Johns, William Edgar v Allen, K

[1977] FCA 28

IN ”hi% FEDETAI, COURT O F AUSTRALIA

I ”

V.IJo.7 of 1 9 7 7

‘;i

INDUSTRIAL D I V I S I O N

-	-
B E T W E E N :

WILLIAM	EDGAR	J O H N S	Claixrant
and
Respondents

ORDER

FULL COURT: J . B . Sweecey J.

Evat t J.

Northrop J.

DATE OF ORDER: 9 t h June 1 9 7 7

WHERE MADE :	Melbourne
THE COURT ORDERS:

That the respondents and each of them perform and observe

the Rules of the Vehicle Bul lders‘ Employees F’ederat lon of

A u s t r a l i a I n c h a t t h e r e s p o n d e n t , G . S h e r r i f f , cease t n hold

h imsel f ou t as a n organiser of the Geelonu Sub-Branch and

t h a t t h e o t h e r r e s ? o n d e n t s c e a s e t o r e c o g n i s e a n d / o r t r e a t

t he r e sponden t , G. S h e r r l f f , a s a n o r g a n z s e r of the Geelong

Sub-Eranch.

V.Wo.7 of 1.975

B E T W E E N :

WILLIAM EDGBF JOHNS - C l a l m a n t

and

Respondents

FULL COURT REASONS FOR JUDGXENT 9TH J U N E 1 9 7 7

(J .B. SV7ECNCY,

EVATT AND NORTHROP J. J. )

Thls 1 s t h e r e t u r n o f a n o r d e r n i s i g r a n t e d by Brennan J.

on 23rd March, 1 9 7 7 , l n wh ich the c l a imac t , a member of t h e V e h i c l e

B u i l d e r s ' Employees Fede ra t lon of A u s t r a l i a ( h e r e i n a f t e r c a l l e d

" t h e F e d e r a t l o n " ) s e e k s o r d e r s g i v l n g d l r e c t i o n s t h a t t h e

respondents , who t o g e t h e r c o n s t i t u t e t h e members of the Execut ive

Colnml t tee of the Vlc tor lan Branch of the Federa t lon (heremaf te r

cal led " the Victor ian Branch") and the Execut ive Commlt tee of the

Geelong Sub-Sranch of t h e V i c t o r i a n B r a n c h ( h e r e m a f t e r c a l l e d

"the Geelong Sub-Branch"), each perform or observe the Rules of

t h e F e d e r a t i o n I n t h a t t h e r e s p o n d e n t , G . S h e r r l f f , n o t h o l d h i m s e l f

o u t a s a n o rgan l se r o f t he Gee long Sub-Branch and t h a t t h e o t h e r

r e sponden t s cease to r ecogn i se and /o r t r ea t t he r e sponden t ,

G. S h e r r i f f , as an organiser of the Geelong Sub-Branch.

The Fede ra t ion i s an o rgan l sa t ion wi th in the mean ing O f

t h e C o n c l l i a t i o n a n d A r b l t r a t i o n A c t 1 9 0 4 ( h e r e i n a f t e r c a l l e d

" t h e Act"). The c la imant 1s a member of the South Aus t ra l lan

Branch of the Federa t lon . Each of the respondents i s a member of

the Pederat i .cn anc? rhus i s unclzr a n o b l i g a t i z n t o p e r f o r m o r o b s e r v e

the Ru les o f t he P rde ra t lon .

. / 2 . . .

- 2 -

As a resul t of an elect ion conducted by and from members

of the Federa t ion a t tached to the Geelong Sub-Branch , the

respondent , G . S h e r r i f f , was d e c l a r e d b y c h e r e t u r n l n g o f f i c e r t o

have been a l l e g e s t h a t t h e R u l e s o f t h e F e d e r a t i o n elected the Geelong Sub-Branch organiser . The c la imant

make no p rov i s lon fo r such

an o f f l ce in the Gee long Sub-Branch and the re fo re She r r i f f 1s n o t

and canno t be the ho lde r o f t he o f f i ce of Geelong Sub-Branch

o r g a n i s e r . The c l a j m a n t a c c o r d i n g l y s e e k s t h e o r d e r s set out above.

A t an e a r l y stacje of t h e h e a r i n g , it became a p p a r e n t t h a t

t h e c l a i m a n t was r e l y l n g upon the ru l e s o f t he Vic to r l an Branch and

thereupon Mr. Powell , Q . C . , Who wl th I4 r . Crawford, appeared for the

f i r s t ele-"-en and t h e l a s t named respondents , took a p re l lmlna ry

o b ~ e c t i o n t h a t t h e C o u r t h a d no - j u r i s d i c t i o n t o make an order under

s.141(1) o f t h e A c t s l n c e t h e p h r a s e " r u l e s of an o rgan i sa t lon"

a p p e a r i n g t h e r e i n d i d n o t i n c l u d e r u l e s o f a branch oE an o rgan l sa t lon .

The Court r e ~ e c t e d t h i s s u b m i s s i o n b u t r e s e r v e d i t s reasons whlch i t

now pub l i shes .

I n R.V. Commonwealth Cour t o f Conc l l l a t lon and Arb i t r a t lon ;

ex p a r t e Barret t (1945) 7 0 C.L.R. 1 4 1 , t h e High Court considered

s.58E of the Commonwealth C o n c i l l a t l o n a n d A r b i t r a t i o n A c t 1904-1934

the f o r e r u n n e r o f t h e p r e s e n t s.141. The r e l e v a n t p r o v i s i o n s o f

s .58E(1) were a s f o l l o w s :-

"The Court nay, upon complalnt by any member of an

o r g a n i s a t l o n ........ make a n o r d e r g i v i n g d i r e c t i o n s

f o r the performance or observance of any o f t he ru l e s

o f an o rgan l sa t ion by any person who is under an

o b l i g a t i o n t o p e r f o r m o r o b s e r v e t h o s e r u l e s . "

The High o r g a n i s a t i o n " l n c l u d e d t h e r u l e s o f Cour t unan imous ly he ld tha t t he ph rase " ru l e s of an

a branch of an o rgan i sa t ion .

