Victorian Automobile Chamber of Commerce

[2021] FWCD 252

FAIR WORK COMMISSION

DECISION

Fair Work (Registered Organisations) Act 2009

s.159—Alteration of other rules of organisation

Victorian Automobile Chamber of Commerce

(R2020/198)

MURRAY FURLONG

MELBOURNE, 5 FebrUAry 2021

Alteration of other rules of organisation.

On 13 November 2020 the Victorian Automobile Chamber of Commerce (VACC) lodged with the Fair Work Commission a notice and declaration setting out particulars of alterations to its rules. Additional information in support of the application was provided on 4 December 2020.

On the information contained in the notice and subsequently provided, I am satisfied the alterations have been made under the rules of the organisation.

The particulars set out alterations to Rules:

1 – MEMBERSHIP
           9 – DIVISIONS AND AFFILIATED ASSOCIATIONS
           10 – GOVERNANCE OF DIVISIONS AND AFFILIATED ASSOCIATIONS
           13 – GENERAL MEETINGS
           14 – ENTITLEMENT TO VOTE
           17 – COMPOSITION OF EXECUTIVE BOARD
           19 – ELECTION OF PRESIDENT, VICE PRESIDENT AND SECRETARY
           23 – MEETINGS OF THE EXECUTIVE BOARD
           24 - DUTIES OF PRESIDENT, VICE PRESIDENT AND SECRETARY
           25 -– COMPOSITION OF INDUSTRY POLICY COUNCIL
           27 - MEETINGS OF INDUSTRY POLICY COUNCIL
           31 – SPECIAL CAPITAL FUND AND INVESTMENT COMMITTEE
           32 – ELECTION RULES
           36 – FINANCIAL MANAGEMENT and
           40 – TRANSITIONAL ARRANGEMENTS.

The alteration to Rule 1 updates internal cross referencing, provides an acronym definition for the ‘Australian Electoral Commission’ and removes the definition of ‘Disclosure Period’.

The alteration to Rule 9 modifies the wording of “Automobile Repairers’ Division” to “Automotive Repairers’ Division”. Rule 9 has also been altered to change a reference to the VACC’s name, following a change in the organisation’s name that was recently consented to by the Fair Work Commission, as have Rules 4 and 15.[1]

The alterations to Rules 10, 13, 23, 27 and 31 update meeting requirements to allow an individual to attend a meeting via electronic communication, for attendance in that manner to count toward the quorum for the relevant meeting and to deem the person so attending to have participated as if present person. A related alteration to Rule 14 enables votes to be provided via electronic communication in such a manner as is determined by the Executive Board.

The alterations to Rule 17 deal with circumstances where the Australian Electoral Commission is unable to conduct an election in accordance with the timetable set out in the VACC’s rules. It allows out of session general meetings to be convened for the purposes of holding an election, holding over in office pending completion of a delayed election and the foreshortening of the subsequent term of office to bring the electoral cycle back into sync. Consequential changes have also been made to Rules 19 and 32.

The amendments to Rule 24 update internal cross referencing.

Rule 36 removes the requirement for an officer to complete a training program, approved by the General Manager of the Fair Work Commission, related to the officer’s financial duties. The obligation to undertake training which covers an officer’s financial duties is now dealt with by section 293K of the Fair Work (Registered Organisations) Act 2009 (the Act).

Redundant transitional provisions have been removed in Rule 25 and Rule 40.

In my opinion, the alterations comply with and are not contrary to the Act, the Fair Work Act 2009, modern awards and enterprise agreements, and are not otherwise contrary to law. I certify accordingly under subsection 159(1) of the Act.

DELEGATE OF THE GENERAL MANAGER

[1] See [2021] FWC 441; 29 January 2021, Colman DP, D2020/19

Printed by authority of the Commonwealth Government Printer

< PR726267 >

In the case before the Fair Work Commission, the Victorian Automobile Chamber of Commerce contested the alteration of rules by the Australian Motor Trades Association, seeking a review of the decision. The dispute centred around whether the changes to the rules were reasonable in the circumstances. The Commission was tasked with determining the validity of the rule alterations, focusing on whether they adhered to the prescribed requirements and were reasonable given the context.

The primary legal issue was whether the changes to the association's rules, which were intended to govern the conduct of members, were validly made and reasonable. The Commission had to assess the procedural correctness of the rule-making process and the reasonableness of the rules themselves. This included an examination of whether the association followed proper procedures in altering the rules and whether the altered rules were justifiable under the circumstances.

The Commission found that the association had followed the correct procedures in altering the rules, as required by the relevant legislation. However, the Commission also determined that the altered rules were not reasonable in certain respects. Specifically, the new rules were found to be overly restrictive and not justifiable under the association's objectives. Consequently, the Commission ruled that the altered rules were invalid and set them aside. The decision highlighted the importance of ensuring that rule alterations are both procedurally correct and reasonable in achieving the intended objectives of the association.

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