In the matter of the Airline Hostesses Association [1980] FCA 210
Federal Court of Australia
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IN THE FEDERAL COURT OF AUSTRALIA )
VICTORIA DISTRICT REGISTRY
INDUSTRIAL DIVISION
JUDGMENT No. .2.10...../...22..
)
) No. 19 of 1980
)
)
IN THE MATTER of the Concitiation and
Arbitration Act, 1904
AND IN THE MATTER of an alteration of
the rules of the AIRLINE HOSTESSES'
ASSOCIATION, an organization of employe
registered under the said Act
AND IN THE MATTER of a reference by the
Industrial Registrar pursuant to s.112
of the said Act of questions of law for
the opinion of the Federal court of
Australia
JUDGES MAKING ORDER: Bowen C.J., Smithers, J.B. Sweeney, Evatt
and Northrop JJ.
DATE OF ORDER: 1 October, 1980
WHERE MADE: Melbourne
THE COURT ORDERS THAT the questions referred be answered as
follows:
(1)
(2)
Do the rules set out in the reference provide for the
election of the holder of each office (as defined in s.4)
within the organization as required by s.133(1)(a) and
reg. 115(1)(d)(i)?
Answer: Yes ite
In particular:
(a) Do rules 27 and 41 contravene s.133(1)(a) and
reg. 115(1)(d)(i} insofar as those rules appear
to provide that persons elected to be Federal
officers shall, without any further election,
also be members of the Federal Council and
Federal Executive?
Answer: No
(3)
(b)
Does rule 27 contravene s.133(1)(a) and reg. 115(1)(d)
insofar as that rule appears to provide that persons
elected to be Branch President and Branch Secretary
shall, without any further election, also be members
of the Federal Council?
Answer: No
(c)
Does rule 41 contravene s.133(1)(a) and reg. 115(1)(d)
insofar as that rule appears to provide that a person
elected to be Branch President shall, without any
further election, also be a member of the Federal
Executive?
Answer: No
Do the said rules satisfy the relevant requirements of
paragraphs (a) and (c) of s.140(1)?
Answer: So far as the requirements of paragraph (a) of
s.140(1) are concerned, yes.
So far as the requirements of s.140(1)(c) are
concerned, not answered
IN THE FEDERAL COURT OF AUSTRALIA
)
)
VICTORIA DISTRICT REGISTRY ) No. 19 of 1980
)
)
INDUSTRIAL DIVISION
IN THE MATTER of the Conciliation
and Arbitration Act 1904
AND IN THE MATTER of an
alteration of the rules of the
AIRLINE HOSTESSES' ASSOCIATION,
an organization of employees
registered under the said Act
AND IN THE MATTER of a reference
by the Industrial Registrar
pursuant to s.112 of the said Act
of questions of law for the
opinion of the Federal Court of
Australia
CORAM: Bowen C.J.
Smithers J.
J.B. Sweeney J.
Evatt J.
Northrop J.
1 October 1980.
REASONS FOR JUDGMENT
BOWEN C.J.: These proceedings were brought under s.112 of the
Conciliation and Arbitration Act ("the Act") by the Industrial |
Registrar in referring a question of law for the opinion of
the Federal Court. The question arose when the Airline
Hostesses' Association, an organization of employees
registered under the Act, applied under sub-s.139(4) of the
same Act to alter its rules.
Before any rule change can be effected the Registrar must
certify where his consent is not required that, inter alia,
the alterations comply with the provisions of the Act. The
proposed alterations relate to the election of holders of
offices in the Association. The basic question to be. answered
by this Court is whether the provisions of the Act permit a
structure in an organization whereby an elected office holder
may, by the rules of the organization at the time of his (or
her) election, be, by virtue of that election, the holder of
another "office" as defined under the Act.
The proposed rules provide for a federal structure in the
Association. Each member is to belong to a State or Territory
or overseas Branch with its own committee of management and
officers and which will be represented on the supreme
governing body, the Federal Council. Under r.21 the Federal
Council has power, inter alia, to superintend, manage and
control the Association's affairs, property and funds, make,
amend or rescind rules, and delegate such of its power as it
thinks fit, save the power to amend or rescind rules, to the
Federal Executive. Provision is made for a Federal Executive
which is the committee of management responsible for control
and conduct of the business and affairs of the Association
whilst Federal Council is not in" S8@ssion. The Council is to
meet annually whereas the Executive must meet at least every
four months.
I turn to the form of the proposed rules. By r.27 the
Federal Council is to be composed of:
"(a) the Federal Officers who shall be the Federal
President, the Federal Vice President and the
Federal Secretary;
(b) Branch delegates who shall be the President and
Secretary of each Branch;
(c) additional delegate or delegates from a Branch
or Branches on the following basis:
Branch Membership Representative
200-399 1
400-599 2
600 and over 3"
By 1r.4l1 the Federal Executive will consist of the
following:
"(i) Federal President;
(ii) Federal Vice President;
(iii) Federal Secretary;
(iv) the occupier for the time being of the
position of Branch President of each Branch
or her proxy."
The Federal President, Federal Vice President and Federal
Secretary as the "Federal Officers" of the Association are to
be elected for two years by secret postal ballot of all
financial members of the Association eligible to vote (r.55).
The Branch Presidents and Secretaries are to be elected by all
financial members of their respective Branches (Branch r.2) as
are the delegates to Federal Council (r.28).
The rules also provide for ultimate control of the
decisions of the Federal Council (r.38) and Federal Executive
(r.50) by a majority of the financial members of the
Association voting by plebiscite called on a motion of at
least half the number of Branch Councils or 5% of the
financial members.
It appears from the above that the three Federal Officers
by virtue of their election are made members of the Federal
Council (a policy/management body) and of the Federal
Executive (the committee of management). Similarly, the
Branch President and Secretary are ex officio members of the
Branch Council (a Branch committee of management) and Federal
Council and the Branch Presidents also are members of the
Federal Executive.
In his reference, the Industrial Registrar drew the
attention of the Court to a number of provisions of the Act.
Paragraphs (a) and (c) of sub-s.140(1) of the Act read:
"(1) The rules of an organization -
(a) shall not be contrary to, or fail to make a
provision required by, a provision of this Act,
the regulations or an award or otherwise be
contrary to a law;
(c) shall not impose upon applicants for membership
or members, of the organization, conditions,
obligations or restrictions which, having regard
to the objects of this Act and the purposes of
the registration of organizations under this
Act, are oppressive, unreasonable or unjust."
By sub-s.4(1):
"'Office', in relation to an organization or branch
of an organization, means —
(a) the office of a member of the committee of
management of the organization or branch;
(aa) the office of president, vice-president,
secretary, assistant-secretary or other
executive officer, by whatever name called, of
the organization or branch;
(b) the office of a person holding, whether as
trustee or otherwise, property of the
organization or branch, or property in which' the
organization or branch has any beneficial
interest;
(c) the office of a member of any conference,
council, committee, panel or other body within
the organization or branch which, under the
rules of the organization or of the branch, is
empowered to make, alter or rescind rules or to
enforce, or perform functions in relation to the
enforcement of, rules or to exercise any of the
functions of management;
(d) every office within the organization or branch
for the filling of which an election is required
to be conducted within the organization or
branch."
It is clear from the above that the Federal Officers in
the proposed rules occupy more than one "office" as defined,
as also do the Branch Presidents and Secretaries.
Sub-section 132(2) provides:
"132(2) The conditions to be complied with by
associations so applying for registration and by
organizations shall be as prescribed."
The relevant conditions are those prescribed by reg.115,
the material portion of which is as"follows:
"(1) The following conditions are prescribed
conditions to be complied with by an association
applying for registration, namely:
(d) the affairs of the association shall be
regulated by rules ... providing, in relation to
the association, for -
(i) the election of -
(a) a committee of management of 'the
association and of each branch of the
association;
(b) officers of the association and of
each branch of the association; and
(c) any conference, council, panel or
other body (additional to the
committee of management) which is
empowered to determine policy or to
exercise functions of management in
the association or branch.
(2) The conditions specified in the last preceding:
sub-regulation apply in relation to organizations in
like manner as they apply in relation to an
association applying for registration as an
organization."
Paragraph 133(1)(a), in so far as it is relevant, reads:
"(1) In addition to the conditions referred to in
sub-section (2) of section 132, the conditions to be
complied with by ... organizations include a
condition that the rules of ... organizations:
(a) shall provide for the election of 'the holder of
each office within the ... organization either
by -
(i) a direct voting system; or
(ii) a collegiate electoral system being, in
the case of an office the duties of which
are of a full time nature, a one tier
collegiate electoral system."
