Jarrad v Melbourne and Metropolitan Tramways Board

The Federal Court of Australia heard a case brought by Clifford Jarrad on behalf of the Vehicle Builders Employees' Federation of Australia against the Melbourne and Metropolitan Tramways Board (MMTB) for breach of the Vehicle Industry (Roping-In No. 1) Award 1974. The MMTB had stood down 14 employees on October 4, 1977, citing restrictions on the use of electric power, without paying them for the day. The court needed to determine if the MMTB had the right to stand down the employees without pay and if so, whether the company had exercised sufficient diligence in making this decision. The court found that the MMTB did not have the right to stand down the employees without pay as there was work available for them to perform that would have been useful to the MMTB. The court also found that the MMTB did not exercise sufficient diligence in making the decision to stand down the employees. The court imposed a penalty of $500 on the MMTB and ordered them to pay the employees their underpayment. The penalty was to be paid to the Vehicle Builders Employees' Federation of Australia.