembles each
morning (other than on rostered RDOs), and then disperse, with no work being
performed.
(Footnotes omitted.)
The
Senior Deputy President then turned to the question of whether the CEPU had
organised industrial action, finding as
follows:
[27] The evidence in this matter does not all lead in one direction. There is
evidence that the CEPU at one point stated at a meeting
of the service trades
that it did not support the industrial action being carried out by the BLF and
the CFMEU. At the same meeting
I note the CEPU organisers concerned did not
recommend that their members cross the picket line owing to concerns with the
consequences
of so doing.
[28] On the evidence before me, however, the conduct of Mr Lynch, an organiser
for the CEPU, moved beyond the simple communication
of an observation made in
the interest of public safety, that being the potential implications of crossing
a picket line. Instead,
Mr Lynch’s comments (being paragraphs (b) and (c)
as cited earlier), when read together, constitute a communication the intent
of
which is to cause employees not to perform their duties in the ordinary manner
and not to access their place of work for that
very purpose. Indeed, Mr
Lynch’s comments here may more appropriately characterise the actual
intent of his other comments.
[29] It also appears to me from the evidence that the CEPU generally is
conducting itself over time in a manner that is intended
directly to dissuade
its own members (and others) from performing work in the ordinary manner and
accessing the QCH site for that
very purpose. At times it has called meetings
away from the site at which the employees ordinarily perform work. At other
times,
services trades employees left the site after being addressed by
representatives (of both divisional branches) of the CEPU.
[30] In the contexts I have set out above, and notwithstanding the manner in
which some of the relevant information has been conveyed
to the Company, the
presence of the CEPU on site has not been and is not a passive or disinterested
one. Rather, it continues to
be for a particular purpose: to advance and lend
support to an industrial objective. The CEPU’s overall conduct on site
cannot
reasonably be explained otherwise.
[31] It appears to me therefore that by its conduct, the CEPU is organising
industrial action for the purposes of
s.418(1)(c)
of the Act. And because I so
find, I must make a stop order for a prescribed period of operation.
(Footnotes omitted.)
The
reference in [28] to Mr Lynch’s comments was to those comments set out in
the second statutory declaration of Mr McCann
made on 3 September 2012. It will
be recalled that the evidence of Ms Rodgers was that Mr Lynch had told her over
the telephone
that he might have made the comments at (a) and (b) but could not
clearly recall them and he denied making the comment at (d). Ms
Rodgers did not
indicate what Mr Lynch’s response was to (c).
Aside
from Mr McCann’s evidence of Mr Lynch’s statements and Ms
Rodgers’ account of Mr Lynch’s response to
that evidence, the Senior
Deputy President’s findings concerning the conduct of CEPU officials were
based entirely upon the
uncontradicted evidence of Mr Gildea. That
uncontradicted evidence included evidence concerning the activities of Mr Lynch,
Peter
Ong, Mark Bateman and Keith McKenzie, who were all organisers for the
CEPU.
The
Senior Deputy President did not set out in detail all of the evidence he relied
upon to support his findings. That is understandable
in view of the short time
frame within which he delivered his reasons. The uncontradicted evidence before
the Senior Deputy President
was capable of supporting his
findings.
The appeal to the Full Bench
Both
the CEPU and the CFMEU appealed against the orders of the Senior Deputy
President. By the time of the hearing, the name of
the tribunal had changed
from “Fair Work Australia” to the “Fair Work
Commission”. It is convenient to refer
only to the Fair Work Commission
in the remainder of these reasons.
It
is only necessary to discuss the principal ground of appeal, namely that the
unions had been denied procedural fairness by the
refusal of a lengthier
adjournment. The Full Bench rejected this ground on the following
basis:
[30] The primary issue for determination in an application under
s 418
is
whether it appears to the Commission that industrial action is happening (or is
threatened, impending, probable or being organised).
This involves a finding of
fact. If it appears to the Commission that industrial action is happening, it
is required to issue an
order. The statutory injunction to determine matters
within two days (as far as practicable) emphasises that matters under the
provisions
will necessarily be conducted with expedition and the opportunity to
present a case will be limited. The scheme of this legislation
carries with it
the expectation that when members of an organisation engage in a stoppage of
work, they need to be ready at short
notice to be represented in any proceedings
regarding their conduct and put such submissions that may be available to them
to avoid
the consequences of further orders arising from their conduct. This is
quite a different situation to civil remedies generally where
there is an
obligation to make out a case and permit a respondent a reasonable opportunity
to respond to the case against them.
The obligation to make orders, on
application or on its own motion, requires the Commission to conduct the
proceedings with considerable
expedition.
[31] We note in this matter that the circumstances included the following:
industrial
action had been taking place at this site for some time,
the site was an
important public infrastructure project;
the stoppage of
work had attracted publicity;
his Honour had
previously issued three orders for the industrial action to stop;
despite the
order there had not been a return to work at the site;
although the
previous orders did not apply to the CEPU, there had been disputes before his
Honour in relation to the CEPU and contractors
engaged to perform work on the
site;
during the
course of the hearing on 3 September 2012, the previous order applying to the
CFMEU expired;
the fact that
work was not being conducted by CEPU members on the site was not contested. The
key contention of the CEPU was that
the stoppage of work by CEPU members was not
industrial action and the CEPU officials were not organising it;
his Honour
granted two adjournments of a short duration;
following the
adjournments the CEPU was permitted to lead hearsay evidence which provided a
factual basis for the contentions made
by the CEPU about the relevant
circumstances;
his Honour dealt
with the issue of whether the stoppage of work by all employees amounted to
industrial action by limiting the scope
of the order to those who were engaging
in industrial action.
[32] Significantly, we are not persuaded that the evidence which would have been
brought with the benefit of an adjournment, reflected
in the additional evidence
filed by the CEPU in the Federal Magistrates Court on 6 September 2012,
following an adjournment granted
on 5 September 2012, would have affected the
decision and order of Senior Deputy President Richards.
[33] In all of the circumstances and having regard to the scheme of the Act we
do not believe that his Honour denied the CEPU or
the CFMEU procedural fairness.
His Honour was in the best position to assess the circumstances and determine
the appropriate procedure
to be adopted to enable him to determine the matter.
He had dealt with industrial action regarding this project on several previous
occasions. He granted two adjournments of a short duration. He denied an
application for a further adjournment that would have
extended the proceedings
beyond the period he was required to try to determine the application. In our
view his Honour gave the
parties a reasonable opportunity to conduct their case.
We dismiss this ground of appeal.
Some
aspects of the Full Bench’s reasons may be open to criticism. For
example, it did not discuss the factors that might
have affected the ability of
the unions to respond to the case made against them, such as service of material
shortly before the
hearing, the extent of the material served and the nature and
extent of the allegations. We will deal with other aspects of the
reasons
later. However, the CEPU’s complaint about the reasons is confined to
what the Full Bench said at [32].
The decision at first instance: a denial of procedural fairness?
It
is well established that the members of the Fair Work Commission are obliged to
observe procedural fairness in carrying out their
functions under the
Fair
Work Act
:
Coal & Allied Services Pty Ltd v Lawler
[2011] FCAFC 54
;
(2011) 192 FCR
78
at
[25]
. That obligation extends, in the absence of any express provision to
the contrary, to the exercise of the Commission’s powers
under
s 418:
Transport Workers’ Union of New South Wales v Australian Industrial
Relations Commission
[2008] FCAFC 26
;
(2008) 166 FCR 108
at
[44]
.
