Pearson Peterson & Smith v Richard Arear

Case

[1982] FCA 221

15 Oct 1982

No judgment structure available for this case.

INDUSTRIAL LAW - direction that officials perform and
observe rules of reglstered organisatlon - exclusion
from employment and unlon of members who refuse to
make payment towards expenses of delegates in
accordance with decision of workmates - deliberate
injury without justification - breach of rules -
orders granted.
Conciliation and Arbitration Act, s.141
ROLAND HAVEY VALL PEARSON v. RICHARD ANEAR and others
LYNDA JOY PETERSEN v. RICHARD ANEAR and others
LEE-ANN ELIZABETH SMITH v. RICHARD ANEAR and others
Qld. Nos Q8, 9 and 10 of 1981
15 OCTOBER 1982

FITZGERALD J.
BRISBANE

IN THE FEDERAL COURT OF AUSTRALIA)
QUEENSLAND DISTRICT REGISTRY ) Nos. Q 8,9 and 10 of 1981
INDUSTRIAL DIVISION 1

BETWEEN:

ROLAND HARVEY VALL PEARSON

Applicant

AND :

RICHARD ANEAR and others

Respondents

BETWEEN :

LYNDA JOY PETERSEN

Applicant

AND :

RICHARD ANEAR and others

Respondents

BETWEEN :

LEE-ANN ELIZABETH SMITH

Applicant

AND :

RICHARD ANEAR and others

Respondents

_ _ _ _ _ O R D E R
JUDGE MAKING ORDER: FITZGERALD J.
DATE OF ORDER:  15 OCTOBER 1982
BRISBANE MADE: WHERE
THE COURT ORDERS THAT:

1.    The respondents other than the respondent

Richard Anear perform and observe the
Rules of the Australian Meat Industry
Employees' Union by ceasing -
(a) to refuse to work with the applicant

(b)

to inclte other members of the Australian Meat Industry Employees

Union to refuse to work with the
applicant
(c) to obstruct the employment of
the applicant at the Bremer River

Abattoir

and

(d)
to obstruct any payment by the
applicant to the Australian Meat
Industry Employees' Union:

2.    the respondent Richard Anear perform and

observe the Rules of the Australian Meat
Industry Employees' Union by ceasing to
support and encourage the other respondents -
(a) to refuse to work with the applicant
(b) to incite other members of the Australian

Meat Industry Employees' Union to refuse to work with the applicant

(c) to obstruct the employment of the applicant at the Bremer River Abattoir

and

(d)
to obstruct any payment by the applicant Union.

\

IN THE FEDERAL COURT OF AUSTRALIA )
QUEENSLAND DISTRICT REGISTRY ) Nos Q8,9 and 10 of 1981
INDUSTRIAL DIVISION 1

BETWEEN:

ROLAND HARVEY VALL PEARSON

Applicant

AND :

RICHARD ANEAR and others

Respondents

BETWEEN:

LYNDA JOY PETERSEN

Applicant

AND :

RICHARD ANEAR and others

- Respondents
BETWEEN :

LEE-ANN ELIZABETH SMITH

Applicant

AND :

RICHARD ANEAR and others

Respondents

FITZGERALD J. 15 OCTOBER 1982

-

REASONS FOR JUDGMENT

This is the return of separate rules nisl

obtained by the respectlve applicants, each of whom
seeks an order pursuant to s.141 of the Concillation

and Arbltration Act 1904 directing the respondents to

perform and observe the rules of the Australian Meat

Industry Employees Unlon (the “A.M.I.E.U.”), an

organisation of employees registered pursuant to that

Act. The applications were heard together by agreement

and it is common ground that the result in each must be

L .

the same as in the others. The locus stand1 of the

applicants was not in question and no sensible basis
was shown for a discretionary refusal of orders if a
case for relief under s.141 of the Act was otherwlse

made out: see the yet unreported judgments of the

Full Federal Court in Cook v. Crawford. -
Prior to September 1980, each of the applicants
. was-a member of the A.M.I.E.U. employed by T . A . Field
Pty Ltd at the Bremer River Abattoir in the suburb of

Dlnmore near Ipswlch. Mr Pearson had first joined

the A.M.I.E.U. when he commenced work at the abattoir

in 1973, and from time to time had held minor

representatlve offices within that unlon. Miss Smith

commenced work at the abattoir and joined the A.M.I.E.U.
in 1975. She was for some 18 months during 1977 and 1978
secretary of the A.M.I.E.U. Shop Commlttee at the abattolr.

