Amalgamated Clothing and Allied Trades Union of Australia v D E Arnall and Sons Re American Dry Cleaning Company

The Amalgamated Clothing and Allied Trades Union of Australia (the Union) brought proceedings against various employers, including the American Dry Cleaning Company (the Company), concerning an award made by the Federal Arbitration Court. The award purported to bind the named employers in respect of all persons employed in the clothing and allied trades, regardless of whether they were members of the Union. The Company, which had never employed any Union members, challenged the validity of the award, particularly clauses relating to the employment of female apprentices and improvers.

The central legal issue before the High Court was whether the Federal Arbitration Court had the jurisdiction to make an award that bound an employer in respect of employees who were not members of the claimant Union, nor parties to the industrial dispute, nor represented by the Union. This question arose in the context of the Company being charged with a breach of the award for allegedly employing too many female improvers relative to journeywomen, despite not employing any Union members.

A majority of the High Court, applying the principles from *Amalgamated Engineering Union v. Alderdice Pty. Ltd.*, held that the award was invalid insofar as it purported to bind the Company in respect of employees who were not members of, or represented by, the claimant Union. The Court reasoned that the Commonwealth Conciliation and Arbitration Act did not grant the Arbitration Court the power to impose obligations on employers concerning employees who were not parties to the industrial dispute or represented by the organisation making the claim. The majority emphasised that clear words in the Act would be necessary to endow the Court with such authority, and these were absent.

Consequently, the High Court determined that the relevant clauses of the award were not binding on the American Dry Cleaning Company with respect to its employees who were not parties to the industrial disputes or members of, or represented by, the Union. The Court dismissed the summons in so far as it sought a declaration that the award was invalid, but answered the specific questions of law in favour of the Company, finding that the award did not operate to bind the Company in respect of non-union employees.