Roughan, P.J. v Coulson, R

[1982] FCA 151

- CATCHWORDS

Industrial Law - registered organization - resolution of Branch

reducing number of organlsers	- abolition of rather than dlsmlssal
from office - relevant rule therefore not contrary to Act	-
resolution not contrary	to rule - rule not oppresslve, unreasonable

or unjust. - Conciliation __ and Arbitration A S 1904 (Cwth) ss.l33(1)(f),

140(1) (a) and (c) and s.141.

Patrick John Roughan -v- Rex Coulson & Ors and The Australaslan Meat

Industry Employees --- Unlon

(N.S.W. N0.32 Of 1982)

EVATT J.

Sydney

27 July 1982

IN THE FEDERAL COURT OF AUSTRALIA )

)

NEW SOUTH WALES DISTRICT REGISTRY	j	N.S.W. No.32	of 1982
1

INDUSTRIAL DIVISION	--	l
IN THE MATTER of an appllcatlon under ss.140 and 141 of the Conciliatlon and Arbitratlon Act 1904
BETWEEN: PATRICK JOHN ROUGHAN __

Claimant

Respondents

O R D E R

JUDGE MAKING ORDER:	EVATT J.
DATE OF ORDER:	27 July 1982
WHERE MADE:	SYDNEY

THE COURT ORDERS THAT:  The order nisi herem be dlscharned.

IN THE FEDERAL COURT	OF AUSTIL-ILIA
NEW SOUTH WALES DISTRJCT REGISTRY	N.S.W. No.32 of 1982
INDUSTRIAL DIVISION

IN THE MATTER of an appllcation
under ss.140 and 141 of the
Conciliatlon and Arbltration

Act 1904

BETWEEN: Patrick John Roughan

Clamant

- AND :

Joan Watson, Coral
Schofield, Lorraine
Edwaras. Graham Shaw.
Joseph Vitullo and The
Australaslan Meat

Industry Employees

- Unlon

Respondents

27 July 1962 EVATT J.

REASONS FOR JUDGMENT

This is a return of a rule to show cause granted on 10 June

1982 to Patrlck John Roughan a member of the Newcastle and Northern Eranch (the Branch) of the Australasian Meat Industry Employees' Union (the or~anization), an orgnnlzation of employees reglstered under the Conclliatlon and Arbltration Act 1904(the Act) calling

upon certaln personal respondents and the organlzatlon to show cause

why certain orders pursuant to s.140 and s.141 of the Act should not

.

be made.

The a p p l i c a n t was r e -e l ec t ed as one of 4 Branch organisers

i n o r a r e the members o f t h e a b o u t J u n e 1 9 E l f o r a 4 yea r term. The personal respondents

Committee of Management of the Branch.

The o r d e r s o u g h t i n the r u l e as f i l e d on 10 June 1982

inc luded orc ie rs tha t a reso lu t lon car r led by the Commlt tee of

Management of the Branch a t i t s meeting on 15-May (amended t o March

du r ing	o ra l	ev idence )	1982	pu rpor t ing	“ to	remove	Pa t r lck	John
Roughan	from t h e	o f f l c e	o f	Branch	organiser“	be	dec la red	n u l l and

vold and tha t the personal respondents per fc rm ana observe the r u l e s

o f t he o rgan lza t ion by t r ea t lng and r ecogn i s lng the app l l can t a s an

e lec ted o rganiser and a l lowing h i m t o pe r fo rm the du t l e s o f such

o r g a n l s e r or a l t e r n a t i v e l y a n o r d e r d e c l a r i n g t h a t r.55(d)(l) of t h e

r u l e s	of	t h e	o r g a n l z a t l o n	c o n t r a v e n e s	e i t h e r	s . 1 4 0 ( 1 ) ( 2 )	or
s . l 4 0 ( l ) ( c ) o f t h e	Act	I n	so	f a r a s t h e s a l d	r u l e permits	the	Branch

Committee of Management t o remove from o f f i c e a n o r g a n l s e r e l e c t e d

by the membershlp cf the Branch.

R u l e 5 5 ( d ) ( l ) of the r u l e s o f t h e o r g a n i z a t l o n r e a d s :

“55. Dut les of Officers

(a) Branch	Presldent	.
. . . . . . . . .
(6) Duty	of	Organisers .

(1) The Commlttee of Management may a t any

tune de te rmine the number of O r g a n i s e r s t h a t

may bc	employed	by	the	Branch,	and,	i n the
e v e n t	of	t h e	n e c e s s l t y	t o	l n c r e a s e	o r

d e c r e a s e t h e number b e t w e e n e l e c t l o n s , t h e

Committee of	Elanagement	s h a l l h a v e	f u l l power
t o a c t .

( 2 ) t o ( 5 ) ........ .

The minutes of the Special Meet ing of the Commlt tee of

Management of t h e Branch held on 15 March 1982 show t h a t a f t e r

l e n g t h y d i s c u s s i o n t h e C o m m i t t e e c a r r l e d t h e f o l l o w l n g

r e s o l u t l o n , 14 for and 2 a g a i n s t .