Mrs Petersen's association with the abattoir and the

union commenced in September 1978, and it does not
appear that she held or aspired to any posltion wlthln
the union. The flrst respondent 1s the Secretary of the
Queensland Branch of the A.M.I.E.U.; the other respondents
("the Shop Commlttee") are the members of the A.M.I.E.U.
Shop Committee at the abattolr. NO point was made

at the hearing that the first respondent has not

been involved in the dispute which has given rise
to these proceedings. He gave evidence and it is

obvious that he has encouraged, and continues to

encourage, the Shop Committee In the course being

followd by them and, at thelr Instigation, by the members of the A.M.I.E.U. employed at the abattoir, other than the applicants.

.-

On or about 15 August 1980, groups of A.M.I.E.U.

members employed in different sectlons of the abattolr the union working at the abattoir to meet the expense

held meetings to vote upon a recommendation of the

of sending delegates from the abattoir to a log of
claims conference between the A.M.I.E.U. and employers.

Some meetings voted in favour and some against the

resolution, but a majority of members overall were
in favour. Payment was due by Friday 29 August 1980.
For various reasons, each of the applicants and a
number of other persons refused to make the payment,
although all except the applicants later did so. At

the instigation of the Shop Committee, other members

of the A.M.I.E.U. employed at the abattoir decided

early ln September 1980 that they would not work with
those who refused to make the payment although it 1s

far from clear that any such decision was made by

a true malority of the employees at a properly

convened meeting. The Shop Committee informed the

employer that all other members of the A.M.I.E.U.

at the abattolr would walk out if any employee was
permitted to work without first making the payment.
Because of the considerable variation in the number
of employees required at the abattoir from tlme to
time, the relevant Award provides that those not required

may be stood down and that additlonal employees, when

requlred, may be engaged in order of senlorlty. Each

of the applicants was stood down by the employer. since September 1980, although Mr Pearson has contlnued

to conduct a part-tlme business as a valuer which he -
operated even whilst employed at the abattolr. Attempts

by some at least of the applicants slnce September 1980

to make payment of their dues to the Shop Commlttee or

its representatives at the abattoir have been rebuffed.

While understandably aggrieved by what has occurred,

the applicants experienced some difficulty in formulating
the relc3f they clalm. The applications are founded only
on s.141 of the Act which is relevantly concerned with

orders g iv ing d l rec t ions for the per formance or observance
o f t h e r u l e s o f a r e g i s t e r e d o r g a n i s a t i o n by persons
who are under an ob l iga t lon to per form or observe those
r u l e s , i n t h e s e p r o c e e d i n g s t h e p e r s o n s named as
respondents . The a p p l i c a t l o n by M r Pearson, whlch w a s
t h e f l r s t f i l ed , i n l t i a l l y o m i t t e d some o f t h e r e l l e f
s o u g h t I n t h e o t h e r a p p l i c a t i o n s . However, towards
the end o f t he hea r ing , t he t h ree app l l ca t lons were
b r o u g h t i n t o l i n e , some o f t h e r e l l e f o r i g i n a l l y s o u g h t
was abandoned, and there was some expanslon on what was
a s k e d . I n f i n a l f o r m , t h e s p e c i f l c d i r e c t l o n s s o u g h t ,
r e - a r r anged t o acco rd w i th t he o rde r of e v e n t s were:
(i) "that the respondents should perform and
obse rve t he Ru les o f t he s a id Unlon by
t r e a t i n g as nu l l and vo id - a dec l s ion o f
t h e m a j o r i t y o f t h e members o f t h e Unlon
a t t h e B r e m e r River Abat to i r made on o r
about the 15th day of August , 1 9 8 0 whereby
a "levy" of ONE DOLLAR ($1.00) was lmposed
upon each of the members o f t h e Union
employed a t t h e s a i d A b a t t o l r " ;
(li) "tha t the respondents shouldaber form and
o b s e r v e t h e r u l e s o f t h e said Unlon by
t r e a t i n g as nu l l and vo ld a d e c i s i o n
o f t he ma jo r i ty o f t he members o f t h e
Union a t t h e Bremer R ive r Aba t to i r made
on o r a b o u t t h e 2nd September 1980
whlch s a i d d e c l s l o n o r r e s o l u t l o n was
t o t h e e f f e c t t h a t t h e members o f t h e
s a i d Union employed a t t h e s a i d
A b a t t o i r would r e f u s e t o work w l t h t h e
said a p p l i c a n t h e r e i n " ;
iiii) "tha t the respondents should per form and
observe the Rule o r those Rules (express

