Clyde Engineering Co Ltd v Cowburn

Case [1926] HCA 6


37 CLR 466

CLYDE ENGINEERING COMPANY LIMITED COWBURN

METTERS LIMITED PICKARD

LEVER BROTHERS LIMITED PICKARD

ON APPEAL FROM A COURT OF PETTY SESSIONS AND THE CHIEF

INDUSTRIAL MAGISTRATE'S COURT OF NEW SOUTH WALES. Constitutional Law-Conflict between Federal and State laws-Test of inconsistency- 1926.

Validity of State Act-Industrial arbitrationFederal award-Minimum wages -Maximum hours-Overtime payment-State Act enacting forty-four hours MELBOURNE,

week-The Constitution (63 &64 Vict. c. 12), secs. 51 (xxxv.), 109-Common= Mar. 9-12,

wealth Conciliation and Arbitration Act 1904-1921 (No. 13 of 1904-No. 29 of 1921), secs. 4, 24, 28, 29, 30-Forty -four Hours Week Act 1925 (N.S.W.) (No. SYDNEY,

16 of 1925), secs. 6*, 12*, 13*, 14. April 19.

* The Forty-four Hours Week Act

dustrial Arbitration Act 1912 (N.S.W.)) 1925 (N.S.W.), by sec. 6, provides that

applies shall be as prescribed in or Isaacs, Higgins,

" (1) The ordinary working hours in

under this section, and the following all industries other than coal mining

directions shall be observed by the Court Powers, Rich

and shipping, with respect to vessels

and the boards in making awards, and trading beyond the limits of a port,

by the parties in making agreements- to which the Principal Act" (the In-

(a) In all industries subject to the

37 CLR 467

Held, that, when an award has been made by the Commonwealth Court of Conciliation and Arbitration pursuant to the Commonwealth Conciliation and Arbitration Act 1904-1921, the Parliament of a State cannot alter the terms of the award or confer or impose on the parties to it rights or obligations which are inconsistent with such terms.

Held, also, by Knox C.J., Isaacs, Gavan Duffy, Rich and Starke JJ. (Higgins and Powers JJ. dissenting), that the possibility of obeying a law of the Commonwealth and a law of a State without disobeying either is not a test of the inconsistency of the two laws.

Per Isaacs J. (1) The settlement of an inter-State industrial dispute on LEVER BROS. such terms as the Federal arbitrator thinks just cannot be prevented or impeded by any State law (2) an award once validly made prevails over any inconsistent State law (3) a State law is inconsistent, and is therefore invalid, so far as its effect, if enforced, would be to destroy or vary the adjustment of industrial relations established by the award with respect to the matters formerly in dispute.

Held, further, by Knox C.J., Isaacs, Gavan Duffy, Rich and Starke JJ. (Higgins and Powers JJ. dissenting), that secs. 12 and 13 and (if and SO far as it applies to parties to awards of the Commonwealth Court of Conciliation and Arbitration) sec. 6 of the Forty-four Hours Week Act 1925 (N.S.W.) are inconsistent with the Commonwealth Conciliation and Arbitration Act and also with awards made under it such as are specified in secs. 12 and 13, and are therefore invalid to the extent of the inconsistency.

Australian Boot Trade Employees' Federation v. Whybrow &Co., (1910) 10 C.L.R. 266, overruled in part.

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AGLC
Clyde Engineering Co Ltd v Cowburn [1926] HCA 6
Case
[1926] HCA 6
Decision Date

CaseChat Overview and Summary

This case involved appeals to the High Court of Australia concerning the validity of certain provisions of the New South Wales Forty-four Hours Week Act 1925 in relation to a Federal award made under the Commonwealth Conciliation and Arbitration Act 1904-1921. The primary dispute arose from employers deducting amounts from employee wages, asserting compliance with the State Act, while employees claimed entitlement to higher wages based on the Federal award. The appeals were brought by Clyde Engineering Co Ltd, Metters Ltd, and Lever Brothers Ltd against employees who had successfully claimed under the Federal award in lower courts.

The central legal issues before the High Court were whether sections 12 and 13 of the New South Wales Forty-four Hours Week Act 1925, which purported to alter the standard working hours and overtime entitlements for employees covered by Federal awards, were inconsistent with the Commonwealth Conciliation and Arbitration Act and the Federal awards themselves. Specifically, the Court had to determine the test for inconsistency between Commonwealth and State laws under section 109 of the Constitution and whether the State Act's provisions effectively amended or overrode the terms of a Federal award.

A majority of the High Court, comprising Knox C.J., Isaacs, Gavan Duffy, Rich, and Starke JJ., held that when a Federal award has been validly made, a State Parliament cannot alter its terms or impose rights and obligations inconsistent with it. The Court rejected the proposition that the possibility of obeying both laws without disobeying either was the sole test of inconsistency. Instead, it applied the principle that an inconsistency arises if a State law, when enforced, would destroy or vary the industrial relations adjustment established by a Federal award. Consequently, sections 12 and 13, and to the extent it applied to parties to Federal awards, section 6 of the New South Wales Act, were found to be invalid as they conflicted with the Commonwealth legislation and the Federal award. Higgins and Powers JJ. dissented.

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