Procedural
fairness requires that the Fair Work Commission ensure that each party is given
a reasonable opportunity to present his
or her case:
Minister for
Immigration and Multicultural Affairs v Bhardwaj
(2002) 209 CLR 597
at [40]
per Gaudron and Gummow JJ;
Sullivan v Department of Transport
(1978) 20
ALR 323
at 343 per Deane J. The Full Bench stated in [30] of its reasons that an
application under
s 418
of the
Fair Work Act
is, “quite a
different situation to civil remedies generally where there is an obligation to
make out a case and permit a respondent
a reasonable opportunity to respond to
the case against them”. That statement as it reads is erroneous, but the
Full Bench
went on to conclude in [33] that such a reasonable opportunity was in
fact given so that its error may be irrelevant.
A
refusal to grant an adjournment can constitute procedural unfairness:
Bhardwaj
at [40]. In
Scott v Handley
[1999] FCA 404
;
(1999) 58 ALD 373
, the Full
Court of the Federal Court held at 379-380:
For a judge to refuse an adjournment of the hearing of proceedings sought by the
applicants on the day of the hearing on the basis
that they are not in a
position to proceed, and thereby to dismiss those proceedings, is a most
significant step, not lightly to
be taken. The refusal of an application for an
adjournment may, in some circumstances, involve a denial of procedural
fairness.
In the absence of demonstrable prejudice to the respondents, why, it might be
asked, cannot an adjournment on appropriate terms adequately
protect the
interests of those parties?
The
Full Court cited the following passage from the decision of the English Court of
Appeal in
R v Thames Magistrates’ Court, Ex parte Polemis
[1974] 2
All ER 1219
at 1223:
But of the versions of breach of the rules of natural justice with which in this
court we are dealing constantly, perhaps the most
common today is the allegation
that the defence were prejudiced because they were not given a fair and
reasonable opportunity to
present their case to the court, and of course the
opportunity to present a case to the court is not confined to being given an
opportunity
to stand up and say what you want to say; it necessarily extends to
a reasonable opportunity to prepare your case before you are
called on to
present it. A mere allocation of court time is of no value if the party in
question is deprived of the opportunity of
getting his tackle in order and being
able to present his case in the fullest sense.
In
Sali v SPC Ltd
[1993] HCA 47
;
(1993) 116 ALR 625
, the majority of the High Court said at
628-629:
In
Maxwell v Keun
[1928]
1 KB 645
, at 650, 657, 658, the English
Court of Appeal held that, although an appellate court will be slow to interfere
with the discretion
of a trial judge to refuse an adjournment, it will do so if
the refusal will result in a denial of justice to the applicant and the
adjournment will not result in any injustice to any other party. That
proposition has since become firmly established and has been
applied by
appellate courts on many occasions.
The
minority judges in
Sali
at 635 cited the opinion of Asprey JA in
Carryer v Kelly
(1969) 90 WN
(Pt 1)
NSW 566 at 569
that:
An adjournment which, if refused, would result in a serious injustice to the
party applying for it should only be refused if that
is the only way that
justice can be done to the other party.
Both
the majority and minority judges in
Sali
indicated that the passages
cited by them had to be qualified by the need to take into account the
congestion of court lists and
the development of modern case management, but did
not otherwise cast doubt upon their continuing relevance and authority.
What
will constitute a reasonable opportunity for a party to present his or her case
in a given situation depends upon the whole
of the circumstances, including the
nature of the jurisdiction exercised and the statutory provisions governing its
exercise:
R v Conciliation & Arbitration Commission; Ex parte Angliss
(1969) 122 CLR 546 at 552-553;
SZBEL v Minister for Immigration and
Multicultural and Indigenous Affairs
[2006] HCA 63
;
(2006) 228 CLR 152
at
[26]
. Procedural
fairness requires that the statutory power be exercised fairly: that is, in
accordance with procedures that are fair
to each party in light of the statutory
requirements, the interests of the parties and the interests and purposes,
whether public
or private, which the statute seeks to advance or permits to be
taken into account as legitimate considerations:
Kioa v West
[1985] HCA 81
;
(1985) 159
CLR 550
at 585, per Mason J.
Section
418(1)
of the
Fair Work Act
provides,
relevantly:
(1) If it appears to the FWC that industrial action by one or more employees or
employers that is not, or would not be, protected
industrial
action:
(a) is happening; or
(b) is threatened, impending or probable; or
(c) is being organised;
the FWC must make an order that the industrial action stop, not occur or not be
organised (as the case may be) for a period (the
stop period) specified in the
order.
Note: For interim orders, see
section
420.
(2) The FWC may make the order:
(a) on its own initiative; or
(b) on application by either of the following:
(i) a person who is affected (whether directly or indirectly), or who is likely
to be affected (whether directly or indirectly),
by the industrial action;
(ii) an organisation of which a person referred to in subparagraph (i) is a
member.
Section
420
provides, relevantly:
Application must be determined within 2 days
(1) As far as practicable, the FWC must determine an application for an order
under
section 418
or
419
within 2 days after the application is made.
Interim orders
(2) If the FWC is unable to determine the application within that period, the
FWC must, within that period, make an interim order
that the industrial action
to which the application relates stop, not occur or not be organised (as the
case may be).
(3) However, the FWC must not make the interim order if the FWC is satisfied
that it would be contrary to the public interest to
do
so.
As
the application in the present case was filed on the 3 September 2012, the two
days described in
s 420(1)
ended at midnight on 5 September 2012.
Section
421(1)
provides that a person to whom an order under
ss 418
,
419
or
420
applies must not contravene a term of the order.
Section 539
allows a person
affected by the contravention of
s 421(1)
or an inspector to apply for the
imposition of a penalty upon the contravener.
Sections
418
and
420
recognise both the seriousness of the consequences for those
affected by industrial action that is alleged to be unlawful and a need
for
expedition in hearing and determining the application. That recognition is
reflected in the nature of the orders which the Fair
Work Commission is
empowered to make, by the requirement that it must make orders if the conditions
of
s 418(1)
are met, and by the requirement in
s 420(1)
that, as far as
practicable, the Fair Work Commission is to determine an application within two
days after the application is made.
The
two-day period within which an application is ordinarily expected to be heard
and determined necessarily affects what constitutes
a reasonable opportunity for
the respondent to present its case. One consequence is that any adjournment of
the application will
be for a much shorter period than would be permitted in
ordinary litigation.
Despite
the need for expedition,
s 420
recognises that it may not be practicable
for an application to be determined within the two day period. One of the
practicalities
is the obligation to give procedural fairness to the respondent.
The provision of a reasonable opportunity for a party to present
its case may in
the circumstances of the particular case mean that the application cannot be
determined within the two days. The
content of the requirement to give
procedural fairness is then affected by the obligation of the Fair Work
Commission under
s 420(2)
to make an interim order that the industrial
action stop, not occur or not be organised, subject only to the public interest.
The
obligation to make an interim order exists regardless of the strength or
weakness of the case and regardless of whether the respondent
has had a
reasonable opportunity to present a case against the making of such an
order.
The
legislation does not pursue expedition at all costs. The legislation does not
make the determination of the application within
two days a complete goal in
itself, but requires that the period be taken into account and given weight in
deciding what will be
a reasonable opportunity for a party to present its case.
Expedition does not trump procedural fairness.
The
reasonableness of an opportunity to present a case must also be measured against
the potential consequences to a party of an
order made under
s 418.
The
consequences may be significant. An order under
s 418
is a final order. Such
an order restricts the ability of persons to engage in conduct that they may
assert is lawful conduct. It
may force a person to provide labour, or it may
compel an employer to provide work to employees. If a person contravenes an
order
under
s 418
, the person is liable to the imposition of a penalty
pursuant to
s 539.
An
application under
s 418
will almost invariably be brought at short notice.