In the recent decision of the Full Court of the Federal
Court in Sherrif v. Townsend, handed down on 3 April 1980, the
majority dicta expressed fully by Smithers J. considered that
a member of an organization of employees elected to a
designated executive office and acceding by virtue of the
rules to the office of member of Federal Council had not been
elected to the latter office in accordance with the Act.
Smithers J. considered that the legislation envisaged "a
separate election, direct or collegiate, for each office in
the organization". He added that:
"When a rule provides that a person elected to a
particular office shall thereupon accede to another
office the electorate is denied a choice as to
whether it desires that that person shall hold that
other office."
The implication is that each office in the exhaustive list of
offices in s.4 is separate and must be the subject of an
election. In Sherrif v. Townsend, supra, this reasoning was
not necessary for the ultimate decision because the rule in
question was held on other grounds to be invalid. However,
the analysis by Smithers J. raises important questions.
At the hearing, Counsel appeared on behalf of the Airline
Hostesses' Association and was given leave to appear on behalf
of members of the Australian Council of Trade Unions and the
Commonwealth of Australia Government Employees' Organizations.
Counsel was also granted leave.to represent the Vehicle
Builders Employees' Federation. The Registrar was not
represented, the Crown did not intervene but briefed Counsel
to appear as amicus curiae to assist the. Court in some wider
aspects and implications of the argument.
It was submitted by Counsel for the Airline Hostesses'
Association that the repercussions of any decision requiring a
separate election to each office as defined would be enormous.
Not only would a great number of organizations find their
rules suddenly invalid but such an interpretation could only
mean that union members were entitled to elect a different
person to each office. If such a situation occurred,
organizations would find it almost impossible to maintain
lines of communication within their federal systems and be
unable to function efficiently as representative bodies.
Whilst it is true that there could be great inconvenience
to many organizations, the reference is on a question of law
and it is necessary to look at relevant provisions of the Act
in the context of the Act as a whole and the cases that have
arisen.
Looking at the matter in this way, I find myself unable to
accept that the legislature intended that each "office" as
defined should be the subject of a separate election.
Further, I cannot agree that if the Act did require such an
election it would be satisfied by a ballot paper enumerating a
number of offices as a composite position for which nominated
candidates were standing. If offices are necessarily
separate, members must be able to nominate a separate
candidate for each.
I am unable to see that reg.115(1)(d)(i) implies any
notion of mutual exclusivity between offices. In fact, it
seems to me to be simply grouping functions into the various
classes such as one would need to find in a federal system.
In the case of Bicknell v. Amalgamated Engineering Union
(1969) 15 F.L.R. 215, reg.115(1)(d)(i) was discussed
extensively along with s.140, though no mention was made of
the then current s.133. The Court was there concerned with an
organization the rules of which had undergone radical
restructuring. In this reconstruction it was proposed that
certain elected District Secretaries be appointed as the first
State Secretaries for the period of time they still had left
to serve in their previous elected offices. The rules under
discussion were substantially the same as those presently
before the Court. It is apparent from the discussion (at
pp.218-219) that the Court was fully aware that the duties of
State Secretary included that he be ex officio a member of
State Conference and State Council. However, no point arose
in that case as has arisen before us.
There is no doubt that in compliance with reg.115(1)(d) (i)
the proposed rules provide for elected officers and committee
of management at the Federal and Branch' levels and for a
policy/management body at the Federal level. It is only by
reference to the definition of "office" that one finds each of
these functions referred to as "offices".
The definition of "office" indeed is singularly unhelpful
because of its intended exhaustive nature and the fact that it
defines "office" by referring to "office". Furthermore, it
appears that paragraph (d) of the definition overlaps with
other paragraphs.
-10-
Some support for the notion of separateness is said to
arise from the use of the word "each" in para.133(1)(a) which
was first introduced in 1973 and later amended in 1976. It
reads that the rules "shall provide for the election of the
holder of each office ...". Counsel for the various
associations argued that the emphasis must be put on the
election of the "holder", not the election to each office. On
a consideration of the Act and cases I agree that this must be
so. The terms of sub-s.133(1A) inserted at the same time as a
new sub-s.133(1) by Act No. 138 of 1973 also tend to support
that view. This last consideration is not weakened by the
deletion of sub-s.133(1A) and the insertion of a new
para.133(1)(a) by Act No. 117 of 1976.
The objects of the Act are enumerated in s.2. Among them
are the following:
"(e) to encourage the organization of representative
bodies of employers and employees and their
registration under this Act; and
(£) to encourage the democratic control of
Organizations so registered and the full
participation by members of such an organization
in the affairs of the Organization."
Counsel took the Court through the various stages of
amendment to the parts of the Act with which we are concerned
and it was noted that elections were not a feature until 1928.
The problem of what actually constituted an election under the
Act was solved in favour of including collegiate electoral
systems in Steele v. Federated Ironworkers' Association of
Australia (1954) 52 C.A.R. 594. Such systems were common up
to 1973, abolished and then reinstated in 1976. Until 1973
the section dealing with elections, s.70A, which was
renumbered s.133 in 1956, concentrated on secret - ballots,
absent voting and conduct of elections. It only applied to
sub-paras.(a), (aa) and (b) of the definition of "office" as
it stood at the time, leaving the conduct of elections under
sub-para.(c) open. I do not think that before the 1973
amendment to s.133, there was any question of a _ separate
election for each office.
I believe that the intention of the 1973 amendment
including "each" in reference to office, was merely ensuring
that the rules governing elections now applied to all the
sub-paragraphs in the definition of "office". This belief is
reinforced on reading para.133(1)(da) where provision is made
for postal voting in relation to "every election for an office
within the association of a kind referred to in para.(a),
(aa), (b) or (c) of the definition of office". There is no
mention of ""each" office, because sub-para.(d) of this
definition is not included.
What must be kept constantly in mind is that organizations
registered under the Act may represent many thousands of
members all over Australia. These-members must be represented
democratically but also efficiently and because of the
division of Australia into States and Territories, a federal
system of representation would be normal. The Courts have
frequently considered various types of federal systems and
from the cases it is clear that organizations are able to
design specific structures with different checks and balances
to cater for their own individual needs. The only parameters
are those embodied in reg.115 requiring election for a
committee of management, various officers and any other policy
making or management body. As was said in Lovell v. Federated
Liquor and Allied Industries Employees' Union of Australia
(1978) 35 F.L.R. 72 at p.81, per Smithers and Evatt JJ.:
"A constitution suitable for one union may be
unsuitable for another ... The rules must be designed
to ensure stability in management and at the same
time to avoid installing officers who cannot be
removed. In the designing of rules appropriate for
an organization of employees much must be left to the
judgment of those who make the rules."
(And see generally Lovell's Case, supra at pp.89 and 98; and
Wiseman Vv. Professional Radio and Electronics Institute of
Australasia (1978) 35 F.L.R. 24 at pp.32-35 and 38-42.)
It has been held on a number of occasions that filling a
casual vacancy by appointment is permissible in certain
circumstances (Cameron v. Australian Workers' Union (1959) 2
F.L.R. 45; Purse v. Amalgamated Society of Carpenters and
Joiners of Australia 75 C.A.R. 88; Watson v. Australian:
Workers' Union 10 F.L.R. 347). Some associations have validly
imposed length of membership requirements for office holders
(Watson v. Australian Workers' Union, supra; Lovell v.
Federated Liquor and Allied Industries Employees Union of
Australia, supra) and in some cases federal representation for
smaller States greater than would be justified on a mere
consideration of their size, has been permitted, where there
was provision in certain circumstances for a plebiscite
(Crealy v. Commonwealth Bank Officers' Association (1958) 1
F.L.R. 153; cf. McLeish v. Kane (1978) 22 A.L.R. 547; Boland
v. Munro, Federal Court of Australia, 23 May 1980,
unreported).
In Crealy's Case, supra, at pp.157-158, the Court adopted
the opinion of O'Mara J. in Thornton v. Mackay (1945) 56
C.A.R. 561 at p.590 in relation to the scope of an
organization under the Act to alter its rules:
"The nature of the provisions to be made for the
election of committees and officers is primarily a
matter for the members of the association to
determine having regard to the nature of that body
and the circumstances which exist in relation to its
membership. The same is true of the provisions for
the control of such committees by members of the
association."
In the case of Bicknell v. Amalgamated Engineering Union,
supra, the Court considered that, in the circumstances,
appointment of elected District secretaries to be the first
State Secretaries was permissible because the rules as a whole
provided for the election of persons and bodies referred to in
reg.115(1)(d). Kerr J. commentéd™ (at p.230) that whether
rules provided for the election of offices was "a matter of
degree to be judged in all the circumstances of the particular
union and its rules".
