Boland v Munro

[1980] FCA 68

CATCIIWORDS

Industrial law - organlzatlons - rules - amendment of rules -

compliance vlth procedural requirements - court’s ~urisdictlon

where Industrial Registrar hasnot glven a certificate -

control of committees of organlzatlon by members.

Conclliatlon and Arbitratlon Act 1904 ss.132, 133 , 133AA,

139(4), 140, 141.

Conciliation and Arbitratlon Regulatlons reg. 115

Federal Court of Australla Act 1976 s.24.

MICHAEL GERARD BOLAND .5 ORS. v. J. MUNRO & ORS.

N . S . W . No. 18 of 1979

I

Coram: Evatt, Northrop and Keely JJ.

I4elbourne

23 Hay 1980.

l

Y

-

I N THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N.S.W. No. 1 8 of 1 9 7 9

I N D U S T R I A L D I V I S I O N

B E T W E E N :

MICNAEL GERARD BOLAND, PATRICK REEVES

and KEVIN MULLER

A p p e l l a n t s

( A p p l i c a n t s )

R e s p o n d e n t s ( R e s p o n d e n t s

ORDER

JUDGES MAKING ORDER:	E v a t t , Northrop and Kealy JJ
DATE OF .ORDER:	23 May 1 9 8 0
WHERE MADE :	Melbourne .

ORDER: A p p e a l dlsmissed.

I

I N TIIE FEDERU COURT OF AUSTRqLIh

NEW SOUTH WALES DISTRICT R E G I S T R Y M.S.W. No. 18 01 1 9 7 9

INDUSTRIAL DIVISION

B E T W E E N :

MICIIAEL GERARD BOLAND, PATRICK REEVES,

and K E V I N PIULLER Appellants (Applicants

and

J. HUNRO, J. GODDARD, F. SNIBLEBE,

J . IXJRPHY, T. ARMSTRONG, W. LIVINGSTONE

J. D I L M N , T . CROTHERS, G . BRUCE,

J. MORRIS, K . JEFFREY, T. MAHONEY,	D . BAIRD, K . STOCKS, E . FRY, N. BAXTER,
P. EVANS, G . ENDACOTT, K. HILL and
FEDERATED LIQUOR mD ALLIED INDUSTRIES
EhPLOYEES' U N I O N OF AUSTRALIA Respondent: (Respondent5

EVII.TT AND NORTIIROP JJ. REASONS FOR JUDGMENT 2 3 PlAY 1 9 8

Thls 1 s an appeal brought under S . 2 4 Federa l C o u r t of

A u s t r a l i a A c t , 1 9 7 6 , a s amended from a judgment of the C o u r t

c o n s t l t u t e d by a s l n g l e j u d g e and made on 3 A p r i l 1 9 7 9 . Two

s e p a r a t e b u t r e l a t e d p r o c e e d l n g s were hca rd concur ren t ly by t h e

Cour t cons t l t u t ed by t h e s i n g l e J u d g e namely Matter N.S.N. No. 21

of 1978'and Hatter V. No. 36 of 1978. In the f irst proceeding,

which was commenced In September 1 9 7 8 , two of t h e a p p e l l a n t s

sought an order under s.140 Conc i l l a t lon and Arb l t r a t ion Act

1 9 0 4 , as amended, h e r e i n a f t e r c a l l e d t h e A c t , d e c l a r i n g t h a t

Rule l l ( g ) of the Rules of the Federated Llquor and All ied

Industr ies Employees ' Union of Aus t r a l l a , an o rgan iza t ion of

employees reg is te red under the A c t a n d h e r e i n a f t e r c a l l e d

" t h e Unlon", contravened S. 1 4 0 (l) of t h e A c t . The Union was

t h e sole respondent t o t h a t p roceedlng . In t h e second

proceeding trhlch was commenced on 30 November 1 9 7 8 a l l t h r e e

a p p l i c a n t s s o u g h t o r d e r s as follows:-

2 .

1. An order under s.141 of the A c t

dilrec.Liny ~ h t : respondents t o ~ l l e

p roceed lngs , o the r t han the Union,

t o p e r f o r m and observe t h e r u l e s of

t h e Union by t r e a t l n g a s n u l l and vold

and of no effect c e r t a l n r e s o l u t l o n s

p a s s e d a t a meet lng of the Federal

Council of t h e Unlon h e l d a t H o b a r t

between 1 4 and 2 1 November 1 9 7 8 which

p u r p o r t e d t o amend Rule l l ( g ) and R u l e

1G o f t h e R u l e s o f the Unlon.

2 . An order under S. 1 4 0 of t h e A c t

d e c l a r i n g t h a t R u l e ll(g) and Rule 16 of

t h e R u l e s of t h e Union I n t h e form as

a l t e r e d by the Fede ra l Counc l l i n November

1 9 7 8 contravened s.l4O(l) of the A c t .

3. An order under S , 1 4 0 o f t h e A c t d e c l a r l n g

t h a t t h e R u l e s o f t h e Union g e n e r a l l y

cont ravene , o r Rule 13A i n p a r t l c u l a r ,

cont ravenes , s.140 of t h e A c t .

The Union and a number o f t h e members o f t h e Unlon were named

as the respondents In the second proceeding .

I n Matter N.S.W. No. 2 1 o f 1 9 7 8 t h e l e a r n e d t r i a l

J u d g e f o u n d t h a t p a r t o f Rule 11(g) cont ravened s.140(1) of t h e

A c t b u t l n s t e a d o f maklng a dec la ra t ion unde r S .140(5D) h e

a d j o u r n e d t h e f u r t h e r h e a r i n g g e n e r a l l y s l n c e t h e r e s o l u t i o n s

of the Federa l Counci l had purpor ted to amend t h e o f f e n d i n g

p a r t o f , R u l e l l ( g ) b u t t h e amendment had not come l n t o e f f e c t ,

see S. 139 ( 4 ) o f t h e A c t . The l e a r n e d t r l a l J u d g e r e f u s e d

t o make any of t h e o r d e r s s o u g h t i n N a t t e r NO. V. No. 36 of 1 9 7 8

I n g l v l n g h l s r e a s o n s for ~ u d g m e n t t h e l e a r n e d t r i a l

Judge expressed a "very cons ldcrable doubt" whether the Cour t

h a d ~ u r l s d l c t l o n t o make an order under s.140 of t h e A c t wi th

r e s p e c t t o an a l t e r a t l o n of t h e ru les of an o r g a n l z a t l o n f o r

vhlch a certificate under S. 139 ( 4 ) o f t he Act had not been given

by the Reg l s t r a r and which a l t e r a t l o n t h e r e f o r had no e f f e c t ,

b u t I n o r d e r t o a s s l s t t h e p a r t l e s h e c o n s l d e r e d a n d e x p r e s s e d

a n opinlon on Rule l l ( g ) and Ru le 16 a s a l t e r e d by the mee t lng

of the Federa l Councl l he ld In November 1 9 7 8 . I n ou r op in ion

i n S. 1 4 0 of t h e A c t , t h e r e f e r e n c e t o t h e r u l e s o r t o a r u l e

r e f e r s t o t h e r u l e s o r t o a r u l e which a r e o r 1 s I n force and

3,

h a v e e f f e c t e x e r c l s e o f t h e d l s c r e t i o n c o n f e r r e d a s r u l e s of t h e o r g a n l z a t l o n . I n t h e

upon hlm by s.139 (4)

o f t h e A c t , t h e R e g l s t r a r may not form the necessary opin ion

t o e n a b l e hlm t o g l v e t h e c e r t i f l c a t e which opera tes as a

c o n d i t l o n p r e c e d e n t t o a n a l t e r a t l o n o f t h e r u l e s o f a n

organlza t lon having e f fec t . The j u r l s d l c t l o n of the Cour t

t o make an order under s.140 o f t h e A c t t h e r e f o r is limited t o

t h o s e r u l e s which have s a t l s f i ed t he r equ i r emen t s o f

s.139(4). I t f o l l o w s t h a t I n t h e p r e s e n t c a s e b o t h a t t h e

t ime of the commencement of Matter V. No. 36 of 1978 and

a t t h e tlme o f t h e ~ u d g m e n t t h e C o u r t had no j u r l s d l c t i o n t o

hea r and d e t e r m i n e t h e a p p l i c a t i o n i n s o f a r a s it sough t t he

second order , see S. 140(2) and ( 3 ) o f t h e A c t i n o p e r a t l o n on

30 November 1978 and S. 140(Z) and ( 5 E ) of t h e A c t l n o p e r a t i o n

on 3 A p r i l 1979. In except iona l c l rcumstances the Cour t

may, I n a p p r o p r i a t e p roccgs and i n t h e e x e r c l s e o f powers

confer red upon it by the 'Federa1 Cour t o f Aus t ra l ia Act , 1376, make

a d e c l a r a t i o n w i t h r e s p e c t t o t h e a l t e r a t i o n o f a r u l e o f a n

o r g a n l z a t i o n f o r which a c e r t i f i c a t e h a s n o t been g lven , see

McLelsh v. Paure (1979) 25 A.L .R . 403. That ~udgment was

g iven a f t e r t he judgmen t , t he sub~ect o f t h l s a p p e a l , and

p a r t i c u l a r r e f e r e n c e 1s made t o t h e ~ o m t judgment of J.B.

Sweeney, E v a t t C Northrop JJ, a t pp.408-409 and 412-416. I n

t h a t c a s e , a f t e r d e t e r m l n i n g t h a t t h e C o u r t s h o u l d e x e r c i s e

t h e d i s c r e t i o n c o n f e r r e d upon it by s.21 Federal Court of

Aus t ra l i a Ac t , and having regard t o t h e d e c l a r a t i o n s t h a t t h e

Court made t h e C o u r t s a i d a t p.417:

"I t i s stressed t h a t by e x p r e s s i n g t h e

above views the Cour t i s n o t t o be seen

a s u s u r p i n g t h e d i s c r e t l o n a r y power g ran ted

t o t h e R e g l s t r a r u n d e r S. 139 ( 4 ) . Whether

t h e R e g l s t r a r r e f u s e s t o g r a n t a c e r t i f i c a t e

I n r e s p e c t o f any amendments t o t h e r u l e s

which a r e l o d g e d f o r c e r t i f i c a t l o n 1 s a

m a t t e r s o l e l y for h i s de t e rmina t ion . "

In the c i r cums tances , we expres s no opinion on Rule

l l ( g ) and Rule 1 6 o f t h e Rules of the Union i n t h e l r form a s

altered by t h e Federa l Counci l In November 1978.

9

.',

4 .

Rule 11 of t h e Rules of t h e Unlon c u r r e n t l y

In fo rce and hav lng e f f ec t specifies t h e o f f l c e r s o f t h e

Federa l Counci l o f the Unlon and makes p r o v l s l o n f o r t h e i r

e l e c t l o n . R u l e l l ( g ) makes the necessa ry p rov l s ion w i th

r e s p e c t t o t h e o f f l c e s o f t h e g e n e r a l s e c r e t a r y and t h e

a s s x t a n t g e n e r a l s e c r e t a r y , Ru le l l ( g ) i s as fo l lows:

" ( g ) The Genera l Sec re t a ry o r t he

A s s l s t a n t G e n e r a l S e c r e t a r y s h a l l b e

e l e c t e d by Counc l l In the manner

h e r e i n a f t e r p r o v l d e d f o r a n d t o

t e r m i n a t e employment three months '

n o t l c e m u s t be g iven on e i the r s ide .

He s h a l l r e s l d e w h e r e d l r e c t e d by t h e

Counci l , Any member s h a l l b e e l i g i b l e

f o r e l e c t i o n a s G e n e r a l S e c r e t a r y o r

t h e A s s i s t a n t Genera l Secre ta ry provlded

he s h a l l be a f i n a n c i a l member o f t he

Unlon f o r two years immediately p r l o r

t o nomina t ion . 'I

The appel lants Boland and Reeves are the General Secretary and

A s s l s t a n t G e n e r a l S e c r e t a r y r e s p e c t i v e l y . The l e a r n e d t r l a l

Judge f o u n d t h a t t h a t p a r t o f R u l e l l ( g ) w h i c h p r o v i d e d t h a t

t hose two o f f l c e r s "shall r e s ide where d l r ec t ed by t h e Council"

contravened S. 1 4 0 (l) of t h e A c t . The respondents t o the appea l

do n o t d i s p u t e t h a t f l n d l n g a n d h a v l n g r e g a r d t o t h e f a c t t h a t

the resolutlons passed by Federal Council In November 1978

were d i r e c t e d t o r e c t i f y m g t h a t c o n t r a v e n t i o n , l t 1 s a p p r o p r l a t e

t ha t t he p roceed lng be ing Mat t e r N.S.W. No. 21 of 1 9 7 8 b e

ad jou rned fo r t he pu rpose o f g lv ing the Unlon a n o p p o r t u n i t y t o

a l t e r R u l e l l ( g ) , see s . 1 4 0 ( 6 ) o f t h e A c t .