When a respondent seeks an adjournment, it will be necessary for the Fair Work
Commission to consider whether an adjournment is necessary to give the
respondent a reasonable opportunity to present his or her
case and the length of
any adjournment that is required for that purpose. The relevant factors will
include the extent of the notice
given, whether the application should have been
anticipated and prepared for, the extent and nature of the material served and
the
allegations made, the seriousness of the consequences for the respondent,
whether the applicant has delayed in bringing the application,
the fact that the
order under
s 418
will be a final order and whether the applicant’s
position can be protected by an interim order if necessary.
On
the other side, the relevant factors will include the circumstances of the
industrial action, the seriousness of its consequences
for the applicant and
third parties, the urgency of the application, the legislative policy that the
determination is ordinarily
expected to be made within the two-day period and
any prejudice to the applicant and third parties as a result of the
adjournment.
When
a court considers whether a tribunal exercising a statutory power has accorded a
party procedural fairness, the court must place
itself in the shoes of the
tribunal to determine whether the procedure adopted was reasonable and fair:
Kioa v West
at 627 per Brennan J. What is reasonable and fair depends on
the circumstances known to the tribunal at the time of the exercise
of the power
or the further circumstances which, had it acted reasonably and fairly, it would
then have known:
Kioa v West
at 627 per Brennan J.
The
lawyers for CEPU sought an adjournment for two days on the basis that, given the
short service of the material, they required
time to give proper consideration
to a response to that material. The Senior Deputy President granted an
adjournment for 30 minutes,
indicating that a further request could be made if
“someone is of concern that they need some small short further period of
time to digest some particular materials”. The Senior Deputy President
was not prepared to grant any adjournment other than
in the order of 30 minutes
and then only to “digest” particular material. Later an adjournment
of some 46 minutes was
granted to allow the respondents to view video recordings
that had been served, but that adjournment was wasted time for the CEPU,
because
upon the resumption, counsel for Abigroup indicated that the footage was not
relevant to the case against the CEPU.
The
CEPU had been served with Abigroup’s application and two supporting
statutory declarations about 2½ hours before the
hearing commenced. The
CEPU was not provided with prior notice that the application would be brought.
While much of the material
attached to Mr Gildea’s statutory declaration
had been served on the CEPU in the course of the Federal Magistrates Court
proceedings
during the previous week, Abigroup’s solicitors had advised
the CEPU that an interlocutory application would not be pressed,
so that there
seems to have been no particular reason to expect that such material would form
the basis of a new application a few
days later. In addition, the statutory
declarations of Mr Gildea and Mr McCann contained significant and
substantial new allegations.
The lawyers for the CEPU were also served with
three statutory declarations in the court room shortly before the hearing
commenced,
including significant new allegations resulting from statements made
by Mr Lynch.
In
order to properly present a defence to the application, the CEPU’s lawyers
would have been required to read all of the material,
distil the allegations
made against the CEPU and its members or those eligible to be its members and
take instructions as to those
allegations, including by allowing relevant
witnesses to read the statutory declarations.
The
following allegations relevant to the CEPU may be distilled from the statutory
declarations relied upon by Abigroup:
On 7 August
2012, a large number of structural trades workers were standing outside the main
entrance to the site. Mr Lynch and Gary
O’Halloran (also a CEPU
official), were standing at the entrance with officials of the CFMEU and BLF.
Later that morning Mr
Gildea was informed by an unnamed source that the services
trades employees had left the site for a meeting with Mr Lynch and Mr
O’Halloran. Mr Gildea was told by a named electrical contractor that his
employees were going home because Mr Lynch and Mr
O’Halloran had said
words to the effect that: “we, your employer or Abigroup cannot guarantee
your safety if you cross
the picket line”.
On 8 August
2012, Mr Lynch and Mr O’Halloran addressed a meeting of services trades
employees and said that the issue was a
CFMEU and BLF issue, not a CEPU issue.
However, the CEPU was concerned for the safety of its members should they cross
the picket
lines and the CEPU could not guarantee that their members would not
be exposed to bullying, harassment or intimidation if they attempted
to do so.
On 10 August
2012, a number of services trades employees left the site. Mr Gildea was later
advised by a named person that those
employees had attended a meeting conducted
by Mr Lynch and Jarrad Robinson, another CEPU organiser. At that meeting Mr
Lynch and
Mr Robinson had said that the CEPU did not approve of the current
action being taken by the BLF and the CFMEU and that the site was
open for work.
They also said that the CEPU would not recommend that its members cross the
picket lines due to concerns about harassment
and bullying.
On 16 August
2012, Mr Gildea had a telephone conversation with Mr Lynch. In the course of
that conversation Mr Lynch said words to
the effect, “no-one can guarantee
his members’ safety going onto the site” and there were “a lot
of dark
corners on the site”.
On 16 August
2012, Mr Gildea saw approximately 200 workers congregated outside the site.
They split up according to their trades.
The services trades employees were
addressed by Mr Lynch. Mr Gildea was told by an unnamed source that Mr Lynch
said that the site
was open for work, but that no-one could guarantee the
workers’ safety if they crossed the picket lines and that there would
be
another meeting the following Friday. After they were addressed by Mr Lynch,
the services trades employees went home.
On 16 August
2012, Mr Lynch made the comments set out at [102] of this judgment.
On 17 August
2012, approximately 80 to 100 services trades workers showed up for work, but
did not go onto the site past a group of
people standing near the main entrance
(apparently manning a picket). The electrical workers were addressed by
Mr Lynch and then
went home. Mr Gildea understood that the plumbers had a
meeting where they were addressed by Mr Robinson of the CEPU and then they
went
home.
On 20 August
2012, Mr Gildea was told by an unnamed source that a meeting had been organised
between the employees of the plumbing
subcontractors and the State Secretary of
the CEPU, and he was later told by an unnamed source that the plumbing trades
employees
had left the site at 6.30 am to travel to the CEPU office at
South Brisbane.
On the same day
a large majority of the workforce left the site and had a meeting in Southbank.
Mr Lynch of the CEPU attended the
meeting.
On 27 August
2012, Mr Gildea was advised by an unnamed source that plumbers were gathering
and would attempt to return to work. Mr
Gildea saw a group of plumbers
congregated outside the site in a separate group from the electricians. He saw
Mr Lynch, Mr Ong and
Mr Bateman, who were with the electrical trades section of
the CEPU, standing about 1 – 2 metres away from the plumbers with
their
arms folded. Mr Gildea stated, again on the basis of information given by an
unidentified source, that once the other workers
became aware that the plumbers
may attempt to return to work, a large number of other workers gathered nearby
and the plumbers were
addressed by Bob Carnegie of the BLF. Mr Lynch, Mr Ong
and Mr Robinson were present. The plumbers did not attempt to return to
work.
The implication of Mr Gildea’s observations was that there was
intimidatory conduct on the part of Mr Lynch, Mr Ong
and Mr Robinson which
contributed to the plumbers not returning to work.
After Mr
Carnegie had addressed the plumbers on 27 August 2012, he addressed workers who
were members or eligible to be members of
the CFMEU and BLF. Mr Gildea
says that he was told by an unnamed source that Mr Ong said words to the effect
that the industrial
action could go on for weeks.
On 28 August
2012, there was a meeting of approximately 100 workers outside the QCH site.
From Mr Gildea’s observations the
workers gathered were from both the
services trades (electricians, plumbers and so on) and the structural trades.
The workers then
walked up Vulture Street and Mr Gildea assumed that they were
walking towards Abigroup’s head office. Later the protestors
returned to
the street outside the QCH Project and chanted various words and slogans.
On 28 August
2012, Mr McCann observed a rally of workers and union officials outside the QCH
site. The union officials amongst the
crowd included Mr Lynch and Mr Ong. The
inference sought to be made by Mr McCann was that the CEPU officials were
supporting the
rally.