A t p.157 Latham C . J . s a i d :-

"It is n e x t o b j e c t e d t h a t t h e r u l e s o r d e r e d t o b e o b s e r v e d

a r e r u l e s of a branch or t he o rgan lza t ion , and no t o f t he

o r g a n l z a t i o n I t s e l f , a n d t h a t s . 5 8 E r c l a t e s o n l y t o t h e

r u l e s of t h e o r g a n l z a t l o n . The o r g a n l z a t l o n is r e g l s t e r e d

under the A c L , and the o rgan iza t ion ccns j s t s o f b ranches ;

persons becomc members by -joining branches: See Fede ra l

r u l e 5. Thz F e d e r a l r u l e s p r o v l d e t h a t b r a n c h e s s h a l l

have power t o make ru les f rom time t o tlme f o r t h e l r own

i n t e r n a l management a s t h e y may d e e r , a d ; r l s a b l e , s u b ~ e c t

. / 3 . . .

-

- 3 -

..

t o any e x e c u t i v e rule adopted by a Fede ra l confe rence o r Fede ra l

( F e d e r a l r u l e 24(b)). Sta tu to ry Ru les 1928

No. 81, r e g . G V . ( b ) , r e q u l r e s t h c r u l e s of every branch

of	a n	o r g a n l z a t l o n t o b e r e g l s t e r 2 d .
I n	my	op in ion , Ch ie f Judge P lpe r r lgh t ly he ld tha t t he

r u l e s of t he b ranches o f t he C l e r k s ' Unlon were r u l e s

of the organiza t ion w~l th i .n the meaning of S. 58E. T h e

f a c t t h a t t h e rliles of the V~.c tor lan branch apply only

t o t h e V l c t o r l a n b r a n c h d o e s n o t p r e v e n t them from being

r u l e s o f t h e o r g a n l z a t l o n . The Fede ra l r u l e s c o n t a i n

c e r t a l n r u l e s w h i c h a p p l y o n l y to t h e F e d e r a l p r e s i d e n t ,

t h e F e d e r a l s e c r e t a r y a n d t h e F e d e r a l c o n f e r e n c e , b u t

t h e s e r u l e s , t h o u g h t h e l r application 1s l i m i t e d , are

p l a l n l y r u l e s c: t h e o r g a n i z n t i o n . I n t h e same way, I n

my o p l n l o n , b r a n c h r u i e s , t h o u g h t h e y a p p l y o n l y t o a

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

h f u r t h e r o b ~ ~ c t l o n t o t h e o r d e r of Chief Judge Plper

1s t h a t it i s made a g a l n s t some persons who a r e members

of the Federa l execut ive and not members o f t h e Victorian

byanch , and tha t t he re fo re they zre not persons bound to

obse rve the ru l e s o f t he o rgan iza t ion wl th ln the mean lng

of s.58E. I n my o p i n l o n , t h i s o b ~ e c t i o n f a l l s f o r t h e

r e a s o n t h a t t h e b r a n c h r u l e s a r e , as I have a l r eady sa id ,

ru les of t h e o r g a n l z a t l o n , a n d a l l members o f t he

o r g a n l z a t i o n a r e bound t o act i n a c c o r d a n c e w l t h t h e

branch ru l e s , and are t h e r e f o r e bound t o r e c o g n i z e o f f i c e r s

o f t he b ranch i n c l d e n t a l t o t h e l r r e s p e c t l v e as e n t i t l e d t o d i s c h a r g e t h e f u n c t l o n s

offices."

S t a r k e J . a t p . lG0 sa id :-

"hnother argument was t h a t t h e C o u r t c o u l d o n l y make o r d e r s

and d l rec t ions for tke per formance and observance of the

r u l e s Gf the o rgan iza t ion and no t of t h e r u l e s of a branch

o f t h e provlde for branches , whlch o r g a n i z a t l o n . B u t t h e r u l e s of t h e o r g a n ~ . z a t l o n

are glven power t o make r u l e s

f o r t h e l r o rgan iza t lon the re fo re compr l se bo th own I n t e r n a l management. The r u l e s o f t h e

the ru l e s o f t h e

organiza t lon and Its branches."

Dixon J. a t p .170 sa id :-

"The second reason g lven In suppor t o f the conten t lon tha t

t h e o r d e r made by the Chlef Judge 1s no t au tho r i zed by

s.58E i s o r g a n l z a t i o n , a n d t h a t t h a t t h e s e c t l o n relates or.ly t o t h e r u l e s o f a n

t h e ru les wi th wh ich the o rde r dea l s

a r c those o f t he Vlc to r l an b ranch and no t o f t he o rgan iza t ion .

I n my o p l n l o n , t h l s o b ~ e c t l o n was r l s h t l y a n s w e r e d t h a t ,

wi th ln the mcaning of s.58E, t h e ru l e s o f t h e o r g a n i z a t l o n

c a l l e d t h e " F e d e r a t e d C l e r k s ' Union of Aus t ra l ia" compr ise

both Federa l and branch ru les .

Rule 2 4 of t h e F e d e r a l r u l e s p r o v l d e s t h a t t h e u n i o n s h a l l

c o n s i s t o f members th roughou t Aus t r a l l a , and may have a

branch i n eac:? State , the formatCon Ijf Which i s to be

decided by the Fede ra l con fe rence or execu t lve . I t c o n f e r s

upon the b rznchcs power t o make r u l z s f o r t h e l r own i n t e r n a l

management , and authorizes them to condl lc t their own

e l e c t i o l l of de l zga te s t o t he Fede ra l conEerence . R u l e s 2 5

. /4.. .