The s u b s t a n t l v e q u e s t i o n s r a i s e d on the appea l a r e

l i m i t e d , t h e r e f o r e , t o t h e f i rs t a n d t h l r d o r d e r s s o u g h t i n

N a t t e r N o . V. 36 of 1978.

The f lrst o r d e r i s sought under s.141 of the A c t , and

i f made, v o u l d p r e v e n t t h e r e s p o n d e n t s , b e i n g o f f i c e r s o f t h e

Union , p r o c e e d i n g t o s e e k t h e c e r t i f i c a t e of the Reg l s t r a r unde r

s . 1 3 9 ( 4 ) o f t h e A c t . Under t h a t s u b - s e c t l o n t h e R e g i s t r a r ,

be fo re g i v i n g h i s c e r t l f l c a t e , must be of t h e o p l n i o n t h a t t h e

5.

alteraticn has been made i n acco rdance wl th the r e l evan t

p rocedures l a ld down bv t h e r u l e s o f t h e o r a a n i z a t i o n . s e e

- Kayne v. Banks (1978) 22 A.L.R. 255, But independent ly

of t h a t t o a p p l y f o r a n o r d e r g i v i n g d i r e c t l o n s f o r s . 1 4 1 o f t he A c t enables a member of an organlza taon

t h e performance

o r obse rvance o f any o f t he ru l e s o f an o rgan iza t lon , s ee

s.141(1), (1G) and (1H) of t h e A c t . On such an a p p l i c a t l o n

the Court has a wlde discretion a s t o t h e d l r e c t i o n s t o be

g lven , see B a r r e t t v. Opitz (1945) 70 C.L.R. 141. If t h e

r e s o l u t l o n s of t h e F e d e r a l C o u n c i l a r e t o b e t r e a t e d a s n u l l

and void and of no e f fec t , they cannot be used to suppor t

t h e f l l i n g of a n a l t e r a t l o n of ru les under s .139(4) of t h e

A c t . There is n o t h i n g w i t h r e s p e c t t o whlch t h e R e g l s t r a r

can glve a c e r t i f i c a t e . A c c o r d i n g l y it is a p p r o p r i a t e t h a t

t h e C o u r t h e a r a n d d e t e r m i n e t h e a p p l i c a t i o n f o r t h e f i r s t

o rde r sough t ,

Under t h e r u l e s of t h e Union, t he Fede ra l Counc l l

h a s t h e R u l e 8 arc as follows :- power t o a l t e r rules. The r e l e v a n t p r o v i s i o n s of

“8 . - Powers and Dut les o f Federa l Councl l

The	supreme control	of	t h e Union	1s v e s t e d I n
t h e	members.

S u b ~ e c t t h e r e t o t h e F e d e r a l C o u n c l l s h a l l b e

the governlng body of the Unlon. ‘ It s h a l l h a v e

t h e g e n e r a l c o n t r o l and conduct o f t h e b u s i n e s s

of t h e Union and wi thou t l imi t lng the fo rego lng

i t s powers s h a l l i n c l u d e t h e f o l l o w i n g : none

of whlch 1s t o be l imi t ed i n I ts g e n e r a l i t y

by t h e e x i s t e n c e of a n o t h e r , . . .

(3) To r e p e a l , a l t e r o r add t o t h e R u l e s . “

R u l e 39 p resc r lbes the p rocedures t o be fo l lowed wl th respec t

t o a n a l t e r a t l o n of r u l e s and i s as fol lows:-

“39. - N e w Rules and Alterat ion of Rules.

1. No new r u l e s s h a l l b e made, n o r s h a l l

any o i t h e r u l e s f o r t h e time be ing of the

Unlon b e a l t e r e d amended o r r e sc inded ,

e::cept by and a t a meetmg of Council .

V

6 .

" 2 . Any proposed new r u l e o r a l t e r a t l o n ,

amendment or r e s c l n d i n g sha l l bc cndorncd

by a Branch Meet lng and the Secretary of

such Branch sha l l no t i fy	the Genera l Secre ta ry
i n w r l t i n g a t l e a s t	s i x weeks befo re a C o u n c l l

1.Ieeting of t h e p r o p o s e d a l t e r a t i o n .

3 . The General S e c r e t a r y s h a l l f o r w a r d

t h e p r o p o s e d a l t e r a t l o n t o e a c h B r a n c h a t l e a s t one month p r i o r t o t h e m e e t i n g o f

t h e C o u n c i l a t which the proposed new r u l e

o r r u l e s or a l t e r a t i o n s , amendments o r

r e s c i n d l n g of rules a r e t o be discussed.

The Branch Secre ta ry sha l l submi t s u c h

p r o p o s e d a l t e r a t l o n t o a Branch Meetlng

p r i o r t o t h e Council Meeting.

4 . Notwl ths tanding anyth ing here inbefore

c o n t a l n e d o r o t h e r w l s e a p p e a r l n g i n t h e s e rules t h e F e d e r a l Management Commlttee

s h a l l b e empowered a n d a u t h o r l s e d t o

submit t o F e d e r a l C o u n c l l l o r s a n d a11

B r a n c h e s p r o p o s a l s t o a l t e r , amend o r

r e s c l n d I n p a r t o r I n whole R u l e 4

C o n s t i t u t l o n , a n d a t l e a s t 7 d a y s a f t e r

such has been sen t to Councl l lors and

Branches , Federa l Counci l sha l l dec ide any

such proposa ls by a s lmple ma jo r l ty vo te

o f C o u n c i l e i t h e r by postal vo te a s p rov ided

by Federal Rule 21 ( f ) or Spec la l Meet ing of Councll as provided by Fede ra l Rule 21 ( c ) .

A t i t s meeting i n November 1 9 7 0 , the Federa l Councl l

p a s s e d r e s o l u t l o n s a l t e r l n g R u l e l l ( g ) and Rule 16 ( a ) (10).

Rule ll(g) has a l ready been set o u t I n f u l l . Rule 16 ( a ) (101

is as fo l lows: -

" 1 6 . - Dutles of Genera l Secre ta ry

(a) The g e n e r a l s e c r e t a r y s h a l l ...

(10) be paid absence when h i s d u t i e s n e c e s s l t a t e

from home, s u c h t r a v e l l i n g

and/or other expenses as may be

determlned	from	t l m e t o time by
Councll .	"

The r e so lu t lons pas sed were t o t h e e f f e c t t h a t R u l e l l ( g ) and

Rule 16 ( a ) (10) be deleted and a new Rule l l ( g ) b e l n s e r t e d

t o r e a d a s f o l l o w s : -

l

i

7.

The General Secretary and

t h e A s s i s t a n t S e c r e t a r y s h a l l

b e e l e c t e d as h e r c l n a f t e r p r o v l d e d

and t o t e r m i n a t e e i t h e r o f f l c e by

them f o u r f u l l weeks n o t i c e s h a l l

be glven; b u t lf s u c h o f f i c e i s

t e rmmated In accordance wl th Rule

1 4 , l 4 A o r by a n e l e c t i o n h e l d a s

provided by these ru les t h e n such

n o t i c e s h a l l n o t be r equ l r ed .

Any member s h a l l b e e l i g i b l e f o r

e l e c t l o n a s G e n e r a l S e c r e t a r y o r t h e A s s i s t a n t G e n e r a l S e c r e t a r y

p rov ided he sha l l be a f i n a n c l a l

member of the Unlon f o r two y e a r s

lmmedia te ly pr ior to nominat ion . The p l a c e o f employment of t h e

Genera l Secre ta ry and the A s s i s t a n t

G e n e r a l S e c r e t a r y s h a l l b e a t t h e

Headquar te rs o f the Unlon. I f

t h e y a r e n o t r e s i d e n t s o f t h e s t a t e

I n whlch t h e h e a d q u a r t e r s a r e

l o c a t e d t h e y s h a l l become r e s i d e n t s

t h e r e o f , and the r easonab le cos t

o f t r a n s f e r s h a l l be pa ld the amount

thereof be lng de termined by Fede ra l

Counci l o r Federa l	Commlttee	of
Management.

When t h e o f f i c l a l d u t i e s o f t h e

General S e c r e c a r y o r t h e A s s i s t a n t

Genera l Secre ta ry necessitate e l t h e r

being absent f rom the Headquarters

o f t he o ther expenses Unlon such t r ave l l i ng and /o r

as determined from

tlme t o time by Counc l l sha l l be

pa ld . "

P r o p o s a l s f o r t h e a l t e r a t i o n o f t h e s e two r u l e s were

l n i t l a t e d by the Vlc tor lan branch of the Union , and the

Queensland branch of the Union. Under Rule 39 , a n a l t e r a t i o n

t o Rule 11 (g) and t h e d e l e t i o n o f R u l e 16 ( a ) (101 was endorsed

by a Queensland branch meet ing of each of the Vlctor ian branch and the

branch respect lvely. The proposed new r u l e as

endorsed by the Vlc tor lan branch meet lng conta lned 4 paragraphs ,

the one diffcrence between the proposed new r u l e a n d t h e new

r u l e a s a d o p t e d by the Federa l Councl l bemg I n paragraphs ( i l

and (iii). In paragraphs (1) t h e words "by them" d i d n o t

appear In the proposed new r u l e as endorsed by t h e V i c t o r l a n

branch meeting w h l l e paragraph ( in) as endorsed by t h e V i c t o r l a n

8.

branch meetlnq was a s f o l l o w s :

" ( g ) (ili) The p lace o f employment

of t he Genera l Sec re t a ry and the Ass i s t an t Gene ra l

S e c r e t a r y s h a l l be a t t h e

Headquarters of the Union

and they sha l l b e r e s i d e n t s

of t h e S t a t e i n t ih lch the

Headquar te rs of the Unzon

is loca ted f rom time t o

time a s d e c i d e d p u r s u a n t t o

Sub-Rule (a) of R u l e 5 . "

The proposed new Rule 11 (g ) as endorsed by t h e

Queensland branch meeting was a s follows:-

" (g) The Genera l Secre ta ry and the

A s s i s t a n t G e n e r a l S e c r e t a r y s h a l l b e e l e c t e d a s h e r e i n a f t e r p r o v i d e d

and t o t e r m i n a t e e l t h e r o f f i c e f o u r

f u l l weeks n o t l c e s h a l l b e g i v e n

( o t h e r t h a n i f s u c h o f f i c e i s

te rmlna ted m accordance with R u l e

1 4 , 1 4 A o r by an e l ec t ion he ld

as provlded by t h e s e ru l e s then s u c h n o t i c e s h a l l n o t b e r e q u i r e d ) .

Any member fo r Genera l Sec re t a ry e l i g i b l e for o r A s s i s t a n t e l e c t i o n

Gene ra l Sec re t a ry sha l l be a

f i n a n c i a l member o f t h e Union

i m m e d i a t e l y p r i o r t o e l e c t l o n .

The place. of employment of t h e

Genera l Sec re t a ry and the Ass i s t an t

Gene ra l Sec re t a ry sha l l be a t t h e

Reg l s t c red Offlce of t h e Unlon and

t h e y s h a l l b e r e s l d e n t s of t h e S t a t e

i n which t h e R e g i s t e r e d O f f l c e i s

l o c a t e d . When t h e O f f i c i a l d u t l e s

o f t he Genera l S e c r e t a r y o r t h e

Ass l s t an t Gene ra l Sec re t a ry necessltate

e i the r be lng absen t f rom the Fede ra l

Reg i s t e red Of f i ce such t r a v e l l i n g

and/or other expenses as determined

from	time	t o time	by	C o u n c i l s h a l l
be	pa id .	"

9.

Tn accordance w l t h Rule 39 the p r o p o s e d a l t e r a t l o n s

were forwarded t o t h e G e n e r a l S e c r e t a r y who forwarded them t o

t h e o ther b ranches of t h e Union. A genera l meet ing of t h e

N e w South Wales branch of the Unlon reso lved to oppose t h e

p r o p o s e d a l t e r a t i o n s t o Rule 11 (g) and Rule 16 ( a ) (10). A

genera l meet ing of the Queens land branch of the Unlon r e so lved

t o e n d o r s e t h e a l t e r a t l o n s t o Rule 11 (g) and Rule 1 6 (a ) (10).

A gene ra l mee t lng o f t he Sou th Aus t r a l i a b ranch r e so lved tha t

t h e F e d e r a l c o u n c i l l o r s of the branch be empowered t o v o t e on

t h e p r o p o s e d a l t e r a t l o n s t o Rule l l ( g ) and Rule 16 ( a ) (10) as

t hey saw f i t a f t e r h e a r i n g d e b a t e , A general meet ing of t h e

V l c t o r i a b r a n c h o f t h e Unlon r e s o l v e d t h a t t h e p r o p o s e d a l t e r a t i o n s

t o Rules l l ( g ) and 16 (a ) (10) be supported. There is no evidence

of w h a t a t t i t u d e was taken by t h e Tasmania Branch of t h e

Union o r t he Wes te rn Aus t r a l l a b ranch of t h e Union.

