Roughan, P.J. v Coulson, M

Case [1982] FCA 283

C o n c l l l a t l o n a n d A r b l t r a t i o n

A c t

1 9 0 4

-

S e c t i o n s

I

140 and

181 - d l s n i s s a l of

branch organisers

f rom

employvent and off lce

- Committee of

Management -

consc ruc t lon

o f

rules

-

d l s t i n c t i o n b e t w e e n

employnent as organiser and

membership

o f

committee

-

power

of- c o m m i t t e e h m i t e d t o t e r m i n a t i o n

o f

employment - no power to a b o l i s h offlce or dismlss

:-from

off I c e .

C o n c l l i a t l o n a n d A r b l t r a t i o n

A c t 1 9 0 4

ss

140

and

141

PATRICX JOHIT ROUGHlW v. i f A X COULSON & ORS.

Appeal KO. X.S.T.J.

35 of 1 9 8 2

COREII :

Smithers ,

S t . John, IJorKhrop,

JJ.

-

DATE :

1 6 t h December,

1 9 8 2

SYDflEY

T I J D U S T R I A L

D I V I S I O M

On Appeal

from Wr.

J c s t x e E v z t t

PATRICK

JOHN

ROUGHAN

Appellant

IQ}:

COULSOiJ

RE)! SXALL

-ALLAN AD.V5TH!87AITE

ROBERT

GIIRRETT

JOHN

IiUDDER

MURIWY

BENMETT

NEVILLE

PROUD

BARRY

COLE

J?J4ES

BCMNETT

JOAN WATSObJ

CORAL

SCHOFIELD

LORRAINE EDITARDS

GRANAN SHAW

r .

JOSEPH

V I T U L L O

T H E

AUSTFLULIAN

PlEAT

INDUSTRY

ENPLOYEES

'

WITION

R e s p o n d e n t s

ORDER

JUDGZS

I iAKIl lG

ORDER:

Smithers, St. John , !Jorthrop, JJ.

DATE OF ORDER:

1 6 t h December,

1 9 8 2

I8IICRC MADE:

Sylney

THE COURT

ORDERS

T1V.T:

1. The appeal 1 S upheld .

.

. / 2

2

2.

The

1 1 2 b ~ J O I l i l e I l t b

v t l l e ~

t h a n

the registered

o r s a n l s a t i o n ,

and

each

of

them,

a r e o r d e r e d

t o o b s e r v e

the

r u l e s

of

the

o r g a n l s a t l o n

by

t r e a t i n g the appellant and 15r. B. Tobin a s members of the Committee of Planagement i o r

t!le

bz lance of

t h e l r term of

o r f i c e .

3 .

L i b e r t y

t o

a l l

p a r t i e s

t o

apply

on

seven

(7 )

days '

n o t i c e .

_-.

, .

?.

.

\

...

7.

, .

I 1

!

J

I - ) .

- c

co.?.f?i!:

Slaithecs,

SE.

John ,

N o r ~ l ~ r o p ,

JJ.

__

D,-!TC

:

1Gch DecemSer, 1 9 8 2

-

S'?. JOIII' and IlORTHROP, JJ.

. .

/ 2

2

.

i n thc ?IcI?castle

and Northern Branch

("thc G i s n C h " )

of

t h e A u s t r a l i a n

Meat

I n d u s t r y Clnployecs'

Unlon

( " t h e o r g a n i s a t i o n " )

an

o ryan l sa t ion

r egxs t e red unde r

the

C o n c l l ~ a t i o n

and Ar ln t ra t lon Act

1 9 0 4

("C;?e

A c t " ) .

The

personal

respondents

are, or a t the r e l e v a n t tme

verc , melnbers of t h e Comnttee of rlanayernent of the

Eranch

and

the

registered

o r g a n l s a t l o n

i s a l s o

a

respondent, whlch

has

appeared

by

i t s

Genera l Secze tary

-and

s u b m t t e d

t o such

orders

a s t h e c o u r t

s a ? f i t t o

i%ke.