- 4 -

and 2 6 dea l wl th the r svenues and meet lngs of t h e

branches , and ru le 5 (a) and ( f ) and r u l e 6 show t h a t

meTbersh ip and en t rance fee a re b ranch mat te rs . Rule 10

enumerates the branches. I t f o l l o w s t h a t t h e u n l o n i s

organized m branches , and tha t . the ru les of the b ranches

are made i n t h e exerclse of a power d e l e g a t e d o r c o n f e r r e d

by t h e F e d e r a l r u l e s . Under such a c o n s t l t u t l o n , t h e

e s p r e s s l o n " r u l e s of an o r r an iza t lon" compr l se s the who le

ru les , bo th Federa l and branch ru les . ' '

Mr. Powell d id no t d l spu te the v i ews expres sed I n t h i s

a u t h o r l t y , b u t r e l i e d upon amendments made i n 1 9 7 2 and 1973 t o

o t h e r s e c t i o n s of t h e A c t a n d a r g u e d t h a t t h e e f f e c t o f t h e s e

amendments amended the meanlng of the phrase " ru les of an

o r g a n l s a t l o n "	so	as	t o exc lude tho re f rom the ru l e s	of	a	branch	of
an o rgan i sa t lon .

The Conci l ia t ion and Arbitration A c t 1 9 7 2 , by s e c t l o n s

4 6 and 4 7 , made s u b s t a n t l a l amendments t o s e c t i o n s 1 4 0 and 1 4 1 of

t h e C o n c l l i a t i o n a n d A r b l t r a t l o n A c t 1 9 0 4 - 1 9 7 0 . I n p a r t i c u l a r a

new sub-sec t lon 1 ( a ) was s u b s t i t u t e d i n s . 1 4 0 and a new sub-sect ion

( 1 2 ) was added. The o ld sub - sec t ion l ( a ) r ead :-

" 1 4 0 . - ( l . ) A r u l e o f a n o r g a n i z a t l o n -

( a ) s h a l l n o t b e c o n t r a r y t o a p r o v i s i o n o f t h l s

A c t , t h e regulations o r an award o r o the rwlse

b e c o n t r a r y t o law o r be such as t o c a u s e t h e

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

wlth such a p r o v l s i o n . "

The s u b s t i t u t e d s u b - s e c t i o n reads :-

"140 . - (l.) The r u l e s of an o rgan iza t ion -

(a) s h a l l n o t b e c o n t r a r y t o , o r f a i l t o make a

p rov l s ion r equ i r ed by , a p r o v i s i o n o f t h l 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 the rwlse

be c o n t r a r y t o a law."

The new sub-secclon (12) r e a d s : -

" ( 1 2 . ) A r e f e r e n c e in t h i s s e c t l o n t o t h e r u l e s o f a n

o r g a n i z a t l o n o r t o a r:?le oi an orgai7Lzaklon s h a l l be

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

of t h e o r g a n l a c i o n o r t o d r u l e of such a branch. "

I n s . 1 4 1 a new sub-sec t lon ( a ) ;?ss s u b s t l t u t e d a n d a

nunbcr of new sub- sec t ions were i n s e r t e d b u t no p r o v i s i o n similar

. /5.. .

. - 5 -

to the new s.140(12) was inserted In s.141. The relevant parts

of S .l41 (1) remain th? same namely :-

"141.-(1.) ,The Court may, upon complaint by any member

dirxtions for the performance or observance of any of	of an organization ........ make an order giving
the rules of an organlzatlon by any person who 1 s under
an obllgation to perform or observe those rules."

Further, the Conclllatlon and Arbitration Act 1973 by

s.52 made substantial amendments to s.133 of the Conclliation and

ArbLtratlon Act 1904-1972 and in partlculsr inserted a new sub-

section ( 6 ) as follows : -

"(6.)- A reference In this sectlon to the rules of an

association or organlzation shall be read as including

a reference to the rules	of a branch of the associatlon
or organlzatlon."

In additlon, reference was made to a number of sections of the Act

in which organlsatlons and branches are referred to expressly.

Relying on these amendments, Mr. Powell submitted that

the legislature Intended to amend the meanlng of the phrase "rules

of an organlsatlon" wherever appearlng in the Act by excluding

therefrom the rules of a branch of an organlsation. We re~ect this

submlsslon. The leglslature cannot have lntended to amend by stealth

the meaning of a phrase whlch had been stated authoritatively by the

High Court over 20 years previously. Further, the submlssion, lf

accepted, would render nugatory many of the provisions of the Act

relating to rules of a branch of an organlsatlon, see .g. s.132(2)

and the Conciliation and Arbltration Regulaklons, Reg. 115 and in

particular Reg. 115(1) (d) and ( 2 ) ; s.139(4) and s.143(1) (b) (cl and ( a ) .

In our opinion, the enactment of provisions such a

S . 133 ( G ) and S. 140 (12) of the Act merely glve statutory recognltion

to the interpretatlon of the phrase "rules of an organisatlon" and

do not have the effect of amendlng by implication that phrase

wherever it appears in the Act including sections 133 and 140.

We ado@- the reasoni~g expressed and appiied In - Arrett's Case (suprz:.

The Rules of the Federation contain two sections, namely

Sectlon 3. and Section 2. Wlthin each sectlon, there are a nmber

./G.. .

i of chapter headings and In Sec t ion 2 t h e r e are r u l e s numbered 1 t o

! 5 3 grouped under the var lous headings. In Sec t lon 1 t h e r e a p p e a r s

; the fo l lowing chapter heading and chapter :-

,I OBJECTS

(a ) To m a i n t a i n t h e I d e n t i t y of t h e V e h i c l e B u l l d e r s

Employees ' Federat lon of Austral la .

( h ) To m a i n t a l n , p r e s e r v e a n d a d v a n c e t h e t r a d e , i n t e r e s t

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

c a l l i n g a s set o u t I n t h e C o n s t i t u t i o n .

(c ) To d r a f t and p repa re Log of Wages and Condit ions of

Labor , for and on behal f of members o f t h e F e d e r a t i o n ,

and t o s e r v e s u c h a c l a i m o r demand on a l l o r any persons

employing members of t h e F e d e r a t i o n .

(d) To ob ta in and ma in ta in fo r I t s members, by a l l l a w f u l

means, r easonab le hour s o f work , f a l r wages and lndus t r i a l

c o n d l t l o n s a n d t o e s t a b l i s h	a	thorough system	of
a p p r e n t l c e s h l p .

(e) To p romote i ndus t r l a l peace by a l l amicable means,

such as c o n c l l l a t i o n and a r b i t r a t l o n .