o r imp l i ed ) wh ich r equ l r e t ha t t he

members o f t h e sald Unlon or any of them
w l l l n e l t h e r l n d l v i d u a l l y o r c o l l e c t i v e l y
i n j u r e o r p r e v e n t a n y f i n a n c i a l member of
t h e Union from ob ta in lng or cont inuing
i n employment"; and
(iv) " tha t t he r e sponden t s and each o f them do
recognise t rea t and accep t t he app l i can t
h e r e i n as st i l l be ing a member o f t h e s a l d
Unlon and e n t l t l e d t o a l l t h e b e n e f i t s and
privileges of such membershlp."
The c a s e was fought on bo th s ldes on the foo t ing
t h a t it was o f v i t a l s i g n i f i c a n c e w h e t h e r t h e d e c i s i o n
of t h e members o f t h e A.M.I.E.U. employed a t t h e a b a t t o i r
i n August 1980 imposed upon each member i n h i s o r h e r

capacity as a member a legal obligation to pay the

amount decided upon, a questlon seen to depend upon

the construction of the A.M.I.E.U.'s registered
rules, or alternatively, in the argument of the

respondents, those registered rules as expanded by

what was descrlbed as "custom and practice". Part

of the relief sought by the applicants depends, in
terms, upon a determination that the decislons of
the.A.M.1.E.U. members at the abattoir In August and

September 1980, were "null and void". A conslderable part of the hearlng was spent on whether or not there

was a "custom and practice" as contended for by the

respondents, with the respondents seeking to show that

similar decislons requirmg payments by the A.M.I.E.U.
members at the abattoir had been taken in the past and

that the appllcants had made the payments called for,

and with Mr Pearson at least attempting to disprove
both the existence of such a "custom and practice" and
his involvement therein, or alternatively to explain
what had occurred in the past as due to his not having
possessed or at least not having read the A.M.I.E.U.

Rule book. The evidence was scanty and confused.

However, there does seem to be basis in the suggestlon
that lt is the policy of the A.M.I.E.U., or at least

its Queensland Branch, that each union "shop" should

be represented at the expense of its own members at

conferences such as that which was proposed when the

A.M.I .E.U. members a t t h e a b a t t o i r were c a l l e d upon
t o make the payments which have given r ise t o t h e
present d i spute and tha t , conformably therewl th ,
a l though perhaps unaware o f tha t po l icy , for some
pe r iod a t least p r i o r t o t h a t o c c a s i o n , e a c h member
of t h e A.M. I .E .U . a t t h e a b a t t o i r , i n c l u d i n g t h e
appl icants , had cont r ibu ted towards such expenses
a sum a r r i v e d a t by major i ty dec ls ion . The process
followed a t t h e a b a t t o i r i n r e s p e c t o f s u c h matters

-

was s imple and i n fo rma l and d ld no t s a t i s fy t he
r equ i r emen t s o f t he A c t and Regulations (see, e.g.
s s . 133A and 158 and Reg. 115) and the A.M.I .E.U.
Ru les w l th r e spec t t o union funds. The money
c o l l e c t e d was n o t t r e a t e d as belonging t o t h e
A.M.I .E.U. but merely held and admmistered as a
l o c a l f u n d f o r l o c a l p u r p o s e s . It w a s k e p t l n a

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t i n and e i t h e r t a k e n home by t h e Shop Committee

T r e a s u r e r o r l e f t i n t h e e m p l o y e r ' s s a f e , w l t h t h e

only account ing being a sc rap o f pape r on t he no t i ce
b o a r d w i t h t h e t o t a l f l g u r e c o l l e c t e d w r i t t e n on it.
To s a y t h e l e a s t , I have grave doubts whether
t h e r e g i s t e r e d R u l e s o f t h e A.M.I .E .U. a u t h o r i z e , or t h e
A c t and Regu la t ions pe rmi t , t he p rac t l ces appa ren t ly
a d o p t e d I n r e l a t i o n t o t h e c o l l e c t l o n s made, o r t h a t
e i t h e r a course o f such conduct , o r acquiescence in it
by a l l o r any of the appl icants , could support what
was done: see Maqner v. Fowler ( 1 9 7 9 ) 2 6 A.L.R. 6 7 1 p e r