Item 8 on the agenda fo r t he November 1 9 7 8 meeting

of the Federa l Councl l cons is ted of the proposed rule change

i n i t i a t e d by the V lc to r i a b ranch . I tem 9 on the agenda

c o n s i s t e d of t h e p r o p o s e d r u l e c h a n g e l n i t l a t e d by the Queens land

branch. A t t he gene ra l mee t ing t he cha l rman ru l ed t ha t

amendments t o r u l e c h a n g e s c a n be done by Councll . A- d l s s e n t t o

t h e c h a l r m a n ' s r u l i n g was made and as a resiAt t h e ac t in s chairman

p u t t h e q u e s t i o n t h a t t h e c h a i r m a n ' s r u l l n g b e acjreed with.

That motlon was c a r r i e d 11 v o t e s t o 10, t h e N e w South Wales and

Tasmania branch representa t ives , the Genera l Secre ta ry and the

Ass l s t an t Gene ra l Sec re t a ry vo t lng aga ins t t h e motion. I t was

moved t h a t amendments be made t o Item 8 on t h e agenda and t h a t

t h e amendments be lnco rpora t ed w i th Item 8 . Those r e s o l u t i o n s

were c a r r i e d 11 v o t e s t o 10, t h e v o t i n g p a t t e r n b e i n g on t h e

same l l n e s a s b e f o r e . Item 8 on t h e agenda as amended was

adopted by the Councl l . Item 9 was then wlthdrawn. a

s i m i l a r v o t i n g p a t t e r n was taken on the mot lon to de l e t e

Rule 16 (a) (10).

The subs tance of the submlss lons made on behal f of

t h e a p p e l l a n t s was t h a t t h e p r o c e d u r e l a l d down by Rule 39

was mandatory and t h a t s i n c e t h e r u l e a l t e r a t i o n s a d o p t e d by t h e

I .

10.

Federal Councl l were n o t e x a c t l y I n t h e same form as

the p roposed ru l e a l t e r a t ion endor sed by t h e V l c t o r l a b r a n c h ,

there had been a f a l l u r e t o comply w l t h t h e mandatory

requlrements of Rule 39. I t fol lowed, it was a r g u e d , t h a t

t h e a l t e r a t i o n s t o R u l e l l ( g ) and R u l e 1 6 ( a ) (10) had not been

made In acco rdance wl th the r e l evan t p rocedures and the re fa re

were vold and of no c f fec t .

It 1s accep ted tha t t he p rocedura l r equ i r emen t s

f o r r u l e a l t e r a t l o n s of organ lza t ions a re manda to ry r a the r

t h a n d i r e c t o r y , see Roots v. I'lutton ( 1 9 7 8 ) 32 F.L.R. 15 a t

pp.19-20, blorrls v. Federa ted Liquor and Al l led Indus t r ies

Employees' Union o f A u s t r a l i a ( 1 9 7 8 ) 2 1 A . L . R . 425, Kayne

v. Banks (1978) 2 2 A .L .R . 255 and Egan v. Shop D l s t r l b u t i v e

and All led Employees ' Associat lon ( 1 9 7 9 ) 25 A.L.R. 257. I n

t h e p r e s e n t c a s e , w e a r e o f o p m i o n t h a t t h e p r o c e d u r e s p r e s c r i b e d by Rule 39 have been followed. Rule 39 does no t r equ l r e a

p r o p o s e d r u l e a l t e r a t l o n t o be approved a t a meet lng of a

b ranch o r a m a ~ o r l t y o f b r a n c h e s . R u l e 39(1) does no more

than emphaslse the power g i v e n t o F e d e r a l C o u n c i l t o a l t e r

ru les c / f . Rule 8 (3) . Rule 39 ( 4 ) prov ldes an a d d i t i o n a l

procedure of a s p e c l a l n a t u r e by which Rule 4 , C o n s t l t u t l o n ,

may be amended. Rule 39 ( 2 ) and (3) p rescr ibe the normal

p r o c e d y r e s t o b e f o l l o w e d p r l o r t o t h e F e d e r a l C o u n c l l a l t e r i n g

a r u l e . The o r i g l n a t l n g o r l n i t i a t i n g p r o p o s a l must be taken

a t a branch meetlng. All branches must be g lven no t i ce of

the proposed a l te ra t lon , which must be submi t ted t o a branch

meetlng. The facts of t h l s c a s e i l l u s t r a t e t h a t more than

one branch meetlng may o r l g i n a t e o r m l t i a t e p r o p o s a l s t o

a l t e r t h e same r u l e even though the proposed new r u l e a s

endorsed by t h e different branch meetings 1 s no t l d e n t l c a l .

n1erecru l rement tha t the proposed a l te ra t lons be cons ldered

a t b ranch mee tmqs p r lo r t o the Fede ra l Counc l l mee t ing is t o

e n s u r e t h a t members know of the proposed a l te ra t lon and t o

enab le those members I n g e n e r a l m e e t l n g t o e x p r e s s t h e i r

mews on t h e p r o p o s e d a l t e r a t l o n . I n t h e p r e s e n t case, one

h-.anch a t ab ranch mee t lng au tho r i sed the i r Fede ra l Counc i l I

r e p r e s e n t a t i v e s t o vote on t h e p r o p o s e d a l t e r a t i o n as they

h

11.

thought f i t dItel- hea ru lg debate, whi le the New South

Wales branch meet ing d i rec ted I ts d e l e g a t e s t o o p p o s e t h e

p roposed a l t e r a t ions .

The p r o c e d u r e s l a i d down by Rule 39 ( 2 ) and ( 3 )

have been followed. The r e a l l s s u e 1 s what l lmi t a t lons

on power, i f any , the procedura l requl rements of those 2

sub-rules Impose upon t h e otherwise u n f e t t e r e d power

conferred by Rule 8 ( 4 ) and emphasised by Rule 39 (1). I n

t h e p r e s e n t case, It 1s no t necessa ry to expres s an op ln lon

on t h e e x t e n t of l l m l t a t l o n s on power I f I n f a c t t h e r e b e

such l imi t a t ions . It 1s s u f f i c l e n t t o s a y t h a t o n t h e

facts o f t h l s case, t h e a l t e r a t i o n s t o t h e r u l e s made by

the Fede ra l Counc l l are w l t h l n t h e s c o p e o f o r aFe

l n c l d e n t a l t o the proposed new r u l e o r a l t e r a t i o n e n d o r s e d

by the meet ings of the Vlc tor la branch and the Queens land

b ranch r e spec t lve ly and c i r cu la t ed t o a l l branches. The

amendment t o t h e p r o p o s e d new ru le endorsed by t h e V l c t o r l a

branch rneetlng comes r u l t h i n t h e g e n e r a l p r i n c i p l e of law

e n u n c i a t e d i n H a l s b u r y ' s Laws of England, 4th Ed. Vol. 7 ,

paragraph 589"

"Amendments t o R e s o l u t l o n s

Any amendment f a i r l y a r l s i n g on a

r e s o l u t i o n which i s specifled l n t h e

no t i ce o f mee tmg and w l t h l n t h e s c o p e

of t h e n o h c e may be proposed and passed

a t t he mee t lng , and a chairman has no

r l g h t t o r e f u s e t o p u t s u c h a n amendment."

See a l s o V o l . 9 paragraph 1305 and Daly v. - Gallagher D9251

Q.S.R. 1.

I t f o l l o w s I n o u r o p l n l o n t h a t t h e r e s o l u t l o n s o f

t h e F e d e r a l C o u n c l l a l t e r l n g R u l e l l ( g ) a n d d e l e t i n g

Rule 16 ( a ) (10) were v a l l d and were made In accordance with

t h e r e l e v a n t p r o c e d u r e s l a l d down by t h e r u l e s o f t h e Unlon

Weturn now t o c o n s i d e r t h e t h l r d o rde r sough t In

Mat te r No. V. No. 36 of 1 9 7 8 . As set o u t i n t h e R u l e N i s i

t h e form of order sought i s s t a t e d a s f o l l o w s : -

"To show Cause why an Order should not be

made t h a t t h e r u l e s o f t h e o r g a n i z a t i o n

g e n e r a l l y c o n t r a v e n e , o r R u l e 13A t h e r e o f

I n p a r t i c u l a r cont ravenes sub-sec t ion (1)

o f Sec t ion 1 4 0 o f t h e C o n c i l l a t i o n and

Arb i t r a t lon Ac t 1 9 0 4 by f a l l i n g t o

p r o v i d e e f f e c t i v e l y o r a t all f o r t h e cont ro l of the Federa l Counci l and Federa l

blanagement	Committee	of	t h e o r g a n i z a t i o n
by

t h e Reference has been members o f t h e o r g a n i z a t i o n . "

made a l r e a d y t o R u l e 8 which

p rov ides tha t t he sup reme con t ro l of t h e Union 1s ves t ed i n

t h e members b u t s u b ~ e c t t h e r e t o t h e F e d e r a l C o u n c i l i s t h e

governing body of the Union hav ing the gene ra l con t ro l and

c o n d u c t o f t h e b u s m e s s o f t h e Union. The r u l e sets o u t

a number of spec l f led powers confer red upon t h e c o u n c i l .

Rule 6 cons t i t u t e s t he Fede ra l Counc i l and makes p r o v l s i o n

f o r t h e c o n s t i t u t e s t h e F e d e r a l e l e c t i o n of members t o Federal Council. Rule 1 2

Iblanagement Committee and Rule 1 3

enumerates the Powers of that commit tee . It is an

admlnls t ra t lon commit tee wi th powers t o a c t I n an emergency.

I ts a c t i o n s a n d d e c i s i o n s a r e f i n a l u n l e s s n e g a t i v e d by a

major l ty of members o f t h e C o u n c l l p r e s e n t a t t h e n e x t m e e t m g

of t h e C o u n c i l o r by a ma jo r l ty o f t he members o f t he Union

on a referendum. Rule 13A i s a s follows:

"13A. Cont ro l of Federal Counci l and Federal

IvIanaqement C o m m l t t e e by Members

If fileetings of any three Branches a t each of

whlch not less than one (1) p e r cent o f t h e

f i n a n c i a l members o f t h e B r a n c h a r e p r e s e n t ,

by r e s o l u t i o n r e q u e s t t h a t a referendum of

members be held on a p r o p o s a l r h a t t h e Federal

Management Committee o r t h e C o u n c i l take o r

r e f r a in f rom adop t lng any spec i f i ed action o r

adopt o r r e f r a i n f r o m t a k l n g a n y s p e c i f l e d

p o l i c y In the conduc t o f the Unlon ' s bus iness

the Fede ra l I4anagement Commlttee s h a l l w i t h i n

four teen days appoin t a Returning Officer who

s h a l l f o r t h w i t h p r o c e e d t o conduct a referendum

of members on t h e p r o p o s a l .

R

13.

'I Such referendum shal l so f a r a s

p r a c t l c a b l e be conducted In the same

manner a s elections under Branch Rule 5 .

T h e r e s u l t o f t h e r e f e r e n d u m s h a l l

b e g l v e n e f f e c t t o by t h e C o u n c l l o r

Federal Planaqement Committee, a s

c i rcumstances may r equ l r e p rov ided

t h a t I f the proposa l be adopted by t h e

Fede ra l Management Committee o r t h e

Councll no r e fe rendum sha l l be he ld under

t h l s r u l e . "

The r e l e v a n t p r o v i s l o n s of s.140 of t h e A c t p r e s e n t l y

i n o p e r a t i o n are	as	fo l lows: -
The ru l e s o f an o rgan iza t ion -
s h a l l n o t b e c o n t r a r y t o , o r f a l l
t o make a p r o v i s l o n r e q u l r e d by a
p rov i s ion of t h i s A c t , t h e
r e g u l a t i o n s o r a n award o r o t h e r w l s e
b e c o n t r a r y t o a law;
...
s h a l l n o t lmpose upon a p p l i c a n t s
f o r membership, o r members, of t h e
o r g a n l z a t i o n , c o n d i t i o n s , o b l i g a t i o n s
o r r e s t r i c t l o n s w h l c h , h a v l n g r e g a r d
t o t h e o b ~ e c t s o f t h l s Act and t h e
purposes of the reg is t ra t ion of
o r g a n i z a t l o n s u n d e r t h i s A c t , a r e
oppress lve , unreasonable or u n j u s t ;
...
A member of an o rgan lza t ion may apply
t o t h e C o u r t f o r a n o r d e r under t h i s
s e c t i o n i n r e s p e c t o f t h e o r g a n i z a t i o n .
...
An o r d e r u n d e r t h i s s e c t i o n may
declare t h a t t h e whole o r a p a r t of a rule Of
an organiza t lon cont ravenes sub-sec t ion
(l) or t h a t t h e r u l e s o f an o rgan iza t ion
cont ravene sub-sec t lon (1) i n a
s p e c i f i e d r e s p e c t .
Sub jec t t o sub - sec t ion (5F) , t he Cour t
h a s j u r i s d i c t l o n t o h e a r and deterriine
an appl ica t lon under sub-sec t ion ( 2 ) .. .