“ T h a t because of the reduct lon in membershlp which is

approximately 30% and s u b s t a n t l a l l o s s e s f o r t h e past

18 months, $51,452.00, t h a t i s , t h r e e ( 3 ) h a l f y e a r s t o t a l l i n g

the s t a f f be reduced by two ( 2 ) O f f i c i a l s

a s per au thor i ty ves ted In the Commlt tee of Management

as p rovided by r .55 - Dut ies of Of f i ce r s ub -c l ause

D(1) .(sic). S u c h t e r m i n a t l o n s h a l l a p p l y l n

cons ide ra t ion of s e n l o r l t y tha t ls, M r B. Tcbin and M r

P . Rocghan a r e t h e o r g a n l s e r s t o b e t e r m i n a t e d . “

R u l e 11 provides for the government of the o r g a n l z a t l o n

by	a	Federa l Counci l cons ls t ing	of	a	c e r t a l n	number	o f d e l e g a t e s
t o g e t h e r	w i t h	the	Branch	Secretary	from	ncmlnated	branches,

including the Newcastle and Northern Branch which covers an area

w i t h l n New South Wales as provlded for i n r.12 (see a l s o r . 2 6 ) .

Rule 49 p rov ides fo r Branch gove rnmen t . Tha t ru l e p rov ldes tha t

each branch sha l l have a P res iden t , V lce -Pres iden t , Sec re t a ry ,

T reasu re r and no t l e s s t han two Trus t ees who s h a l l , t o g e t h e r

wi th a nominated number o f commltteemen i n r e s p e c t of each

p a r t i c u l a r b r a n c h , constitute a Committee of Management. The

r u l e then provides :

“Each Brznch may h a v e a s a d d i t i o n a l o f f l c e r s a n

o r g a n i s e r o r o r g a n l s e r s a n d A s s i s t a n t S e c r e t a r y who

when e l e c t e d , s h a l l b e members o f t h e Commlttee o f

Management.
Vic tor ian Branch

. . . . . . . . .

Newcastle and Northern Branch

The Committee of Management of the Newcastle and

Northern Branch shall consist of the Presldent, !Rio

Vice-Presidents, Secretary, Asslstant Secretary,

Treasurer, Organisers and seven representatives elected

from the members in the area covered by . . . . . . . . . ' l

The rule further provldes for a Branch Executive and the

number of members required for a quorum for both the Commlttee

of Management and the Executlve. It 1s noted that the rule

further provldes that in respect of the Newcastle and Northern Branch fifty (50) flnanclal members of the Branch may havs a Special Meeting called for the purpose of reviewing any matter decided by the Commlttee of Management upon wrltten request to

the Secretary and	that r.51 provides (inter alia) that all
decisions of the Commlttee of Management shall be blnding	on the

members unless negated or amended by the ma-~orlty of members

present at a meeting specially summcned	to deal wlth the matter
under consideration.

In 1976 it had been decided that there should be 4

full-tlne organlsers employed by the Branch. Durlng this perlod

there was also a Branch full-time Asslstant Secretary. This

latter office has been In exlstence since at least 1971.

Rule 5 3 of the rules deals wlth Branch electlons.

Included 1s a sub-rule (1) headed "Nomination and Electlon of

Officers" which provides that officers includlng organisers

.... . - .

s h a l l	b e	l e c t e d	b y	s e c r e t	p o s t a l	b a l l o t	( s u b - r . ( 2 ) ( 1 ) )
conducted	every	4	years .	Rule	54	F r o v l d e s	t h a t c a s u a l v a c a n c i e s

i n t h e	Branch	o f f i c e s ( i n c l u d l n g t h a t o f o r g a n i s e r ) b e f l l l e d I n
t h e same manner provided for in	r.53.	It is noted tha t the r u l e s

of the appolntment of o rgan iza t lon do no t make expres s p rov l s lon for t h e

a temporary Branch organlser for any purpose.

C l e a r l y t h e n , a s a t March 1982, the 4 p o s l t l o n s o f

Branch Organiser in the Kewcastle and Northern Branch of t h e

o rgan iza t lon	were	"o f f i ces"	w i th ln	the	meaning	of	the A c t (see
d e f i n l t l o n	s e c t l o n ,	s . 4 ( 1 )	-	" O f f l c e " ,	p a r a . ( a )	n d	( d ) ) a n d

organisers were Branch Off icers and members o f the Branch

Committee o f Menagement.

The r u l e t o show cause he re ln was made r e tu rnab le on

Fr iday , 18 June 1982 f o r d i r e c t l c n s a n d f o r h e a r l n g of an

a p p l i c a t l o n b y t h e a p p l l c a n t f o r i n t e r l m orders under s .141(2)

and/or S . l40 (10) .

Mr Haylen of c o u n s e l appeared on behalf of N r Roughan,

t h e a p p l i c a n t , and M r Kenzle of counse l appea red fo r t he

personal respondents whilst M r Schof i e ld , t he Fede ra l P re s lden t

o f	t he	o rgan iza t lon ,	appea red	fo r	and	on	beha l f	o f	t ha t	body .
I n	a c l d i t l o n	t o	t h e	a f f l d a v l t	o f	the	a p p l l c a n t	f i l e d	i n	s u p p o r t
o f	t h e	r u l e	t o	show	c a u s e	a n	a f f l d a v l t	b y	t h e	f l r s t - n a m e d

respondent , Mr Coulson , the s c re ta ry of the Newcastle and

Northern Branch of the o rgan iza t lon , sworn on 18 June 1982, was

f i l e d i n C o u r t . O r a l evidence w a s l e d from both Mr Roughan and

M r Coulson.