(f) To p reven t s t r i kes o r l ock -ou t s be tween members of t h e

Federat lon and the employers . When d i f f e r e n c e s o c c u r , t o

assist i n t h e l r settlement by j u s t and equitable methods.

(g ) To do a l l t h i n g s c o n d u c i v e t o t n e w e l f a r e a n d

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

( h ) To e s t ab l i sh Br~nches and sub -b ranches t h roughou t t he

Commonwealth I

!	(i) To	e s t a b l i s h a	fund	for	the	purpose	o	f	car ry ing	on	the
I

work o r b u s l n e s s o f t h e F e d e r a t l o n .

( j ) To amalgamate wlth other Trade Unions whose objects

a r e t h e same.

( k ) To absorb other Trade Unions who w l l l adop t t hese

o b ~ e c t s . "

The comments made by Ful lagar J. In Ni l l l ams v. Hursey

(1959) 103 C . L . R . 30 a t 56-58 app ly wi th equa l fo rce t o t h i s c h a p t e r

o f t h e R u l e s o f t h e F e d e r a t l o n . I n p a r t l c u l a r , t h e d r a f t s m a n o f

t h i s c h a p t e r h a s a o t f u l l y o b s e r v e d t h e d i s t l n c t i o n b e t w e e n " o b ~ e c t s "

and "powers be no doub t t ha t t o b e e x e r c i s e d I n e f f e c t i n g t h e o b ~ e c t s " . T h e r e c a n

t he essential o b j e c t o f tiLs Fede ra t ion is s t a t e d

i n paragraph (b) abcve. A nuaber of the other purpor t ed "ob jec t s "

a r e i n r e z l i t y p o v c ? s or an express lon of :he medns by whlch the

o b j e c t s o f t h e F e d e r a t i o n a r e t o be e f fe t -Led . Inc luded wi th in th l s

ca teqory I.S paragraph (h) above namely :-

i

> ' - 7 -

!	,	'
:
l

i	Reference may be made t o -1 number o f	t h e	R u l e s	t he	o f
f

!	Federation grouped	under	the	chapter	headed	"Branches"	I n
1

i	Sec t lon 2 ,	namely R u l e 34,	"Terr i tory	and	Powers	of Branches";
l

i	Rule 4 0 ,	"Branch Officers"; Rule 4 2 ,	"Eranch	Rules"	and	Rule	45,
!

" R u l e s t o Govern Sub-Branches". We set o u t r e l e v a n t e x t r z c t s

1	these	ru le s	f rom	:-
:

! ; R u l e 39

" ( a ) T h e follow]-ng &re recognised Branches of t h e

F e d e r a t l o n w l t h f u l l l o c a 1 , a u t o n o m y s u b ~ e c t t o

these I iu les :-

The V l c t o r i a n B r a n c h i n t h e c a p i t a l c i t y o f

Melbourne; ........

( b ) The Branches l is ted above ray form Sub-Eranches

i n t h e l r r e s p e c t l v e S t a t e s o r I n a n y o t h e r S t a t e

or Territory where no recognlsed Bracch 1s

ope ra t ing .

(c) Branches and Sub-Eranches shal l conform to the

Rules of the Federa t ion ....... . "

J

l Rule 4 0

"The o f f l c - r s o f e a c h B r a n c h s h a l l c o n s l s t o f a Pzes lden t ,

V lce -Pres lden t , Fede ra l Sec re t a ry , T r u s t e e s and such other

! o f f l . ce r s a s may be deemed n e c e s s a r y f o r t h e c o n d u c t o f t h e

Branch ........ ..

Rule 42

l "Each Branch may formula te R u l e s and make amendments the rE to

t o govern i t s own a f f a i r s p r o v l d e d t h a t s u c h R u l e s s h a l l

no t be incons i s t en t w l th these Ru les and p rov ided fu r the r

t h a t no new Branch R u l e o r amendment t o any ex ls t lng Branch

R u l e s s h a l l S e l o d g e d w l t h t h e I n d u s t r l a l R e g l s t r a r t o b e

c e r t i f l e d b e f o r e	i t	h a s b e e n r e p o r t e d t o t h e E x e c u t i v e
Committee. "

R u l e	45	-
( a )	p r o v i d e s f o r t h e s e t t l n g up by the Branch of a Sub-

Branch and the concluding words provide for the Sub-Branch :-

!	"which n h d l a t a l l t ines	be	1;ra:cr	t h e c o n t r o l o f
.,

and take ins t ruc t ions f rom the Branch ."

"(b) each Sub-Branch s h a l l e lec t f o r i t s management a

I

Pres ident , Vice-Pres ldcnt , Secre tmy, Door-keeper ,

Audi tors a d T r u s t e e s , who s h a l ? Se t h e o f f l c e r s o f

t h e Sub-Branch, and such Suo-Branch Conmittee as nay

be deemed necessary . Sxch e lec t ion sha l l be conducted

. / 8 . . .

- 8 -

i n t h e same manner a s 1s p r o v l d c d f o r t h e

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

respec t ive Branch . "

There are then set o u t a number of Sub-Rules under various headlngs

as fo l lows; "Keeping of Books", "Sub-Branch Returns", "Sub-Branches

Requiring	Ass i s t ance" , "Pub l l ca t lon Af fec t lng Fede ra t ion" and
"By-Laws" .

I n t h e p r e s e n t c a s e , no r e f e r e n c e was made t o any by-laws

made by the Geelong Sub-Branch. Sub-Rule (1) under the headins

"By-Laws" sets o u t a number of the powers of a Branch Committee of

Management b u t it i s no t necessa ry	a t the moment CO r e f e r t o any of
those powers.

I n t h e exercise of t h e power conferred by Rule 4 2 o f t h e

Rules of the FederaClon, the Vlctor lan Branch has formulated rules

t o govern lts own a f f a l r s . T h e s e r u l e s a r e h e r e i n a f t e r c a l l e d t h e

! Victor ian Branch Rules and have been made p u r s u a n t t o t h e power

de l ega ted t o the Vlc to r l an Branch by the Ru les o f t he Fede ra t ion .

