Gee v Macmahon Underground Pty Ltd (No.2)

Case [2019] FCCA 2398


FEDERAL CIRCUIT COURT OF AUSTRALIA

GEE v MACMAHON UNDERGROUND PTY LTD (No.2) [2019] FCCA 2398
Catchwords:
INDUSTRIAL – Alleged dismissal from employment in contravention of a general protection.

Legislation:

Fair Work Act 2009 (Cth), Pts.3-1, 3-2, ss.340, 341, 342, 361, 389, 570

Federal Circuit Court of Australia Act 1999 (Cth), s.75
Federal Circuit Court Rules 2001 (Cth), rr.21.02(1), 45.06
Mines Safety and Inspection Act 1994 (WA)
Workers’ Compensation and Injury Management Act 1981 (WA)

Australian and International Pilots Association v Qantas Airways Ltd [2006] FCA 1441; (2006) 160 IR 1; (2006) 59 AILR 100-581
Australian Meat Industry Employees’ Union v Belandra Pty Ltd [2003] FCA 910; (2003) 126 IR 165; (2003) 53 AILR 100-095
Bland v Australia Portable Camps Service Pty Ltd [2014] FCCA 2397; (2014) 66 AILR 102-282
Board of Bendigo Regional Institute of Technical & Further Education v Barclay & Anor [2012] HCA 32; (2012) 248 CLR 500; (2012) 86 ALJR 1044; (2012) 220 IR 445; (2012) 290 ALR 647; (2012) 64 AILR 101-722

Celand v Skycity Adelaide Pty Ltd [2017] FCAFC 222; (2017) 256 FCR 306; (2017) 274 IR 420

Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd [2014] HCA 41; (2014) 253 CLR 243; (2014) 88 ALJR 980; (2014) 245 IR 354; (2014) 314 ALR 1; (2014) 66 AILR 102-268

Construction, Forestry, Mining & Energy Union & Others v Clarke [2008] FCAFC 143; (2008) 170 FCR 574; (2008) 176 IR 245

Construction, Forestry, Mining and Energy Union v Pilbara Iron Company (Services) Pty Ltd (No 3) [2012] FCA 697; (2012) 64 AILR 101-659

Cross v Harbour City Ferries Pty Ltd T/As Harbour City Ferries & Ors (No 2) [2017] FCCA 1713

Director of the Fair Work Building Industry Inspectorate v Baulderstone Pty Ltd [2014] FCCA 721; (2014) 284 FLR 403; (2014) 66 AILR 102-149
Dutta v Telstra Corporation Ltd [2018] FCA 1994
Elliott v Kodak Australasia Pty Ltd [2001] FCA 1804; (2001) 129 IR 251
Maritime Union of Australia & Ors v Geraldton Port Authority & Ors [1999] FCA 899; (1999) 93 FCR 34; (1999) 165 ALR 67; (1999) 94 IR 244
Rowland v Alfred Health [2014] FCA 2
State of Victoria (Office of Public Prosecutions) v Grant [2014] FCAFC 184; (2014) 246 IR 441; (2014) 67 AILR 102-322
Stephens v Australian Postal Corporation [2014] FCA 732
WZASX v Minister for Immigration & Border Protection [2017] FCA 1415

Applicant: CRAIG ADAM GEE
Respondent: MACMAHON UNDERGROUND PTY LTD
File Number: PEG 22 of 2014
Judgment of: Judge Antoni Lucev
Hearing dates: 7 April 2015 and 12 May 2015
Date of Last Submission: 12 May 2015
Delivered at: Perth
Delivered on: 30 August 2019 (and delivered by telephone by Judge Kendall pursuant to s.75 of the Federal Circuit Court of Australia Act 1999 (Cth))

REPRESENTATION

Counsel for the Applicant: Mr S Heathcote
Solicitors for the Applicant: APX Law Pty Ltd
Counsel for…

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Details
AGLC
Gee v Macmahon Underground Pty Ltd (No.2) [2019] FCCA 2398
Case
[2019] FCCA 2398
Decision Date

CaseChat Overview and Summary

In *Gee v Macmahon Underground Pty Ltd (No.2)*, heard by Judge Antoni Lucev, the dispute concerned whether Mr Gee's termination constituted a dismissal by reason of redundancy, as asserted by Macmahon Underground Pty Ltd, or whether the adverse action and dismissal arose from the decision not to redeploy Mr Gee.