It was submitted by Counsel that each organization should
be able to determine its structure by providing for composite
offices in the rules so long as the holder of those offices
were elected. Thus, the rules could provide that the position
of Branch President carried with it certain functions such as
member of the Branch Council, Federal Council and Federal
Executive. Counsel appearing as amicus curiae pointed out
that, if carried to extremes, this could be dangerous. The
rules could give not only executive officers ex officio
appointments, but officers whose functions would normally be
considered narrow. Even if this were possible, I do not doubt
that para.140(1)(c) and sub-s.139(4) could be used against it
effectively to prevent an inappropriate conjunction of
positions.
One must look again to the definition section of the Act;
to the definitions of "direct voting system" and "collegiate
electoral system". In conjunction with these one must also
read sub-s.4(5). The definition of direct voting system in
sub-s.4(1) is as follows:
"'Direct voting system', in relation to an
election for an office in an organization, means a
method of election at which all financial members, or
all financial members included in such branch,
section or other division, or in such class, as is
appropriate, having regard €6 the nature of the
office, are, subject to reasonable provisions with
respect to enrolment, eligible to vote."
Thus, each office must have an appropriate electorate
depending upon the nature of the office. This does not seem
to me to preclude a Branch electing a President both as its
head and its representative at the federal level. The nature
of the office is Branch Executive and delegate to Federal
Council and Executive. In a federal system branches'
interests must be represented. Thus, the nature of an office
in a federal system will often require a branch electorate
because the functions are basically branch representation
though the elected officer sits in a federal governing body.
Indeed, I would consider that rules requiring a Branch
delegate to the Federal Council or Executive to be elected by
the whole Federal membership might well be held unreasonable
in terms of para.140(1)(c) (cf. Allen v. Townsend (1977) 31
F.L.R. 431 at p.471).
Moreover, the Act specifically provides that in relation
to election for an office in an organization a one tier
collegiate electoral system is permissible. By sub-s.4(1) a
collegiate electoral system is defined as follows:
Collegiate electoral system' in relation to an
election for an office in an organization means a
method of election comprising a first stage, at which
persons are elected to a number of offices by a
direct voting system, and a subsequent stage or
subsequent stages at which persons are elected by and
from the persons elected at the next preceding
stage."
Sub-section 4(5) expands this definition:
"For the purposes of the application of the
definition of 'collegiate electoral system' in
sub-section (1) in relation to an election for an
office in an organization, an electoral system that
otherwise complies with that definition shall be
deemed to comply with that definition notwithstanding
that the persons comprising a body of persons by and
from whom persons are elected at any stage subsequent
to the first stage include persons (not exceeding in
number fifteen per centum of the total number of the
body) who are the holders of offices entitling the
holders to membership of that body (which may include
the office to which the election relates) but are not
members of that body by virtue of an election in
accordance with that definition, being persons each
of whom has held such an office (whether the one
office or not) at all times since being elected to
such an office under a collegiate electoral system,
or a direct voting system, as defined in sub-section
(1)."
The Act recognises that persons elected to particular
offices may be ex officio members of a body "by and from whom
persons are elected". This body is not called a committee of
management and, indeed, if it fulfilled simply the function of
an electoral college its members could not be said to hold ex
officio "offices" on such a_ body. However, as I have
previously stressed, the Act envisages that organizations have
a great deal of latitude in determining their structure.
There is no indication that a body by and from whom persons
are elected should not be a committee of management or other
policy or management body. Indeed, it seems to me that the
section is directed at a body which already exists and
functions apart from any electoral college activity. It would
have been simple, otherwise, to..keep to the definition of
"electoral college" as it stands. Moreover, reg.115 requires
that each organization and branch of an organization provide
for the election to any policy making and management bodies as
well as a committee of management.
I consider that implicit in sub-s.4(5) is a recognition of
a fairly typical organizational structure whereby some elected
officers by virtue of their election sit in a body which
functions not only as an electoral college but also as a body
within one or other of sub-paras.(a) and (c) in the definition
of "office". If this is the case, there can be no objection
to such ex officio membership of management and policy bodies
in a union, the rules of which provide only for direct
election.
On this basis a differentiation can be made between office
holders: those who are primarily elected to a body and those
who are primarily elected to an executive position. Those in
the latter category may, under the rules, be members of a_
body. I do not think it oppressive, unreasonable or unjust
under para.140(1)(c) in this case that Federal Officers be, by
their election to those offices, members of the Federal
Council and the Executive. Indeed, rules which provided that
the Federal President should not be a member of Council or the
Executive unless successful at a separate election for such
membership, would necessarily give members the option to
exclude the President from those bodies. I consider such
rules might well be held to be unreasonable in terms of |
para.140(1)(c). cranny
The general tenor of the Act is to provide representative
bodies for the purposes of keeping industrial peace. The
reality is a federal system and vast and far flung
memberships. The whole financial membership elects four
persons as its Federal Officers to handle day to day business
and report to the larger Federal Council. The Branches are
ensured of representation at all federal levels by persons
elected both specifically to Council and generally .as chief
executives at the highest level. The extent of the offices
are explained in the rules which are readily available to all
members.
I would answer the question of the Industrial Registrar as
follows:
1. Do the rules set out above provide for the election of the
holder of each office (as defined in s.4) within the
organization as required by para.133(1)(a) and regulation
115(1)(d) (i)?
Answer: Yes.
2. In particular:
(a) Do rules 27 and 41 contravene para.133(1)(a) and
regulation 115(1)(d)(i) in so far as those rules
appear to provide that persons elected to be Federal
Officers shall, without any further election, also be
members of the Federal Council and Federal Executive? >
Answer: No. oe ane
(b) Does rule 27 contravene para.133(1)(a) and regulation
115(1)(da)(i) in so far as that rule appears to
provide that persons elected to be Branch President
- 19 -
and Branch Secretary shall, without any further
election, also be members of the Federal Council?
Answer: No.
(c) Does rule 41 contravene para.133(1)(a) and regulation
115(1)(d)(i) ain so far as that rule appears to
provide that a person elected to be a Branch
President shall, without any further election, also
be a member of the Federal Executive?
Answer: No.
Do the said rules satisfy the relevant requirements of
paragraphs (a) and (c) of sub-s.140(1)?
Answer as to (a): Yes
Answer as to (b): There is nothing before us to suggest
the rules do not satisfy para.(c).
Icertify that this and the (5 ~
preceding pages ave a true copy of the
Reasons for Juazme: vein ofhis Honoyr
the Chief Judge, Sir Nigel Bowen
"
"~~*tssociate ;
Dated /. yo. $5
2]
IN THE FEDE
yy
AL COURT OF AUSTRALIA )
No. 19 of 1980
VICTORIA DISTRICT REGISTRY
were wv
INDUSTRIAL DIVISION
IN THE MATTER of an alteration
of the Rules of the AIRLINE
ROSTESSES' ASSOCTATION an
organization of employees
registered under the
CONCILIATION AND ARBITRATION
ACT, 1904
REFERENCE BY THE INDUSTRIAL
REGISTRAR (pursuant to Section
Ti2 of the Conciliation and
Arbitration Act 1904) of
guestions of law for the opinion
of the Federal Court of
Australia.
NORTHROP J. REASONS FOR JUDGMENT 1_ OCTOBER 1980
I have had the advantage of reading the reasons for
judgment of the Chief Judge and J.B. Sweeney J. and I agree
with the opinions expressed in those reasons. Nothing put in
argument during the hearing of the reference and nothing
arising from further reflection persuades me to vary the
views I expressed on this issue in Sherriff v. Townsend
(1980) 30 A.L.R. 223 at pp.253-255, but I would make the
further commmente.
The nature of crgqanizations has been referred to in
a number of recent decisions of the Federal Court, and I
refer to some of them; Allen v. Townsend (1977) 31 F.L.R.
431 per Evatt and Northrop JJ. at p.467, Wiseman v.
Professional Radio and Electronics Institute of Australasia
(1978) 35 F.L.R. 24 per Evatt and Northrop JJ. at pp.38-42,
Lovell v. Federated Liguor and Allied Industries Empicyees'
Union of Australia (1978) 35 F.L.R. 72 per Smithers and Evatt
JJ. at p.8l and per Northrop J. at pp.93-9, McLeish v. Kane
(1978) 22 A.L.R. 547 per J.B. Sweeney, Evatt and Northrop JJ.
at pp.556-9, Sherriff v. Townsend, Supra, per Northrop J. at
pp.256-7 and Boland v. Munro 23 May 1980 per Evatt and
Northrop JJ. at pp.16-22.
Regulation 115(1)(d)(i) does not prescribe methods
by which elections are to be conducted. In that
sub-paragraph the word "election" is used in
contradistinction to the word "appointment", see Porter v.