Af te r l engthy submiss lons by counse l it w a s a g r e e d t h a t ,

s u b j e c t	t o	t h e	C o u r t ' s	d l r e c t i o n ,	t h e	matter	s h o u l d	b e	d e a l t
w i t h	f i n a l l y on	the	e v l d e n c e	t h e n	b e f o r e	t h e	C o u r t .	The	Court

acceded t o t h i s c o u r s e o n l y on c o n d i t i o n t h a t , o n c o n s l d e r a t l o n

of the r . 5 5 ( d ) ( l ) of mat te r over the weekend, the Cour t was o f t h e v i e w t h a t

t h e r u l e s of t h e o r g a n l z a t i o n was n o t i n v a l i d , as

had been con tended by t he app l i can t a s h i s a l t e rna t ive a t t ack

upon t h e r e s o l u t i o n r e f e r r e d t o i n t h e r u l e t o show cause .

A f t e r c o n s i d e r a t i o n of the ma t t e r ove r t he weekend t h e

Cour t , then be ing of t h e v l e w t h a t o n t h e e v i d e n c e b e f o r e it

r . 5 5 ( d ) ( i )	d l d	n o t	c o n t r a v e n e	e i t h e r	s . l 4 0 ( l ) ( a )	o	r	s . l 4 0 ( l ) ( c )
of the Act,	on	2 1	June	1 9 8 2 annouoced	kha t	he	appl icant	had

f a i l e d t o make o u t a case on whlch t h e C o u r t could make a b s c l u t e

a n y o f a c c o r d i n g l y t h e o r d e r s s o u g h t i n t h e r u l e t o show cause and

d l s c h a r g e d t h e r u l e t o show cause. Owing t o i t s

conunltments t h e C o u r t t h e n s t a t e d t h a t it would p u b l l s h f u l l

r e a s o n s f o r I ts judgment a t a l a t e r d a t e .

The t h e Branch was approxlmately evidence 1 s t h a t s i n c e 1 9 7 1 when t h e membership of

6,300 such membershlp steadlly

increased	over	the years	u n t l l 1977 when	it reached	i t s peak	of
8,700 members.	From 1971 t o 1973	there	were	4	pald	Branch

o f f i c i a l s	v i z .	t h e	S e c r e t a r y ,	t h e	A s s l s t a n t	S e c r e t a r y	a n d	2
o r g a n i s e r s .	Between	1974	and	1975	t h e number	o f	o rghn i se r s	was
i n c r e a s e d	t o	3 whilst from	1976	through	t o 1982	t he	number	o f

o r g a n i s e r s was 4 .

Slnce 1977 the membershlp has decl ined, the approxmate

f lgures be lng 1978 - 8,600: 1979 - 8,100; 1980 - 7,100 and

1981 - 6,100.

Slnce 1980 there have been c losures of meatworks and

o t h e r p l a c e s of employment of members w i t h a c o n s e q u e n t l a l l o s s

of membership a t t h e f o l l o w i n g p l a c e s : t h e m e a t w o r k s a t

Wallangarra (membership 4 0 0 ) . T e n t e r f i e l d ( 2 0 0 ) . Guyra (150) and

Moree (150); Boning Rooms - Andersons, Newcastle (60) and a t

Gunnedah	( 3 0 ) . R .	Tange,	Newcastle	(30)	and	McGregors,	Newcastle
( 3 0 ) .

I n a d d i t l o n t h e r e h a v e b e e n p a r t i a l c l o s u r e s a t c e r t a i n

meatworks a t Wingham and Newcastle causlng a drop in membersh ip

a t those two p l a c e s from 500 t o approxlmately 1 1 5 .

The a u d l t r e t u r n s o f t h e b o o k s of accounts of the Branch

f o r t h e t h r e e h a l f y e a r l y p e r i o d s e n d i n g December 1980, June

1981	and December 1981	were	be fo re	t he	Cour t .	Overa l l	l o s ses	i n
income	for	those	per	lods	were	respcc t ive ly	$27 ,349 .42 ,	$3028.26

and $21,075.67.

By t h e l a t t e r p a r t of 1980 a general downturn In the meat

i n d u s t r y h a d r e s u l t e d i n s e v e r e unemployment i n t h e i n d u s t r y .

A t t h a t time M r Coulson w a s of t h e v i e w t h a t the s i t u a t l o n would

c o n t i n u e	t o	d e t e r l o r a t e .	I n	h i s	vlew	a	d l r e c t	r e s u l t	o f	t h e
dcwnturn	in	the	i n d u s t r y	would	be	a	s e r l o u s	d e c r e a s e	i n	t h e

membership of the un ion and tha t it was ev lden t no t on ly

t o h l m s e l f b u t t o o t h e r o f f l c i a l s o f t h e Branch and t h e

o rgan iza t lon i t se l f t h a t t h e d e c r e a s e i n Income r e s u l t i n g f r o m

such drop in membersh ip toge ther wi th subs tan t ia l increases in

overhead cos ts due genera l ly t o l n f l a t l o n a r y f a c t o r s would l ead

t o s e r i o u s f l n a n c l a l p r o t l e m s f o r t h e B r z n c h ~f r e m e d l a l

measures were not adopted.

