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Blackadder v Ramsey Butchering Services Pty Ltd

Blackadder v Ramsey Butchering Services Pty Ltd

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FEDERAL COURT OF AUSTRALIA
Blackadder v Ramsey Butchering Services Pty Ltd [2002] FCA 603
STEPHEN BLACKADDER v RAMSEY BUTCHERING SERVICES PTY LTD
N756 of 2000
MADGWICK J
10 MAY 2002
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 756 of 2000

BETWEEN:

STEPHEN BLACKADDER
APPLICANT

AND:

RAMSEY BUTCHERING SERVICES PTY LTD
RESPONDENT

JUDGE:

MADGWICK J

DATE:

10 MAY 2002

PLACE:

SYDNEY

CORRIGENDUM
In the Orders attached to the Reasons for Judgment of the Honourable Justice Madgwick dated 10 May 2002 please amend the following:
1.In Order 1, on the third line insert the letter “U” before “No. 20951 of 1999”.
2.In Order 3, on the third line delete the word “to” and replace it with the word “and”.

I certify that the preceding paragraph is a true copy of the Corrigendum herein of the Honourable Justice Madgwick

Associate:
Dated: 10 May 2002

FEDERAL COURT OF AUSTRALIA
Blackadder v Ramsey Butchering Services Pty Ltd [2002] FCA 603
INDUSTRIAL LAW - application for relief for alleged unlawful treatment of applicant employee by respondent employer after respondent ordered by Australian Industrial Relations Commission to reinstate applicant to pre-termination position of employment – whether respondent had failed to comply with Commission’s orders – consideration of “reinstatement” – whether it involves a return to the workplace – consideration of right to work under common law – whether implied contractual duty to provide work
Respondent required applicant to attend medical examination as pre-condition to his return to work – whether applicant required to undergo medical examination – respondent ceased payment of applicant’s wages for failure to attend medical examination – whether respondent’s conduct breached relevant Australian Workplace Agreement
Respondent directed applicant to utilise annual holiday and accrued sick leave entitlements – applicant had not sought nor agreed to utilise such leave entitlements – whether breach of relevant Australian Workplace Agreement
Workplace Relations Act 1996 Cth, s 170CH
Jackson vFisher’s Foils Limited [1944] KB 316, referred to
Hodge v Ultra Electric Ltd [1943] KB 462, cited
Perkins v GraceWorldwide (Aust) Pty Ltd (1996-7) 72 IR 186, referred to
Nicolson v Heaven & Earth Gallery Pty Ltd (1994) 57 IR 50, referred to
State Rail Authority (NSW) v Bauer J (1994) 55 IR 263, referred to
Marbe v George Edwardes (Daly’s Theatre) Ltd [1928] 1 KB 269, referred to
Australian Rugby League Ltd v Cross (1997) 39 IPR 111, referred to
Wesoky v Village Cinemas International Pty Ltd [2001] FCA 32, referred to
William Hill Organisation Ltd v Tucker [1999] ICR 291, referred to
Byrne v Australian Airlines Ltd (1995) 185 CLR 410, applied
Seymour v Stawell Timber Industries Pty Ltd (1985) 9 FCR 241, distinguished
PKIU v Vista Paper Products Pty Limited (1994) 57 IR 414, referred to
STEPHEN BLACKADDER v RAMSEY BUTCHERING SERVICES PTY LTD
N756 of 2000
MADGWICK J
10 MAY 2002
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

N 756 of 2000

BETWEEN:

STEPHEN BLACKADDER

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2002] FCA 603
Decision Date: 10 MAY 2002

CaseChat Overview and Summary

The case of Blackadder v Ramsey Butchering Services Pty Ltd involved Mr Stephen Blackadder, an employee of Ramsey Butchering Services Pty Ltd, who claimed that the company had breached his employment contract by failing to reinstate him after his termination, by not paying him wages as stipulated in the Australian Workplace Agreement (AWA), and by breaching an implied term of good faith and fidelity in their employment relationship. The dispute was heard and determined in the Federal Court of Australia.

The primary legal issues before the court were whether the respondent had breached the reinstatement order issued by the Australian Industrial Relations Commission and the terms of the AWA by failing to reinstate Mr Blackadder and by not paying him wages. Additionally, the court had to determine whether the respondent had breached an implied contractual obligation of good faith and fidelity in their employment relationship.

The court found that the respondent had indeed breached the reinstatement order by not reappointing Mr Blackadder to his former position. The court held that the AWA terms were clear and unambiguous, and the respondent had failed to adhere to them by not reinstating the applicant and by not paying him wages as required. The court also found that the respondent’s actions amounted to a breach of the implied duty of good faith and fidelity in their employment relationship. Consequently, the court imposed penalties on the respondent for these breaches and ordered the payment of unpaid wages to the applicant. Furthermore, the court ordered that the penalties be paid to the applicant within 28 days and directed the respondent to pay the applicant an amount for unpaid wages plus interest within the same period.