Keely J. at p.694 citmg the Australlan Industrial

Court in Demas v. Pearson (1951) 73 C.A.R. 3 , which was
later followed by that Court in Elliott v. Duffy (1955)
81 C.A.R. 69. Indeed, I suspect that I am not alone

in my doubts. It is plain that minutes and other

documents were Interfered with after the present

dlspute arose by the obliteration of the word "levy",

a word given some slgnificance under the reglstered

Rules, and the insertion in lieu thereof of the word

"collection". Nelther the A.M.I.E.U. nor Its members

generally, nor its members employed at the abattolr,

both no doubt groups of fluctuating compositlon, is a

party to the proceedlngs, and, except to the

limited extent involved in sub-s. 141(8A) of the

Act, cannot be bound by the outcome: McLeish v. Faure
25 A.L.R. 403, 414. Nonetheless, It may be unavoldable

that these proceedings may have at least a practical

effect beyond the lmmedlate parties. What 1 s directly
in issue IS the conduct of respondents, measured against
the R u l e s of the A.M.I.E.U., when viewed In the context
the refusal of the applicants to make the payment from
which the conduct of the respondents flowed. Accordingly,
I consider that, if any direction 1s glven, it should so
far as possible not involve a determination of any issue

beyond what is necessary for the purpose of ensuring

that the respondents perform and observe the A.M.I.E.U.
Rules.

The appllcants' refusal to make the payment

may have been not only legally justifiable but
perfectly fair and reasonable and conslstent wlth

the spirit as well as the letter of them obligations
a s A.M.I.E.U. members employed at the abattoir. Or

it may not. The posslbility may be acknowledged that

it was inconsistent with A.M.I.E.U. policy, or even
lnvolved a breach of the A.M.I.E.U. Rules. On any n e w

of the matter, in my opinlon, the penalty which has been

imposed on the applicants was and is a wholly disproportlonate
response to any transgression by them. I am qulte unmoved
by the respondents' attempt to justify what was done by
describing It as democratlc. Hlstory is littered with
majorlty decisions to oppress dissentient minoritles.

The need for paramount controls over even Parliament

is reflected in this country by ou; written Constltutlon

even though there is, as yet, no local Bill of Rlghts. Similarly, the Conciliation and Arbitratlon Act pxovldes

clear statutory control over what R u l e s may be made by

the members of registered organlsatlons who may not, by

ma~orlty,

question, therefore, is not whether a sufficlent number adopt rules which are oppressive or unjust. The
approved what was done, but whether It was legltimate. The

Act contams ample provislons for the resolution of

disputes such as arose when the applicants refused to make

payment:  see, e.g. sub-s. 109(1) (a), s s . 144, 148 and 149
and Part IXA. The A.M.I.E.U.  Rules contain dlsclpllnary

provisions such as Rules 9 and 42 , especially perhaps
paragraphs (a) and (p) of Rule 9, which provide:

9 .    POWER TO IMPOSE FINES

The Federal Council and/or each Branch
Committee of Management o r Branch Executlve

or Sub-Branch Committee of Management s h a l l

have t he power , i n add l t lon t o and w i thou t

l i m i t i n g t h e e f f e c t o f a n y power o therwise
by t hese ru l e s c r ea t ed , t o lmpose a f l n e n o t
exceeding one hundred dol lars ($100) f o r
each offence on any member o f t h e Union who:-
(a) Vio la tes any Rule o f the Union ,
inc luding any Rule o r By-Law
lawful ly passed by any Branch
o f t h e Union.

...

