CPSU, the Community and Public Sector Union v Telstra Corporation Limited

Case

[2001] FCA 1467

19 OCTOBER 2001


FEDERAL COURT OF AUSTRALIA

CPSU, The Community and Public Sector Union v Telstra Corporation Limited [2001] FCA 1467

INDUSTRIAL LAW –contravention of s 298K of the Workplace Relations Act 1996 (Cth) – payment of penalty to applicant

CPSU, THE COMMUNITY AND PUBLIC SECTOR UNION, ASSOCIATION OF PROFESSIONAL ENGINEERS, SCIENTISTS AND MANAGERS, AUSTRALIA, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA and PROFESSIONAL OFFICERS’ ASSOCIATION (VICTORIA) v TELSTRA CORPORATION LIMITED

V 194 of 2000

JUDGE:        FINKELSTEIN J
PLACE:        MELBOURNE
DATE:          19 OCTOBER 2001


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 194 of 2000

BETWEEN:

CPSU, THE COMMUNITY AND PUBLIC SECTOR UNION, ASSOCIATION OF PROFESSIONAL ENGINEERS, SCIENTISTS AND MANAGERS, AUSTRALIA, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA and PROFESSIONAL OFFICERS’ ASSOCIATION (VICTORIA)
Applicants

AND:

TELSTRA CORPORATION LIMITED
Respondent

JUDGE:

FINKELSTEIN J

DATE:

19 OCTOBER 2001

PLACE:

MELBOURNE

THE COURT ORDERS THAT:

The penalty of $74,507.60 be paid as follows:

(a)$25,734.10 to the Community and Public Sector Union;

(b)$21,420.75 to the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia;

(c)$14,558.65 to the Association of Professional Engineers, Scientists and Managers, Australia:

(d)$12,794.10 to the Professional Officers’ Association (Victoria).

Note:  Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules


IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY

V 194 of 2000

BETWEEN:

CPSU, THE COMMUNITY AND PUBLIC SECTOR UNION, ASSOCIATION OF PROFESSIONAL ENGINEERS, SCIENTISTS AND MANAGERS, AUSTRALIA, COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENERGY, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA and PROFESSIONAL OFFICERS’ ASSOCIATION (VICTORIA)
Applicants

AND:

TELSTRA CORPORATION LIMITED
Respondent

JUDGE:

FINKELSTEIN J

DATE:

19 OCTOBER 2001

PLACE:

MELBOURNE

REASONS FOR JUDGMENT

  1. I have now reached the final stage of this lengthy piece of litigation. It is best that I spend as little further time on it as possible. In my judgment of 26 September 2001 I imposed a penalty of $74,507.60 on the respondent in respect of breaches of s 298K(1) of the Workplace Relations Act 1996 (Cth). The applicants asked for an order under s 356 that the penalty be paid to them. I indicated that I would make an order that would enable the unions to recover their expenses, including the expense of staff time.

  2. The parties have agreed that $50,000 is a proper amount for the unions’ legal costs.  As each union is responsible for an equal share of those costs, each will receive $12,500 out of the penalty by way of reimbursement. 

  3. The unions have filed evidence to establish the cost to them of the time expended by union officials in the bringing of this action (for the sake of convenience, I will call these costs “labour costs”).  The amounts claimed are as follows:




Stephen Jones, Assistant Secretary of the Communications Section of the Community and Public Sector Union

$20,090.00
Colin Cooper, Divisional President of the Communications Section of the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia $13,481.50
Bruce Nadenbousch, Director Industrial Relations for the Association of Professional Engineers, Scientists and Managers, Australia $3,102.00
Phillip Ilton, Industrial Officer for the Professional Officers’ Association (Victoria) $441.00
  1. Thus, the unions say they have incurred $37,114.50 in labour costs. The evidence probably does no more than give a rough and ready estimate of the labour costs, and certainly Telstra does not agree with the unions’ assessment.  It is not appropriate, however, to require the unions to file evidence to support their claim as if they were trustees rendering true and fair trust accounts.  Enough time has been spent litigating this matter, and no useful purpose will be served by prolonging it any further.

  2. If the labour costs are added to the legal expenses, the total sum claimed by the unions exceeds the amount of the penalty.  After applying a sum sufficient to cover the legal expenses, the amount of penalty remaining is $24,507.60.  This will be applied to the labour costs incurred by the applicants on a pro rata basis.  The proportion of the labour expenses incurred by each union is as follows:

Community and Public Sector Union 54%
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia 36.4%
Association of Professional Engineers, Scientists and Managers, Australia 8.4%
Professional Officers’ Association (Victoria) 1.2%
  1. Allocating $12,500 in respect of legal expenses to each and dividing the remaining $24,507.60 amongst the applicants according to their respective proportions for their labour costs (rounding to the nearest five cents), I will allow each union the following amount:

Community and Public Sector Union $25,734.10
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia $21,420.75
Association of Professional Engineers, Scientists and Managers, Australia $14,558.65
Professional Officers’ Association (Victoria) $12,794.10
I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Finkelstein.

Associate:

Dated:            19 October 2001

Counsel for the Applicants: Mr H Borenstein
Mr P Rozen
Solicitor for the Applicant: Maurice Blackburn Cashman
Counsel for the Respondent: Mr R Buchanan QC
Mr F Parry
Solicitor for the Respondent: Freehills
Date of Judgment: 19 October 2001
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