On 30 August
2012, Mr Gildea was told by an unnamed source that a group of approximately 140
workers was addressed by Mr Lynch, Mr
Bateman and Mr Carnegie. The workers
were said to have been advised that Abigroup and the unions were meeting later
that day and
that “there was an intent to sign by Abigroup”
(suggestive of a dispute between Abigroup and CEPU that was about to be
resolved).
On 30 August
2012, Mr Gildea was told by a named source that demands had been made for his
electrical workers to be paid holiday pay
and RDOs for the period of industrial
action of the last few weeks and that those demands had been repeated to the
source by Mr Lynch.
On 3 September
2012, Mr Gildea was told by a named source that the plumbers had been called to
a meeting at the CEPU office. Mr Gildea
was later told by another named source
that Mr Lynch and Mr Bateman had addressed a group of workers near the front of
the project
site. There were a number of union delegates present at the site
that morning including CEPU organisers, Mr McKenzie, Mr Lynch and
Mr Bateman.
These
allegations were extensive and covered a number of incidents over a period of
nearly a month. They were found within some
350 pages of material and were
scattered amongst numerous allegations concerning the CFMEU and the BLF. The
task of reading that
material and distilling the allegations against the CEPU
would not have been an easy or quick one, even for experienced lawyers.
In
order for the CEPU to meet Abigroup’s case, it required instructions about
the allegations from at least the organisers
against whom particular allegations
were made. The CEPU did not have an adequate opportunity to obtain instructions
from potential
witnesses. This affected the ability of the lawyers to present a
case by cross-examining Abigroup’s witnesses and calling
evidence of their
own. Ms Rodgers was able to obtain some brief instructions over the telephone
from one of them, Mr Lynch, concerning
the specific comments attributed to him
by an unnamed source in the second statutory declaration of Mr McCann. But it
is apparent
that Mr Lynch did not have access to the statutory declaration
to be able to place in context the allegations about comments he was
alleged to
have made more than two weeks earlier. There were a number of other allegations
made against Mr Lynch in the material
that were not addressed.
The
CEPU sought an adjournment for two days. It was open to the Senior Deputy
President to grant an adjournment for that period
and any prejudice to Abigroup
as a result of the adjournment could have been minimised by the grant of an
interim order. However,
the Senior Deputy President was also entitled to take
into account factors including the two day period under
s 420(1)
and, in
our view, it was open to him to refuse an adjournment for the period
sought.
The
Senior Deputy President did allow the CEPU two short adjournments totalling
76 minutes. Yet the CEPU had been served with voluminous
material some
2½ hours before the commencement of the hearing and further material only
minutes beforehand. As we have said,
a reasonable opportunity for the CEPU to
present its case required an adjournment for such a period as would have allowed
the CEPU’s
lawyers sufficient time to read all the material, distil the
allegations against the CEPU, and seek instructions from the relevant
witnesses
so as to allow the CEPU’s lawyers the opportunity to cross-examine
Abigroup’s witnesses and call evidence.
The time available between
service of the material and the commencement of the hearing and during the short
adjournments granted
by the Senior Deputy President was insufficient to allow
that to occur.
That
is not to say that the urgency of the application could or should have been
ignored, but it must be remembered that the earliest
allegations in the
statutory declarations that the CEPU was organising industrial action and that
its members or persons eligible
to be its members were taking industrial action
dated back to 7, 8 and 10 August 2012 and there were further allegations
relating
to conduct on 16, 17 and 20 August. Abigroup had not moved with
urgency in bringing an application under
s 418
of the
Fair Work Act
against the CEPU, its members and those eligible to be its members. There was
no good reason why the hearing could not have been
adjourned at least to the
following day.
It
must also be borne in mind that the allegations made by Abigroup against the
CEPU and its members and those eligible to be its
members were not the same as
the allegations made against the CFMEU and the BLF and their members and persons
eligible to be their
members. Orders had previously been made against the CFMEU
and the BLF by the Fair Work Commission and the Federal Magistrates Court.
The
previous order made under
s 418
against the CFMEU was to expire on the day
of the hearing and this was one of the factors that influenced the Senior Deputy
President
to grant only the short adjournments. The circumstances to be
considered in deciding what period of time would give the CEPU a reasonable
opportunity to present its case were different. Yet the CEPU was granted only
the same short adjournments as those granted to the
CFMEU.
In
our opinion, the minimum necessary to afford the CEPU a fair hearing would have
been to adjourn the hearing to the following day.
Abigroup
argued that the short adjournments in fact granted by the Senior Deputy
President were adequate to give the CEPU a reasonable
opportunity to present its
case. Abigroup argued that this was demonstrated by the fact that the
CEPU’s counsel was able to
make objections to Abigroup’s evidence,
call evidence from Ms Rogers and make detailed submissions. The CEPU did not
dispute
that it had an
opportunity
to present a case – its
complaint was that it did not have a
reasonable
opportunity to do so.
The substance of its complaint was that it did not have an adequate opportunity
to take instructions from
and call witnesses. While it was able to call Ms
Rogers to give evidence as to a telephone conversation with Mr Lynch related to
one of the allegations made against him, it is apparent that the instructions
were only able to be taken briefly over the telephone
and without Mr Lynch being
able to read the statutory declaration to give context to the statements
attributed to him over two weeks
earlier. The fact that the CEPU had an
opportunity to present a case does not mean that it had a reasonable opportunity
to do so.
Abigroup
argued that the adjournments granted by the Senior Deputy President were
adequate in circumstances where the CEPU’s
lawyers did not state that they
wanted to contact witnesses other than Mr Lynch. However, the CEPU’s
counsel had asked for
an adjournment so that proper consideration could be given
to the CEPU’s response to the material served upon it. In a context
where
the material contained numerous allegations against various CEPU organisers, it
was obvious that the CEPU would need instructions
from all those organisers.
Otherwise Abigroup’s evidence would be uncontradicted. The CEPU’s
counsel made it plain
that he did not have instructions which would enable him
to cross-examine Abigroup’s witnesses. The Senior Deputy President
cannot
be taken to have been unaware of the ordinary exigencies of litigation such as
the need to take instructions from the organisers
against whom allegations
central to Abigroup’s case had been made.
It
follows that the CEPU was denied procedural fairness and the Full Bench erred in
holding otherwise. A denial of procedural fairness
is a jurisdictional error:
Re Refugee Review Tribunal; Ex parte Aala
[2000] HCA 57
;
(2000) 204 CLR 82
(“
Aala
”) at [5], [41], [142], [169],
[210]
.
The decision at first instance: discretion
Abigroup
argued that, even if jurisdictional error was demonstrated in the decision at
first instance, relief should be refused in
the exercise of the Court’s
discretion on the basis that any evidence called by the CEPU if a lengthier
adjournment had been
granted would not have affected the outcome.
In
Stead v State Government Insurance Commission
[1986] HCA 54
;
(1986) 161 CLR 141
(“
Stead
”), the High Court held that a departure from the
rules of natural justice will not entitle the aggrieved party to a new trial
if
the new trial would inevitably result in the making of the same order. An order
for a new trial in such a case would be futile.
However, the Court continued at
147:
All that the appellant needed to show was that the denial of natural justice
deprived him of the possibility of a successful outcome.
In order to negate that
possibility, it was, as we have said, necessary for the Full Court to find that
a properly conducted trial
could not possibly have produced a different
result.