The evidence shows t h a t t h e problem was d l scussed bo th

formally and informally b y t h e o f f i c i a l s of t h e Branch lncluding

the app l i can t t h roughou t the end of 1980 and e a r l y 1981 with a

view	t o a r r i v l n g	a t a	possible	s o l u t i o n	t o	t h e	p r o b l e m .	I t	had
been	genera l ly	agreed	tha t	t h e	Committee	of	Management	o f	t h e
Branch	had	t h ree	a l t e rna t lves	-	f i r s t ,	t o	increase	membershlp
f ees :	eccnd ly	t o	reduce	overheads	or	t h l r d l y	t o	adopt	a

c o m b i n a t i o n of t h e t h e f i r s t a n d s e c o n d a l t e r n a t l v e s .

O r l g l n a l l y	it	was	c o n s i d e r e d	t h a t	it	was	n o t	p r a c t i c a l	t o
i n c r e a s e	m e m b e r s h i p	f e e s	l a r g e l y	d u e	t o	t h e	s t a t e	o f	t h e

depressed Indus t ry w i t h the consequent ia l d imlnished capac l ty of

members a b s o r b t o s u b s t a n t l a l f e e i n c r e a s e s . However t h e

f l n a n c l a l	s i t u a t l o n	w o r s e n e d	d u r i n g	t h e	l a t t e r	p a r t	o f	1980	t o
an	ex ten t	where	there	w a s	n o	a l t e r n a t i v e	b u t	t o	i n c r e a s e

membership f ees . Ha l f yea r ly f ees were acco rd ing ly i nc reased

from $20 t o $28, an increase of 40%, e f f e c t i v e 1 July 1981.

Desp i t e such i nc rease In con t r lbu t lons M r Coulson formed

t h e v i e w c l o s u r e s e a r l y i n 1 9 8 1 t h a t o w i n g t o the c l o s u r e s o r p a r t l a l

of the va r ious works in the a rea and the consequen t l a l

loss of members and t h e i r c o n t r i b u t i o n s , a r e d u c t l o n i n t h e

n m b e r o f o r g a n i s e r s h a d t o be c o n s l d e r e d i n t h a i n t e r e s t of t h e

membersh ip a s a w h o l e . D u r i n g d l s c u s s l o n s c o n c e r n l n g s u c h

r c d u c t i c n o f o r g a n l s e r s it had been agreed by a l l o f f i c i a l s

i n c l u d l n g t h e a p p l i c a n t t h a t i f such reduct ion was t o b e made It

should be based cn senior i ty .

C o n s e q u e n t l y M r Coulson a s s e c r e t a r y o f t h e B r a n c h

reported	formally	on	the	sub-ject	t o t h e	Committee	of	Manzgement
at I t s meeting	of	23 February	1981.	Port ion	of	the	minutes	of

tha t mee t lng were be fo re the Cour t . Inc luded in such r epor t was

a recommendation t h a t I f a d e c l s i o n t o r educe t he number o f

o r g a n l s e r s was t o b e made it should be made pr lor t o t h e c a l l l n g

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

become v a c a n t i n o r about June 1981. The minutes show t h a t ‘‘a

l e n g t h y d l s c u s s l o n t h e n t o o k p l a c e i n a n a t t e m p t t o s o l v e ( t h e )

problem”. The minutes then read:

“Moved. P . Roughan, seconded M . B e n n e t t t h a t n o

d e c i s l o n be made for t h e t ime being on any reductlon of

o f f l c i a l s and if It i s to be r ev lewed , t he r ev iew t o

t a k e p l a c e a t h l s t l m e n e x t y e a r , t h a t i s , February

A few	of	the	Committee	members	s p o k e	a g a i n s t	t h i s
motion.	A	v o t e was	t aken -	e i g h t	(S) f o r ,	f l v e	( 5 )

aga ins t and t w o ( 2 ) abstained and the motion was

c a r r i e d . 'I

By e a r l y 1982 M r Coulson had formed the vlew that the

f i n a n c l a l p o s i t i o n of the Branch was s u c h t h a t f u r t h e r e m e d i a l

ac t ion had c e r t a i n o f f i c l a l s a p p r o a c h become impera t lve . A formal dec is ion was made t h a t

the Deputy I n d u s t r i a l R e g l s t r a r i n Sydney

s e e k l n g	a d v l c e	a s	t o	t h e	method	of	r e m e d y l n g	t h e	s i t u z t i o n .
O b j e c t i o n	w a s	r a i s e d	t o	e v l d e n c e	b e i n g	l v e n	a s	t o	c e r t a l n
recommenZatlons	whlch	a6	been	given	by	s u c h	Depu ty	Reg i s t r a r	t o

t h o s e o f f l c i e l s . The Court a l lowed such evldence to be led as going

t o t h e q u e s t i o n of the bona f ldes o f the d e c i s l o n f l n a l l y t a k e n b y

t h e Committee of Management.

On 3 March 1982 M r Coulson as Secre ta ry o f the Branch

t o g e t h e r	w i t h	t h e	B r a n c h	P r e s i d e n t	a n d	t he	B r a n c h	A s s ~ s t a n t
Sec re t a ry	confe r r ed	w i th	M r	Cougar,	a	Deputy	I n d u s t r i a l	R e g i s t r a r

of t h e A r b i t r a t l o n Commisslon, concerning the interpretat ion of

r . !55(d) ( l ) . Af te r l engthy d l scuss ion be tween the sald o f f i c i a l s of

t h e B r a n c h p o s i t l o n a n d t h e D e p u t y R e g l s t r a r c o n c e r n i n g t h e f i n a n c l a l

of the Branch and t he mdus t ry gene ra l ly t he Indus t r i a l

R e g l s t r a r r e f e r r e d t h e B r a n c h o f f i c l a l s t o t h e d e c l s l o n i n S a i n t -v-

Austrel ian Postal and Telecommunicat ions U n i o n , 30 FLR 385. After

t h i s m e e t l n g w i t h t h e Deputy I n d u s t r l a l R e g i s t r a r , Mr Coulson on 15

March 1982 had a t e l t p h o n e c o n v e r s a t l o n w i t h t4r McEIahon t h e

I n d u s t r l a l	R e g l s t r a r	I n	M e l b o u r n e .	A g a l n	t h e	C o u r t	a l l o w e d
evldence	of	certain	recommendations	suggested	by	the	IndusCr la l

R e g i s t r a r t o Mr Coulson t o b e l e d a s g o i n g t o t h e q u e s t i o n o f t h e

bona f i d e s of t h e members of t h e Committee of Management.