A.F.U.L.E. (1965) 7 F.L.R. 386 per Spicer C.J., Joske and
Smithers JJ. at 398-9. The word "appointment" was the word
used in the equivalent provisions contained in Schedule B to
the 1904 Conciliation and Arbitration Act. In the
Regulations from the time they were first made in 1913 until
1928, the equivalent provisions contained neither the word
"appointment" nor the word "election". The methods by which
elections are to be conducted are prescribed in the
Conciliation and Arbitration Act 1904 as amended, see ¢.133
and s.133AA, although certain of the sub-sections of s.133AA
are not yet in operation.
The provisions of the Act prescribing the methods
by which elections are to be conducted have been amended from
timg to time. The substance of the amendments made in 1973
{Act No. 138 of 1973, s.52), was to proscribe the collegiate
electoral system as a method by which elections could be
conducted but those amendments still permitted a limited type
of collegiate electoral system. Between 1973 and 1976,
s.133(1A) contained expressions based on the assumption that
the rules of an organization validly could provide that a
holder of an office by reason of being the holder of that
office could be a member of the committee of management of
the organization. The substance of the amendments made in
1976 (Act No. 117 of 1976, sections 3 and 4) was to widen the
type of collegiate electoral system which thereafter was to
be permitted. Section 133(1A) was deleted and s.4(5) was
inserted. The latter sub-section ccntains expressions which
make it clear that Parliament acted upon the view that under
the legislation and regulations then in force, rules of an
organization validly could provide that a person, by reason
or being the holder of an office, covld be a member of a
committee of management of the organization. In describing
the body which, under a collegiate electoral system elected
persons to office, the sub-section provided that the rules
could include a provision that persons "who are the holders
of offices entitling the holders to membership of that body".
For many years the Commonwealth Court of Conciliation and
Arbitration, the Commonwealth Industrial Court and the
Federal Court of Australia have given judgments based on the
view that in Regulation 115(1) (d) (i) the word "election" is
used in centradistinction to the word "appointment" and does
not prescribe methods by which elections are to be conducted.
On at least two occasions, namely in 1973 and 1976,
Parliament has passed legislaticn based upon the acceptance
of that view. In my opinion, that view of the effect of
Regulation 115(1) (ad) (i) is correct.
The rules of the Airline Hestesses' Associati
oO
n
Make provision for committees of management of the
Asscciation, for federal officers of the Association and for
a federal council empowered to determine poJicy, which
council is also a committee of management within the defined
meaning of that phrase. The rules of the Association provide
that the members of the committees of management are persons
who are the holders of offices within the defined meaning of
that word entitling them to membership of the committees of
Management. The rules of the Association define those
persons by reference to them being the holders of federal
offices and the holders of offices being branch delegates.
Two of the branch delegates from each branch are the branch
officers for each branch of the Association. The rules of
the Association provide fer the holder of each of those
offices, within the defined meaning of that word, to be
elected to those offices by a method which is not contrary te
the Conciliation and Arbitration Act. None of those persons
has been appointed to the office held. It follows therefore
that the rules of the Asssociation make provision for the
election of the committees of management and of the officers
of the Asscciation. They dc not make provision for the
appointment of committees of management and of the officers
of the Association. In this respect the rules of the
Association are not contrary to Regulation 115(1) (d) (i).
I agree with the answers proposed by the Chief
Judge.
>
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY No. 19 of 1980
INDUSTRIAL DIVISION
IN THE MATTER of an alteration of th
Rules of the Airline Hostesses'
Association an organization of
employees registered under the
Conciliation and Arbitration Act, 19
REFERENCE BY THE INDUSTRIAL REGISTRA
(pursuant to Section 112 of the
Conciliation and Arbitration Act, 19
'of questions of law for the opinion
of the Federal Court of Australia.
REASONS FOR JUDGMENT
EVATT J. 1 October 1980
The reference herein by the Industrial Registrar
made pursuant to s.112 of the Conciliation and Arbitration Act, 1904
(the Act) raises questions of law for determination by the Court
in relation to certain rule amendments adopted by the Airline
Hostesses' Association an organization registered under the Act.
Basicaly the questions for determination are; do such rule
amendments satisfy the requirements of s.140(1) (a) and s.140(1)(c)
of the Act?
Such rules appear to provide (1) that persons elected
to be Federal Officers shall without any further election be members
of thé Federal Council and Federal Executive, (2) that persons
elected as Branch President and Branch Secretary respectively
shall without further election be members of the Federal Council
and (3) that persons elected as Branch Presidents shall without
any further election be members of the Federal Executive. Do
~-/2..
such rules provide for the election of the holder of each
office (as defined in s.4 of the Act) within the organization
as required by s.133(1)(a) of the Act and Reg. 115(1)(a) (i)
made thereunder. The particular rules are fully set out in
the reasons for judgment of Sweeney J., which I have had the
advantage of reading. Further, relevant sections of the Act
are set out in the reasons for judgment of Bowen C.J. which I
have also had the advantage of reading.
In Sherriff & Ors. v. Townsend & Ors. (V. No.12 of 1979)
(inter alia) , o,
30 A.L.R. 223 a challenge was made/to the certified rule providing
for the composition of the Federal Council of the Vehicle Builders'
Employees Federation of Australia an organization registered under
the Act. Rule 1(b) of the rules of that organization provided:
"l(b) The Federal Council shall consist of :
(i) Two delegates from each Branch elected as prescribed
in Rule 4 neither of whom shall be the Secretary
of such Branch.
(ii) The Secretary for the time being of each Branch
of the Federation;
(iii) The Federal Secretary of the Federation;
(iv) The Assistant Federal Secretary of the Federation."
The claimants' challenge to the rule was, for
relevant discussion, two-pronged; first, that sub-rule 1(b) (i)
created an invalid imbalance in the number of delegates to
Federal Council from Branches, the membership of which varied
from Branch to Branch and accordingly contravened s.140(1)(c)
of the Act (see McLeish v. Kane (1978)22 A.L.R. 547) and secondly,
that sub-rule 1(b)(ii) permitted a Branch Secretary, although
..-/3..
elected to that office, to be a member of the Federal Council
without being elected a Councillor as required by s.133(1) (a)
and/or Reg.115(1)(d)(i) and accordingly contravened s.140(1)(a)
of the Act.
The Court in that case unanimously held that,
in accordance with the principles referred to in McLeish v. Kane(supra
the whole of r.1(b) providing for the constitution of that Federal
Council was contrary to s.140(1)(c) for the reasons therein expressed
in respect of the orders sought in paras. 4, 5 and 6 of the rule
to show cause.
In Sherriff v. Townsend (supra) I stated @ p.246:-
"Paragraphs 9, 10 and 11 (of the rule to show cause)
seek orders that r.1(b)(ii) contravenes s.140(1)(a)
of the Act in that such sub-rule provides that the
secretaries of the various branches of the organization
shall be members of its Federal Council without any
of such secretaries being elected within the meaning
of the Act and Regulations thereunder, to hold the
office of a Federal Councillor. I have already
expressed the view that r.1(b)(ii) is contrary to
s.140(1)(c) as being contrary to the principles set
out in McLeish v. Kane(supra) if r.1(b)(i) is struck out,
but having regard to the proposed scheme approved by
the court under s.171D of the Act, and as grounds 9, 10
and 11 were fully argued the court's view thereon should
be stated. I am of the view that such sub-rule is contrary
to s.140(1)(a) and agree with the reasons for judgment in
this regard of Smithers J."
The questions set out in the present reference have
raised in more detail the issues raised in paragraphs 9, 10 and 11
of the rule to show cause in Sherriff v. Townsend (supra). Having
had the benefit of the detailed submissions concerning the. history
of. the relevant sections of the Act, Schedule B and the Regulations
made under the Act together with further argument thereon, it is
fa
clear, in retrospect, that the issues raised in the said paras.
9, 10 and 11 in this regard had not been fully argued other
than by the claimants therein. Those claimants, through their
legal advisor, were given an opportunity to further argue the
issue before this Court but such opportunity was apparently
declined by them as they made no request for leave to intervene
herein.
The submissions and arguments of Counsel in this
reference have persuaded me that the dicta expressed by me in
Sherriff v. Townsend (supra) that rule 1(b)(ii) of the rules of
the Vehicle Builders' Employees Federation of Australia did not
accord with the provisions of s.133(1)(a) and/or Reg.115(1)(d) (i)
and consequently contravened s.140(1)(a) of the Act is incorrect.
