Roughan, P.J. v Coulson, M

[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 .