C o n s e q u e n t l y M r Coulson a s S e c r e t a r y r e p o r t e d t o t h e

meet ing of the Committee of Management on 15 March 1982 concernlng

t h e m a t t e r o f f l c l a l s and recommended t h a t t h e s t a f f b e r d u c e d b y t w o

namely, two o r g a n l s e r s a n d t h a t t h e two o r g a n i s e r s who

were the ones t o go were t o be determined by s e n l o r i t y . Mr B. Tobin

and t he app l l can t were t he o rgan l se r s who f e l l i n t o t h l s c a t e g o r y .

The minutes show tha t a l eng thy d l scuss ion ensued r ega rd lng t he

f lnanc la l pos i t i on o f t he Branch gene ra l ly , t he Inc reas ing o f f ee s

a n d	q u e s t l o n s	r e d u n d a n c y	f	p a y m e n t ,	s e v e r e n c e	p a y	a n d
superannuat lon .	Dur ing	these	d i scuss lons	M r	Roughan	informed	the

Corrmlttee	t h a t h e	was	p r e p a r e d	t o a c c e p t	s e n i o r i t y a s	t h e b a s l s o f
determlnlng who was t o go	providing	what	was	happening	was	l e g a l .

Af t e r t he d l scuss lons t he Cor rml t t ee zdop ted t he mo t ion r e fe r r ed t o

e a r l i e r	h e r e i n ,	t h e	a p p l i c a n t	v o t i n g	a g a i n s t	t h e	m o t l o n .	Mr	Tobin,
t h e a p p l l c a n t	and	a	Miss	T a l l a s	a	s t a f f member	who	w a s	t a k i n g n o t e s

were then requested t o l e a v e t h e room and the m e e t i n g t h e r e a f t e r

d l s c u s s e d t h e p o s i t i o n o f t h e c l e r i c a l s t a f f g e n e r a l l y and It was

r e s o l v e d t h a t t h e o f f l c e s t a f f be reduced by 30% and t h a t t h e

Sec re t a ry	be	empowered	t o c a r r y	o u t	tha t	d e c l s i o n .	T h e r e a f t e r	t h e
C o m r n i t t e c	d i s c u s s e d	i n	d e t a i l	t h e	q u e s t l o n	of	redundancy	and

seve rance pay e t c . be fo re r e so lv lng tha t M r Tobln and t h e a p p l i c a n t

be paid moneys a t c e r t a l n s t a t e d r a t e s f o r p a y I n l l e u o f n o t i c e ,

s eve rance pay , r edundancy pay , l ong s e rv l ce l eave and t he r l gh t t o

take over the superannuat lon pol icy which the Union had e f f e c t e d i n

r e s p e c t of e a c h o f t h e m t o g e t h e r w l t h t h e r l g h t t o p u r c h a s e a t a

nomlnated	va	lue	the	respec t lve	motor	vehicle	each	had	been	using	In
h i s job.

The a p p l l c a n t a t t e n d e d a t t h e B r a n c h o f f i c e the d a y

following the meet ing . He w a s t h e n t o l d b y M r Coulson t h a t h e was

t e rmmated	as	an	o rganlser	for thwl th	and	tha t	the	Commit tee	had
r e s o l v e d	t h a t	h e	was	t o be	g iven a	week's	wages	i n l i e u o f	n o t l c e

toge the r w l th the o ther payments and r igh ts ment loned ear l le r .

App l l can t ' s submlss ions as t o c o n s t r u c t i o n of r . 5 5 ( d ) (11

It was s u b m i t t e d t h a t t h e e f f e c t of t h e r e l e v a n t r e s o l u t l o n

was t h a t t h e applicant had been removed from t h e o f f i c e t o w h l c h h e

had bcen elected. If t h e power to adop t such a r e s o l u t i o n was t o b e

found i n r . 5 5 ( d ) ( l ) as t h e r e s o l u t l o n I t s e l f s t e t e d a n d as was

c la i roed in the p roceeding by the respondents t o b e t h e c a s e , t h e n

t h a t r u l e made provis ions whlch, it was s a i d , w e r e c l e a r l y c o n t r a r y

t o s . l 3 3 ( l ) ( f ) a n d c o n s e q u e n t l y s . l 4 0 ( l ) ( a ) of the Ac t .

