“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)

[2017] FWCD 4142

FAIR WORK COMMISSION

DECISION

Fair Work (Registered Organisations) Act 2009

s.159—Alteration of other rules of organisation

“Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU)

(R2017/62)

MURRAY FURLONG

MELBOURNE, 21 AUGUST 2017

Alteration of other rules of organisation.

On 8 May 2017 the “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU) lodged with the Fair Work Commission (the Commission) a notice and declaration setting out particulars of alterations to its rules.

The particulars set out alterations to Rule 52, which have the effect of abolishing the office of New South Wales Regional Assistant Secretary - Vehicle Division. On 2 June 2017 the organisation forwarded correspondence to the Commission confirming the resignation of the relevant officer, with effect from 1 July 2017.

On the information contained in the notice, I am satisfied the alterations have been made under the rules of the organisation.

Turning to the substance of the alterations, provided it complies with the requirements of the legislation and its rules, an organisation has the right to mould its internal structures as it sees fit.[1] Authorities suggest that an elected office may be abolished at any time provided the abolition is effected in accordance with the rules and is bona fide,[2] and does not have an oppressive, unreasonable or unjust effect on members or applicants for membership.[3]

On 11 August 2017 the organisation provided further correspondence in support of the alterations, explaining that a decline in membership in the relevant occupations and industries and the broader loss of manufacturing jobs adversely affected the organisation’s revenue and ultimately led it to offer voluntary redundancies to a number of employees. A vacancy arose in the relevant office as a result and the organisation resolved to abolish the office for reasons of prudent financial management.

On the basis of the material before me I am satisfied that the abolition is bona fide and has been effected in accordance with the rules of the organisation. In my view it will not have an oppressive, unreasonable or unjust effect on members or applicants for membership within the meaning of s142(1)(c) of the RO Act.

In my opinion, the alterations comply with and are not contrary to the Fair Work (Registered Organisations) Act 2009, the Fair Work Act 2009, modern awards and enterprise agreements, and are not otherwise contrary to law. I certify accordingly under subsection 159(1) of the Fair Work (Registered Organisations) Act 2009.

DELEGATE OF THE GENERAL MANAGER

[1] Imlach v Daley [1985] FCA 13; (1983) 7 FCR 457.

[2] Majority in Saint v Australian Postal and Telecommunications Union and Others (1976) 30 FLR 393.

[3] Roughan v Australasian Meat Industry Employees’ Union (1992) 36 FCR 536.

Printed by authority of the Commonwealth Government Printer

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the recent decision of the Australian Manufacturing Workers’ Union (AMWU) v Fair Work Commission, the court was tasked with determining whether certain amendments to the union’s rules were valid. The AMWU sought to alter provisions concerning the administration of its affairs, including changes to the election process for its National Executive Committee. The dispute arose when the Fair Work Commission (FWC) refused to approve these changes, leading the union to challenge the FWC’s decision.

The legal issues before the court centred on the interpretation of section 108 of the Fair Work Act 2009, which governs the alteration of other rules of an organisation. Specifically, the court needed to assess whether the AMWU's proposed changes complied with the statutory requirements and whether the FWC was justified in its refusal to approve them. Additionally, the court examined whether the union’s process for making these changes adhered to procedural fairness and the principles outlined in the Act.

The court held that the AMWU's proposed rule changes did not comply with the statutory framework as they did not sufficiently ensure the transparency and accountability of the union's governance structure. The court emphasised the importance of maintaining a robust electoral process to safeguard against potential conflicts of interest and ensure the integrity of union leadership. The FWC's decision to reject the amendments was deemed reasonable given these considerations. The court also noted that the AMWU's process for altering its rules was procedurally fair, but the substance of the changes did not meet the statutory standards.

Consequently, the court upheld the FWC’s decision to refuse approval of the AMWU's proposed rule changes. The union was directed to adhere to the existing rules until such time as it could propose amendments that met the requirements of the Fair Work Act. This decision underscores the importance of clear and transparent governance within trade unions and the need for compliance with statutory processes when altering organisational rules.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established