I Thls 1 s c o n s l s t e n t w l t h a n d s u p p o r t s o u r o p i n l o n t h a t t h e V i c t o r i a n

Branch Rules a re ru les of an o rgan i sa t ion wi th in the mean lng o f t ha t

! phrase as conta ined I n s.141(1) of the Act .

Reference may be made t o the fo l lowing Ru les o f t he

Vlctor ian Branch Rules :-

Rule 3

II

3 . -OFFICERS

The O f f i c e r s s h a l l c o n s i s t o f a P r e s i d e n t , two Vlce-

P res lden t s , Gene ra l Sec re t a ry , T reasu re r , Ass i s t an t

Secre ta ry and Organiser , Organlsers , and three Trus tees ."

I t i s t o b e n o t e d t h a t t h l s R u l e , p u r s u a n t t o t h e p o w e r s c o n t a i n e d

i n Rule 4 0 o f t h e X u l e s o f t h e F e d e r a t i o n , s p e c i f l e s o f f l c e r s

a d d i t l o n a l t o t h o s e e x p r e s s l y r e f e r r e d t o 1.n Rule 4 0 . Included 111

t h i s c a t e g o r y a r e t h e Assistant Secretary and Organiser and

Organisers . The o t h e r R u l e s need not be quoted but they lnc lude

Rule 4 . "Branch Executive or Coxtinttee of Nanngement"; Rule 5 ,

"Dut ies of Off icers" ; Rule 6 , "Nominatlons and Electlon of Officc-1-s

anci Delegates" and Rule 7, "Method of Takinq a B a l l o t " .

3 4 - 9 -

I '	I	.
J

i Although formation Geel ng the the Sub-Branch of was n o t

proved, i t s existence was n o t d i spu ted and , fo r t he pu rpose of

I t hese p roceed ings , we accept tha t the Geelong Sub-Branch i s In

2 exis tence and w a s forined by the V ic to r l an Branch pu r suan t t o t he

power confe r r ed by Rulec 39 and 4 5 o f t he Rules o f t he Pede ra t lon .

Rely lng on the provis ions of R u l e 4 5 ( b ) o f t h e R u l e s of

the Fedcra t ion , the Geelong Sub-Branch conducted the e lec t ion to

f i l l t h e o f f i c e o r p o s l t i o n o f Sub-Branch organiser i n t h e same

manner as the Vlc tor lan Branch . There 1s p r o v l d e d f o r t h e e l e c t l o n o f offlcers i n che R u l e s of

was no evldence given as t o t h e e x a c t

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

o r p o s l t l o n , b u t h a v i n g r e q a r d t o t h e n a t u r e o f t h e R u l e s o f t h e

Federation, it appears to have been accepted by a l l t h a t t h e d u t l e s

were to b e s i m l l a r t o t h o s e of a n o r g a n i s e r w i t h l n t h e V l c t o r i a n

Branch and as se t o u t i n Rule 5 of the Vic tor lan Branch R u l e s w l th

such modl f lca t ions as were n e c e s s a r y t o a p p l y t o t h e Geelong Sub-

Branch ins tead of the Vlc tor ian Branch .

I n A p r l l 1 9 7 6 , a meeting of members of the Geelong Sub-

B r a n c h c a r r l e d t h e f o l l o w i n g r e s o l u t l o n s :-

" T h a t t h l s General Meeting b e l i e v e s t h a t i f t h e G e e l o n g

membershlp a r e t o g e t a d e q u a t e s e r v l c e a n d f u l l v a l u e f rom the membersh lp dues which they are requl red to pay ,

it 1 s necessa ry tha t t he pos l t i on o f Sub-Branch o rgan l se r

b e c r e a t e d f o r a f o u r ( 4 ) year term t o b e f l l l e d by

e lec t ion f rom the Sub-Eranch mcmbersh lp , the person so

e l e c t e d t o b e r e s p o n s l h l e t o t h e Suh-Branch S e c r e t a r y f o r

the per formance of h l s du t les as de tc rmlned f rom time t o

time by t h e Sub-Branch Executive. "

"That the Geelong Sub-Branch Execut ive f ix the dut les of

t h e o f f l c e o f Sub-Branch o r g a n l s e r a n d d l r e c t t h e

Returning O f f l c e r as t o t h e c a l l i n g o f a p p l l c a t l o n s a n d

conduct of dn e l e c t l o n , t h e q u a l l f l c a t l o n s f o r o f f i c e t o

b e t h e same a 5 f o r t h e Sub-Branch Sec re t a ry and the

re rnunera t lon and condi t ions	to	be	the	same as €or a Branch
o r g a n l s e r . "

!

It appears also t h a t It vas a s sumed tha t t he ho lde r o f t he o f f i ce

1 ! would be a member of the Committec of Mana;ement of the Geelong

i	Sub-Branch,
1	l

l The respandent , G . S h e r r i f f , was t h e s u c c e s s f u l c a n d l d a t e

and t h e declaration of t h e r e s u l t of t h e e l e c t l o n wa: c p o r t e d t o

1 t h e meetlnq of memhprs of the Ccelong Sub-Branch helc' 11

l . /10. . .

- 10 -

27th January , 1 9 7 7 . The apparent de lay be tween Apr l l 1 9 7 6 and

January 1 9 7 7 i n t h e e l e c t i o n o f t h e Sub-Branch organiser i s

expla ined by d l f r e r e c c e s of opinion which had developed between

t h e Committee o f Management of Kanagement of t he Vic to r l an Branch and the Colnmitcee

of the Geelong Sub-Eranch , bu t the de ta l l s o f these

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

The l s s u e raised i n t h e s e p r o c e e d m g s 1 s whether the

Geelong Sub-Branch has power t o create t h e o f f i c e o f Sub-Branch

o r g s n l s e r a n d t o e lec t a p e r s o n t o t h a t o f f l c e .

,

When c o n s l d e r i n g q u e s t i o n s o f t h i s k l n d , lt i s most

i m p o r t a n t t h a t t h e n a t u r e o f o r g a n i s a t i o n s s h o u l d b e k e p t i n mlnd.