The appellant sought,

and

vas

r ezu red ,

orders

p u r s u a n t t o S.140

and

S .141 of

t h e A c t by

C v a t t ,

J . ,

an2

the

appeal

b e f o r e

t h l s c o u r t 1s

a g a l n s t t h a t

d e c l s l o n .

.-. ;

_.

A t a speclal n e e t i n y of

t h e Committee of

Manage-

1~1cnt

of

the Branch , he ld on 15th

Narc!1,

1 9 8 2 ,

t h e

io l lc~~lnc ;

r e s o l u t l o n was passed and

recorded In the

mlnutes :

-

"That because

of

t h e r e d u c t l o n

111 rnernmrslnp

r:hlch 1s appro::imately '30:and substantial

losses for

t h e p z s t

16 monchs,

t h a t ls, t h r e e

( 3 ) h a l f y e a r s

totalling

$ 5 1 , 4 5 2 . 0 0 ,

t h e

szaff be reduced by

trro

( 2 ) O f f l c l a l s C S per

authority

v e s t e d

In

the Co~nmit tee of

Plaxye-

menz as provlded 1 3 7 r . 5 5

- Dut les of

OIElcers sub-c lause D (1)

.

( s ~ c )

. Such

tc r rn lna t lon

s h a l l

apply

?n

c o n s l d e r a t l o n

of

s ~ n ~ o r l t y

h a t i s , I b l r E .

Tobln

and !,lr

P.

I?ougl'lon

a r e t h e

o r g a n l s e r s

t o be

t e r m ~ n a t e d . "

. .

. / 3

3

T!Iat

s cb - ru l e forms one of

S number of sub- ru l e s of

._-, .

Xule 55, which 1s headed

"Duties

of Oiflcers".

. .

. / A

4

abcllsh

p a r t i c u l a r

oZ1lces

d u r l n o

t h e

p e r l o d f o r

v h i c h o i f l c e b e a r e r s

had

been

e l e c t e d

t o

hold

those

o f f l c c s ,

or

a l t e r n a t l v e l y ,

that

the

e f f e c t of

t h e

r e s o l u t l o n

1~7as t o remove

from

o f f l c e o f f i c e r s

who

.

had not ;xeached r u l e 58 of

t h e

r u l e s ,

17hlch

repzo-

ducccl

t h e

r e l evan t p rov i s lons o f

S.133

of

t h e A c t

l x ~ l t l n g

the power

of

the o r g a n l s a t l o n

t o dlsmiss

f r o m

o f f l c e

e x c e p t

upon

spec l f l ed

g rounds .

For

'-the per sona l

r s sponden t s ,

i t was

con tended

tha t

the

e f f e c t of

t h e r e s o l u t l o n

vas

t o abo l l sh o f f l ces and

n o t

t o xernove

i ron

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

01 S.133

01 t h e Act

and

t h a t t h e

rules ,

and

I n p a r t i c u l a r

s c b - r u l e

55 (d) (l),

au thor l sed

the a b o l l t i o n of

such

o f f i c e s

by

rhe Corrmt tee of

Management.

.-.

_-1

Ohvlous ly ,

the

flrst

s t e p 1s t o d e t e r i x n e t h e

p rope r cons t ruc t lon

of

sub-ru le

55 ( d ) (1)

by examlnatlon

o i

I ts

t e r n s I n p a r t l c u l a r ,

and

t h e r u l e s

a s a

whole

The number

of

o r g a n l s e r s

t o be elected a t each

e l e c t l o n is determined by

t h e Commltree of

Management

ior

the various

branches.

I n r e l a t l o n

t o

t h e

R e v c a s t l e

end

i . lorthern

Grancii

,

the

relevant

p a t of

r u l e 4 9

p r o v ~ d c s

t h a t t h e

Cnnlnlttee

s h a l l c o n s ]

st of

"President,

2

Vlce

P r e s l d e n t s , S e c r c t a r y ,

f i s s l s t a n t S e c r e t a r y ,

TrCaSurer,

O r g m l s e r s and

7 Represen ta t lvcs . "

By

r u l e 53,

. .