S e c t i o n 1 3 3 ( l ) ( f ) r e a d s :

" 1 3 3 ( 1 )	I n	a d d l t i o n	t o	t h e	c o n d i t l o n s	r e f e r r c d	t o	i n
sub-sect lon	( 2 )	o f	s e c t i o n	1 3 2 ,	t h e	c o n d l t l o n s	t o	be

comFl l ed wl th by a s soc ia t ions app ly lng fo r r eg l s t r a t ion

a s o r g a n l z a t i o n s a n d b y o r g a n i z a t l o n s l n c l u d e a

c o n d i t l o n t h L t t h e r u l e s of t h e a s s o c i a t i o n o r

o rgan iza t lons -

(f) sha l l no t p rov lc l e fo r t he d i smis sa l from o f f i c c

of a p e r s o n e l e c t e d t o a n o f f i c e w i t h l n t h e

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

been found g u i l t y i n a c c o r d a n c e w i t h t h e

r u l e s o f t h e a s s o c l a t l o n o r c r g a n l z a t i o n , o f

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

a s s o c l a t i o n o r o r g a n l z a t i o n , a s u b s t a n t l a l

b r e a c h o f t h e r u l e s o f t h e a s s o c l a t l o n or

o r g a n i z a t i o n o r gross misbehaviour or gross

neg lec t o f du ty or h a s c e a s e d , a c c o r d i n g t o

t h e r u l e s o f t h e a s s o c l a t l o n o r o r g a n l z a t i o n .

t o be e l i g l b l e t o h o l d t h e o f f i c e . "

It w a s s u b m i t t e d t h a t r u l e s of o rgan lza t ions hou ld , If

poss ib l e ,	be	cons t rued	so	as	a v o i d	t o	n v a l i d i t y .	T h i s	t h e n
r e q u l r e d	t h a t	r . 5 5 ( d ) ( l )	s h o u l d ,	if p o s s i b l e ,	be	cons t rued	so	as	t o

avold any Those paragraphs of contravent ion of s . l 4 0 ( l ) ( a ) o r s . l 4 O ( l ) ( c ) o f t h e A c t .

s.140 read:

"14O(1) The r u l e s of an organlza t ion-

( a ) shall n o t be c o n t r a r y to , or f a i l t o make a

provis ion requi red by , a p rov i s lon o f th is Act , the

r e g u l a t i o n s	o r	an	award	o r	o t h e r w i s e	be	c o n t r a r y	t o	a
law.

( b ) . . . . . . . . .

(c) s h a l l n o t impose upon appl icants for membersh ip ,

o r m e m b e r s , o r g a n l z a t i o n , t h e o f c o n d l t i o n s ,

ob l . i ga t ions o r r e s t r i c t ions wh ich , hav lng r ega rd t o t h e

o b j e c t s o f t h i s A c t a n d t h e p u r p o s e s o f t h e

r e g i s t r a t l o n o f o r g a n l z a t i o n s u n d e r th is A c t , a r e

oppresslve, unreasonable or u n ~ u s t ; "

A c c o r d i n g l y M r H a y l e n s u b m l t t e d t h a t t o a v o l d s u c h

l n v a l l d l t y t h e s u b - r u l e s h o u l d b e c o n s t r u e d t o mean e i t h e r t h a t :

( i ) t h e Committee of Management may, I f n e c e s s a r y ,

v a l i d l y d e c r e a s e t h e number o f o r g a n l s e r s o n l y if such

decrease 1 s t o b e e f f e c t i v e o n a n d a f t e r t h e e x p i r a t i o n

of t h e terms o f o f f i c e o f t h o s e t h e n h o l d i o g o f f l c e as

o r g a n i s e r s o r ,

(11) a l t e r n a t l v e l y t h e Commlttee of Management may, i f

n e c e s s a r y , v a l l d l y d e c r e a s e t h e number of o r g a n l s e r s

e f f e c t l v e	Imn1edl3tely only	I f	a l l h o l d e r s o f o f f l c e s o f
--

organiser a r e r e q u l r e d t o s t e p down f rcm of f ice and

t h a t t h e r e a f t e r a n e l e c t l o n b e h e l d t o f l l l t h e r e d u c e d

number o f o f f i c e s o f o r g a n l s e r i n a c c o r e a n c e w l t h r . 5 3 .

It was submitted on b e h a l f o f t h e applicant t h a t I f t h e

f i r s t c o n s t r u c t i o n was t h e c o r r e c t o n e t h e n t h e r e s o l u t i o n i m p l i e d l y

meant t h a t t h e s o - c a l l e d t e r m i n a t l o n o f N r Tobln and M r Roughan was

t o be e f f e c t i v e a s from t h e t e r m l n a t l o n of t h e l r r e s p e c t i v e t e r m s o f

o f f ice i n J u n e 1985. On t h e other hand, i f t h e second cons t ruc t ion

w a s t h e c o r r e c t o n c t h e n t h e r e s o l u t i o n was i n v a l i d . I n e i t h e r c a s e

consequen t i a l o rde r s pu r suan t t o S . l 4 1 of t h e A c t d l r e c t e d t o t h e

personal respondents should then be made.

A l t e r n a t l v e l y . the a p p l l c a n t s u b m l t t e d t h a t if n e l t h e r of

t h e two c o n s t r u c t l o n s set o u t a b c u t was t h e p r o p e r c o n s t r u c t i o n t h e n

t h e s u b r u l e	w a s	l n v a l i d	as	b e i n g	c o n t r a r y	t o	S . l 40 (1)	( a )	a n d / o r
s . l 4 0 ( l ) ( c )	and	t h e	a p p l i c a n t	was	e n t i t l e d	t o	t h e	r e l i e f	s o u g h t

under S. 141.