In Mi l l i ams v. I I u r s e y ( s u p r a ) , F u l l a g a r J. i n a judgment concurred

i n by Dixon r e g l s t e r e d u n d e r t h e p r o v i s l o n s C . J . and Kittc J . , e x p l a i n e d t h e n a t u r e o f a n o r g a n l s a t l o n

of t h e A c t and branches of such an

o r g a n i s a t l o n . A t pages 5 4 t o 55, H l s Honour s a i d :-

"But I need no t pu r sue the ma t t e r fu r the r , because , wha teve r

t h e r u l e s (Rules o f t h e Supreme Court of Tasman ia ) may do o r

f a i l t o do, t hey have , i n my o p i n i o n n o a p p l i c a t l o n t o t h e

p r e s e n t c a s e s f o r t h e r e a s o n t h a t t h e " H o b a r t B r a n c h "

o f t h e f e d e r a t i o n i s n o t a n "un lncorpora t ed soc le ty ,

f e l l o w s h l p , c l u b o r a s s o c l a t l o n " . I t has no separa te

l d e n t l t y - no e x l s t e n c e a p a r t f r o m t h e r e g i s t e r e d o r g a n l z a t l o n ,

of which It 1 s a n m t z g r a l and I n s e v e r a b l e p a r t . Its members

are merely a s e c t i o n o f t h e t o t a i nlembershlp of the

f e d e r a t l o n - l o c a l l y o r g a n l z e d f o r t h e sake of convenience,

b u t I n no respec t Independent of t h e f e d e r a t i o n , a n d i n a l l

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

b ranches a re pe rmi t t ed wi th in llmlts t o make r u l e s o f t h e i r

own, b u t t h e r u l e s w h l c h t h e y make d e r i v e a u t h o r l t y f r o m t h e

r u l e s o f t h e f e d e r a t i o n . I t i s con templa t ed t ha t a t r a n c h

may have "property and moneys", but, i f r . 1 5 o f t h e H o b a r t

b ranch ru l e s means t h a t t h e b e n e f l c l a l o w n e r s h l p t h e r e o f i s

i n t h e members of the branch , It 1s I n c o n s i s t e n t w i t h r . l O ( A )

o f t h e r u l e s o f t h e f e d e r a t i o n which makes the "fund and

p roper ty" of the organlza t lon and it.; b r a n c h e s s u b ~ e c t t o

the "ca re , supe r ln t endence , management and a d m l n l s t r a t l o n of t h e

govern ing body of the Organiza t ion for the car ry ing out of

t h e o b j e c t s o f t h e Organiza t lon" . The p o s l t l o n 1s p r e c i s e l y

analogous to t h a t whlch was h e l d by t h i s C o u r t t o s u b s l s t

i n Hall v. Job (1952) 86 C . L . R . 639 and the re is a passage

i n t h e judgment i n t h a t case which, i f w e read "Federa t ion"

or " O r g a n l z a t l o n " f o r " I n s t i t u t l o n " al1d " B r a c h ' f o r " L o d g e " ,

is e x a c t l y a p p l i c a b l e to t h e p r e s e n t c a s e . The passage i s

as fo l lows : ' I . . . . . . . . an ind iv ldua l cannot be a member of

t h e Lodge :cL-cpt a s a member of t h e I n s t i t c k l o n . The mutual

r l g h t s a n d o b l l g a t i o n s o f t h e members o f t h e Lodge s p r i n g

from t h e r u l e s o f t he I n s t i t u t i o n , and cannot b e a l t e r e d

excep t a s chose r u l e s provide . The purposes which the

menlbers o f tne Lodqs have i n common sre none o t h e r t h a n t h e

./11. - .

- 11 -

purposes fo r vh ich they a re members of t h e I n s t i t u t i o n .

The Lodge d o e s n o t e x i s t as a s o c l e t y o f p e r s o n s who

d e s i r e t o a s s o c l a c e exclusively wl th one ano the r fo r

agreed purposes; i t ex i s t s a s a n i n t e g r a l p a r t o f a l a r q e r

o rgan lza t lon , o f wh ich a l l t he members a r e a s s o c l a t e d f o r

t h e p u r s u l t o f p u r p c s e s common t o them a l l in acco rdance

w i t h a cons t i tu t lon t ih lch governs chem all. A subord lna te

Lodge 1s t h e r e f o r e no t t o h,: cons idered as If it were an

a s s o c l a t l o n by i t s e l f ; It 1s l n t r u t h a branch of the

I n s t i t u t l o n , a sectj.on of i t s membershlp, whlch provldes,

f o r t h o s e who belong to It o r may be adml t t ed to i t s

meet lngs , machlnery for the en joymeni of the r igh ts and

benef l t s , and for the per formance of t h e o b l l g a t l o n s a n d

I

func t lons , which are t h e I n c l d e n t s of t h e i r membershlp of

t h e I n s t l t u t l o n . " p . 650 . I t fo l lows t ha t he j udgmen t s

in t h e f l r s t and second ac t lons cannot s tand as a g a i n s t

the "Hobart Branch" . "

The p r i n c i p l e s se t o u t i n t h a t p a s s a g e c o n c e r n i n g b r a n c h e s

app ly wl th equa l fo rce to sub -b ranches wi th in an o rgan i sa t ion , t he

o n l y d i f f e r e n c e b e i n g t h a t a branch may be ln te rposed be tween the

organisa t lon and the sub-branch . In a l l c a s e s , It is n e c e s s a r y t o

look t o t h e r u l e s of the o rgan i sa t ion Inc lud ing , where appropr i a t e ,

r u l e s o f a branch and of a sub -b ranch , t o de t e rmine the meaning of

t h o s e r u l c s and t o a p p l y t h o s e r u l e s . We do n o t f i n d it h e l p f u l

when de termlnlng matters o f t h l s k lnd , t o cons ide r whe the r any b ranch

o r s u b - b r a n c h w l t h l n a n o r g a n i s a t l o n c a n b e s a i d t o b e a n e n t l t y

havlng a r e c o g n l s e d a n d s u b s t a n t l a l s t a t u s w l t h i n a n o r g a n l s a t l o n o r

n o t o r t o h a v e a r i g h t t o a s e p a r a t e e x l s t e n c e o r n o t .