I entirely agree with the reasons for judgment of
Bowen C.J. and Sweeney J. herein. I further agree that the
answers to the questions asked by the Registrar should be in
accordance with those set out in the reasons for judgment of
Bowen C.J.
z
i
os, a VATT wroin of nis ee
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY No. 19 of 1980
INDUSTRIAL DIVISION
IN THE MATTER of the Conciliation and
Arbitration Act, 1904
AND IN THE MATTER of an alteration of
the rules of the AIRLINE HOSTESSES'
ASSOCIATION, an organization of employe
registered under the said Act
AND IN THE MATTER of a reference by the
Industrial Registrar pursuant to s.112
of the said Act of questions of law for
the opinion of the Federal Court of
Australia
CORAM: Bowen C.J.
Smithers J.
J.B. Sweeney J.
Evatt J.
Northrop J.
1 October, 1980
REASONS FOR JUDGMENT
J.B. SWEENEY J. This is a reference by the Industrial Registrar
of certain questions of law. The questions have arisen on an
application by the Airline Hostesses' Association ("the
Association") for certification of a new set of rules pursuant
to s.139(4) of the Conciliation and Arbitration Act, 1904 ("the
Act").
The particular proposed rules in question are rules 27,
41 and 55(a) which read:
2.
27. FEDERAL COUNCIL COMPOSITION
The Federal Council shall be composed of:
(a) the Federal officers who shall be the
Federal President, the Federal Vice-
President and the Federal Secretary.
(b) Branch delegates who shall be the
President and Secretary of each Branch.
(c) additional delegate or delegates from a
branch or branches on the following
basis:-—-
Branch Membership Representative
200 - 399 1
400 - 599 2
600 and over 3
41. COMPOSITION OF FEDERAL EXECUTIVE
The Federal Executive shall consist of the
following:
(i) Federal President
(ii) Federal Vice-President
(iii) Federal Secretary
(iv) the occupier for the time being of the
position of Branch President of each
Branch or her proxy.
55. ELECTION OF FEDERAL OFFICERS ~- GENERAL
(a) Elections for the position of Federal
President, Federal vice-president and
Federal Secretary shall be conducted
by secret postal ballot of all finan-
cial members of the Association
eligible to vote, in accordance with
these rules.
There are also proposed branch rules which raise the same
questions. The particular questions referred to are:
(1) Do the rules set out above provide for the
election of the holder of each office (as
defined in section 4) within the organization
as required by section 133(1)(a) and regulation
115(1)(d) (i)?
(2) In particular:
3.
(a) Do rules 27 and 41 contravene section
133(1)(a) and regulation 115(1)(d)(i)
in so far as those rules appear to
provide that persons elected to be
Federal officers shall, without any
further election, also be members of
the Federal Council and Federal
Executive?
(b) Does rule 27 contravene section 133(1)(a)
and regulation 115(1)(d)(i) in so far
as that rule appears to provide that
persons elected to be Branch President
and Branch Secretary shall, without any
further election, also be members of the
Federal Council?
(c) Does rule 41 contravene section 133(1)(a)
and regulation 115(1)(d)(i) in so far as
that rule appears to provide that a person
elected to be Branch President shall, with-
out any further election, also be a member
of the Federal Executive?
(3) Do the said rules satisfy the relevant requirements
of paragraphs (a) and (c) of section 140(1)?
The scheme of the Act provides for the registration of
organizations which thereupon become corporations. By their
very nature corporations must have some officers and some
controlling body or bodies.
The Act in s.132 requires organizations to have rules
which comply with the requirements of reg. 115. In addition
there are various other provisions in the Statute prescribing
in some cases what must be, in other cases what may not be
provided for in the rules. In general, however, the particular
structure which it wishes to adopt is left to the organization
concerned. This perhaps is inevitable having regard to the
vast disparities and differences in size, geographical areas
covered and other matters between organizations.
4,
At the hearing before us the Australian Council of Trade
Unions sought and was given leave to appear by counsel for its
constituent bodies. We were advised that the great majority
of organizations had rules which provided, as did rules of
the Association, for persons elected to particular offices
to be members of the committee of management and of other
councils or conferences of the organization. The particular
examples varied, but the general pattern appeared to be that
a committee of management would comprise persons elected as
general secretary, general president and the like and a number
of delegates from the branches. Mutatis mutandis similar
provisions exist for branches.
Some other organizations appeared and we also had the
benefit of submissions made by counsel for the Attorney-General
of Australia appearing as amicus curiae. 'The hearing of the
reference was listed before a bench of 5 judges in view of the
importance of the issues.
It is convenient next to set out the structure of the
Association and to examine the proposed rules against that
background.
The Association is an organization arranged in branches.
It has members and branches throughout the Commonwealth. As
required by s.132 and reg. 115, its rules if certified will
provide for a committee of management of the Association and
each branch, for officers of the Association and of each
branch and for a council, additional to the committee of
5.
management, empowered to determine policy and exercise
functions of management. The federal officers are the federal
secretary, federal president and the federal vice-president.
The duties and powers of the federal secretary provide
that she is to attend all meetings of federal council and
federal executive and she has other duties in respect to them.
She also has duties with respect to property of the Association
including a duty to deliver up to the federal president on
vacating office, or when so directed, all books, documents,
papers and other property of the federation. The rules also
prescribe that she is to receive monies payable to the federal
council (rules 26, 18, 17, 15, 14, 9).
The duties of the federal president include presiding at
meetings of the federal council and federal executive and
preserving order and other consequential duties (rule 24).
Rule 25 provides that the federal vice-president shall
preside at meetings in the absence of the federal president
whether for the whole or part of a meeting and that she shall
assist the federal president in the conduct of and preserving
order at meetings.
The rules provide for a federal executive which is to be
the committee of management of the Association (rule 40).
It is to have the care, control, superintendence, management
and administration of the affairs and property of the
Association. It is to interpret and enforce the general policy
of the Association as decided by federal council and decide
6.
questions of policy not covered by federal council decisions.
The federal executive is to consist of the federal president,
federal vice-president, federal secretary and the occupier
for the time being of the position of branch president of each
branch (rule 41).
The rules also provide for a federal council. It is to
consist of the federal president, the federal secretary and
the federal vice-president, the president and secretary of
each branch and an additional delegate or delegates from a
branch, (the number depending on the membership of each
branch).
The federal council meets annually, is the rule making
body (rule 70 and 21(b)), has managerial functions (rule 21(a)
and rule 20) and is a policy making body.
The federal officers are elected by secret postal ballot
of all financial members (rule 55), as are the branch officers
by branch members.
Each branch has a branch president, branch vice-president
and a branch secretary, all of whom are elected by secret
postal ballot of the branch members. In addition there are
branch councillors the number of whom is to be determined by
the branch, but will be at least 4 and not more than 17.
They too are elected by secret postal ballot by members of
the branch. The branch delegates to federal council additional
to the president and secretary are elected by secret postal
ballot of the branch members. The branch council has powers,
7.
inter alia, to control, superintend and manage the affairs of
a branch (branch rule 3).
The branch secretary's duties prescribed are that she is
to attend all general and council meetings of the branch and
she has duties in respect to monies received by her and other
property of the branch.
The branch president's duties prescribed are that she
shall preside over all general and council meetings of the
branch and preserve order and give her a deliberative vote
and if necessary a casting vote at any meeting (branch rule 4).
The branch vice-president, in the absence of the branch
president, is to preside over all meetings of the branch
with full powers of the branch president (branch rule 5).
It is clear then that the federal president, federal vice-
president and federal secretary and like officers of a branch
all hold office within the meaning of par.(aa) of the
definition of "office". In addition, the federal officers
hold office within the meaning of par.(a) of the definition as
members of the committee of management of the organization.
The branch officers hold office within the meaning of those
paragraphs of the definition. -In addition, the federal
secretary and branch secretary are persons holding, whether as
trustee or otherwise, property of the organization or branch
and hold office within the meaning of par.(b) of the definition.
8.
It is clear from the rules that the federal executive is
a committee of management within the definition of "committee
of management" in 5.4 of the Act. In addition the federal
council is, under the rules of the organization, empowered to
make, alter or rescind rules, to enforce rules and to exercise
any of the functions of management. So too is the branch
council.
Membership of each of these bodies then makes the person
concerned an officer or the holder of an office within the
meaning of par. (c) of the definition in s.4 of the Act.
Moreover, since each of these offices is one within the
organization or branch for the filling of which an election
is required to be conducted within the organization or branch,
each such person is an officer within the meaning of par. (d)
of the definition of office.
The reference made by the Industrial Registrar raises
the question whether the amendments sought may offend against
s.140(1) of the Act in that they may be contrary to or fail
to make a provision required by s.133(1)(a) or reg. 115(1)(d)
of the Act.
In considering the questions referred to it is necessary
to look at the history of amendments to this so frequently
amended statute.
Section 132 provides that the conditions to be complied
with by associations seeking registration and by organizations
shall be as prescribed.
9.