. / 5

5

t h e c l e c t l o ! l

of

t h o s e

Col~mlttec

lnei~bers 1s

conducted

by r? secret postal ballot of a l l t h e members of the

i~~-c?nch,

and,

by xule 54,

czlsual

vacancies occur lng are

t o be

€ l l l e d I n t h e

sane m a m e r ,

1.e.

by

secret p o s t a l

-.

1 3 e l l o ~

of

t h e members.

T:e

r e g a r d

t h e s e

p r o v l s l o n s

as

s i g n l f l c a n t

I n t h e i n t c r p r e t a r l o n

of

r u l e 5 5

(6)

(l),

ccnlplylng i r i t 1 . l

s e c t i o n s

1 3 3 and

133AA

05

t h e A c t and

as

e s h l ; x t ~ n g a n a t t l t u d e c o n s i s t e n t i l l t h o n e

of

t h e

-

o b l e c t s i n t r o d u c e d

iaro

t h e A c t by

t h e

1973 amendment

t o t h e act , namely

S.2 ( 5 )

:-

" t o e n c o u r a g e t h e

democratlc

c o n t r o l

of

o r g a n l z a t i o n s

so

r e g l s t e r e d a n d t h e

full

p a r t i c l p a t l c n

by

pembers

of

such an

o r g a n l z a t l o n

In

t h e

a f f a l r s

of

t h e

Organizat lon. "

.-.

$

- 1

.

Rule

55,

in q e n e r a l ,

sets o u t t h e d u t i e s

of

he

Eranch

Pres ldent ,

Vice

P r e s l d e n t , S e c r e t a r y , O r g a n i s e r s ,

T r u s t e e s

and

B s s l s r a n t

S e c r e t a r y .

13:'

s u b - r u l e

55 ( a ) ( 5 ) :-

"Each

Branch

s h a l l h a v e t h e

right

t o

employ

the Branch Pres ldenh

111 a fu l l -

tlme

o r s a n l s l n g

capclcl t y .

"

The

use oE

t h e word

"employ"

1s s l g n l f l c a n t I x c a u s c

It

r e a p p e z r s I n r e l a t l o n

t o the

organisers

I n sub - ru l e

55 ( 6 ) (1).

It-.

1 s a word In common usage

and

there

a p m a r s

to be

noth inr j

In

t!le

c o n t e x t of

lts

u s e I n t h e

sul>-rule t o moc!lfy

1Ls

o r d l n a r y meanl? lq .

That

ru le

55

1s he?ded

"Dutles

of

Offlccl-5' '

docs

n o t n c c c . t ~ a : ~ l y

mczn t h a t fill t l x k oppccll-=, 'i!1cxeuncler IS concerned

v l t l l the

officer's

d u t l e s a s

a

r e p r e s e n t a t l v e

of

the mclnbers on t h e Committee of ilanagernent.

I n t h e

crlsc

of

the p r e s l d e n t ,

hls

p o s s l b l e employment

a s

an orqrlnlser

would not add

K O ,

nor has anythlng

to

do r : l t h

the

d u t l e s c a s t upon

hlm

I n h l s p r e s l d e n t l a l

ro le .

IE he were employed a s a n

o r g a n l s e r ,

h i s

d u t i e s

rrould

be

r e g u l a t e d

by

h l s c o n t r a c t

of

e n p l q m e n t

and

f a l l u r e -CO

perform

s a t l s f a c t o r l l y as

an orqanlscr

- r e s u l t l n c ; i n d i s m i s s a l

for

breach

of

c o n t r a c t ,

would

n o t e i fec t he was elected.

h i s p o s i t l o n

as

p r e s l d e n t

for

~ i h l c h office

I t appears

t o us t h a t the

t r u e l n t e n t l o n of

t h e

ru les

1 s

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

is

both

a

.

-.

r e p r e s e n t a t i v e

of

t h e members

on

the Committee

of

Xanage~:,ent

and,

i n a d d i t l o n t h e r e t o ,

may

be

employed

by

the

Commttee

unde r a

c o n t r a c t of

e~;ployment.

The

s u l ~ r u l e c o n t e m p ' l a ~ e s t h a t ,

f o r

the

mos t pa r t ,

o r g a n i s e r s

rrho

are

elected

shall

also

b e e ~ p l o y e d a n d

their

s p e c i a l l;nor?lcdge of

unlon

a f l a l r s resulting

Krom

s u c h emplcyment c a s t s upon

them

t h e

a d d l t l o n a l

d u t l e s

to:-

' I . .

