Re Alcan Australia Ltd; Ex parte Federation of Industrial, Manufacturing and Engineering Employees

The High Court of Australia considered an application for prohibition by Alcan Australia Ltd against the Australian Industrial Relations Commission (AIRC) and the Federation of Industrial, Manufacturing and Engineering Employees (FIMEE). The dispute concerned the AIRC's jurisdiction to make an award in relation to certain employees of Alcan, specifically those engaged in the construction of a new aluminium smelter at Kurri Kurri, New South Wales. Alcan argued that the AIRC lacked the constitutional power to make such an award, contending that the relevant industrial dispute did not extend beyond the limits of any one State.

The central legal issue before the High Court was whether the dispute concerning the construction of the smelter constituted an "industrial dispute extending beyond the limits of any one State" within the meaning of s 51(xxxv) of the Commonwealth Constitution. This required the Court to determine whether the dispute had a sufficient interstate element to attract federal jurisdiction, or if it was confined to New South Wales. The Court also had to consider the nature of the relationship between Alcan and the workers engaged in the construction project, and whether this relationship gave rise to a dispute of the character contemplated by the constitutional provision.

The High Court, by majority, held that the dispute did not extend beyond the limits of any one State. The Court reasoned that the construction of the smelter, while a significant project, was a localised activity confined to New South Wales. The fact that Alcan was an Australian company with interstate operations, or that the aluminium produced would be sold interstate, did not imbue the construction dispute itself with an interstate character. The Court applied the principle that the constitutional head of power in s 51(xxxv) requires the dispute itself, not merely the parties or the subject matter of their business, to have an interstate dimension. The Court found that the dispute was solely between Alcan and its employees in New South Wales, and therefore fell outside the scope of federal industrial regulation.