The court was required to determine whether the non-selection of Mr Gee for a position constituted adverse action, and if so, whether this, or the redundancy itself, was the operative cause of his dismissal. The court considered the principles established in *Rowland v Alfred Health* and *Dutta v Telstra Corporation Ltd* regarding what constitutes adverse action under the relevant legislation.

The court reasoned that adverse action includes any alteration to an employee's position to their prejudice. It was accepted that the termination of Mr Gee's employment was adverse action. Drawing on *Rowland*, the court noted that subjecting an employee to a situation where they must re-apply for their position, with the risk of redundancy, constitutes an adverse affection of their employment. Furthermore, referencing *Dutta*, the court acknowledged that both the decision to select an employee for redundancy and the decision not to redeploy them to an alternative position can constitute adverse action. The central issue remained whether the redundancy was the genuine reason for dismissal or if the failure to redeploy was the operative adverse action.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

Macmahon’s position was that Mr Gee was dismissed or “terminated by reason of redundancy” as his position was no longer required. Mr Gee suggests that the redundancy was not a dismissal, rather it was the decision not to redeploy which was the adverse action and dismissal. In Rowland v Alfred Health [2014] FCA 2 (“Rowland”) the Federal Court was required to determine if the non-selection of the applicant under a restructure amounted to adverse action. The applicant in Rowland was made redundant upon not being selected by the selection panel for a position under the new structure. In Rowland at [47]-[48] per Marshall ACJ stated as follows:Did the decision to restructure the Unit constitute adverse action?47 Mr Rinaldi submits that the decision of Alfred Health to restructure the Unit did not constitute adverse action with respect to Mr Rowland. He contends that the decision to restructure the Unit involved non-discriminatory action in which all six employees subject to the restructure were in the same position, having to apply for a position in the Unit, with the potential of adverse action. The Court does not accept that submission. Adverse action includes, in s 342(1) of the Act, an alteration of an employee’s position to his or her prejudice. In accordance with Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia (1998) 195 CLR 1 at [4], subjecting an employee to a situation where he or she is compelled to re-apply for his or her position, with the threat of redundancy looming is an “… adverse affection of, or deterioration in, the advantages enjoyed by the employee before the conduct in question”. The decision to restructure the Unit constituted adverse action against all employees employed in the Unit whose continued employment was put at risk by the “spill and fill” process. The position of all existing employees in the Unit was made less secure by having to re-apply for their jobs. Mr Rowland was one such employee.Did the non-selection of Mr Rowland for a position in the restructured Unit constitute adverse action?48 Counsel for Alfred Health submits that the non-selection of Mr Rowland for a position in the Unit was not adverse action but rather “inaction” in that there was a failure to appoint him. The Court rejects the submission that inaction cannot constitute adverse action. For example, an employee may be denied a promotion notwithstanding that he or she satisfied established criteria while others (who do not) are promoted. The non-selection of Mr Rowland was adverse action, but this issue is not one of consequence. That is because the parties agree and the Court accepts that the termination of Mr Rowland’s employment constituted adverse action. The decision of Mr Way to accept the selection panel’s recommendation and not select Mr Rowland for a position in the Unit had the logical flow-on effect that he was made redundant. In this matter it is also accepted that the adverse action was the termination of Mr Gee, however the issue is whether Mr Gee was dismissed for reason of redundancy, or a decision not to redeploy him. While a judgment delivered sometime after the Court had heard the parties in this case, it is relevant to note the remarks made in Dutta v Telstra Corporation Ltd [2018] FCA 1994 at [193] per Raniagh J:Telstra’s dismissal of Mr Dutta from his employment was plainly adverse action. The decision to select Mr Dutta for redundancy altered his position to his prejudice. The decision not to redeploy Mr Dutta to an alternative position within Telstra injured him in the course of his employment. There is no difficulty in finding that each of these actions was adverse action within s 342(1).

Ratio Decidendi

Legal Principle Established

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