In
Aala
, the issues were whether there had been a denial of procedural
fairness by the Refugee Review Tribunal and, if so, whether the consequence
was
that prohibition should go to the Tribunal under s 75(v) of the
Constitution
. As to the second issue, each member of the High Court
applied the test set out in
Stead
, accepting that prohibition will be
granted if a failure to afford procedural fairness deprived the prosecutor of
the possibility
of a successful outcome.
Before
the Full Bench, the CEPU relied upon an affidavit of Mr Charles Massy, its
solicitor, to demonstrate that an adjournment could
have resulted in evidence
being obtained and led that may have made a difference to the outcome. Mr Massy
deposed that on 4 September
2012, Abigroup had joined the CEPU and three of
its organisers to proceedings in the Federal Magistrates Court against the CFMEU
and the BLF which sought interlocutory injunctions against the CEPU and some of
its organisers. He said that the hearing commenced
at 3.00 pm on
5 September 2012, but the CEPU had sought an adjournment on the basis that
it had been served with a number of affidavits
during the day and had not had
the opportunity to take adequate instructions in respect of the allegations
made. The hearing was
adjourned until 11.00 am the following day. Mr
Massy deposed that during the evening of 5 September and morning of 6 September
he
was able to take instructions and prepare affidavits of Mr Lynch,
Mr Ong and Mr McKenzie, who were each CEPU organisers about whose
conduct allegations had been made in Abigroup’s material. Mr Massy said
that he was not aware of any reason why the CEPU would
not have been able to
adduce evidence to the same effect if Senior Deputy President Richards had
granted the adjournment sought.
In
his affidavit, Mr Lynch deposed that:
The issues the
subject of the industrial dispute did not concern the CEPU or its members. He
had attended the QCH site on most week
days since 7 August 2012 to provide
advice and representation to members of the CEPU. He held meetings with CEPU
members, usually
away from the entrance to the site and out of the presence of
the protestors to enable more open discussion.
At each meeting
he advised members to the effect that: the project was open for work; the CEPU
did not support the taking of industrial
action at the project; the CEPU was
concerned to ensure the safety of its members; the CEPU had sought assurances
from various employers
that employees who entered the worksite while the protest
was taking place would be safe during their passage to work and would not
be the
subject of physical violence once the protest ended, but no such assurances had
been forthcoming; and it was up to individual
members to decide whether they
wished to work given the dangers currently present.
He did not
during any of those meetings encourage members to refrain from going to work or
to support the workers going on strike.
On 16 August
2012, he addressed a gathering of CEPU members and told them that: the site was
open for work; the dispute had nothing
to do with the CEPU and the CEPU did not
support the stoppage; the union had asked the employer to guarantee that the
workers would
be safe when they crossed the line and that they would not be
injured or bullied after the dispute ended; the union could not guarantee
their
safety either; and it was up to workers whether they wanted to work or not.
A worker said
that some of them had received letters from the Fair Work Building Inspector
asking them to participate in interviews
and he asked whether they had to do so.
Mr Lynch said that he replied to the effect that the interview process was
voluntary, but
the participant could be subpoenaed to appear in court later and
give evidence and if workers were forced to go to court and give
evidence
against one of the protestors, then they would be in a worse position than if
they had crossed the picket line.
He did not say
anything to the effect that if workers held out, Abigroup would be forced to
come to the table and negotiate.
On 27 August
2012, he was told that a group of plumbing members was going to attempt to enter
the site despite the presence of protestors
and he walked there with Mr Ong and
Mr Bateman to see what happened so that he could report back to his members.
The three of them
stood on the opposite side of the street to the workers and
none of them said anything to the workers, walked near them or make any
gestures
towards them.
Later he walked
away to talk to some CEPU members in a different area and told them that the
site was open, that he was not there
to stop anybody from going onto the site or
attending work, but that the workers needed to ensure that they were being
provided with
a safe work environment before going back to work.
On 29 August
2012, he had asked two employers to redeploy workers to other jobs so they could
keep working.
On 29, 30 and 31
August 2012, he had discussions with CEPU members in similar terms to his
previous discussions with them.
He denied that
he was aware of any conduct by any representative of the CEPU which conveyed
support for the taking of industrial action.
Mr
McKenzie deposed that:
Every day the
CEPU members had turned up ready and willing to work.
On 28 August
2012, he attended the site and convened a meeting of some members of the CEPU to
provide advice to them. He moved the
meeting to a location some distance away
from the site because he did not want CEPU members discussing whether they would
want to
go to work that day under the gaze of protestors who were demonstrating
outside the site. He thought that this might intimidate
his members and impact
on their ability to hold free discussions. He stated that, as a group, the CEPU
members advised him that
they would not work that day because of their safety
concerns.
After that
decision had been made he suggested that they attend a protest organised by the
Queensland Council of Unions outside of
Abigroup’s office. He thought it
would be a good idea to protest because the sooner the dispute between Abigroup
and the protesting
workers was resolved, the sooner the CEPU’s members
could safely return to work. Some of the CEPU members attended the protest
while others went home or elsewhere.
He was not aware
of any dispute between the CEPU and Abigroup or any conduct of any
representative of the CEPU which conveyed support
for the taking of industrial
action.
Each
of Mr Ong, Mr McKenzie and Mr Lynch indicated that they had not supported or
encouraged the CEPU’s members not to work.
Their evidence suggests that
the workers did not want to cross the picket lines because they feared for their
safety if they did
so. Mr Lynch and Mr Ong denied that they had engaged in
intimidatory conduct against any workers. Mr Lynch placed an innocent
connotation
on the statements attributed to him on 16 August 2012. The effect
of their evidence was to deny that the workers had engaged in
industrial action
or that the CEPU had organised any industrial action.
It
will be recalled that, in finding that CEPU members or persons eligible to be
its members had taken unprotected industrial action,
the Senior Deputy President
relied upon Mr Gildea’s observations that a large gathering of
workers including workers from the
services trades assembled each morning and
then dispersed with no work being performed, that those workers had occasionally
left
the site for meetings with the CEPU officials and that they had also
participated in activities in support of the wider industrial
action. The
evidence of Mr Lynch, Mr Ong and Mr McKenzie was capable of demonstrating
that the CEPU’s members or persons eligible
to be its members were ready
and willing to work, but were not willing to cross the picket lines because of
concerns for their safety.
It was also capable of demonstrating that the
conducting of meetings of workers away from the site and the workers’
participation
in demonstrations were explicable for reasons other than the
taking of industrial action.
It
will also be recalled that the Senior Deputy President found, for several
reasons, that the CEPU had organised industrial action.
The Senior Deputy
President found that Mr Lynch’s comments on 16 August 2012 constituted a
communication, the intent of which
was to cause employees not to perform their
duties in the ordinary manner and not to access their place of work for that
purpose
and, further, that these comments more appropriately characterised the
intent of his other comments about not recommending that their
members cross the
picket line due to safety concerns. The account given by Mr Lynch in his
affidavit of 6 September 2012 was evidence
which, if accepted, could have
persuaded the Senior Deputy President that Mr Lynch was not encouraging the
workers to take industrial
action or otherwise organising industrial
action.
The
Senior Deputy President inferred that the CEPU’s conduct was intended to
dissuade its own members and others from performing
work and attending the QCH
site for work because it had called meetings away from the site and, at other
times, services trades employees
had left the site after being addressed by
representatives of the CEPU. The evidence of Mr Lynch, Mr McKenzie and Mr
Ong was, however,
capable of demonstrating that the reasons for calling meetings
away from the site and for employees leaving the site after being
addressed by
CEPU representatives were consistent with fears the workers had for their
safety, and fears the CEPU representatives
had for the safety of their members.
The
Senior Deputy President made his findings on the basis of the uncontradicted
evidence of Mr Gildea and Ms Rodgers’ evidence
as to the comments
made by Mr Lynch. Had the CEPU been given the chance to take proper
instructions from the various CEPU officials
against whom Mr Gildea’s
evidence was directed, it could have tested his evidence in cross-examination.
