Re Australian Industrial Relations Commission & Metal Trades Industry Association of Australia and Engineering Employers

This matter concerned an application by the Metal Trades Industry Association of Australia (MTIA) for a writ of prohibition directed to the Australian Industrial Relations Commission (AIRC). The MTIA sought to prevent the AIRC from proceeding with a hearing concerning an application by the Amalgamated Metal Workers' Union (AMWU) for a variation of the Metal Industry Award. The AMWU's application sought to introduce a clause that would require employers to consult with unions on the introduction of new technology.

The primary legal issue before Gaudron J was whether the AIRC had the constitutional power to make an award provision requiring consultation with unions regarding the introduction of new technology. Specifically, the question was whether such a provision fell within the scope of "industrial disputes" as contemplated by section 51(xxxv) of the Australian Constitution, which grants the Commonwealth Parliament power to make laws with respect to conciliation and arbitration for the prevention and settlement of industrial disputes extending beyond the limits of any one State.

Gaudron J reasoned that the power to make awards under section 51(xxxv) of the Constitution is limited to the prevention and settlement of industrial disputes. Her Honour held that while the introduction of new technology can be a source of industrial disputes, a provision mandating consultation on such matters, without more, did not necessarily fall within the scope of preventing or settling an existing dispute. The power to regulate the introduction of technology was considered to be a management prerogative, and an award provision requiring consultation on this issue, in the absence of a dispute concerning its implementation, would exceed the constitutional reach of the AIRC.

Gaudron J made absolute the order nisi for a writ of prohibition, restraining the AIRC from further proceeding with the AMWU's application for variation of the Metal Industry Award.