On the o the r hand M r Kenzie subml t ted tha t the C o u r t would

need t o b e s a t l s f i e d t h a t t h e s u b - r u l e m a n i f e s t l y c o n t r a v e n e d

s . l 4 G ( l ) of t h e A c t b e f o r e t h e C o u r t would seek a c o n s t r u c t l o n o f

t he sub - ru l e t o save it. Accordlngly the C o u r t should f irst

c o n s i d e r w h e t h e r t h c s u b - r u l e c o n t r a v e n e d s . 1 4 0 ( 1 ) ( a ) o r

s . l 4 0 ( l ) ( c ) . T h i s , i n my vlew, i s the proper approach .

In apswer t o t h e a p p l l c a n t ' S c l a m t h a t t h e s u b - r u l e

con t r avened the p rcv i s ions of S . l40 (1) ( a ) t h e p e r s o n a l r e s p o n d e n t s

r e l l e d upon t h e d e c l s l o n o f t h e A u s t r a l i a n I n d u s t r l a l C o u r t In

( s u p r a . ) . * c a s e S a i n t ' s

T h e r e t h e r u l e s of t h a t p a r t i c u l a r o r g a n i z a t i o n h a d b e e n

amended in June 1975 t o p rov ide for t h e r e c o n s t i t u t i o n o f t h e New

South	Wales	branch	Executive	t o	c o n s i s t	o f ,	i n t e r	a l i a ,	f o u r
a s s i s t a n t	s e c r e t a r l e s	i n	l l e u	o f	o n e	a s s i s t a n t	s e c r e t a r y	a n d	f o u r

f u l l - t i m e	o r g a n i s e r s .	The	f o u r	a s s i s t a n t	s e c r e t a r i e s	w e r e	t o	b e
elected	in	September	1975	when the terms o f	o f f l c e	o f	the	then

a s s i s t a n t s e c r e t a r y a n d c e r t a i n other Branch o f f i c i a l s w e r e d u e t o

e x p i r e . The amendments a l s o p r o v l d e d t h a t t h e t h e n o c c u p a n t s o f t h e

4 o f f l c e s o f o r g a n i s e r ( a l l o f whose t e rms o f o f f i ce were t o e x p l r e

i n	1 9 7 7 )	s h a l l	c o n t i n u e ,	i f	t he	S t a t e	Branch	so	d e s l r e d ,	t o	h o l d
o f f l c e	u n t l l	t h e	d e c l a r a t l o n	o f	the	p o l l	i n	1977	un less . .	.	A l l 4

o r g a n i s e r s and t h e a s s l s t a n t s e c r e t a r y n o m i n a t e d f o r v a r i o u s o f f l c e s

i n t h e S e p t e m b e r 1 9 7 5 e l e c t i o n s , t h e a s s i s t a n t s e c r e t a r y a n d 2 of

t h e 4 c r g a n i s e r s b e l n g s u c c e s s f u l . A t meetmgs of the Branch

Execut ive immedia te ly fo l lowing the dec la ra t ion of the P o l l i n

September 1975 a d i s p u t e a r o s e r e g a r d l n g t h e a t t e n d a n c e t h e r e a t o f

t he two o rgan l se r s who had been unsuccessfu l In the b a l l o t f o r the

o f f i c e s o f a s s l s t a n t s e c r e t a r y . An o r d e r n i s l s e e k i n g o r d e r s

pursuant t o s.141 of the A c t came o n f o r h e a r i n g a t f i r s t I n s t a n c e

I n December 1976 before three Judges of t h a t C o u r t i n a c c o r d a n c e

with the Act .

.

A t p.393 Dunphy and Evat t JJ. s a l d :

"The c l a l m a n t ' s a t t a c k o n r . 3 1 ( j ) 1 s t h a t t h e f u l l - t l m e

office of b r m c h o r g a n i z e r was a b o l i s h e d a f t e r

September 1975 sublec t to a d e c l s i o n o f t h e s t a t e

b r a n c h t h a t s u c h o r g a n i z e r m l g h t c o n t i n u e i n o f f i c e

t h e r c a f t e r s u b ~ e c t t o c e r t a i n e v e n t s n o t o c c u r r l n g . I t

was a rgued t ha t t he sub - ru l e was t an tamoun t t o he

removal o r d i s m i s s a l o f a d u l y e l e c t e d o f f i c e r o f the

branch i f no such decis lon was made by the branch and

c o n s e q u e n t l y c o n t r a v e n e d t h e p r o v i s i o n s o f s . l 3 3 ( l ) ( f ) . I n o u r vlew s . l 3 3 ( l ) ( f ) does not apply where there has

been a v a l i d a b o l l t i o n o f a n o f f i c e d u r i n g t h e c u r r e n c y

of t h e term o f t h a t o f f i c e . C l e a r l y t h e s u b s e c t i o n i s

concerned	with	a	d i s m l s s a l	or	removal	from	an	o f f i c e
t h a t	i s	t o	c o n t i n u e	a f t e r	s u c h	d l s m l s s a l	o r	e m o v a l .