The evidence of the
CEPU organisers, had it been before the Senior Deputy
President, would have contradicted much of Mr Gildea’s evidence and
explained
the comments made by Mr Lynch. The effect of the cross-examination
and/or the evidence from the CEPU organisers could have led to
a decision that
members of the CEPU and persons eligible to be members of the CEPU were not
engaging in industrial action and that
the CEPU was not organising industrial
action. In our opinion, the denial of procedural fairness deprived the CEPU of
the possibility
of a successful outcome. It would not therefore be futile to
grant the CEPU the relief it seeks.
But
that is not the end of the matter. A further question arises as to the
availability of relief under
s 39B
of the
Judiciary Act
from the
decision of Senior Deputy President Richards in circumstances where the CEPU
exercised its right to apply for permission
to appeal and was granted that
permission.
In
Transport Workers’ Union v Mayne Nickless Ltd
[1998] FCA 1022
(“
Mayne Nickless
”) an application was made for writs of
prohibition, mandamus and certiorari directed both to Commissioner Hoffman of
the Australian
Industrial Relations Commission who conducted a hearing at first
instance and the Full Bench which dismissed an appeal against Commissioner
Hoffman’s decision. The Full Court held that Commissioner Hoffman had
erred in failing to exercise the Commission’s
jurisdiction. The Full
Court said at 15:
Accordingly writs of certiorari and mandamus should issue. It will be
sufficient for certiorari to issue to Commissioner Hoffman:
it is his decision
to dismiss the union’s application, not that of the Full Bench affirming
it, that has the legal effect
on rights which
Hot Holdings Pty Ltd v
Creasy
(1996) 185 CLR 149
at 159 shows is necessary to justify the issue of
this particular writ. And since the Full Bench decision was dependent upon the
Commissioner’s order, it necessarily goes when that order is quashed: see
R v Rogers
(1869) 6WW & A’B 138(L) at
141.
The
Full Court does not seem to have been taken to the decision of the High Court in
R v Marks; Ex Parte Australian Building Construction Employees’ and
Builders Labourers’ Federation
[1981] HCA 33
;
(1981) 147 CLR 471
(“
Marks
”). In
Marks
, the applicant applied to the
High Court pursuant to s 75(v) of the
Constitution
for a writ of
prohibition directed to both Marks J, a Deputy President of the Australian
Conciliation and Arbitration Commission,
and the Full Bench of that Commission.
The applicant had appealed against the decision of the Deputy President, but the
Full Bench
had dismissed the appeal.
Mason
J (with whom the other members of the Court agreed on this point) rejected a
submission that, if the challenge to the decision
of the Deputy President
succeeded on the footing that it was void, the confirmation of that decision by
the Full Bench would have
no operative effect at
476:
This submission does not meet the point that the Full Bench decision is
conclusive while it stands. In
Wishart v. Fraser
[1941] HCA 8
;
(1941) 64 C.L.R. 470
,
it was held that an appeal as of right to the High Court from a decision of a
magistrate exercising federal jurisdiction could not
be maintained after it had
been confirmed by a Court of Quarter Sessions. Dixon J. said (1941) 64 C.L.R.,
at p. 483: “...
we cannot ignore the order of the Court of Quarter
Sessions confirming the conviction and ... unless we are satisfied that it was
made without jurisdiction and is totally void, we must regard it as conclusive
while it stands.” By its decision the Full
Bench confirmed the decision
at first instance. Further steps to implement the decision will be steps taken
pursuant to its confirmation
of that decision.
As
the position under the
Fair Work Act
is not relevantly distinguishable,
we are bound to apply the reasoning in
Marks
upon this point.
Issuing a writ of prohibition directed to the Fair Work Commission
prohibiting it from proceeding further on the decision and order
of Senior
Deputy President Richards would not disturb the decision and order of the Full
Bench. In
Marks,
the High Court issued a writ of prohibition directed to
the Deputy President and the members of the Full Bench prohibiting all of
them
from proceeding further in the matter on the basis that neither the order at
first instance nor the confirmation of that order
by the Full Bench in
dismissing the appeal could be allowed to stand.
In
Marks
,
Mason J continued at
484-485:
In any event, what happened before Marks J. cannot constitute a basis for
prohibition on the ground that there was a denial of natural
justice. The
B.L.F. exercised its right of appeal to the Full Bench. On an appeal the Full
Bench may admit further evidence and
it may confirm, quash or vary the award or
decision under appeal or make an award or decision dealing with the subject
matter of
the decision under appeal
(s 35(9)
(a), (c) and (d)). In
Twist v. Randwick Municipal Council
, this Court held that the existence
of a full statutory right of appeal on facts and law was indicative of a
legislative intention
that the citizen's only right of redress against the
council's failure to give him an opportunity to be heard before making a
demolition
order was by way of appeal. I refer to my judgment in that case. See
also
Australian Workers' Union v. Bowen [No.2]
.
...
There is a problem in saying that a member of the Commission is not under a duty
to observe the rules of natural justice and there
is a further problem in saying
that the Parliament can oust the jurisdiction of this Court under s. 75 (v) of
the Constitution to
grant relief against an officer of the Commonwealth by way
of prohibition for denial of natural justice. Even so, the B.L.F. exercised
its
right of appeal under s. 35 and the Full Bench examined the matter for itself.
The B.L.F. does not suggest that there was any
denial of natural justice in the
appeal, except in so far as it submits that the Full Bench was wrong in
upholding the decision not
to issue the summons. In my opinion the B.L.F.
received a full and fair hearing in the appeal and in those circumstances any
denial
of natural justice before Marks J. was irrelevant (
Calvin v. Carr
[1979] UKPC 1
;
[1980] A.C. 574
, at p. 593).
(Footnotes omitted.)
Mason
J did not rule that prohibition cannot issue against a Commissioner who decided
an application at first instance in circumstances
where there has been an
unsuccessful appeal to the Full Bench. Rather, his Honour indicated that it is
first necessary to examine
the statutory scheme to ascertain whether
Parliament’s intention was that the only remedy for a denial of procedural
fairness
was to be by way of appeal. Even if that was not Parliament’s
intention, there remains a discretion to refuse relief, for
example, on the
basis that the failure to provide natural justice has been “cured”
by a full and fair hearing in the
appeal so that the denial of procedural
fairness at first instance is irrelevant: see also
Aala
at [50] per
Gaudron and Gummow JJ.
There
is nothing in the language of the
Fair Work Act
to indicate an intention
to exclude the Federal Court’s jurisdiction to issue writs of prohibition
and mandamus under
s 39B
of the
Judiciary Act
against a decision of
the Fair Work Commission at first instance where there has been an appeal.
Section 39B(1)
of the
Judiciary Act
provides that the original jurisdiction of the
Federal Court of Australia includes jurisdiction with respect to any matter in
which
a writ of mandamus or prohibition or an injunction is sought against an
officer or officers of the Commonwealth. Until 1 July 2009,
s 39B(2)
provided that a person holding office under the
Workplace Relations Act
1996
(Cth) was not an officer of the Commonwealth, but that exclusion was
removed by the
Fair Work (State Referral & Consequential & Other
Amendments) Act 2009
(Cth). The purpose of the amendment was to give the
Federal Court jurisdiction under s 39B(1) in matters in which mandamus,
prohibition
or an injunction was sought against a person holding office under
the
Workplace Relations Act
. The Federal Court now has jurisdiction
under s 39B(1) in any matter in which a remedy of this kind is sought
against a person holding
office under the
Fair Work Act
, including a
Commissioner, whether at first instance or as a member of a Full Bench. The
legislation does not preclude a grant of
relief under s 39B(1) in respect of a
decision of a Commissioner at first instance where there has been an appeal from
that decision
to a Full Bench.