Regulation 115(1)(d) has at all material times prescribed
for each:
",.. that the affairs of an association must be
regulated by rules providing for -
(i) the election of -
(A) a committee of management of the
association and of each branch of
the association:
(B) officers of the association and of
each branch of the association: and
(C) any conference, council, panel or other
body (additional to the committee of
Management), which is empowered to
determine policy or to exercise functions
of management in the association or
branch;
In considering both the regulation and the relevant
sections it is necessary to have regard to the definition of
"office". This was first inserted in s.4 of the Act by Act
No. 28 of 1949 in the following terms:
"'office', in relation to an organization or branch
of an organization means -
(a) the office of a member of the committee of
Management of the organization or branch;
(b) the office of a person holding, whether as
trustee or otherwise, property of the
organization or branch, or property in
which the organization or branch has any
beneficial interest; and
(c) every office within the organization or branch
for the filling of which an election is
conducted within the organization or branch;".
Act No. 18 of 1951 added sub-section (aa) to the definitio.
of "office":
"(aa) the office of president, vice-president
secretary, assistant-secretary or other
executive officer, by whatever name
called, of the organization or branch;"
10.
This Act also introduced s.70A, the forerunner of s.133.
Act No. 138 of 1973 omitted sub-paragraph (c) from
the definition of "Office" and substituted the following
paragraphs:
"(c) the office of a member of any conference,
council, committee, panel or other body
within the organization or branch, which
under the rules of the organization or
of the branch is empowered to make, alter
or rescind rules or to enforce, or perform
functions in relation to the enforcement of,
rules or to exercise any of the functions of
management;
"(d) every office within the organization or branch
for the filling of which an election is
required to be conducted within the organization
or branch and any position within the organiz-
ation or branch involving duties substantially
similar to the duties of such an office: and
"(e) in the case of an organization that was regist-
ered immediately before the date of commence-
ment of this paragraph or a branch of such an
organization, every office within the organiz-
ation or branch for the filling of which
under rules in force immediately before that
date, an election was required to be conducted
within the organization or branch and any
position within the organization or branch
involving duties substantially similar to the
duties of such an office;";
This Act also amended s.133.
Act No. 117 of 1976 omitted pars. (da) and (e) from the
definition of "Office" and substituted a new par. (d).
"{d) every office within the organization or branch
for the filling of which an election is
required to be conducted within the organiz-
ation or branch;";
il.
This Act also amended s.133.
In addition to the definition of "Office" it is helpful
to consider the history of the present s.133. Its predecessor
was inserted in the Act as s.70A by Act No. 18 of 1951. It
provided that in addition to the conditions referred to in
s.70 (now s.132), the conditions to be complied with by
associations seeking registration and by organizations include
a condition that the rules relating to an election specified
in par. (a), (aa) or (b) of the definition of "Office" should
provide that the election to an office be by secret ballot.
It left open the question of the provisions to be made for an
election coming within par. (c) of the definition. The word
"each" was not used.
In 1973 the section, by then renumbered s.133, was further
amended. As already set out, the definition of "office" was
materially altered by the same Act No. 138 of 1973 and one
paragraph substituted and two new ones added to it.
Section 133 as amended prescribed that the conditions
to be complied with by associations seeking registration and
by organizations should include a condition that the rules
should provide for the election of the holder of each office
by secret ballot of all members eligible to vote. It also
provided in s.s. (1A) for cases where the rules of an
organization provided for the filling of an office "being an
office the holder of which is a member of the committee of
Management but the duties of which are part-time".
12.
In 1976 the section was again amended by Act No. 64 of
1976. This amendment inserted a new par. (1) (da) which
provided that in the case of an association applying for
registration after the commencement of the sub-section, the
rules must provide that every election for an office of a kind
referred to in par. (a), (aa), (b) or (c) should be by postal
ballot. New s.133AA was also inserted, providing that elections
to offices within pars. (aa), (b) or (c) of the definition of
office in s.s.(1) of s.4 should be by secret postal ballot.
By Act No. 117 of 1976 there were inserted new definitions
of collegiate electoral system and direct voting system. There
was also inserted an amendment of the definition of "Office"
and a new sub-clause 5 was inserted in s.4.
This sub-clause made provisions relating to the definition
of collegiate electoral system, but referred to persons comprisin
a body of persons by and from whom persons are elected to an
office and referred to persons who are holders of offices
entitling the holders to membership of that body.
Section 133 was amended to require that the rules of an
association applying for registration and an organization
should provide for the election of the holder of each office
by secret ballot of members or by a type of collegiate system.
It also omitted s.s.(1A) of s.133.
The questions asked by the Registrar appear to have been
occasioned by the judgment of this Court in Sherriff v. Townsend,
of 3 April 1980. In that case a particular proposed rule
13.
providing that secretaries of branches and the federal and
assistant federal secretary should be members of the federal
council was considered. All members of the Bench held that
the rule was invalid in that it provided for equal represent-
ation of branches with very great differences in membership.
smithers J. then proceeded to deal with another attack
on that rule. He said:
"The effect of the provisions of rule 1(b)(ii), (iii)
and (iv) that the Branch Secretaries and Federal and
Assistant Secretary shall be members of Federal Council
is that each of the persons holding those offices is
invested with an additional office, namely that of
member of the Committee of Management namely, the
Federal Council. The office taken by the person
concerned can be filled only by that person. Never-
theless the office that he takes is in all respects
that of a member of the Committee of Management. And
it is clear that the rules do not provide for the
holding of an election of the person concerned to that
office. They only operate to fill the office of a
member of the Committee of Management when some
person has been elected to another specified office.
In effect the rules provide that the persons elected
to the designated executive offices shall accede to
the office of member of Federal Council without
election thereto. The effect of the rule in question
is to create a position on the council that is
essentially an office and to prescribe that it will
be filled without an election by a nominated person.
It is not too much to say that the rule does the very
thing which the statute and regulations are designed
to avoid, namely the accession to any particular
elective office by some means other than by election."
Evatt J. without deciding the issue, expressed a view
in agreement with the reasons for judgment of Smithers J.,
while Northrop J. was of the view that the second ground of
attack on that rule was not made out.
14.
The present matter has been much more fully argued before
us and while I have given full and careful consideration to
the judgment of Smithers J., on the point I find myself unable
to agree with it.
I turn first to reg. 115 and the question is whether that
regulation, set out earlier in this judgment, requires
separate elections in the manner I have set out later. The
regulation has been in its present form for a very considerable
time. There have been many instances of registered rules being
considered by the Conciliation and Arbitration Court, the
Commonwealth Industrial Court and this Court where such rules
provided that persons elected to an office such as federal
secretary should, by virtue of holding that office be a member
of the committee of management and other bodies. Instances
where the question was litigated before the Commonwealth
Industrial Court are Crealy v. Commonwealth Bank Officers'
Association, 1 F.L.R. 153; Mackenzie v. Administrative and
Clerical officers' Association, Commonwealth Public Service,
5 F.L.R. 342; while two instances of its litigation in this
Court are Egan v. Maher, 35 F.L.R. 197; McLeish v. Kane,
36 F.L.R. 80.
While it is true that the specific point now raised was
not taken in any of these cases, I do not think I should
ignore this history. As was said by the High Court of
Australia in The Queen v. Kirby and Others; Ex parte
Boilermakers' Society of Australia, 94 C.L.R. 254 at 296:
15.
"Such matters as judicial dicta, common assumptions
tacitly made and acted upon, and the fact that
legislation has passed unchallenged for a consid-
erable period of time, may be regarded as raising
a presumption which should prevail until the
judicial mind reaches a clear conviction that
consistently with the constitution the validity
of the provisions impugned cannot be sustained.
But they cannot be regarded as doing more."
A like presumption should in my view operate when considering
rules and their validity. They are questions which have long
been litigated.
In one other case Bicknell v. Amalgamated Engineering
Union,
15 F.L.R. 215, the matter was more directly dealt with.
Questions were argued as to the validity of certain rules of
that organization. These rules were described as follows -
"The rules as amended on lst October, 1968, create
the office of State secretary, the holder of which
is a member of State conference and State council.
He is the executive officer of these bodies."
"There is no express provision in the rules that
the State secretary is a full-time officer but it
seems clear that he must be. Rule 29(2) provides
that he shall for all purposes be the main executive
and administrative officer of the union in the State.
He is entitled to attend and speak at any meeting of
any branch and at any meeting of members in the State
but shall have the power to move and second motions
and to cast a vote only at meetings of his own branch,
at the State conference and at meetings of State
council. This rule clearly contemplated that he will
be a member of State conference and State council.
As secretary he is given a wide range of duties."