There	i s	a	g r e a t	d i f f e r e n c e	b e t w e e n	a b o l i s h i n g	a n
o f f i c e	a l t o g e t h e r	a n d	d i s m l s s i n g	a	person	from	an

o f f i c e when t h a t o f f i c e i s t o cont inue . In our op ln ion

a n o f f l c e m l g h t b e a b o l l s h e d a t a n y time provlded such

a b o l l t i o n 1 s e f fec t ed In acco rdance w l th t he ru l e s and

1 s bona f i d e : I'

The Cour t has de t e rmined t ha t it 1 s n o t bound by t h e

d e c i s i o n s o f t h e A u s t r a l i a n I n d u s t r i a l C o u r t b u t w i l l t r e a t s u c h

d e c l s l o n s a s p e r s u a s i v e ( s e e H a r r i s -v- A n s e t t T r a n s p o r t I n d u s t r i e s

(1978) Law Book Company's I n d u s t r i a l A r b l t r a t i o n S e r v l c e C u r r e n t

Revlew 406, Jarrad -v- Melbourne Metropolitan Tramways Board( l978)

2 1 A . L . R . 208 and s e e g e n e r a l l y re doc t r ine o f p receden t V i r 0 -v-

The Queen (1976-7s) l 4 1 C . L . R . 88 @ 129 quoted by Northrop J . I n

Wood -v- Clty of Melbourne (1979) 41 FLR 22 @ 2 4 ) .

I am o f t h e v i e w t h a t t h e o p l n i o n of Dunphy and Evat t JJ.

i n S a l n t ' s c a s e a s c l t e d	i s	c o r r c c t	and	applles	t o t h e c i r c u m s t a n c e s
o f t h e p r e s e n t c a s e .	I t	i s	c l e a r t h a t t h e o b ~ e c t o f t h e	Committee	of

Management ' s subjec t reso lu t lon was tha t two of t h e f o u r o f f l c e s o f

Branch organlser be abol ished from t h a t d a t e and no t ha t he two

p a r t i c u l a r o r g a n i s e r s b e t h e n d i s m l s s e d from o f f i c e .

The power so t o d o i s c l e a r l y p r o v l d e d f o r I n r . 5 5 ( d ) (1).

The s u b - r u l e i n my v iew makes provis lon for thc Increase or dec rease

in the number of offices of organiser under certain clrcumstances and expressly between electlons. hiere a resolution is adopted reducing the number of such offices durlng the currency of the terms of office of the holders of those offices (i.e. between electlons) then, In my view, an organiser whose offlce 1 s abolished is not

dlsmlssed from offlce In any sense and certainly not in the sense of

the phrase "dismissal from office" as used in s.l33(l)(f) of the Act. The position simply is that that particular office is abolished on and from the date of the resolution unless such resolutlon

expressly makes provlsion to the contrary.

Consequentially, In my vlew, sub-r.55(d)(l) does not

contravene s.l33(l)(f) of the Act and therefore the applicant's

attack upon the sub-rule in this regard fails.

Thls then leaves for consideration the questlon whether the

action by the Commlttee was taken "in the event of necessity to decrease the number" of organisers. The answer to thls questlon.

dependent on the relevant facts found to have existed before and at	like the questlon whether the sub-rule contravenes S .140(1) (c), is
the date of the adoption of the relevant resolution by the
Commlttee.

The facts herein set out, which are accepted, clearly

support such a necessity. It was open to the Committee of

Management to make such declslon and that thc declsion be effective

immediately. Further, in my view, those facts together with the

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

c i r c u m s t a n c e s , o p p r e s s l v e , u n r e a s o n a b l e o r u n j u s t c o n d l t i o n s ,

o b l i g a t i o n s or r e s t r i c t i o n s were n o t imposed upon t h e a p p l i c a n t b y

the adop t ion of t h e s u b j e c t r e s o l u t l o n . I t w i l l be r e c a l l e d t h a t It

was t h e a p p l i c a n t h l m s e l f who moved t h e mot lon i n February 1981

6e lay lng the d e c r e a s e i n t h e number o f o f f l c e s o f o r g a n i z e r f o r o n e

year . Further p r o b a b l l i t i e s vidence, which i s accepted , shows t h a t o n t h e

t h e c u r r e n t r e c e s s i o n i n the I n d u s t r y w i l l con t lnue

for a f u r t h e r 4 t o 5 years before any improvement can be expected.

The	o r g a n l s e r s '	wages	were	ach	i n	t h e v i c i n i t y o f	$400	p e r	week,
together	wlth	expenses	f o r	a	car	and	running	expenses .	The

a p p l l c a n t h a s a r g u e d t h a t f e e s c o u l d be f u r t h e r i n c r e a s e d a n d t h a t

I n f a c t the Eranch a s ubs t an t i a l f l xed a s se t s wh lch cou ld be

u t i l i z e d t o o f f - s c t a n y l o s s e s . I n f a c t f e e s h a v e b e e n i n c r e a s e 6 a

f u r t h c r $4 p e r h a l f y e a r , b u t i n t h e o p l n i o n o f Mr Coulson t h i s

i nc rease t oge the r w l th t he an t i c ipa t ed f a l l i n membersh ip w i l l no t

o f f - s e t a f u r t h e r s u b s t a n t i a l loss I f t h e number of o rgan i se r s ha6

no t been r educed . Fu r the r , I n my vlew it 1s n o t u n r e a s o n a b l e t h a t ,

with the conslderable drop in the membershlp, the Branch Committee

of Management, d e c l d e d i n a l l c i r c u m s t a n c e s t h a t t h e a s s e t s o f t h e

membership a s a whole should not be eroded.

Accordingly the grounds for the maklng of orders under

s.140(1) (c) have not been made o u t .

For the above reasons the o rder n i s l g ran ted hs re ln has

been discharged.

c-. .