It
is next necessary to determine whether the Court should refuse relief on the
discretionary ground that the denial of procedural
fairness was
“cured” by the appeal to the Full Bench.
A
denial of procedural fairness may be cured by an appeal. That will almost
certainly be so where the appeal is in the nature of
a hearing
de novo
and often, too, where there has been a rehearing. But is it so here? To
answer that question it is necessary to examine the hearing
process before the
Senior Deputy President and on appeal “as a whole”:
Calvin v
Carr
[1979] UKPC 1
;
[1980] AC 574
at 594. That will include an examination of all the
proceedings leading to the decision, the conduct of the CEPU and the gravity
of
the breach:
Calvin v Carr
at 596, 596, 593 and
Marks
at 484.
In
Aala
, Gaudron and Gummow JJ at [50] considered that the judgment of Mason
J in
Marks
was authority for the proposition that prohibition to the
first instance decision maker may be refused on the footing that any denial
of
procedural fairness at that level has become irrelevant because there has been a
full and fair hearing on appeal. In the present
case, however, the appeal on
the ground of denial of procedural fairness appears to have been conducted on
the basis that if the
ground was made out the application would be remitted to a
single member to decide again. That is consistent with the course commonly
taken by an appellate tribunal in such a case.
The
Full Bench decided the appeal on the basis that no error had been demonstrated
in the decision and it did not purport to examine
for itself whether Abigroup
had made out the case it brought under
s 418.
There was not a full hearing
before the Full Bench in the sense that there was no opportunity for
cross-examination of Abigroup’s
witnesses, a full evaluation of all the
evidence that the CEPU would have wished to call and a decision upon the merits
of the case.
This was not a
Calvin v Carr
type case where there was a
full second hearing which “cured” the denial of procedural fairness
in the sense of making
the denial of procedural fairness in the first hearing
irrelevant. Moreover, the error at first instance would certainly not be
cured
if, in the process of determining whether there had been a denial of procedural
fairness at first instance, the Full Bench
itself fell into jurisdictional
error.
We
would refuse relief against the decision at first instance unless we were to
conclude that the decision of the Full Bench involved
jurisdictional error.
That is because it would be futile to grant relief in respect of a decision at
first instance when the appellate
decision stands and is conclusive and
operative.
The Full Bench’s decision: jurisdictional error?
In
its appeal to the Full Bench the CEPU contended that it had been denied
procedural fairness by the refusal of its application
for an adjournment, other
than for the two short periods. An appellate tribunal approaching the issues
involved in such a ground
would usually consider, first, whether there was a
denial of procedural fairness and, second, if that were so, whether in its
discretion
it should refrain from ordering a new trial.
The
language and structure of the decision of the Full Bench presents some
difficulty in understanding why it reached the conclusions
it did. That
difficulty is exacerbated by the brevity of its reasoning, its failure to take
into account some important matters and
its failure to disclose its reasoning on
at least one important issue.
The
Full Bench commenced its consideration of the procedural fairness ground by
discussing in [30] the requirement under
s 418
that proceedings be
conducted with expedition. It concluded that the opportunity to present a case
in response will necessarily
be limited.
The
Full Bench then set out in [31] the factual matters that it considered were
relevant to the procedural fairness ground.
The
Full Bench said next in [32] (the paragraph in contention here) that it was
“not persuaded that the evidence which would
have been brought with the
benefit of a lengthier adjournment, reflected in the additional evidence filed
by the CEPU in the Federal
Magistrates Court on 6 September 2012 following an
adjournment granted on 5 September 2012, would have affected the decision and
order of the Senior Deputy President”. This is the type of finding that
might be thought to be relevant to the second of the
two issues it had to
decide, namely the exercise of the discretion, but there is no reference to the
discretion in that paragraph
or later in the reasons.
In
the next paragraph ([33]) the Full Bench concluded that in all the circumstances
and having regard to the scheme of the
Fair Work Act
, the CEPU and the
CFMEU had been given a reasonable opportunity to conduct their case and had not
been denied procedural fairness.
There
are two possible ways of construing the role that [32] played in the Full
Bench’s reasoning.
One
way is that the Full Bench may have decided the two issues it had to consider in
reverse order. That is, it may have decided
in [32] that, even if there had
been a denial of procedural fairness, it would not exercise its discretion in
favour of the grant
of relief because the evidence that could have been led with
a lengthier adjournment would not have made any difference to the outcome;
and
then proceeded to decide in [33] that there was no denial of procedural
fairness.
Alternatively,
the Full Bench may only have considered whether there was a denial of procedural
fairness in the course of [30]–[33]
and decided in [32] that one of the
circumstances which persuaded it that there was no denial of procedural fairness
was that the
evidence which would have been led with the benefit of a lengthier
adjournment would not have affected the outcome of the proceeding
before the
Senior Deputy President.
If
it is assumed that the Full Bench approached the procedural fairness ground in
the first of the ways described above, that is,
on the basis that it would
refuse relief in the exercise of its discretion, the reasoning in [32] reveals
two errors.
First,
the Full Bench said that it was not persuaded that the evidence which would have
been brought with the benefit of an adjournment
“would have”
affected the decision and order of the Senior Deputy President. However,
Stead
establishes that all an appellant needs to show in order to obtain
relief is that the denial of procedural fairness deprived him
or her of the
possibility of a successful outcome. The standard applied by the Full Bench put
the bar too high and was contrary
to the test in
Stead
.
Second,
the Full Bench could not reasonably have concluded that the evidence which would
have been brought with an adjournment, reflected
in the additional evidence
filed by the CEPU in the Federal Magistrates Court proceedings, would not have
affected the decision and
order of the Senior Deputy President. The Full Bench
set out its bare conclusion on this point without disclosing any of its
reasoning
for that conclusion. It might have been expected that the Full Bench
would discuss the evidence called by Abigroup, the findings
made by the Senior
Deputy President upon that evidence, the evidence that might have been called by
the CEPU with the benefit of
a lengthier adjournment and analyse how the
CEPU’s evidence might have contradicted Abigroup’s evidence and, so,
how
it might have affected the outcome. The Full Bench did none of those
things, simply setting out its conclusion in a single sentence.
The absence of
any overt process of reasoning for the conclusion disguises the problems
inherent in that conclusion.
As
we have already indicated, the CEPU’s evidence, if accepted by the Senior
Deputy President, contradicted much of the evidence
relied upon by Abigroup and
was capable of affecting the outcome. An adjournment would also have provided
the CEPU’s counsel
with material on which he could cross-examine
Abigroup’s witnesses. Much would have turned upon which of the
witnesses’
evidence was accepted. It could not reasonably be concluded
that the Senior Deputy President “would have” made the same
decision
in the face of the new evidence. The most that could be said is that the Senior
Deputy President might have made the same
decision. It is a necessary corollary
that he might not.
It
is arguable that the Full Bench’s conclusion that “we are not
persuaded that the evidence which would have been brought
with the benefit of an
adjournment ... would have affected the decision” was merely a slip, in
view of the fact that the Full
Bench had correctly set out the test from
Stead
earlier in its reasons. In other words, the argument is that in
[32] the Full Bench meant to say that the new evidence could not
possibly have
affected the decision at first instance. We are mindful that the Full Bench is
an administrative decision-maker.
