McKerlie v Lake View and Star Limited

This case concerned an appeal from the Supreme Court of Western Australia regarding a dispute between Robert Taylor McKerlie, a piece-worker, and his employer, Lake View and Star Limited. McKerlie alleged that the company had overcharged him for stores, such as explosives, supplied during his employment, and sought an account and recovery of the excess amounts. The company contended that the deductions were correct and, alternatively, that any claim for overcharges made more than twelve months prior to the action was barred by the Industrial Arbitration Act.

The legal issues before the High Court were: (1) how to correctly calculate the "cost or price" of articles supplied to piece-workers at the "place of supply" as stipulated by an industrial award, specifically whether to include distribution costs and whether provisional prices for explosives, subject to later rebates, were permissible deductions; and (2) whether an action to recover amounts deducted in excess of the award's limits constituted a claim for wages subject to a twelve-month limitation period under section 153(2) of the Industrial Arbitration Act 1912-1925 (W.A.).

The Court held that the cost or price of articles supplied to a piece-worker should include the actual labour costs incurred in distributing those articles to the worker at the point of delivery within the mine, but general overhead costs of the mine should be excluded. Regarding explosives purchased under a contract with provisional prices subject to later adjustment and rebates, the Court determined that the provisional price was not the final cost and that the employer could not charge piece-workers more than the ultimately ascertained cost, meaning rebates received by the employer should be passed on. Furthermore, the Court ruled that an action to recover amounts deducted in excess of the award's limits was a proceeding for the recovery of wages under an industrial award and was therefore subject to the twelve-month limitation period prescribed by section 153(2) of the Industrial Arbitration Act.

The appeal from the decision of Dwyer J. was dismissed, affirming that the twelve-month limitation period applied. The appeal from the decision of Northmore C.J. was allowed in part, varying his order to approve and adopt the Master's findings regarding rebates, while otherwise dismissing the appeal from his Honour's decision.