Where an o rde r unde r th i s

s e c t l o n d e c l a r e s t h a t t h e whole

o r a p a r t o f a r u l e c o n t r a v e n e s

sub-sec t ion (1) t h e r u l e o r t h a t

p a r t o f t h e r u l e , as t h e c a s e may

be, s h a l l b e deemed t o be vold

from t h e d a t e o f t h e o r d e r .

The Court may, w l t h o u t p r e ~ u d l c e t o

any o t h e r power o f t h e C o u r t t o

a d j o u r n p r o c e e d l n g s , a d ~ o u r n

p r o c e e d i n g s i n r e l a t i o n to an

a p p l i c a t i o n u n d e r t h l s s e c t l o n f o r

such per iod and upon such terms and

c o n d i t i o n s a s it t h l n k s f l t f o r t h e

purpose o f g iv lng t h e o r g a n i z a t l o n

an oppor tun l ty	to	a l t e r	i t s	r u l e s .
Where -

(a) t h e Court makes a d e c l a r a t l o n

u n d e r t h l s s e c t i o n I n r e l a t i o n

t o t h e r u l e s o f an o r g a n i z a t i o n ; and

( b ) a t t h e e x p l r a t l o n of t h r e e months

f rom the da t e o f t he dec la ra t ion ,

the ru l e s o f an o rgan iza t ion have

no t been amended I n a manner which,

I n t h e o p i n l o n o f t h e I n d u s t r i a l

R e g i s t r a r , b r l n g s them i n t o

conformity wlth t h e requirements

of sub-sec t lon (1) a s r e g a r d s t h e

m a t t e r s t h a t g a v e rlse t o t h e

d e c l a r a t i o n ,

t h e I n d u s t r l a l R e g l s t r a r s h a l l , a f t e r

l n v i t l n g t h e o r g a n l z a t i o n t o c o n s u l t

w l th hlm on s u c h a l t e r a t i o n s o f t h e r u l e s a s t h e m a t t e r , . d e t e r m l n e

w l l l ,

i n h l s o p l n l o n , b r l n s them i n t o

conformity w i t h those requl rements as

recjards t h o s e m a t t e r s . I '

The corresponding provis ions of s.140 i n o p e r a t i o n a t t h e tlme

t h e o r d e r n i s i was cjranted vere t o slmilar e f fec t .

It is important t o n o t e t h e d i f f e r e n t r e s u l t s f lowlng

from t h e form of the dec lara t ion made under S. 1 4 0 ( 5 D ) , see s.l40(%)

<and s.140(7) resLpcbvely. The d i f f e r e n c e 1s obvlous but i t 1 s o f t e n

overlooxed. In R. v A u s t r a l i a n I n d u s t r i a l C o u r t ex p a r t e Maynes

t

15.

( 1 9 7 8 ) 1 9 A.L.R. 6 6 9 Mason J. a f t e r s e t t i n g o u t t h e

p rov l s ions o f s.140(1) o f t h e A c c , c o n s i d e r e d t h e e f f e c t

o f t h e o t h e r p r o v l s l o n s o f s.140 then I n o p e r a t i o n and

s a i d a t	pp.673-4:
'I . .

.Where o r p a r t o f an o rde r dec la re s tha t t he who le

a ru le cont ravenes sub-s (1)

t h e rule o r p a r t of t h e r u l e , as t h e case

may b e , s h a l l b e deemed t o b e v o i d from

t h e date o f t h e o r d e r ( S 140(5 ) ) . Where

t h e c o u r t makes a dec la ra t lon unde r S 1 4 0

' i n r e l a t i o n t o t h e r u l e s of an

o r g a n i z a t i o n ' a n d a t t h e e x p i r a t l o n of

t h r e e months from t h e d a t e o f t h e

d e c l a r a t l o n t h e r u l e s h a v e n o t been

amended inamanner wh lch , In the op ln lon

of t h e I n d u s t r i a l R e g l s t r a r , b r i n g s them

ln to conformi ty wl th the requl rements of

sub-s (1) ' as r e g a r d s t h e m a t t e r s , t h a t

g l v e rlse t o t h e d e c l a r a t l o n ' , t h e I n d u s t r i a l

R e g l s t r a r s h a l l determlne. s u c h a l t e r a t l o n s

o f t h e r u l e s a s wlll, lri h i s o p i n i o n , b r i n g

them In to conforml ty wl th those requi rements

( S 1 4 0 ( 7 ) ) .

Sec t ion 140(11, . . . . . ( 2 ) and ( 5 ) have had a

somewhat t u r b u l e n t h i s t o r y : see Cameron v.

Austral ian Workers ' Union (1959) 2 FLR 4 5

and R v. Commonwealth I n d u s t r l a l C o u r t ex p a r t e

Amalgamated Engineer lng Unlon, Austral lan

Section (Shearer 's case) ( 1 9 6 0 ) 103 CLR 368:

The p rov l s lons were subsequent ly

amended so as t o overcome l i m l t a t l o n s

r evea led by those dec i s ions . Wl thou r e so r t lng t

t o t h e l e g l s l a t i o n i n l t s e a r l i e r form and t o

t h e I n t e r p r e t a t i o n a c c o r d e d t o It by t h e cases,

I now conclude from t h e terms of t h e s e c t l o n

t h a t (a ) a r u l e o r p a r t of a r u l e contravenes

s . l 4 0 ( 1 ) ( a ) If it is c o n t r a r y t o o r f a i l s t o

make a p r o v i s i o n r e q u i r e d by a p rov i s lon o f

t h e A c t , a d l s t l n c t i o n must be made t h e r e g u l a t i o n s o r a n award o r I f it

1s o t h e r w i s e c o n t r a r y t o a law; and (b) t h a t

between cases I n

which t h e whole or p a r t of a p a r t l c u l a r r u l e

cont ravenes S 1 4 0 ( 1 ) and cases i n which t h e

rules as a whole so contravene.

It wlll b e s e e n t h a t S 1 4 0 ( 5 ) , whlch deems a

r u l e o r d a t e o f t h e d e c l a r a t l o n t h a t p a r t of a r u l e t o b e v o i d f r o m t h e

lt contravenes

sub-s (1) has no a p p l l c a t i o n t o an order which

16.

d e c l a r e s t h a t t h e rules of an

orqaniza t lon cont ravene sub-s (1)

I n a s p e c l f l e d r e s p e c t . \?hen an

o r d e r is made c o n t a l n l n g a d e c l a r a t i o n

I n t h e l a t t e r f o r m t h e r u l e s c o n t l n u e

t o h a v e a v a l i d o p e r a t l o n , s u b j e c t

t o a c t l o n b e i n g t a k e n i n accordance

wlth sub-s ( 7 ) . I n many cases lt 1s

a n l ce ques t ion whe the r it 1s a

p a r t l c u l a r r u l e , r a t h e r t h a n t h e r u l e s

as a whole, which f a l l s t o make a

p rov l s lon r equ l r ed by the A c t or t h e

r e g u l a t l o n s . What i s more, lt 1 s an

impor tan t ques t lon because , on i t s

outcome, depends the form of o r d e r

vh lch wlll be made a n d t h e o p e r a t l o n

o f S 140(5). "

The d l s t l n c t l o n i s o f impor t ance ln the p re sen t ca se .

During the course of argument , Counsel for t h e a p p e l l a n t s p u t

t e n t a t i v e s u b m l s s l o n s t o t h e e f f e c t t h a t t h e r u l e s o f t h e

Union as a whole and l n p a r t i c u l a r R u l e 13A are oppres s ive

and I n c o n t r a v e n t i o n o f s.ldO(l) (c) . That submission i s

o u t s l d e t h e terms o f the o rde r sough t and m a u r o p i n l o n t h e

I s s u e r a i s e d by those submisslons should not be considered

on t h i s a p p e a l . The form of the o rder sought is f o r a

dec la ra t lon unde r S. 140(5D) t h a t t h e r u l e s o f a n o r g a n i z a t l o n

cont ravene sub-sec t lon (1) i n a s p e c i f l e d r e s p e c t t h u s

enabl ing s .140(7) t o come l n t o o p e r a t l o n . The p a r t i c u l a r

r e f e r e n c e t o R u l e 13A is t o b e t r e a t e d a s a n l n e l e g a n t way

o f g l v l n g p a r t i c u l a r s o f a spec i f i ed r e spec t In wh ich it i s

c l a i m e d t h a t t h e r u l e s o f t h e Unlon contravene s.140(1) of

t h e A c t , But i n o r d e r t o d e t e r m i n e w h e t h e r " t h e r u l e s o f

an o rgan iza t lon con t r avene sub- sec t ion (1) i n a s p e c i f l e d

r e s p e c t " it is n e c e s s a r y t o c o n s i d e r t h e w h o l e of t h e r u l e s

of thE o r g a n i z a t i o n .

Sec t ion 132 o f t h e A c t s p e c l f l e s c o n d i t i o n s t o be

complled with by a s s o c l a t i o n s a p p l y i n g f o r r e g i s t r a t i o n u n d e r

t h e A c t . Sec t ion 132(2 ) p rov ldes a s fo l lows : -

" ( 2 ) The c o n d i t i o n s t o be complied w i t h

by a s s o c l a t l o n s so a p p l y i n g f o r

r e g i s t r a t l o n and by o r g a n l z a t i o n s s h a l l

be as prescribed." Emphasis added.

I n t h e p r e s e n t case t h e a p p e l l a n t s r e f e r t o Reg. 115

and i n p a r t i c u l a r t o the fo l lowing parts of t h a t regulation:-

"115 (l). The following c o n d i t i o n s are

p resc r lbed cond l t ions to be compl i ed wi th

by a n a s s o c l a t l o n a p p l y l n g f o r

r e g i s t r a t i o n , namely:- ...

(d) t h e a f f a i r s o f t h e a s s o c l a t i o n

s h a l l be r e g u l a t e d by r u l e s ...

provid ing ... f o r -

(i) t h e l e c t i o n of -

(A)	a commlttee of management o f t he a s soc la t ion and o f each
branch of t h e a s s o c l a t i o n ;
( B )	o f f i c e r s o f t h e a s s o c l a t l o n
and of each branch of the
a s s o c i t i o n ; and
(C)	any conference, counci l , panel
o r o t h e r body ( a d d i t l o n a l t o
t h e committee of management),
which i s empowered t o determlne p o l i c y o r t o exercise f u n c t i o n s
o f management I n t h e a s s o c i a t i o n
o r b ranch ;

(11) t h e powers and du t i e s o f t he commi t t ees

a n d o f o f f i c e r s ; . . .

( iv ) t he r emova l of members o f t h e committee

1 o f f i c e r s ; o f a n d

( v ) t h e c o n t r o l of committees 6f t h e

a s s o c i a t i o n and Its branches by t h e

members	of	the a s soc ia t lon and the
members	of	t h e b r a n c h e s r e s p e c t i v e l y ; ...

( 2 ) The c o n d i t l o n s s p e c l f i e d r n t h e l a s t

p recedmg sub- regu la t ion app ly i n r e l a t i o n t o

o r g a n l z a t l o n s I n l i k e manner as t h e y a p p l y i n r e l a t i o n

t o a n a s s o c l a t i o n a p p l y i n g f o r r e g l s t r a t i o n a s an

o r g a n l z a t l o n . "

They then contend tha t under Rule 13A t h e members o f t he Union

do not have cont ro l of the commit tees o i t h e Union and i n

pa r t l cu la r t he Fede ra l Counc i l and the Fede ra l Committee of

Management a n d t h e r e f o r e t h e r u l e s of t h e Unlon f a i l t o make

a p r o v i s l o n r e q u l r e d by a p rov l s lon o f t he A c t a n d t h e r e g u l a t i o n s .

1 8 .

see s.140(1) ( a ) of t h e A c t . Yhey contenc t h a t

t he r equ i r emen t s t ha t t he r e fe rendum of members IS c o n d l t l o n a l

upon a r e q u e s t by meetmgs of a t least t h r e e of t h e s1x

branches o f t he Unlon f a i l s t o comply v l t h t h e r e q u l r e m e n t s

of Reg. 115 (1) ( d ) ( v ) a n d t h a t t h e o t h e r p r o v i s l o n s o f t h e

r u l e s of t h e Unlon do n o t c u r e t h a t d e f e c t ,

A s a f i rs t s t e p i n c o n s i d e r l n g t h e a p p e l l a n t s '

con ten t lons it i s necessary to cons ider the meanlng of Res.

115 (1) ( d ) (v) and I n p a r t i c u l a r t h e meanlng of t h e word " c o n t r o l "

c o n t a m e d t h e r e i n . The word "con t ro l " has many shades of

meanlng . In the Shor te r Oxford Dic t lonary , when used In t he

subs tan t ive sense , the meanlngs g iven inc lude " the fac t of

con t ro l l i ng , o r o f check ing and d i r ec t lng ac t ion ; domlna t ion ,

commandlng, swaylng . Res t ra in t , check . A method of r e s t r a i n t ;

a check;" When used as a verb , the meanings g iven inc lude

" t o e x e r c i s e r e s t r a l n t or d i r e c t i o n upon t h e f r e e a c t i o n o f ; t o

dominate; command." See a l so Trade Practlces Commission v.