.

- a t t e n d

a l l meet lnc~s and

g l v e

~ n f o r m a t ~ o n

a n d

adv lce

when

r equ l r ed

to do

s o - . .

.'I

Ey

s u b - r u l e

55 (c l ) (5),

a

\rcel:ly

sd la l -y

1 s

p r o v l d e d f o r ,

a s 1 s the !nanner of L'ixlng that salary.

. . / l

I

7

,

1:eturnlng

t o sub-ru1.e

5 5 ( d ) ( l ) ,

the Con-mlttee's

pol'er 1 s to 'I.. .

.?eterrnme

t h e nu1nl:cr

of

O r g a n x e r s

_ .

th~r

I;I;LV

be emp1-oyeci. - . .and,

I n t h e e v e n t

of

C h e

nccesslty

CO

mcrec7se

o r d e c r e a s e

t h e

nurm:bel.-,

Setl~een

e l ec t ] ons ,

the Comnxttee. .

.

. shill have iull po::er

t o

zct" .

3avlng

regai-d

t o r h e

f a c t

t h a t o r g a n l s e r s

I n

t k e x

r e p r e s e n t a t i v e c z p a c i t y , a z e

elected,

and

cac,uol

vacmcLss

t o t h e n nu~n:~ei-s

are

also

r e q u i r e d

t o b e e l e c t e d ,

we

have

formed

t5e

view

t h a t t h e

Con ; ;u t t ee ' s pove r s

t o dec rease ,

1 s

t o d e c r e a s e

the

nulnber

eir2loyed

and

n o t t o d e c r e a s e

t h e

number

of

orc ;zn lsers

i n t h e l r

r e p r e s e n t a t l v e

f u n c t l o n .

I n

any

event , even

LE

what

the

re sponZen t s con tend fo r

were

c o r r e c t , t h a t

t!le

s u b - r u l e a u t h o r l s e s

t!le

a b o l i t l o n

.

.. .

- .

. -

of

o f f l c e s ,

It

does not go

so

f a r a s

t o a l lov

t h e

Comx.Ctee

t o s e l e c t , on

whatever

basxs,

l n d l v l c l u a l

o r c , a n l s e r s

t o

h a v e

t h e u

o f f l c e

t e r m m a t e d .

The

sub-

r u l e , rus t be

looked

a t I n

a

vrlder

f a c t u a l c o n t e x t t h a n

e::lsts

m

t h l s p a r t l c u l z r

czse,

and

p r o b a b l e

f a c t u a l

s l t u r i t l o n s

t a k e n

l n t o

a c c o u n t .

I n

the

c ~ . r c u n s t a n c e s

of

t h i s c a s e ,

rrhe

iour

o r g a n l s e r s vere

e l e c t e d

uncpposed.

I-hd

t h e r e been

a

contestcd

e l e c t l o n ,

t ! lere

??ocIt!

norrnall:7

he a d l f f c r e n c e 111 the number- of

vote:,

~ 1 s t

f o r

e a c h

orqanl*;ex.

TL would appear t o f1.y

u n t h c

facc of the rules rclat1ncj t o elections lf lt \>crc

the

posli-lun r h a t , under

t!>e sul~-rul?,

t h e

C o m n ttw

could

. . ./D

a b o l ~ s h

thc

o f f i c e s h e l d

by

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

t h e l a r g e s t number

of

v o t e s .

All

t h e s e

f a c t o r s

convlnce

u s

t h a t ,

on

a

p r o p e r I n t e r p r e t a t i o n ,

it

1c;

..

t h e evploynent

of

o r g m i s e r s u n d e r

a

c o n t r a c t o f

employment vhlch

t h e Coinrnlttee may

t e rmmace

m

o r d e r

t o d e c r e a s e t h e

number

employed, which

1s the obJect

of

t he

sub - ru l e .

SimllarP],

the number or' persons who

m e employed as organisers mal7 be i nc reased .