The final orders included declarations of breaches, the imposition of penalties, and the requirement for the respondent to pay the applicant for unpaid wages and interest. The court also directed the parties to prepare short minutes quantifying the interest and considering any injunctive relief that might still be sought.

Orders

Orders of the court

1. It is declared that the respondent breached the orders of the Australian Industrial Relations Commission (constituted by Commissioner Redmond in proceedings No. 20951 of 1999) dated 29 March 2000 by failure to reinstate the applicant by reappointing him to the position in which he was employed immediately before the respondent terminated his services on or about 5 October 1999.

2. A penalty of $2,000 is imposed on the respondent for such breach.

3. It is declared that the respondent breached the terms of the Ramsey Butchering Services Pty Ltd (Grafton Meatworks) Australian Workplace Agreement dated 23 October 1998 (“the AWA”) by failing between the week ending 11 June 2000 to the week ending 23 July 2000 to pay wages to the applicant.

4. A penalty of $500 is imposed on the respondent in respect of such breach.

5. It is declared that the respondent breached the terms of the AWA by failing between the week ending 18 February 2001 and the week ending 18 March 2001 to pay wages to the applicant.

6. A penalty of $500 is imposed on the respondent in respect of such breach.

7. The penalties imposed on the respondent are to be paid to the applicant within 28 days.

8. The respondent pay to the applicant within 28 days hereof an amount of $7,528.27 for unpaid wages under the AWA plus interest on that sum at the rate of 10% per annum, calculated on a daily basis.

9. Liberty to apply on 2 days’ notice as to the amount specified in Order 7.

10. The parties are, at 9.30am on 14 May 2002, to bring in short minutes:

(a) quantifying the interest ordered to be paid; and

(b) providing for injunctive relief to be ordered, if still sought, in the light of my reasons for decision.

Background

Background to the litigation

It was said that, additionally or alternatively, each item of the conduct thus complained of was in breach of an implied term in the applicant’s contract of employment imposing an obligation upon the respondent of “good faith and fidelity” to the applicant.BACKGROUND The applicant, Mr Stephen Blackadder, is an employee of the respondent company. He was employed as a boner at the respondent’s abattoir at Grafton on 30 April 1998. Before his engagement the applicant completed a written application for employment in which he undertook, among other things:“1.To work 5 days a week when required without the imposition of any bans or limitation and without stoppages.2.To work in accordance with the lawful requirements of the Company.3.…4.To work in accordance with Company directions.…”He also agreed that, if hired, “my continued employment may be contingent upon satisfactorily passing a physical examination at any time to establish my capability to properly or safely perform my duties.” He indicated that he had never suffered from a number of listed diseases and disabilities, including “wrist, elbow [or] shoulder … trouble”. Also before his engagement, Mr Blackadder was medically examined by a Dr Ford who declared him fit for heavy manual work and commented:“Slight (20%) limitation of (R) should rotation because of old (R) elbow dislocation → fibrosis here. Shoulder would be classified as normal.” The terms and conditions of employment were and are subject to the Ramsey Butchering Services Pty Ltd (Grafton Meatworks) Australian Workplace Agreement (“the AWA”). The AWA, evidently in a form common to a number of employees at the meatworks, was signed by the applicant on 20 April 1998 and registered with the AIRC on 23 October 1998. Prior to the respondent’s purchase of the meatworks, the applicant had worked as a boner for the former owners of the abattoir for approximately six years before it was closed in December 1997. The former owners, an entity described as Gilbertsons, closed the abattoir down, claiming substantial losses and that the abattoir was no longer profitable. The applicant acknowledged that under the Gilbertsons ownership there had been a history of industrial action including limitations, bans and work stoppages. In cross examination, the applicant acknowledged that among the problems was that a number of employees were on fixed duties, and had refused to undertake other duties they were not employed to do so. In early 1998 the respondent, under the control of Mr Stuart Ramsey, re-opened the abattoir. The applicant acknowledged that Mr Ramsey’s intention was to avoid the types of industrial problems that had faced the previous owners. The meatworks were re-opened on the basis that there should be greater flexibility in the use of labour than previously. The intention to introduce flexibility into the workplace is reflected in the AWA. Subclause 35.9 of the AWA provides:“An employer may direct an employee to carry out such duties as are within the limits of an employee’s skill, competence and training: the employees will follow the direction.”While it may be inferred that the intention was to break down artificial distinctions between employees and develop a multi-skilled workforce, it is clear that employees were nevertheless not required to work outside their skill, competence and training. The terms of the AWA as properly construed would, of course, prevail over any inconsistent indication in other material that would have comprised or formed part of a common law contract.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

MADGWICK J

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Established by: MADGWICK J

Full text does not contain this section.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	N 756 of 2000

BETWEEN:	STEPHEN BLACKADDER APPLICANT
AND:	RAMSEY BUTCHERING SERVICES PTY LTD RESPONDENT

JUDGE:	MADGWICK J
DATE:	10 MAY 2002
PLACE:	SYDNEY