Anse t t T ranspor t Indus t r l e s (Opera t ions ) P ty . L t d . ( 1 9 7 8 ) 32

F.L.R. 305 per Nor throp J. a t pp. 321-325.

One t h i n g i s c l e a r , t h e s h a d e of meaning t o b e g i v e n

t o t h e word "cont ro l" depends on the contex t In whlch the rrord

appears'. I n t h e p r e s e n t c a s e , t h e word a p p e a r s i n a r e g u l a t l o n

made pu r suan t t o an A c t r e l a t l n g t o t h e p r e v e n t i o n and se t t l emen t

of c e r t a l n i n d u s t r l a l d i s p u t e s and i n p a r t i c u l a r w i t h t h a t p a r t

of t h e A c t r e l a t l n g t o o r g a n i z a t i o n s t h e e x i s t e n c e and r egu la t lon

of which t h o s e d i s p u t e s . are I n c i d e n t a l t o t h e p r e v e n t l o n and s e t t l e a e n t o f

When f l r s t e n a c t e d i n 1 9 0 4 t h e A c t con ta lned p rov i s ions

f o r t h e r e g i s t r a t i o n o f a s s o c l a t l o n s a s o r g a n i z a t l o n s , see I

S. 55 o f t h e 1 9 0 4 A c t . By t h a t A c t t h e c o n d i t i o n s t o b e

complled with were set ou t In Schedu le B of t h e A c t , t h e

r e l e v a n t c o n d l t l o n s f o r p r e s e n t p u r p o s e s , b e l n g I

" The a f f a l r s o f t h e a s s o c l a t l o n m u s t b e r e g u l a t e d

by r u l e s . . . . . . p r o v i d l n g f o r t h e f o l l o w l n g matters:-

19

" (a) The appolntment and continuance of a

Conunittee 01 ibidlndytlelrleIIL, d Cllalrman or

P r e s i d e n t , and a S e c r e t a r y ;

( b ) The powers , dut les and removal of the

Committee and of the Chairman or

P res iden t and the Sec re t a ry ;

(c) The c o n t r o l o f t h e Committee by General

o r Special Meetings; , . ."

The A c t of members of d l d n o t make p r o v i s i o n f o r t h e e l e c t i o n o f o f f i c e r s or

the commit tee o f an o rganiza t lon . S lnce 1904

there have been almost cont inuous amendments to t h e p r o v l s l o n s

o f t h e A c t r e l a t i n g t o o r g a n i z a t l o n s . R e g u l a t i o n s p r e s c r l b l n g

cond i t ions t o be complled with by a s s o c l a t l o n s a p p l y l n g f o r

r e g i s t r a t i o n were f l rs t made i n 1913. The Concl l ra t ion and

B r b l t r a t l o n Xyulations 1913 p r e s c r l b e d c o n d l n o n s t o be complied

wl th by I n l i e u o f t hose con ta ined in Schedu le a s s o c l a t l o n s a p p l y i n g f o r r e g l s t r a t l o n a s o r g a n l z a t l o n s

B t o t h e A c t of 1904,

see S . R . 1913 No. 331. The r e l e v a n t c o n d i t i o n s were simllar

to t hose con ta lned i n Schedu le B. I n 1928, t h e 1913 Regulat lons

were repea led a n d unde r the 1928 R e g u l a t i o n s t h e r e l e v a n t

cond i t ions were I n a form similar t o t h o s e c u r r e n t l y i n f o r c e ,

see S.R. 1928 No, 81, Reg. 6 . Since t hen t he r egu la t ions have

been amended from tlme to time and there have been many a n d wlde

ranging amendments t o t h e A c t maklng d e t a i l e d p r o v i s i o n s r e l a t l n a

t o o r g a n i z a t i o n s a n d e l e c t i o n s t o o f f i c e w i t h l n o r g a n i z a t i o n s .

A t t h e p r e s e n t time a r e f e r e n c e t o S , 133 and s.133AA of t h e A c t

i l l u s t r a t e s t h e d e t a l l e d n a t u r e o f t h e c o n d i t l o n s imposed by t h e

Act l tself o rgan iza t lon . and which are t o b e c o n t a l n e d I n t h e r u l e s o f a n

Those s e c t i o n s make p r o v l s i o n f o r t h e e l e c t i o n

by secret t h e o r g a n l z a t l o n a n d h a v l n g r e g a r d t o t h e p r e s e n t d e f l n i t i o n o f p o s t a l b a l l o t o f p e r s o n s t o d e f i n e d o f f l c e s w i t h l n

" o f f l c e " c o n t a l n e d i n t h e A c t those provls ions have a very ride

a p p l l c a t l o n , t h e maxlmum pe r lod fo r wh lch an o f f l ce r nay be

e l e c t e d a n d t h e d l s n l s s a l f r o m o f f i c e o f a p e r s o n e l e c t e d t o

an o f f i ce . d i r e c t e d t o t h e T ru ly It c a n b e s a i d t h a t a l l t h o s e p r o v i s i o n s are

"control" of commlt tees of organizat lons by members

o f t he o rgan lza t ion . One thlng, however, 1 s c l e a r . A t no tlme

20.

has t h c A c t o r t h c r e g u l a t i o n s madc it a cond l t lon t h a t

I

t h e r u l e s of an organiza t ion must conta ln a prov i s ion by

which d e c i s l o n s made by a commlt tee a re to be made subject

t o a referendum of a l l members o f t h e o r g a n i z a t l o n .

Before cons lder ing the meanlng to be g l v e n t o t h e

word " c o n t r o l " l n Reg. 115 (1) (d) (v) a warnlng must be glven.

E a r l i e r d e c l s l o n s on t h e meaning of the word must be t rea ted

171th c a r e s l n c e t h o s e d e c i s l o n s were glven at a time when t h e

p r o v i s i o n s of the A c t r e l a t lng t o o r g a n l z a t l o n s were markedly

d i f f e r e n t from t h e p r o v l s l o n s c u r r e n t l y i n f o r c e . It i s

necessary t o c o n s l d e r t h e word " c o n t r o l " i n t h e c o n t e x t o f t h e

p rov l s lons of t h e Ac t and r egu la t lons cu r ren t ly i n f o r c e . I t

1 s n e c e s s a r y a l s o t o c o n s i d e r t h e d e f l n l t l o n s c o n t a i n e d i n

S . 4 fo l lowlng words o f t h e A c t and i n p a r t i c u l a r t h e d e f l n l t i o n s o f t h e

and phrases , namely " C o l l e g l a t e e l e c t o r a l

system" , "Committee of management" , "Direct vot ing sys tem",

"Of f i ce" and "One- t i e r co l l eg ia t e l ec to ra l sys t em" . See

also S. 4(4) and (5) o f t he A c t . Reference 1s made a l s o t o

s.133 and s.133iA o f t h e A c t .

Prom i t s ve ry na tu re , an o rgan iza t ion ,be ing an

a r t i f i c i a l p e r s o n , m u s t ac t t h rough agen t s . The members o f a n

o r g a n l z a t i o n a r e s e p a r a t e and d l s t i n c t from t h e o r g a n i z a t i o n

l t s e l f . Having regard to the fac t tha t no rma l ly a l a r g e

number of p e r s o n s r e s l d l n g I n d l f f e r e n t states c o n s t i t u t e

t h e members of a n o r g a n i z a t i o n , It 1s l m p r a c t i c a l f o r d e c l s i o n s

of members o f an o rgan lza t ion t o be t a k e n a t a genera l meet lng .

The h l s t o r y o f t h e a f f a l r s o f trade g u l l d s shows t h a t t h e

"an t ru l"of gu l lds deve loped f rom the pos i t lon where a l l

I

d e c i s i o n s were taken by members i n gene ra l mee t ing to t h e

pos i t lon where dec ls lons were taken by commit tees e lected by

members o f t he gu i ld . Tha t h l s to ry 1s an i l l u s t r a t i o n o f

t he concep t o f o rgan iza t ions and the l r "control" by t h e members

of t h e o r g a n l z a t i o n s . The A c t a n d r e g u l a t i o n s make p rov i s ion

f o r the elect ion of commit tees by t h e members o f an o r g a n i z a t i o n

t o manage t h e a f f a l r s o f t h e o r g a n i z a t i o n , P a r l i a m e n t i n

21.

e n a c t l n g detal led p r o v l s i o n s r e l a t i n g t o t h o s e e l e c t i o n s

h a s i n d l c a t e d 1 t s l n t e n t l o n o f t h e manner i n whlch the

members o f an o r g a n i z a t i o n are t o e x e r c l s e “ c o n t r o l ” o v e r

the commlttees of t h e o r g a n l z a t i o n . An o r g a n i z a t l o n 1s

r equ i r ed to have a commlttee of management and the powers

and d u t i e s o f t h e committee m u s t b e p r o v l d e d f o r i n t h e r u l e s

o f t h e o r g a n l z a t i o n .

I n o u r o p m l o n I n r e g u l a t l o n 115 (1) (d ) (v ) t he word

“ c o n t r o l “ 1s t o be construed i n t h e sense of meanmg t h e

f a c t of checking and d l rec t lng ac t ion , a method o r means o f

r e s t r a l n t . We do no t accep t t he v l ew tha t t he word “ c o n t r o l “

1s t o be commanding cons t rued In the sense of d l r e c t l y c o n t r o l l l n g o r

t h e a c t l v i t l e s o f t h e c o m m l t t e e s .

Whenever a q u e s t i o n a r l s e s w h e t h e r t h e r u l e s o f a n

o r g a n l z a t i o n f a l l t o p r o v i d e f o r t h e c o n t r o l o f t h e c o m m l t t e e s

o f t h e o r g a n l z a t i o n by t h e members o f t h e o r g a n i z a t i o n It is

n e c e s s a r y t o c o n s i d e r t h e whole o f t h e r u l e s o f t h e o r g a n i z a t i o n ,

t h e method of e l e c t i n g t h e c o m m i t t e e s , t h e term o f o f f l c e o f

t h e members of the committee and the powers of members In

genera l meet ing . The absence of a power t o ca l l f o r a

referendum on the decis ions of a committee w i l l n o t n e c e s s a r i l y

mean t h a t t h e r u l e s f a l l t o p r o v i d e f o r t h e c o n t r o l o f

1

commit tees o f the o rganiza t ion by t h e members. The presence

of a power t o cal l for a referendum on the decls ions of a

commrttee may, h a v l n g r e g a r d t o t h e o t h e r r u l e s of t h e

o r g a n i z a t l o n , e n s u r e t h a t t h e r u l e s comply w i t h Reg. 115 (1) ( d ) ( v ) ,

whlch rules otherwise would noc comply w l t h t h a t r e g u l a t i o n .

Each case must depend upon i t s own par t lcu lar f a c t s and the

p a r t l c u l a r r u l e s o f t h e o r g a n l z a t i o n i n v o l v e d , As f a r a s t h e

word “ c o n t r o l “ 1s concerned \re would v l t h r e s p e c t a g r e e w l t h

t h e opinion expressed by Joske J. I n MacKenzie v. Adminls t ra t ive

and Clerical Officers Assoc la t lon , Commonwealth Publ ic Se rv ice

( 1 9 6 2 ) 5 a p p l i c a t i o n o f t h e p r l n c l p l e s e x p r e s s e d w e F.L.R. 342 a t pp. 3 6 4 - 5 . A s an i l l u s t r a t i o n o f t h e

refer t o what was sald

wi th respect to the Vehic le Bui lders Employees‘ Federa t ion of

A u s t r a l i a i n S h e r r i f f v . Townsend 3 A p r i l 1980 by Northrop J.:-

2 2 .

Under t h e r u l e s of t h e F e d e r a t i o n ,

genera l meet ings of members w i t h l n a branch

of t h e F e d e r a t l o n , are h e l d r e g u l a r l y .

D e l e g a t e s t o Federal Counc i l a r e e l ec t ed eve ry

two years . Federa l Councl l meets a t least once

i n e a c h y e a r , and S p e c l a l Meetings may be convened

upon t h e w r l t t e n r e q u e s t of any two or more

branches o r by r e so lu t ion o f t he Fede ra l Execu t ive

Committee. That Committee, whlch comprises

the P res lden t , V ice -Pres iden t , two T r u s t e e s ,

Fede ra l Sec re t a ry and Ass i s t an t -Fede ra l Sec re t a ry ,

a r e h e l d a t l e a s t o n c e e v e r y f o u r m o n t h s . I n

addi t lon , under Rule 15 , any two o r more branches

may, a t spec ia l mee t ings convened fo r t he pu rpose ,

demand a b a l l o t o f a l l members o f t he Fede ra t ion

upon a n y q u e s t i o n , a n d t h e r e s u l t o f t h e b a l l o t i s

b inding on a l l members o f t h e F e d e r a t i o n . I n all

t h e s e c l r c u m s t a n c e s t h e r u l e s of t h e F e d e r a t i o n

make p r o v l s i o n f o r t h e c o n t r o l o f committees of

t he Fede ra t ion by t h e members o f t he Fede ra t ion .