It is well established that the reasons of an
administrative decision-maker are not meant to be scrutinised too zealously to
see
if error can be gleaned from the way the reasons are expressed:
Minister
for Immigration & Ethnic Affairs v Wu Shan Liang
[1996] HCA 6
;
(1996) 185 CLR 259
at
272. The Court is not to be concerned with “looseness of language”
or “unhappy phrasing”:
Collector of Customs v Pozzolanic
Enterprises Pty Ltd
(1993) 43 FCR 280 at 287. But a beneficial approach to
the reasons does not demand that any ambiguity be resolved in favour of the
decision maker:
SZCBT v Minister for Immigration and Multicultural Affairs
[2007] FCA 9
at
[26]
;
Lesianawai v Minister for Immigration and
Citizenship
(2012)131 ALD 27 at [48]. In this case we do not accept that
this is merely a case of loose language or unhappy phrasing. That is
because on
any reasonable analysis of the evidence, the conclusion that the new evidence
could not possibly have affected the decision
was not reasonably open. It is
therefore unlikely that the Full Bench in fact reached such a conclusion.
Rather, the words the
Full Bench used should be taken for what they say.
Alternatively,
and the more natural reading of the Full Bench’s reasons, taken as a
whole, is that the content of [32] forms
part of its reasoning for its
conclusion that the CEPU had a reasonable opportunity to conduct its case and
was not denied procedural
fairness. The contrary view (that in [32] the Full
Bench was considering the exercise of its discretion upon an assumption that
the
CEPU was able to demonstrate a breach of procedural fairness) does not sit
easily with the structure and language of the reasons.
To construe the reasons
in that way would require that they be read such that the Full Bench dealt
initially with the facts and
issues relevant to whether there had been a denial
of procedural fairness, then changed tack to deal with the exercise of its
discretion
upon the unstated assumption that procedural unfairness was able to
be demonstrated, and then returned to the question of whether
there was a denial
of procedural fairness. It would also require the conclusion that the Full
Bench correctly stated the
Stead
test in relation to the exercise of
discretion but then applied a different test. The absence of any reference to
discretion in
[32] suggests that the Full Bench was not dealing there with
discretion.
Nevertheless,
the approach that the conclusion in [32] forms part of the reasoning for the
conclusion that there was no denial of
procedural fairness also reveals error.
Procedural fairness required that the CEPU be given a reasonable opportunity to
present
its case. The issue was whether the refusal of a lengthier adjournment
denied the CEPU a reasonable opportunity to present its case.
The question of
whether the evidence that the CEPU could have obtained with a lengthier
adjournment could have made a difference
to the outcome could only go to the
discretion to grant relief, not to the question of whether the CEPU had a
reasonable opportunity
to present its case. That was the approach taken in
Aala
where the question of whether there was a denial of procedural
fairness and the refusal of relief in the exercise of the Court’s
discretion were treated as separate issues. Gaudron and Gummow JJ said at [58] -
[59]:
It
is one thing to refuse relief on the ground of utility because, as Lord
Wilberforce put it, “[t]he court does not act in
vain”.
...
However,
the conditioning of a statutory power so as to require the provision of
procedural fairness has, as its basis, a rationale
which differs from that which
generally underpins the doctrine of excess of power or jurisdiction. The
concern is with observance
of fair decision-making procedures rather than with
the character of the decision which emerges from the observance of those
procedures.
Unless the limitation ordinarily implied on the statutory power is
to be rewritten as denying jurisdictional error for “trivial”
breaches of the requirements of procedural fairness, the bearing of the breach
upon the ultimate decision should not itself determine
whether prohibition under
s 75(v)
should go. The issue always is whether or not there has been a
breach of the obligation to accord procedural fairness and, if so,
there will
have been jurisdictional error for the purposes of
s 75(v).
(Footnotes omitted.)
The
Full Bench used its conclusion that a lengthier adjournment would not have
resulted in the production of evidence that would
have affected the outcome as a
means of concluding that the CEPU had a reasonable opportunity to present its
case at first instance.
Its reasoning (which must be inferred because it was
not expressed) seems to have proceeded on the basis that the breach was trivial
or, in other words, that it produced no injustice. However, it is not the
bearing of the breach upon the outcome that determines
whether there was a
denial of procedural fairness. The conclusion that an adjournment would not
have led to a different outcome
was not relevant to the question of whether the
CEPU had a reasonable opportunity to present its case. Accordingly, the Full
Bench’s
conclusion involved an error of law.
The
next question is whether the error of law made by the Full Bench was a
jurisdictional error. Prohibition will lie only for jurisdictional
error. Not
all errors of law the Full Bench may make will be jurisdictional. In this case,
however, we are satisfied that the error
went to jurisdiction.
In
Coal and Allied Operations Pty Ltd v Australian Industrial Relations
Commission
[2000] HCA 47
;
(2000) 203 CLR 194
at
[31]
, Gleeson CJ, Gaudron and Hayne JJ
discussed what would constitute jurisdictional error by the Full Bench of the
Australian Industrial
Relations Commission, the predecessor of the Fair Work
Commission:
There would only have been jurisdictional error on the part of the Full Bench if
it had misconceived its role or if, in terms used
by Jordan CJ in
Ex parte
Hebburn Ltd; Re Kearsley Shire Council
, it “misunder[stood] the nature
of [its] jurisdiction ... or ‘misconceive[d] its duty’ or
‘[failed] to apply
itself to the question which [s 45 of the Act]
prescribes’ ... or ‘[misunderstood] the nature of the opinion which
it
[was] to form’ ”...
(Footnotes omitted.)
The
Fair Work Act
imposed on the Fair Work Commission an implied obligation
to accord procedural fairness to the CEPU. The Full Bench was required
to
decide whether there had been a breach of that obligation and to make that
decision in accordance with the established legal principles.
In deciding that
there was no denial of procedural fairness at first instance the Full Bench
asked itself the wrong question and
erroneously took into account its opinion
that a lengthier adjournment would not have produced a different outcome, or, in
other
words, that any error was trivial. The High Court held in
Aala
that a trivial breach of the requirements of procedural fairness will not
deny the existence of jurisdictional error.
Consequently,
the approach the Full Bench took to the central question of whether the Senior
Deputy President had denied the CEPU
procedural fairness was fundamentally
wrong. The mistake may be characterised as the Full Bench misconceiving its
duty or misunderstanding
the nature of the opinion it was to form. But whatever
label is given to it, it was an approach infected by jurisdictional error.
The
errors we have identified were not merely erroneous conclusions within
jurisdiction. They were “defects in the inquiry
process”:
Construction, Forestry, Mining and Energy Union v Australian Industrial
Relations Commission
[1999] FCA 847
;
(1999) 93 FCR 317
at
[69]
. They amount to a
constructive failure by the Full Bench to exercise its jurisdiction. The
decision-making process miscarried.
In these circumstances, we are unable to
agree with Buchanan J that the defect at first instance was cured by the appeal.
Having
regard to the errors made by the Full Bench, the CEPU did not receive on
appeal the rehearing contemplated by the
Fair Work Act
.
For
these reasons the CEPU must succeed.
Orders
The
parties agreed that in the event that the CEPU prevailed the Court should issue
certiorari to quash the orders made by the Senior
Deputy President insofar as
they apply to the CEPU and to prohibit the Fair Work Commission from proceeding
further on that decision
and those orders. It was not suggested that in that
event mandamus should also issue to require the Full Bench to carry out its
task
according to law.
Although
the CEPU did not press for it, it is prudent to also issue certiorari to quash
the order of the Full Bench dismissing the
CEPU’s appeal.
The
parties agreed that there should be no order as to costs.
I certify that the preceding one hundred and thirty-one (131) numbered
paragraphs are a true copy of the Reasons for Judgment herein
of the Honourable
Justices Katzmann and Rangiah.
Associate:
Dated: 6 December 2013