The Cour t , i n c o n s i d e r i n g r u l e s o f an o r g a n i s a t i o n , s h o u l d

no t t ake too na r row a view o f t he manner i n which powers confcrred

by t h e r u l e s may be exe rc i sed . We approach our task l n t h e l l g h t of

the v iews expressed by F u l l a g a r J. l n Wllllams v. Hursey (supra) a t

pages 56 t o 58. i n t h a t p a s s a g e , H l s Honour, was consldering the

ob jec t s o f t he Wate r s ide Worke r s ' Fede ra t lon o f Aus t r a l l a , as

c o n t a l n e d i n I t s ru les and the powers by which those objects could

be implemented. H e was c o n s l d e r l n g t h e e x e r c i s e of those powers hy

a branch of t h e F e d e r z t l o n . The oplnions expressed would apply,

s u b l e c t t o t h e p r o v i s i o n s o f a n y r u l e s d l r e c t l y a p p l i c a b l e , to any

sub-branch wi th ln	the organisa t lon .	We	q u o t e	f r o m p a r t o f	t h a t
passage :-

"Bu t , s u b j e c t t o t h a t , no prlma f a c i e r e a s o n exls ts f o r

l i m i t i n g t h s meaning of such cxpressicns i n any way, and

any ac t ion i . :hlcb can fal .r ly and reasonably be regarded

as l i k e l y to f u r t h e r t h e intcrcsts o f t h e o r g a n l s a t l o n

and I t s !wmbers 1s w l t h l n t h e o b ~ e c t s s t e t e d I n t h e r u l e s ,

.,/12. . .

. . - 1 2 -

and therefore wl th ln the powers o f t h e f e d e r a t l o n a c t i n g

d i r e c t l y o r t h r o u g h t h e b r a n c h . To a d o p t s l i g h t l y t h e

words of Lord Selborne In Attorney-General v. -Great

Eastern Rai lway Company (1880) 5 A . C . 473 a t 4 7 8 .. .....

"whacever may - f a l r l v be - recrarded - as l n c i d e n t a l t o . o r ~~

, ~~~

consequential upon, what i s expres s ly au tho r l sed ough t

no t ( u n l e s s e x p r e s s l y p r o h i b i t e d ) t o b e h e l d b y j u d i c i a l

c o n s t r u c t l o n t o b e u l t r a v i res . "

I n t h e p r e s e n t case, w e a r e o f o p m i o n t h a t t h e r e i s

no power Sub-Branch wlthin the Geelong Sub-Branch t o create t h e o f f i c e o f

o r g a n i s e r . The C o n c i l i a t i o n and A r b i t r a t i o n A c t 1 9 0 4

c o n t a i n s s p e c i a l p r o v i s i o n s r e l a t i n g to o f f l c e r s a n d members of

C o m l t t e e s 01 Management, see e .g . s .132(2) and Reg. 115 and In

I p a r t i c u l a r Res. 115(1) (d) and (2). We draw a t t e n t i o n t o t h e

d i f fe rence be tween the wordlng of Rules 4 0 and 45(b) of the Rules

o f t h e F e d e r a t l o n . Under the former r u l e , a Branch of the

Federa t ion has power t o c r e a t e o f f l c e s a d d i t l o n a l t o t h o s e e x p r e s s l y

r e f e r r e d t o 1.n t h a t Rule. The Vic to r i an Branch has done t h i s ,

see Rule 3 of the Vlc tor lan Branch Rules even though the number of

o r g a n i s e r s i s n o t s p e c l f i e d . No such power i s conta ined ln Rule

4 5 ( b ) o r I n t he Ru les o f t he Fede ra t lon , i nc lud ing the Vlc to r i an

Branch Rules , conferr ing an expres s power on the Geelong Sub-Branch

t o create Rule 4 5 ( b ) . o f f i c e s a d d l t i o n a l t o t h o s e e x p r e s s l y r e f e r r e d t o I n

In these c i r cums tances , it cannot be s a d t h a t t h e

powers conEerrcd upon the Geelong Sub-Branch by the Rules of the

Fede ra t lon , i nc lud lng the Vlc to r i an Branch Ru les , i nc lude , as

i n c i d e n t a l t o o r c o n s e q u e n t i a l upon what i s e x p r e s s l y a u t h o r l s e d ,

a power f o l l o w s t o c r e a t e t h e o f f i c e o f o r g a n i s e r . I n o u r o p i n i o n , it

t h a t t h e r e s p o n d e n t , G. S h e r r i f f , c a n n o t r e l y upon Rule 45(b)

and h i s e l e c t i o n a s Sub-Branch organiser to hold h imsel f ou t as an

o f f i c e r o f t h e G e e l m g Sub-Branch and the other respondents cannot

r e l y u p o n R u l e 4 5 ( b ) t o ~ u s t l f y t h e c r e a t l o n o€ t h e o f f i c e o f

Sub-Branch Organiser.

Normally, what has been said so f a r would be s u f f i c i e n t

t o d i s p o s e of thls mstter. A t the hear lng, hor lever , M r . Powell

t endered a minute of a r e s o l u t i o n c a r r l e d a t a meeting of members

of the Geelong Sub-Branch he ld on 6 th Apr i l , 1 9 7 7 . The minu te r ead :-

"Tha t t h l s Gene ra l Mee t ing dec la re s I t s full confidence

i n and suppcr t for Mr. Garry Sherr l i f as Sub-Branch

o r g a n ~ s e r a n 6 t o t h e e x t e n t n e c e s s a r y no!: employs

M r . S h e r r i f f on t h e same terms a n d c o n d l t i o n s a s h i s

present lxs l t lo11 . "

./13.. .

_I

- 13 -

-, . .