Th i s con t ro l will become even s t ronge r when t h e

r u l e s of t h e F e d e r a t i o n are a l t e r e d t o overcome

the imbalance of r e p r e s e n t a t l o n and v o t i n g v a l u e

p r e s e n t l y e x l s t l n g I n t h e F e d e r a l C o u n c l l as

between members o f xhe Fede ra t ion in d i f f e ren t

branches. I'

I n t h e p r e s e n t case, Rule 8 o f t h e r u l e s of t h e Union

provides t h a t t h e supreme control of t h e Union 1s v e s t e d i n t h e

members o f t h e Union, The r u l e s c o n t a i n a number of express

p r o v l s ~ . o n s by which t h a t c o n t r o l 1 s made e f f e c t l v e . I n g i v i n g

h is re9sons for judgment J . B . Sweeney J. cons ide red those

r u l e s i n d e t a l l . We can 'do no b e t t e r t h a n . q u o t e d i r e c t l y

from hls ~udgment and adopt what His Honour s a i d .

" I t 1 s necessary to examine shor t ly the sys tem of

organizat lon adopted wlthln the Union, Members

are o r g a n l z e d l n b r a n c h e s , t h e r e b e m g o n e i n

each State . The branches and t h e n numbers as

a t 30 June, 1978 were as follows:

New South Wales	4 1 , 6 6 6
V i c t o r l a	1 4 , 8 6 2
South Aus t ra l ia	1 1 , 2 4 6

Queensland	9 , 4 2 1
Western Austral ia	6 , 308

Tasmania

3,653

87,156

-?

23.

' I Prov l s lon 1s made f o r o r d i n a r y m e e t l n g s

t o b e h e l d by each branch a t l e a s t o n c e !

every three months. A t these meet lngs

ten form a quorum. In a d d i t l o n s p e c l a l

meetings may be called I n v a r i o u s ways

l n c l u d l n g b y r e q u l s l t l o n o f f i n a n c i a l members.

I n t h e c a s e of a branch wlth more than 2,000

members, 100 m u s t r e q u l s l t l o n t h e s p e c l a l m e e t i n g .

I n t h e case of branches wl th less than 2,000

members, 25 must requls i t lon the meet lng In . each

case t h e quorum 1s 25. In a d d i t i o n t o t h e s e

meetings t h e r e i s p r o v i s l o n f o r s e c t l o n meetlngs

l n r u l e 26A and these mus t be ca l l ed on r e q u i s l t l o n

by 252 of t h e membership o f t h e s e c t i o n o r 100

members o f t he s ec t lon . The re ls, then, ample

o p p o r t u n i t y f o r members t o p a r t l a p a t e a t meetings

a t branch leve l and t o raise any l s s u e s l n a forum

o f t he Union.

The branch i s t h e n , s u b j e c t t o t h e f e d e r a l b o d l e s ,

managed by a branch committee of management. This

c o n s i s t s o f 1 6 members a l l of whom are e l e c t e d by

the branch members o f t h e Union, some f o r t h r e e

years and some f o r f o u r . The branch commlttee or'

management i s bound by a r e s o l u t l o n o f a branch

meeting a t whlch a t least 1% o i t h e members were

present . There 1s also p r o v i s l o n f o r d e l e g a t e s

and shop stewards.

T u r n i n g t o t h e f e d e r a l s t r u c t u r e , t h l s p r o v l d e s

f o r management and con t ro l by committees. Wlth the

Union, whose membership i s s p r e a d o v e r t h e

Commonwealth, it 1s obvious ly imposs lb le to have

management o r c o n t r o l by meet ings of members. I t

1s a form of government In which the sovereign

power resides I n t h e members and 1s exerc lsed by

t h e l r e l e c t e d p e r i o d l c e l e c t l o n r e p r e s e n t a t i v e s . The very fact o f

by t h e members ensures some c o n t r o l

i n tinem. The body h a v i n g o v e r a l l c o n t r o l i n t h e

o rgan iza t ion 1 s the Federa l Councl l . I t c o n s i s t s

of the Genera l Sec re t a ry and Ass i s t an t G e n e r a l

S e c r e t a r y who a r e e l e c t e d by rank and f i l e members

o f t h e o r g a n l z a t i o n a t secret p o s t a l b a l l o t s

e v e r y f o u r y e a r s . I n a d d l t i o n t h e r e are branch

r e p r e s e n t a t i v e s o n a s l i d i n g scale a c c o r d i n g t o

t h e membership of a p a r t l c u l a r b r a n c h . A t t h e

p r e s e n t time t h e b r a n c h e s a r e e n t i t l e d t o r e p r e s e n t a t i o n

as shown hereunder:

N e w 17ales South S i x ( 6 )

Victorla T h r e e ( 3 )

Three Austral ia South ( 3 )

(3)	Three	Queensland
Aus t ra l ia Western m0 ( 2 )
Tasmanla Two ( 2 )

2 4 .

These branch de lega tes a re elected by t h e

rank and f l l e members of each branch by

secret p o s t a l b a l l o t t r i e n n i a l l y . F e d e r a l

Councll meets o n c e e a c h y e a r a t s u c h time

a s i s declded by i tself o r t h e Federal

Commlttee of Management. I n a d d i t i o n

It ho lds spec ia l mee t lngs when declded by

the Councl l o r t h e Committee o f Management

or the Genera l Secre ta ry and Federa l Pres ident

o r t he Genera l Sec re t a ry and fou r Fede ra l

Ilanagement Committee members o r upon t h e

p e t i t i o n o f two o r more branches o r on a

p e t i t i o n s i g n e d by any 1,000 members.

The cont ro l In be tween meet ings of the Federa l

Councll 1s e x e r c i s e d by t h e Fede ra l Committee

o f Nanagement which c o n s l s t s o f t h e P r e s i d e n t ,

Sen lo r and Jun io r V ice -Pres iden t s , t he Genera l

S e c r e t a r y , t h e T r e a s u r e r and t h r e e T r u s t e e s .

They are e lec ted by and f rom the Counci l . The

P r e s i d e n t h a s a de l ibe ra t lve vo te on ly . Ac t lons

o f t h e F e d e r a l Commlttee of Managerent may b e

cons idered and reversed or altered by t h e

Fede ra l Counc i l o r by a m a ~ o r i t y of t h e members

of t h e Unlon on a referendum.

I t vi11 be seen then tha t the Federa l Counci l

c o n s l s r s o f 19 members p lus the Genera l

Secre ta ry and Ass is tan t Genera l Secre ta ry . Rule

1 3 A p r o v l d e s t h a t members o f any th ree b ranches

a t m e e t i n p a t which not less than 1% o f t h e

f i n a n c i a l members are p r e s e n t may by r e s o l u t i o n

r e q u e s t t h a t a referendum be taken on proposa ls

t h a t t h e Management Conunlttee o r Counc i l t ake or

r e f r a i n from t a k i n g any s p e c l f l e d a c t l o n o r from

,	adopt ing any spec i f ied pol icy .
I n a d d l t l o n , i n my new the Federa l Counci l has
power under Rule 8 e i t h e r a t a n o r d i n a r y o r a
spec la l mee t lng t o decide t o t a k e a referendum
i t s e l f . Its powers under ule 8 are a s fo l lows :

I

The supreme cont ro l of the Union i s

v e s t e d i n t h e members.

S u b l e c t t h e r e t o t h e F e d e r a l C o u n c i l s h a l l

be the governing body of t h e Union. It

sha l l have the gene ra l con t ro l and conduc t

o f t h e b u s l n e s s of t h e Union and wlthout

l i m i t l n g t h e f o r e g o i n g i t s powers s h a l l

inc lude the fo l lowing: none of which i s

' t o be l imlted I n i t s g e n e r a l i t y

by t h e e x i s t e n c e o f a n o t h e r .

(1) To t a k e a l l such s t eps as it

s h a l l t h i n k f i t t o c a r r y o u t a l l

o r any o f t h e o b - ~ e c t s o f t h e Union.

...

( 2 ) To do anything which mlght be done

by any committee o r body o r

m e e t i n g o r o f f l c e r o f t h e Unlon

o r any p a r t t h e r e o f . '

A d i r e c t c o n t r o l o f t h e commlttees by t h e members

may be exerc lsed by the ho ld lng o f a referendum

under ru l e 1 3 A or by t h e power o f a m a j o r i t y o f t h e

F e d e r a l C o u n c l l t o d e c l d e I t s e l f t o h o l d a referendum.

It is ma jo r i ty o f t hc t r u e t h a t t h r e e b r a n c h e s may n o t r e p r e s e n t a

members, or, t o p u t It ano the r way,

t h a t t h e New South Wales branch In combinat lon with

one of a number o f o the r b ranches may r e p r e s e n t a

m a - ~ o r i t y o f members and y e t f a l l t o o b t a l n t h e

suppor t o f a t h i r d b r a n c h t o r e q u i r e a referendum .

One must however look a t more t h a n t h e mere machlnery.

Referenda a re a cunbersome, time-consuming and very

expens ive ope ra t ion fo r a union. hs a matter o f

prac t ice , and l n d e e d I t h i n k by necessa ry lmpl i ca t lon ,

they would be conducted by secret p o s t a l b a l l o t and

they would involve the pr in t ing of c a s e s f o r a n d

a g a i n s t a p a r t i c u l a r p r o p o s a l . T h l s b e i n g so, t h e

cost t0 .a e n t i t l e d t o l l m l t t h e r i g h t union i s very grea t and the unlon i s

t o a referendum t o t r u l y

i m p o r t a n t q u e s t i o n s ,

1

To c o n s i d e r t h e p o s i t i o n o f members d e s i r i n g t o

e x e r c i s e c o n t r o l o v e r t h e c o m m i t t e e s , I t a k e f i r s t l y

the b ranch committee of management. P rov l s ion i s

made f o r branch committees of management t o b e e l e c t e d

by t h e members. Spec ia l meet inqs of the b ranch

must be held i f r equ l s i t l oned and the numbers r e q u l r e d

to r e q u l s l t i o n a meet ing a re small. The branch

committee of management must comply w i t h any d l r e c t i o n

given by a branch meeting of members a t which not

less than 1% o f t h e f l n a n c i a l members of the branch

are p r e s e n t . T h i s seems a n e n t i r e l y r e a s o n a b l e

scheme which I f a n y t h i n g may be said to be ex t r eme ly

f a v o u r a b l e t o t h o s e members seek lng t o c o n t r o l t h e

branch committee.

I t u r n t h e n t o t h e p o s i t l o n of members s e e k i n g t o c o n t r o l

the federa l commit tees by a referendum of members.

They may do so e i t h e r by seek ing a referendum under

Rule 13A or seeklng a referendum ordered by Council .

!

"In the former case members may sumnon a

special meet lng of t h e branch and lssue a

d l r ec t lon to the b ranch comml t t ee o f

management t o l n l t l a t e t h e a c t l o n . The

branch commlttee of management would t h e n

l f so directed seek the co-opera t ion of two

o the r b ranches . I f lt o b t a l n s t h i s t h e n

the referendum must be he ld . It i s wrong

h o m v e r t o assume tha t each b ranch is

homogeneous and t h e members of each branch

u n i t e d l n t h e l r v i e w s . It i s much more

l i k e l y t h a t I f t h e r e is a d lv i s lon o f op in ion

t h i s would be re f lec ted throughout the union .

I f o t h e r b r a n c h conunlttees r e f u s e t o

c o - o p e r a t e i n t h e c a l l f o r a referendum,

ac t ion cou ld be t aken to ca l l spec ia l mee t lngs

o f t h e l r members to g i v e a p p r o p r i a t e

d l r ec t ions to the o the r b ranch conun l t t ee s o f

management. I n t h i s way a referendum may

be requlred even though opposed by t h e f e d e r a l

b o d i e s . I f however two o the r b ranches do

not co-opera te then the avenue i s stlll n o t

c l o s e d t o t h e d l s s i d e n t members. I f t h e y

r e p r e s e n t a s u f f i c i e n t body of op ln ion wl th ln

the union a r e q u l s i t i o n f o r a spec la l mee t lng

o f t he federal councxl may be made by two

branches o r one thousand members. A t t h a t

s p e c l a l m e e t i n g t h e r e would be present the

n l n e t e e n d e l e g a t e s p l u s two o f f i c e r s .

I n t h e same manner as I have l n d i c a t e d ear l ier ,

special meet ings of branches may r e q u i r e

tha t the branch commit tee of management

i n s t r u c t s i t s r e p r e s e n t a t i v e s t o v o t e f o r t h e

holding of a referendum. In a vo te on such a

referendum it would not be proper t o regard t h e

,Genera l Secre ta ry and Ass ls tan t Genera l Secre ta ry

as r e p r e s e n t i n g any p a r t l c u l a r b r a n c h o r b r a n c h e s .