:'hen

:;the

n a t u r e of

t h e I n d u s t r y ,

w l t h its dependence

on

seasonal

conditions

ior

an lma l p roduc t ion ,

f l uc tua t lons

i n

dcifland

f rom expor t marke ts and o ther fac tors

a r e

t aken

In to

accoun t ,

t he

sub - ru l e ,

so

cons t rued ,

1s

bo th

necessa ry

2nd

s e n s i b l e .

We

shou ld

add

t ha t

the

c o n s t r u c t i o n o f t h e

r u l e we

h a v e h e l d t o

be

c o r r e c t was

- .

_-.

I

<

apparentPJ noz argued before

E v a t t ,

J.

/ Is

t o t h e c o n t e n t l o n

of

t h e a p p e l l a n t t h a ~ the

s u b - r u l e

1 s v o ~ d

as be ing con t r a ry

t o 5.140

of

t h e

Act, on

the construc?ion

v?e

h a v e a r r l v e d a t , t h e r e

i s

110

p o s s l l n l i t y

of

rhe

s u b - r u l e

o f f e n d l n g t h a t s e c t x o n .

Eaving

so cons t rued

the

rule,

t h e n e s t s t e p

1s

to cons lde r what

orders

should

IJ?

made.

The resolution

c o n c a l n s ~ n t e r n s l e v l c l e n c c t h a t

the

Committee

reqarcied

the p~-obIcm

they

iaccd

as

calling;

f o r a

l ~ u s l n e s s

d e c l s l o n .

The

c r l t c x m

f o r

d ~ s ; n l s s a l s

s e l e c t e d

was

. .

./9

:.(l) ?he appeal is upheld.

( 2 )

The

r e s p o n d e n t s ,

o the r

than

the regls'iered

o rgen l sa t ion ,

and

each of chem, a r e

ordered t o observe t h e r u l e s of

che

o r s a n i s a c l o n .by

t r e a t l n g

the appel lent

and

Mr. C. Tobin a s xernbers of t h e Coiirnlttee

of i,!enayeinent

f o r the ba lance of

t h e n

tern of

o f f l c e .

Details
AGLC
Roughan, P.J. v Coulson, M [1982] FCA 283
Case
[1982] FCA 283
Decision Date

CaseChat Overview and Summary

In the case of Roughan v Coulson, the appellant, Patrick John Roughan, sought orders pursuant to sections 140 and 141 of the Conciliation and Arbitration Act 1904 (Cth) after being dismissed from his position as an organiser by the Newcastle and Northern Branch of the Australian Meat Industry Employees' Union. The branch's Committee of Management had passed a resolution to reduce the staff by two officials due to a reduction in membership and substantial losses. The resolution specified that Mr. Roughan and Mr. Tobin were the organisers to be terminated. The respondents argued that the resolution amounted to the abolition of offices rather than a removal from office within the meaning of section 133 of the Act, and that the rules, particularly sub-rule 55(d)(1), authorised the abolition of such offices by the Committee of Management.

The court held that the true intention of the rules was that the elected organiser was both a representative of the members on the Committee of Management and could also be employed by the Committee under a contract of employment. The Committee's power was to determine the number of organisers who may be employed and, in the event of the necessity to increase or decrease the number, the Committee shall have full power to act. However, even if the respondents' contention was correct, that the sub-rule authorised the abolition of offices, it did not go so far as to allow the Committee to select, on whatever basis, individual organisers to have their office terminated. The sub-rule must be looked at in a wider factual context than exists in this particular case, and probable factual situations taken into account.

The court found that the employment of organisers under a contract of employment was what the Committee may terminate in order to decrease the number employed, which is the object of the sub-rule. The court also found that the construction of the rule it had arrived at was apparently not argued before Evatt J. The court then considered what orders should be made, holding that the resolution contained terms which evidenced that the Committee regarded the problem they faced as calling for a business decision. The criterion for dismissals selected was based on seniority. The appeal was upheld, and the respondents, other than the registered organisation, and each of them, were ordered to observe the rules of the organisation by treating the appellant and Mr. Tobin as members of the Committee of Management for the balance of their term of office.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

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