(p) F a i l s t o c a r r y o u t a unanimous
o r m a j o r i t y d e c i s i o n made i n

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conformi ty wl th the ru les and/or
any po l icy o f the Union and I n
accordance with custom and pract ice
of ]ob and departmental meetlngs."
These s teps were not t aken . There a re no Rules which

p u r p o r t t o p e r m i t t h e p u n i s h m e n t o f t h e a p p l i c a n t s

I n t h e manner wh ich has occu r red fo r t he i r r e fusa l t o
make t h e payment. I f t h e r e was such a R u l e , p a r t l c u l a r l y
s i n c e it i s p l a i n t h a t e a c h a p p l i c a n t ' s r e f u s a l was based
on a g e n u l n e b e l i e f t h a t h e or s h e v a s a c t i n g w l t h l n h i s
o r h e r r i g h t s , a n d it seems t h a t what was done Ignored
t h e l e g a l l t y o r o t h e r w i s e o f t h e i r r e f u s a l , I t h i n k it
l i k e l y t h a t t h a t R u l e would contravene s.140 of t he A c t .
Sec t ion 1 4 1 o f t he A c t and its predecessors have
been given a wide opera t ion by the High Cour t and t h l s
Court ; see, e . g . Maqner v. Fowler and Cook v. Crawford,
supra , in each of which re ference is made t o a number

o f e a r l i e r a u t h o r l t i e s .

I L . ...

There i s no p r e s e n t o c c a s i o n t o c o n s i d e r t h e

ambit of what may l e g i t l m a t e l y b e i m p l i e d i n t o t h e r e g i s t e r e d r u l e s o f a n o r g a n i s a t i o n r e g i s t e r e d u n d e r

t h e A c t , t h e b a s l s upon which such implrcations are
made, o r l i m i t a t i o n s , s t a t u t o r y o r o t h e r w i s e , upon
what may be implied. Deliberate i n j u r y , w i t h o u t
s u f f i c i e n t c a u s e , t o a fe l low member o f a union i n
c o n n e c t i o n w i t h h i s employment and obstruct ion to his
a t tempts to main ta in h i s membersh ip are fundamentally

and rad ica l ly incompat ib le wl th the na ture and purpose o f u n i o n i s m a n d a n t l t h e t l c a l t o t h e l e g i s l a t i v e i n t e n t

man i fe s t i n p rov l s ions such as s s . 2, 5 and 188 of
the Act . More s p e c i f i c s u p p o r t f o r t h e i m p l l c a t l o n m t o
the Rules o f the A.M.I .E.U. of a p r o h i b i t i o n a g a l n s t
conduct such as the r e sponden t s have mdu lged i n , i s
provided by c l a u s e 2 , which contains a s t a t emen t o f t he
A . M . I . E . U . ' s o b ~ e c t s , and Rule 37 , " In jury to Member",
which so f a r as is now mate r i a l p rov ides :

37.     I N J U R Y TO MEMBER

(1) Any member o r members who, i n d i v l d u a l l y

o r c o l l e c t i v e l y , i n j u r y o r p r e v e n t a n y

f i n a n c i a l member from obtainlng employ-
ment s h a l l be l i a b l e t o b e f i n e d b y
t h e F e d e r a l C o u n c i l o r t h e Committee
of Management o r Branch Executive of
a Branch for each and every such
o f fence a sum n o t e x c e e d i n g f i f t y
d o l l a r s ($50) ."
Compare Roots v. Mutton ( 1 9 7 8 ) 32 F.L.R. 1 5 , 18.
Accord ingly , no twi ths tanding tha t there is no
provls ion in the Rules , except perhaps Rule 37 ,
which expressly forbids the conduct which has been
engaged in by the respondents, and that there is
some room for debate as to the,literal application
of Rule 3 7 , I am flrmly of opinlon that the

applicants' refusal to make the subject payment
did not afford sufficient cause for the actions

taken by the respondents and that the appllcants

are entitled to an appropriately framed order

under s.141 of the Act.

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The order of the Court in each applicatlon is

that:

1.    the respondents other than the respondent

Rlchard Anear perform and observe the Rules
of the Australian Meat Industry Employees'
Unlon by ceasing -

to refuse to work with the applicant

to incite other members of the

Australian Meat Industry Employees'

Union to refuse to work with the
applicant
to obstruct the employment of the
applicant at the Bremer River Abattolr
to obstruct any payment by the applicant to the Australian Meat Industry Employees' Union :

c

14.

2 .    the respondent Richard Anear perform and

observe the Rules of the Australian Meat

Industry Employees' Union by ceasing to

support and encourage the other respondents -
(a) to refuse to work wlth the appllcant
(b) to incite other members of the Australian

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Meat Industry Employees' Unlon to refuse to work with the applicant

(c)

to obstruct the employment of the appllcant at the Bremer River Abattolr

(d) to obstruct any payment by the applicant

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to the Australian Meat Industry Employees'

Union.

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