They are e lec ted by the whole of the 'merbers and

It is t o t h e members g e n e r a l l y t h a t t h e y owe

t h e i r o f f l c e a n d a r e r e s p o n s i b l e . I n t h e v o t i n g

then on t h e federal c o u n c i l , i f an i s sue a rose

on vh lch , fo r example , t he New South Wales branch

s o u q h t t h e h o l d i n g of a referendum and this was

a genu lne des i r e o f t he ma lo r i ty o f t he members

of t h e Unlon one would exTect t h e S e c r e t a r y and

Ass i s t an t Gene ra l S e c r e t a r y t o be respons lve t o

t h a t desire. There would be a t o t a l o f e i g h t I

vo te s In f avour o f t he r e so lu t lon and it would

b e n e c e s s a r y f o r t h e New South Wales branch

o n l y t o a t t rac t the :vo te of the de lega tes of

one of t h e V i c t o r i a , S o u t h A u s t r a l i a n or Queensland

branches, each of whom h a s t h r e e d e l e g a t e s , o r

of the Western Australlan and Tasmanian branches,

. a,

27.

c

'I each of rrhom has two d e l e g a t e s .

A l t e r n a t l v e l y , h a v i n g regard t o t h e

reali t les t h a t I n v e r y many l s s u e s

branch members and branch delegates may

have view which d l f f e r , it would be

s u f f i c i e n t for them t o a t t rac t votes f rom

t h r e e d e l e g a t e s s c a t t e r e d o v e r t h e

f ive b ranches .

Another feature which appears from t h e ru les

i s t h a t t h e r e i s a comple te oppor tuni ty

f o r members t o h a v e a forum i f they wish

t o d e a l w i t h t h e a c t i v i t l e s o f t h e b r a n c h

corrmittees. There 1 s provision f o r

un ion de l ega te s , The p r o v i s i o n for

meet ings include sect ion meet lngs and branch

meetings as I have ind ica ted and no

d l f f i c u l t y s h o u l d b e f o u n d by a m a l o r i t y

of members I n any branch o r indeed any

s i g n l i i c a n t m i n o r i t y l n s e c u r l n g a meeting

and ven t i l a t lng any vleris they may have

on t h e a c t l v i c l e s	of	t h e committee	o f
management. "

The facts o f t h e p r e s e n t case r e l a t l n g t o t h e

r u l e a l t e r a t l o n s made by Fede ra l Counc l l i n November 1 9 7 8

i l l u s t r a t e t h e porrer of c o n t r o l b e m g e x e r c i s e d by t h e

members o f t he Unlon. The New South Wales branch reso lved

t o oppose the p roposed a l te ra t ions . The Vic to r i a and

Queens land branches reso lved to suppor t or e n d o r s e t h e

p r o p o s e d a l t e r a t i o n s . The South Aus t ra l la b ranch reso lved

t h a t its d e b a t e a n d i n t h e r e s u l t t h e y v o t e d t o s u p p o r t t h e r u l e c o u n c i l l o r s v o t e as t h e y saw f l t af ter h e a r i n g

a l t e r a t i o n s . T h e r e is no evldence re la tmg t o t h e meetlngs

of the &stern Aus t ra l ia and Tasmanla branches respec t ive ly

b u t t h e 77es t e rn Aus t r a l i a counc l l lo r s vo ted to suppor t t he

a l t e r a t l o n s r r h i l e t h e T a s m a n i a c o u n c i l l o r s v o t e d t o o p p o s e

t h e r u l e a l t e r a t i o n s .

I n o u r o p i n i o n t h e a p p e l l a n t s h a v e f a i l e d t o make

o u t t h e l r c a s e on t h l s par t of t h e a p p e a l .

We would dismiss t h e a p p e a l .

. . -

IN THE FEDERAL COURT OF AUSTRALIA )

. )

NEW SOUTH WALES DISTRICT REGISTRY	) N. S.T\r. No. 18 of 1979
)

DIV SION	INDUSTRIAL	1
BETVEEH :

MICHAEL GERARD BOLAND, PATRICK REEVES

and KEVIN MULLEK

Appellants

(Applicants)

- and -

Respondents

(Respondents)

Coram: Evatt, Northrop and Keely JJ.

REASONS FOR JUDGMENT !

23 Flay 1 9 S O KEELY J.

I have had the advantage of reading the reasons for

judgment of Evatt and Northrop JJ. which set out the facts

relevant to this appeal together with those provisions in

!

the rules of the Federated Liquor and Allied Industries and Arbitration Act 1904 (the Act) and the Regulations

thereunder which are material	to the determination of this
appeal.

c

- 2 -

In my view the Court has no jurisdiction to make an

order under s.140 of the Act in respect of an alteration to

registered rules until after the Industrial Registrar has

II

certified under s.139(4) of the Act that, in his opinion,

the alteration complies wlth and is not contrary to the

I *

provisions of (the) Act, of the regulations or of an award

and is not otherwise contrary to law and has been made in

accordance with the relevant procedures laid down by the rules

of the organization". I agree ~7itl.1 Evatt and Northrop JJ. that

the Court should not express any opinion on Rule ll(g) and

Rule 16 of the rules of the union in their form as altered

by the Federal Council in November 1978.

I also agree that in the circumstances outlined it

is appropriate that matter N.S.W. No. 2 1 of 1978 be adjourned

under s . 1 4 0 ( 6 ) of the Act for the purpose of glving the union

an opportunity to alter Rule l l ( g ) .

An order was sought under s.141 of the Act relating to

resolutions o f Federal Council "vhich purported to amend Rule ll(g)

and Rule lG", Rule 39 provides as follows:

i

"39. - New Rules and Alteratlon of Rules

1. No new rules shall be made, nor shall any of the

rules for the time being of the Union be altered

amended or resclnded, except by and at	a meeting of
Council.

2. Any proposed new rule or alteration, amendment

or rescinding shall be endorsed by a Branch Meeting

and the Secretary of such Branch shall notify the

General Secretary in writing at least s i x weeks

before a Council Fleeting of the proposed alteratlon.

0

I

I

I - 3 -

3 . The General Secretary shal l forward the proposed

a l t e r a t i o n t o each Branch a t l e a s t one month p r i o r

to the meeting of Council a t winch the proposed new

r u l e o r r u l e s o r a l t e r a t i o n s , amendments o r r e s c i n d i n g

of r u l e s a r e t o be discussed. The Branch Secretary

shall submi t such proposed a l te ra t ion to a Branch

Neeting	p r i o r to	the Council	Meeting.
I t

4 . ...

I am unable t o accept the argument o f Efr D . Ryan of counsel

f o r the appe l l an t s t ha t Ru le 39 o f the ru les , which i s intended ..

t o limit the power of the Federa l Counci l of t h e u n i o n t o

a l t e r , amend o r r e sc ind a r u l e , h a s the e f f e c t t h a t t h e F e d e r a l

Council i s only empowered t o pass a r e s o l u t i o n a l t e r i n g ,

amending o r r s sc ind iug a r u l e 111 precisely the form in which

the "proposed new r u l e o r a l t e r a t i o n , amendment o r rescinding"

has been "endorsed by a Branch Meeting".

In my vlew Rule 39 i s i n t ended to ensu re tha t t he Fede ra l

1 1

Counc i l does no t a l t e r amend or resclnd any of t h e r u l e s f o r

the t ime being of t h e Union" o r add any new r u l e s u n l e s s t h e

p roposa l t ha t i t should do so has been'kndorsed by a Branch

bfeeting'land the proposal has been forwarded " t o each Branch a t

l e a s t one month p r io r t o the mee t ing" of the Federal. Council a t I

lqhich the proposal i s t o be d i scussed . The purpose of the

p rov i s ion i s t o e n s u r e t h a t p r o p o s a l s f o r a l t e r a t l o n s to t h e

r u l e s will be known to each branch for a s u f f i c i e n t t i m e t o

enable them t o be considered by the membership 111 the branches

before the ques t ion UT a l t e r a t l o n is decided upon by Federal

Council . In my opln lon tha t purpose would not be defea ted by

b

- 4 -

an a l t e r a t i o n by the Federal Counci l of t he p roposa l s o long

as t h e n a t u r e of t he p roposa l is no t a f f ec t ed ( s ee Joske :

The Law and Procedure a t Meetings, 5th Edn, p .44) .

It does not f o l l o w tha t t he Fede ra l Counc i l i s empowered

t o amend i n any way i t s e e s f i t a proposal endorsed by a

Branch Meeting. However, the Federal Counc11 1s n o t l m i t e d

to the p rec i se t e rms of the proposal endorsed by the Branch

Meeting provided that the r lordlng of the new r u l e o r

a l t e r a t i o n , amendment o r r e s c i s s i o n o f a n e x i s t i n g r u l e

decided upon by the Federal Council may f a i r l y b e s a i d t o h a v e

been "proposed . . . by a Branch Meeting" (and provided that i t

has been forwarded a t the appropr ia te t ime t o each branch) . In

de te rmining whether an a l te ra t ion of the rules by Counci l has been

I I proposed . . . by a Branch Meeting" regard must be had t o t h e

purpose of the rule t o which I have re fer red . I am s a t i s f i e d

that Rule 39 was compl i ed wi th in th l s ma t t e r .

The remain ing order sought by the appl icants in mat te r

V. No. 36 of 1978 was:

"And f u r t h e r t o show cause why an Order should

not be made t h a t t h e r u l e s of t he o rgan iza t ion

genera l ly cont ravene , o r r u l e 1 3 A the reo f in

pa r t i cu la r con t r avenes sub - sec t ion (1) of

Sec t ion 140 of t h e C o n c i l i a t i o n a n d A r b i t r a t i o n

Act 1904 by f a i l i n g t o p r o v i d e e f f e c t i v e l y o r

a t a l l f o r t h e c o n t r o l of the Federa l Counci l !

and Federa l Elanagement Committee of t h e

I1

organlza t lon by the members of t he o rgan iza t lon .

A s I am unable to agree wi th dismissal by Evatt and Northrop JJ.

o f the appeal o n t h i s m a t t e r , I s h a l l s t a t e s h o r t l y t h e r e a s o n s f o r

e

- 5 -

my opinlon. Ln doing so it is not necessary to set out in

full the provisions of the Act and Regulations and the rules

relating to this aspect as they appear in those reasons for

judgment. Section 140 provides that: I shall refer to them in an abbreviated form.

"(l) The rules of an organization -

(a) shall not ... fail to make a

provision required by ... the

regulations ...

I 1

...

r

Section 132(2) of the Act provides that "the conditions to

be complied with by . .. organizations shall be as prescribed".

Regulation 115 of the Conciliation and Arbitration Regulations	I 1
!

(the regulations) provides that:

"(L) The following conditions are prescribed

conditions to be complied with by	(an
organization) ... namely:-
...

(d) The affairs of the (organization)

shall be regulated by rules	...
providmg . . . for -

(i) the election of -

( A ) a committee of management ...

...

( C ) any conference, council, ... or

other body . . . empowered to determine

policy or exercise functions of

management . . .

(ii) the powers and duties of the !

committees . . .

.	..
(v) the control of committees ... by the members o f the (organlzation and

branches) . . .

...

- 6 -

It will be no ted tha t Regulation 1 1 5 ( 1 ) s p e c i f l c a l l y

r e q u i r e s t h a t t h e r u l e s o f a r eg i s t e red o rgan iza t ion p rov ide

b o t h f o r t h e e l e c t i o n of a committee of management, counc i l

o r o t h e r body and f o r t h e c o n t r o l of committees by t h e members. A ,

r e g i s t e r e d r u l e of a union which provides (as required by Regulat ion

115(l)(d)( i ) ) for the elect ion from t ime t o time of the committee o €

management and o ther bodies may be said t o c o n s t i t u t e i n one

sense a provis ion for the l lcont ro l l l of the persons so e l e c t e d -

by enab l ing the members t o r e f u s e t o re-elect those commit tee

members a t the n e s t e l e c t i o n . However, i n my opinion such

a ru l e canno t on i t s own f u l f i l t h e r e q u i r e m e n t of Regulation

1 1 5 ( l ) ( d ) ( v ) t h a t t h e r e g i s t e r e d r u l e s p r o v i d e f o r " t h e c o n t r o l

11

of committees ... by members ... .

I have formed t h a t vleru f o r two reasons . F i r s t l y , t h e

m 1

r egu la t ion dea l s w i th the ques t ion of " e l ec t ion" and "control1'

as sepa ra t e and d i s t inc t sub jec t ma t t e r s v Ja r r an t ing t ~ s p e c i f i c o

p r e s c r i p t i o n s by the r egu la t ion as t o the mat te rs for which the

r u l e s must p rov ide (Regu la t ion 115( l ) (d ) ( l ) and (v)) . Secondly,

I ,

t h e words c o n t r o l . . . by t h e members", b o t h i n t h e i r n a t u r a l

meaning and i n t h e i r c o n t e x t , a p p e a r t o in tend more than t h a t

the members be able t o r e fuse to r e -e l ec t t he commi t t ee a t the

n e s t e l e c t i o n ( p o s s l b l y some y e a r s l a t e r ) . Such a r e f u s a l t o

r e - e l e c t t o m y nnnd c o u l d w e l l i n d l c n t e t h a t t h e members of

t he o rgan iza t ion - because of t h e i r i n a b i l l t y t o "cont ro l" the

commlttee ( o r e v e n s u f f i c i e n t l y i n f l u e n c e thc committee) - had

- 7 -

.._

decided to rep lace the persons cons t i tu t ing the commit tee by

e l e c t i n g o t h e r p e r s o n s n i t h e hope t h a t t h e l a t t e r p e r s o n s would "

be more amenable to the v iews of the members. However, I n my

opmion such newly elected persons would s t i l l n o t be under

the "control l '	of	the	members	i n t h e s e n s e r e q u i r e d	by	Regulat ion
1 1 5 ( l ) ( d ) ( v ) .