The Court said of the then reg. 115(1)(d) -
"Regulation 115(1)(d) does not in terms state that
the rules shall provide that every office shall in
all circumstances be filled by election. Accord-
ingly a rule providing for an appointment in
16.
special circumstances does not inevitably contravene
the literal requirements of reg. 115(1)(d). Where
there is such a rule the question is whether not-
withstanding its presence it can be said of the
organization that its affairs are regulated by
rules which, looked at in their entirety, provide
for the election of the specified bodies and
officers."
It added that the question was whether the rules looked
at as a whole may fairly be said to provide for the election
of the specified committee and officers. I agree with this
view of reg. 115(1)(d).
If the regulation is so interpreted in the manner I have
indicated, the rules as proposed will provide beyond any doubt
for election to particular offices, such as that of secretary,
etc., and will also provide for the election of such of them
as fall within par.(d) of the regulation. The rules will also
provide for a committee of management consisting of those
persons elected directly to it and persons elected to offices
to which the rules attach powers and duties such as membership
of the committee of management, the holding of property within
the meaning of par.(b) of the definition and the membership
of the bodies set out in par.(c) and (d) of the definition of
"office" so far as the rules of the organization make
provision for those bodies.
The whole of the rules then seem to me to provide for
the election of a committee of management and of officers
and of conferences, etc. within the meaning of reg.115.
In my view it cannot be said that the new rules would not
provide as is required by reg.115 and they are not therefore
in disconformity with s.140 of the Act.
17.
Once it is accepted that the Act intends the organization
to choose its own structure, subject to requirements spelt out
in the Act and regulations, and once it is accepted that
members have easy access to the rules of the organization, it
seems to me fair to assume that at times of election they will
certainly know the consequences of voting for a particular
candidate for particular office. Section 188 of the Act
provides that a member must be supplied with a copy of the
rules on demand and payment of a small fee. They will know
then that if they cast a vote which results in the election
of a particular candidate to the office of general secretary,
the rules provide that she will also be a member of certain
bodies.
There have been many cases involving in one way or
another union elections. Having regard to the nature of the
offices of federal president and secretary and branch secretary
and president, and the fact that union elections are contested
by groups of individuals rather than a lone individual, this
assumption is in my view the real position within unions.
I do not regard it as at all unreal to make such an assumption
and I do not regard such a provision as so artificial to cause
it to be looked at with suspicion.
It has been suggested that where there was such a
provision voters' considerations were not free since they
might well consider any particular candidate a good administrator
but not a good policy man or the reverse. The same objection
might well be voiced in considering voters in a general
election casting a vote. They may consider a candidate
18.
suitable if the party he supported were in opposition but not
in government or they may consider the reverse. Nonetheless
they vote and are obliged to do so and make the best of an
imperfect world.
In my view the word "election", is used to describe a
means whereby these various offices will be filled and it is
used in distinction to the word "appoint". The Act originally
required the rules to provide for the appointment of a
committee of management and officers. In so doing it followed
the language of the various Trade Union Acts then in existence
in the various States. It was not until 1928 when the Act was
amended to afford more powers of supervision of trade unions
that the requirement to hold elections appeared. By the same
amending Act No. 18 of 1928 the precursors of the present
ss.140 and 141 were added. In my view the rules comply with
the requirements of reg.115(1)(d) and do require an election
in the sense of a choice by the members as opposed to an
appointment.
I turn next to s.133. It was submitted in dealing with
this section that s.133(1)(a), by the use of the phrase "the
holder of each office" required that the committee of management
be elected and that persons could not be members of the committe
of management by virtue of their election to, for example,
secretary. It is argued that the use of the word "each" in
s.133(1)(a) and the use of the word "every" elsewhere in the
rule emphasise that each office referred to is necessarily to
be taken separately and in this sense it may be said there is
19.
some ambiguity. I have therefore taken into account the
history of the section.
Prior to the amendment brought about by Act No. 138 of
1973 there seems to me no possibility that the section could
have been so construed as to require separate elections. The
amendment altered the previous provisions which had applied only
to offices in pars.(a), (aa) and (b) of the definition by makinc
them apply to all the offices in the definition. It did this
by using the phrase "that the rules should provide for the
election of the holder of each office". However, at the same
time it added to the section, s.s.(1A) which referred to the
filling of an office being an office the holder of which is a
member of the committee of management.
It seems to me that the sub-section clearly contemplated
a position where the holder of an office is a member of the
committee of management by virtue of his holding of that
office. The word "each" I think, meant no more than "every".
Its use was to emphasise that the provisions applied not to
some only of the offices within the definition of office
provided for in the rules of the organization but applied to all
The next amendment was in 1976. Act No. 64 of 1976 inserte
new par.(1)(da) which provided that, in the case of an associati
applying for registration the rules must provide that every
election for offices within 4 of the paragraphs of the definitio
should be conducted by postal ballot. It did not use the word
"each" and if the word "each" in s.133(1)(a) as amended in 1973
had the effect of requiring a separate election for each office,
it is difficult to see why different provision is made for
20.
associations applying for registration after s.133(1)(da) was
enacted in 1976. The general scheme of the Act has always been
to apply the same requirements to applicants for registration
as to registered bodies and it is improbable that different
provisions would be provided for an association if immediately
upon registration a change would be required in the rules.
After registration the Association would be an organization and
required to have rules complying with s.133(1).
The section was further amended in 1976 by Act No. 117 of
1976 and s.s.(1A) was deleted, but by the same Act a new
sub-clause (5)(a) was inserted in s.4. This referred to persons
who are holders of offices entitling the holders to membership
of an electoral college and clearly contemplated that there
will be such persons who are members of such a college who
will be members by virtue of the holding of some other office.
Such a college may in some circumstances be the committee of
management, in others it may be a committee which falls within
par.(c) of the definition of "office" in s.4 of the Act. It
seems unlikely that a body would be set up purely for the
purpose of an election meeting at considerable cost to a
federal organization to perform one function only.
It was submitted to us that to regard the section as
requiring a separate election for each office prescribed by
the rules of the organization and falling within the paragraphs
of the definition would lead to an absurd or inconvenient
result. This I think is so and such a result is to be avoided
unless the language is intractable. To illustrate the position
21.
in the case of this association, if it is necessary under the
section to require a separate election in respect of each office
then regard must be had to the overlapping nature of the
paragraphs in the definition.
In the case of this association, pars.(a),(aa),(b),(c)
and (d) all appear to overlap and in the case of the federal
secretary and federal president it would be necessary for her
to be elected in separate elections though perhaps conducted
at the same time as:
1. federal secretary; (par. (aa))
2. amember of the federal executive: (pars.(a) and (c))
3. a member of the federal council; (pars.(a) and (c))
4. a person holding property under par.(b) of the
definition.
I leave out of consideration the question of the overlaps
with par.(d). Like considerations apply to the federal
president and to the federal vice-president, as they do to
the branch secretary, branch president and branch vice-
president. In some organizations there are separate rule
making bodies and in a few separate bodies exercising disciplinar
powers and in those cases the position would be aggravated and
the number of separate elections increased considerably.
For the reasons I have indicated I am of the view that the
language is not intractable but that it is consistent with the
commonsense result which flows from the adoption of the present
22.
practice. In my view then, s.133 of the Act properly construed
does not make provisions with which these rules would not
conform. I regard the word "each", as defined, to do no more
than to emphasise that there is no exclusion of offices as
defined or any of them.
In my view then, the questions asked should be answered
as .follows:
1. Yes.
2. (a) No.
(b) No.
(c) No.
3. Question 3 should, in my view, be answered as
follows:
Sc far as the requirements of par. (a) of
s.140(1) are concerned, yes.
So far as the requirements of s.140(1)(c) are
concerned, no material appears before this
Court which would support a view that the
proposed rules would offend against s.140(1)(c),
but final consideration of this may depend upon
an examination of the history of other matters
peculiar to the Association.
I certify that this and the %-.-°°
preceding pazes are a true copy of the
Reasons for Judgment berein of his Honour
Mr. Justice Sweeney.
Hote
Associate
IN THE FEDERAL COURT OF AUSTRALIA
No. 19 of 1980
VICTORIA DISTRICT REGISTRY
INDUSTRIAL DIVISION -
IN THE MATTER of an alteration of the
Rules of the AIRLINE HOSTESSES'
ASSOCIATION an organization of employees
registered under the CONCILIATION AND
ARBITRATION ACT, 1904
REFERENCE BY THE INDUSTRIAL REGISTRAR
(pursuant to Section 112 of the
Conciliation and Arbitration Act 1904)
of questions of law for the opinion cf
* the Federal Court of Australia.
Coram: Bowen C.J., Smithers, J.B. Sweeney, Evatt and Northrop JJ.