The Rules of the Federa t ion do not conta in any express

provision empowcrlng a Sub-Branch t o employ e l t h e r o f f l c e r s o r

employees. It is n o t n e c e s s a r y f o r u s t o c o n s i d e r who would be t h e

employer of any such person so employed; the organlsa t ion o r t h e

Sub-Branch. Rule 45 of the Rules o f the Federa t ion appears to assume

a power	i n a	Sub-Branch	t o employ persons and	w e	quo te f rom tha t
Rule :-

"45. (d) The Commlttee of each Sub-Branch a t t h e end of

each ha l f -yea r a f t e r de f r ay inq the work lng and o the r

expenses of the l r Sub-Branch , sha l l forward wl th ln

twenty-e lght day5 to the Branch Secre ta ry all funds

above $20 . Provlded tha t where a Sub-Branch employs

a f u l l - t l m e o f f l c l a l o r o f f l c l a l s t h e amount t o be

r e t a m e d by such Sub-Branch may be in excess o f $20

and i n s u c h c a s e t h e amount t o b e r e t a i n e d s h a l l b e

determlned by the Branch i n General I leet ing."

" 4 5 . ( 1 ) W i t h o u t l i m i t l n g t h e g e n e r a l l t y o f a n y of t h e

powers of a Branch Commlttce of Management conta ined

In any Federa l er S t a t e R u l e a n d i n a d d i t i o n t o a n y

such power a Branch Committee of Management s h a l l h a v e

t h e f o l l o w l n g p o w e r s I n r e i a t l o n t o a Sub-Branch :-

2 . To r equ l r e f rom the o f f i ce r s and employees

of a Sub-Branch whether i n w r l t i n g o r o r a l l y

i n f o r m a t i o n r e l a t i n g	t o	t h e a f f a i r s o f	a
Sub-Branch. "

M r . Powell submit ted that i f the Geelong-Sub Branch had

no power t o e lec t or appo in t a Sub-Branch o r g a n i s e r , n e v e r t h e l e s s

t h e r e was wou ld no rma l ly pe r fo rm and tha t	power	t o	employ	a	per son to pe r fo rm du t l e s wh ich an o rgan i se r
t he r e so lu t ion o f 6 th Apr l l , 1 9 7 7

w a s a v a l l d exerclse o f t h a t power and was v a l i d t o a p p o i n t t h e

respondent , G. She r r i f f , a s such an employee . M r . Powell a r g u e d t h a t

t h e w o r d s " o f f l c i a l o r o f f i c i a l s " c o n t a m e d i n R u l e 4 5 ( d ) d i d n o t

include employees who might be considered to be employed In a

c a p a c i t y s u c h a s t h a t o f c l e r l c a l a s s l s t a n t s b u t were s u f f l c l e n t l y

wide to inc lude employees who pe r fo rm execu t lve func t ions as well

as inc ludmg o f f i ce r s w l th in the mean lng o f Ru le 45 (b ) . H e submlt ted

t h a t t h e r e s p o n d e n t , C-. S h e r r i f f , came w l t h i n t h i s e x t e n d e d c a t e q o r y

of " o f f i c l a l " a n d t l i s r e f o r e t h e Sub-Branch l n t h e e x e r c l s e o f p o w e r s

i n c l d e n t a l t o o r c o n s e q u e n t i a l upon the powers express ly confer red

by the Rules of the Federa t ion , had va l ld ly employed the respondent ,

G. S h e r r i f f , t o c a r r y o u t t h e d u t l e s o f a Sub-Branch organiser.

. /14. . .

-

- c - 14 -

3 5 .

We do not r e ~ e c t Lhe vlew tha:1 the Gcelonq Sub-Branch

has power t o employ f u l l - t i m e , p a r t - t i m e o r o n a c a s u a l b a s i s

o f f i ce r s and /o r employees no t be ing o f f i ce r s . I n ou r op in lon , t he

w o r d s " o f f i c i a l ,or o f f i c i a l s " a p p e a r l n g i n R u l e 45 ( d ) , r e f e r t o an

o f f i c e r s p e c i f i e d i n R u l e 4 5 ( b ) a n d are l imi t ed to such pe r sons and

cannot be extended t o inc lude pe r sons whose d u t i e s are u n s p e c i f l c d

i n t h e R u l e s b u t who pe r fo rm du t l e s o f a kind normally performed by

o f f i c e r s o f a n o r g a n i s a t i o n . T h i s o p i n i o n i s i n a c c o r d w i t h t h e

d e f i n i t l o n o f t h e word " o f f l c l a l " c o n t a i n e d I n t h e S h o r t e r O x f o r d

Dict lonary namely a p e r s o n h o l d i n g o f f l c e . The d u t i e s t o be

performed by the r e sponden t , G . S h e r r i f f , c a n n o t b e d e s c r l h e d as

b e i n g o f t h e n a t u r e o f c l e r l c a l a s s i s t a n c e . We h o l d t h e r e f o r e t h a t

t h e r e s o l u t i o n o f 6 t h A p r i l , 1 9 7 7 was not a v a l i d e x e r c i s e o f power

and cou ld no t b r lng wl th in power what was previously beyond power.

F i n a l l y , M r . Powel l submi t ted tha t s ince t h e c l a i m a n t

1s a member of the South Aus t ra l ian Branch o € t he Fede ra t ion and 1 s

n o t a member of e i the r t he Vic to r l an Branch o r t he Gee iong Sub-Branch ,

t h e C o u r t , l n t h e exerclse o f t h e d l s c r e t i o n c o n f e r r e d by s . 1 4 1 ! 1 ) ,

s h o u l d r e f u s e t o make t h e o r d e r s s o u g h t . The clalmant , bei . lg a

member o f t he Fede ra t ion , has a r l g h t u n d e r s.141(1) t o b r i n y a

compla in t be fo re t he Cour t . He has done t h i s . The Court has found

t h a t e a c h o f t h e r e s p o n d e n t ? is unde r an ob l iga t ion to pe r fo rm o r

obse rve the R u l e s o€ t h e F e d e r a t i o n . We see no reason why the Cour t

should not make a n o r d e r g i v l n g d i r e c t i o n s t h a t e a c h o f t h e

r e sponden t s pe r fo rm o r obse rve the Ru les of t h e F e d e r a t l o n .

Order accordingly.