In dea l ing wi th some e a r l l e r d e c i s i o n s of the Commonwealth

I n d u s t r i a l C o u r t and t h e A r b l t r a t i o n C o u r t , Eir Laur ie Q . C . , on

beha l f of t he r e sponden t s , r e l i ed upon t h e f a c t t h a t i n r e c e n t

yea r s a s u b s t a n t i a l number of amendments have been made t o t h e

Act. EI r L a u r i e r e f e r r e d t o t h e "methods of con t ro l t ha t have

been introduced by s ta tu te" which he sa id were " ln o rde r t o ge t

a democratic union". As t o d i c t a i n t h e e a r l i e r c a s e s s u g g e s t i n g

tha t t he absence of an e f f ec t ive r e fe rendum prov i s ion in the

r u l e s may r e s u l t i n t h e will of t h e m a j o r i t y be ing t lwar ted he

s a i d t h a t t h a t "may wel l have been t rue back in the ear ly 1950s

because there was n o t s u f f i c i e n t s t a t u t o r y p r o v i s i o n " . The

amendments c i t ed have in se rLec l p rov i s ions fo r s ec re t b a l l o t s

f o r t h e e l e c t i o n o f committees, for the removal of o f f i c e r s , f o r

t h e Industrial Registrar t o c o n s i d e r amendments t o r u l e s b e f o r e

c e r t i f i c a t i o n by hlm, fo r enqu i r i e s by the Cour t l n to e l ec t ions

of o f f i c e r s and i n c l u d e p r o v i s i o n s a f f e c t m g t h e r i g h t s of

members t o i n s t i t u t e p r o c e e d i n g s i n the Cour t aga ins t o f f i ce r s

o r t he o rgan iza t ion I t s e l f . A l though i t i s t r u e t h a t t h e r e

have been many amendments t o t h e Act, i t will be noted tha t

b

.

- a -

notwithstanding those amendments, the prescription, pursuant

to s.132(2) of the Act, by the regulations of'the conditions

I ,

to be complied with by .. . organizations . . . continues to

require that the rules of each reglstered organlzation shall

provide for "the control	of committees ... by the members of
the" organization.

I I

Mr Laurie said that ultimately this question comes

down . . to yhether o r not the rules looked at as whole do

provide adequate control over the commlttees". The question

in that form must have read into it, after the word lIcontroll',

the words "by the members". Regulation 115( l) (d)(v) requires

that the rules provide for control "by the members" - not

control by the rules in some general way and not control by

the Act and regulations. The question is not whether amendments

1 1

to the Act in later years have hclped the members to get a

democratic union" (to use Mr Laurie's words). The question is

whether the reglstered rules of the u m o n provide for "the

control of committees ... by the members" of the union.

It may be that the additlonal statutory provisions of

later years operate in such a way as to assist the members of

l ,

the organization to control" the committees. However, I am

unable to accept that Parllament, in enacting detailed provisions relating to elections, has indicated its intention as to the manner in which the members of an organization are to exercise

I t control" over the committees of the organization. In my oplnlon

h

- 9 -

t h e d e t a i l e d p r o v i s i o n s as t o elections do n o t c u t down t h e

requirement by Regu la t ion 115( l ) (d ) (v ) , pu r suan t t o s . 1 3 2 ( 2 ) of

I t

t h e A c t , t h a t t h e r e g i s t e r e d r u l e s s h a l l p r o v i d e f o r c o n t r o l

of committees . . . by the members".

I agree wi th Evat t and Northrop JJ. t h a t i n R e g u l a t i o n

I , 11

1 1 5 ( l ) ( d ) ( v ) t h e word cont ro l1 ' i s used in the s ense of checking

and d i r e c t i n g a c t i o n , a method o r means of r e s t r a i n t " and does

no t mean " d i r e c t l y c o n t r o l l i n g o r commanding t h e a c t i v i t i e s of

the committees". I a l s o J o i n with the i r Honours - in ag ree ing with

the opin ion expressed by Joske J. i n Mackenzie v. Administrative

and C le r i ca l Of f i ce r s Assoc ia t ion , Commonwealth Publ ic Serv ice

(1962) 5 F.L.R. 342 i n a passage a t pp.364-5 which includes the

I ,

o p i n i o n t h a t : I t must, however, be a r e a l c o n t r o l ( C r e a l y v.

Commonwealth	Bank	Off lcers Associat ion	(1957)	1 F.L.R.	153 a t
p. 158)".

In Mackenzie 's Case (supra), S p l c e r C . J . s a i d ( a t p . 3 4 8 ) :

I1 . . . a c o n s t i t u t i o n which i s s o framed t h a t t h e

will of t he ma jo r i ty may under i t neve r p reva i l

seems t o me t o o f f e n d n g a i n s t t h e Pct and t h e

r egu la t ions" .

That passage was r e c e n t l y a d o p t e d i n Luckman v . Australian

P o s t a l and Telecommunications Unlon (1978) 28 A.L.R. 393 at

p.397 by J . B. Sweeney J . , who a l s o s a i d ( a t p . 3 9 6 ) :

I I . . .

i t comprising 65 pe r cen t i s q u i t e p l a i n t h a t t h e two b igges t b ranches ,

of the members, may have

t h e i r will thwar ted by the representa t ives of t h e

smaller b ranches , r ep resen t ing some 35 pe r cen t of

members, . . . A r u l e i n s u c h form appears t o me n o t

t o a f f o r d a proper measure of control of committees

- 10 -

of the un ion to the members of the union. It q u i t e

c l e a r l y d o e s n o t make fo r democra t i c con t ro l o f

11

the union . . .

The learned trial Judge accepted tha t in the present

I ,

ca se the will of a major l ty may be thwarted", saying:

I, It is t r u e t h a t t h e r e will be some clrcumstances

i n which the will of a ma lo r i ty may be thwarted

i n	be tween e l ec t ions bu t s ince the re a re e l ec t ions
by	s e c r e t b a l l o t by rank and f i l e members of t h e

union thls would appear t o be a passing phase

only. I t i s no nove l ty i n a democra t i c soc i e ty t o

f i n d t h a t t h e t r i l l o f a ma jo r i ty m a y n o t p r e v a i l

owing, for esample, t o t he vaga r i e s o f an e l ec to ra l

system but the fact that this might happen has not

l e d t o a c h a r a c t e r i s a t i o n o f such a s o c i e t y as

I I

other than democrat ic .

With the grea tes t of r e s p e c t f o r h i s Honour, i n my opin ion ,

for the reasons which I have expres sed ea r l i e r , t he ques t ion

before the Court was not whether the union's government could

be charac te r i sed as o ther than democra t ic bu t whether the

r e g i s t e r e d r u l e s of the union provided for " the cont ro l of

( i t s ) committees ... by t h e members" of the union. I a d o p t ,

a s be ing applicable t o th is case , t he op in ion of Joske J. i n

Mackenzie's Case ( supra a t p .365) tha t :

"Consideration of t h e r u l e s o f t h e o r g a n i z a t i o n i n

the case before the court does show t h a t , owing t o

the weakness of the p leb lsc i te provis ions , members

general ly have no adequate means of c o n t r o l l i n g t h e

committees of the federa l body. The c r i t i c i s m of

t h e p l e b i s c i t e c o n d i t l o n s i s j u s t i f i e d , and t h e r e

being no o t h e r s u f f i c i e n t method of c o n t r o l of

these commit tees provided by the rules they do n o t

comply w i t h r e g . l 1 5 ( l ) ( d ) ( v ) . "

- 11 -

Rule 1 3 A 1 s headed "Control of Federa l Councd and

Fede ra l Management Committee by Members". I t p rov ides t ha t

a referendum at the r eques t of members (as d i s t i n c t from a

referendum cal led by the Federal Counci l ) can ar ise only

from r e s o l u t i o n s of meetings of a minimum of three branches

a t which meet ings not less than one per cent of the f inancial

members a r e p r e s e n t . I accep t M r Ryan's submission that under

the rules a ma jo r i ty of the t o t a l membership (being the

members c o n s t i t u t i n g two branches) may be unable, t o r e q u i r e

the ho ld ing of a referendum intended to obtain the views of

t h e t o t a l membership on a ma t t e r of great Importance t o t h e

union as a whole. In thls connect ion the members of t h e

branches in New South Wales and V i c t o r i a a t 30 June 1978

c o n s t i t u t e d	more	than	6 4 per cen t	of	t h e t o t a l	membership	of
the union.

I t

The learned trial Judge regarded as a f a c t o r of major

impor tance" the fac t tha t under the ru les , the Genera l

Sec re t a ry and the Ass is tan t Genera l Secre ta ry , who a r e e l e c t e d

II

by the whole of the members, are members of the counci l wi th

equal rights'! His Honour s a i d t h a t i f " t h e New South Wales

branch sought the holding of a referendum and this was a

genu ine des i r e of t he ma jo r i ty of the members of t h e Union

one would expect the Secretary and Assistant General Secretary

to be r e spons ive t o t h a t d e s i r e " . However, i t might be very

difficult i n p r a c t i c e t o persuade trio o f f i c e r s of the union as

h

- 12 -

II

t o what was the genu ine des i r e of the major i ty of the members

of the Union". In any event , in my o p l n i o n r e g i s t e r e d r u l e s

can not be he ld t o p rov ide fo r " the con t ro l of committees ...

by the members" i f t he "con t ro l " wh ich i s claimed t o e x i s t i s

dependent t o some e x t e n t upon two o f f l ce r s o f t he un ion

II

accep t ing tha t t he ho ld ing of such a referendum is the genuine

d e s i r e of t he maJor i ty of t h e members". M r Ryan a l s o p o l n t e d

ou t t ha t Ru le 1 3 A would no t ensu re - e i t h e r as a ma t t e r of

l e g a l e f f e c t o r of p r a c t i c a l a p p l i c a t i o n - t ha t t he un ion cou ld

only be required t o hold a referendum as t o a n i s s u e of v l t a l

impor tance . Accord ingly , the requi rement in Rule 13A f o r

r eques t s by r e s o l u t i o n s from meetings of a t l ea s t t h ree b ranches

could not be supported on t h a t b a s i s .

I a l s o a c c e p t M r Ryan's submission that n referendum

p r o v i s i o n i n t h e r u l e s would e f f e c t i v e l y g i v e c o n t r o l of

cornnittees t o the members i f i t required the holding of a

referendum where a p resc r ibed minimum percentage of t h e t o t a l

number of f i n a n c i a l members of t he o rgan iza t ion s ign a p e t i t l o n

seeking I t . That prescr ibed percentage may vary dependmg

upon the circumstances of t h e p a r t i c u l a r o r g a n i z a t i o n . It i s

t r u e t h a t s u c h a p rov i s ion as that advocated by bl r Ryan would

enable a s ing le l a rge b ranch , such as New South Wales i n t h i s

un ion , t o r equ i r e the ho ld ing of a referendum (provided that

t h e r e q u i s i t e number of members s i g n e d t h e p e t i t i o n ) i n

c i rcumstances 111 which the remaining branches were opposed t o

- 13 -

t he ho ld ing of such a referendum. However, such a p rov i s ion

would no t enab le the l a rge b ranch in ques t ion t o have the

proposa l the subjec t of the referendum carr ied unless a

s u f f i c i e n t number of members f rom outs ide the branch a l s o

voted in favour of the proposa l .

I a l so accept the submiss lon by >lr Ryan t h a t t h e

r e c o g n i t i o n i n o b j e c t ( f ) of t he ob jec t s of the A c t of the

f a c t t h a t t h e r e may not be a complete o r pe r f ec t democra t i c

I I

c o n t r o l of organiza t ions does not warran t preserv ing a mani fes t

imperfection which is shown t o e x i s t " i n the l i g h t of the

express requirements of s .132(2) and Regu la t ion 115( l ) (d ) (v ) .

In my o p i n i o n t h e r u l e s of the union contravene s .140(1)

of the Act by f a i l i n g t o make a provls ion requi red by s .132(2)

of the A c t and Regula t ion 115( l ) (d) (v) , namely , a p rov i s ion

f o r t he con t ro l of committees of the union by the members of

the union. I would a l l o w the appea l as t o t h l s p a r t of t h e

order sought 111 mat te r V . No. 36 of 1978 but vould otherwise

dismiss the appea l .

- -- I