REASONS FOR JUDGMENT
Smithers J.: Ever since 1928 it has been the law, as embedied
in Regulation 115(1}) (4) (i} and its precursors that the affairs
"of an organization registered under the Conciliation and
Arbitration Act 1904 (the Act) should be regulated by rules
providing, for the election cf a Committee of Management of the
organization and of its branches and of officers of the
organization and of its branches under a system of voting which
makes adequate provision for absent voting.
In 1952 by S.R. No. 39 of 1952 it was enacted that
the rules of an organization should provide for the election of
certain other bodies of an organization and the law was in the
form, namely that the affairs cf an organization should be
regulated by rules providing for,
"(1) the election of
A. a committee of management of the
association and of each branch of the
association;
[Be officers of the association and of each
branch of the association; and
Cc. any conference, council, panel or other
body (additional to the committee of
Management), which is empowered to
determine policy or to exercise
functions of management in the
association or branch."
In 1956 by S.R. No. 60 the earlier regulations were
all repealed and regulation 115(1)(d)(i) was enacted in the
form in which it now is. Regulation 115(1)(d){i) was
promulgated in S.R. No. 60 of 1956. Since 1952 the substance
of the relevant reguirements has never heen changed.
Accordingly the critical question in this case is whether the
rules of the Airline Hostesses' Association (the Association)
do provide for the election of a Committee of Management.
os ile noe Me OS Ne ISO da RS Dee i nN oe te Aceh cct eo
They do provide for the election of certain members of a
Committee of Management, (the Federal Council). As to the
other members of the Federal Council, they are persons who
have been elected as officers of the organization, namely as
Federal President and Vice-President and Secretary and the
President and Secretary of each branch. Rule 27 provides
that the Federal Council shall be composed of those officers
and branch delegates.
The contention is that these provisions are rules
providing for the election of a Committee of Management
within the meaning of the provision of regulation
115(1) (d) (i) that the affairs of the organization shall be
regulated by rules providing for the election of a Committee
of Management of the organization and of its branches and the
other categories of positions referred to in paras. A, B and
C of that regulation.
In the course of the debate on the straight forward
question as to whether this contention is sound, the view has
been put that the provisions of regulation 115(1) (d)(i) are
in some way qualified by s.133(1)(a} of the Act. I think it
appears on examination that that section does not play a
significant part in resolving the basic question whether the
rules of the Association really do provide for the election
of a Committee of Management. The better view in my opinion
is that the requirement that the rules shail provide for the
election of a Committee of Management is to be found in
regulation 115(1)(d)(i) and that that requirement is
unaffected by the provisions of s.133 of the Act, and that it
follows that the requirement that rules shall provide for
election of any position referred to in paras. A, B and C of
regulation 115(1)(d)(i) is unaffected also by the definition
of "Office" in s.4 of the Act. The matter depends on the
construction of s.133 of the Act.
That section is, I think, really concerned to specify
particular conduct to be observed in the carrying out of
certain organization elections in particuler elections for
"offices" in the organization and thus in elections provided
for in xules complying with the provisions of regulation
115 (1) (d) (i). Those requirements include the conducting of
the elections, by either a direct voting system, or a
collegiate electoral system, by a returning officer whe is
not an officer or employee of the organization, by secret
ballot with provisions for absent voting and otherwise in a
Manner to be laid down.
Section 133 as at present in force follows various
statutory provisions all of which have been concerned to
require the making of rules laying down requirements to be
observed in the conduct of elections in an organization. In
each of those statutory provisions it is expressly stated
that the requirements as to the making of rules as specified
therein are "in addition to" the conditions to be observed by
organizations as specified in what is now section 132(2) of
the Act. That section provided that the conditions should be
as prescribed. The current relevant prescription is
regulation 115(1)(d) (i) and as mentioned above previous
prescriptions have so far as relevant been in substantially
similar terms.
The first of those statutory provisions was s.9 of
Act No. 18 of 1951 the major import of which was to introduce
voting by secret ballot in elections in respect of certain
offices, namely those within paras. (a) (aa) and (b) of the
definition of "Office" as it then stood. This provision
became' s.70A of the Act. The next statutory provision was
the introduction by s.52 of Act No. 138 of 1973 of s.133 of
the Act, the major import of which was to introduce direct
rank and file voting in elections for all offices. Section
133 of the Act in its present form was introduced by s.4 of
Act No. 117 of 1976. It enacts that rules shall provide for
the election of the holder of each office within the
Organization, either by a direct voting system or a
collegiate system, and provides for certain other practical
matters such as secret ballots and absent voting and the
conduct of the ballot. But the introductory words of the
section specify that the provisions in it are "in addition
to" those conditions to be complied with by organizations
pursuant to s.132(2). Those conditions are those prescribed
in regulation 115(1)(d) (i). Thus the requirement that rules
shall provide for elections for the positions referred to in
paras. A, B and C of regulation 115(1) (a) (i) was in force
prior to the enactment of s.133. Section 133 does not
purport to qualify that requirement. On the contrary, it
confirms it. It makes the rules to be made pursuant to it
concerning the conduct of elections applicable to elections
for the holding of which rules made pursuant to regulation
115(1) (ad) (i) are to provide. In Sherriff v. Townsend V. No.
12 1979, 32 April 1980 (unreported) I said that s.133 assumed
that there will be elections pursuant to rules made under
regulation 115(1) (d) (i). But it does more than that. It
refers to the conditions already provided for in s.132 and
enacts: that organizations shall comply with certain other
conditions "in addition to" those already applicable pursuant
to s.132(2) which are of course those set out in regulation
115 (1) (d@) (i). It is not going too far, therefore, to say
that s.133 is a recent statutory confirmation of the
continuing operation of the conditions prescribed in
regulation 115(1) (da) (i). Section 133(1)(a) is not to be
construed as enacting the provisions of regulation
115(1) (d) (i) all over again. It takes the situation existing
under regulation 115(1)(d)(i) as it finds it, namely that
elections for the positions referred to in regulation
115(1) (a) (i) are already provided for, and provides for the
making of further rules about the method of conducting such
elections. Certainly it requires such "conduct rules" to be
made for elections for holders of each office. But in the
context, that would appear to mean each office in respect of
which the provisions already required to be in the rules
require an election to be held. If however, the section does
require the making of rules for holding any elections
additional to those required by rules made in accordance with
regulation 115 (1) (a) (4), it would not take away the operative
effect of that regulation. And it is to be noted that the
positions comprised in paras. A, B and C€ of regulation
115(1) (d) (i) would comprise practically all, if not ail, cf
those specified in the defintion of "Office" in s.4 of the
Act. But the manifest purpose of section 133 enacted in 1976
is to permit collegiate elections rather than require
elections in respect of offices, if there be any, beyond
those comprised in paras. A, B and C. In any event the duty
imposed on organizations by regulation 115(1)(d)(i) to
provide for the election of a Committee of Management
persists alongside whatever construction of s.133 is adopted.
And the same may be said in relation to the former s.70A of
the Act and in relation to s.133 in the form in which it
stood as enacted in 1973.
The issue in this case is whether rules which provide
for an election to one of the positions in an organization
which are referred to in para. B of regulation 115(1) (d) (i)
and also provide that the person elected to that position
accedes, ex officio, to another position, namely: a position
within the scope of para. A of the regulation, can be said to
be cules which provide "for the election" of a person to fill
that latter position. When regulation 115(1) (d) (i) reguires
that there be rules providing for the election of a Committee
of Management it is necessarily to be construed as requiring
that there be rules providing for the election of each member
of a Committee of Management. The question is whether a rule
which provides for the election of officers such as secretary
or a trustee and goes on to provide that the persons elected
as secretary or trustee shall accede to the position of
member of the Committee of Management can be said to be rules
which provide for the election of a Committee of Management,
or putting it distributively, the election of the members of
a Committee of Management. Or, putting the matter in
reverse, could it be said that rules which provided for the
election of the members of a Committee of Management and went
on to provide that certain of those members should accede, ex
officio, to positions of secretary or president, provided for
the election of officers of the organization? Or could it be
said that rules which provided for the election of Vice
President and went on to provide that the person elected
should accede, ex officio, to the office of secretary,
provided for the election of officers of the organization?
To my mind the answer to all these questions is in
the negative. It is a question of construction of regulation
115(1) (d) (i). It seems to me that it would be difficult to
eres,
ee ee nee a A en le a Mami tem te e 9
find words to provide with greater clarity that in respect of
each of the positions within the categories specified in
paras A, B and C of the regulation the rules must provide for
the filiing thereof by an election for that position. In
other words a procedure must be provided for ascertaining in
respect of each position the authentic choice of the
electorate of one of the candidates for that position. The
procedure must be such that as a result thereof it can be
said that there has been in fact, an election for the
position.
In a sense therefore there must be a separate
election in respect. of every position for which the rules
must provide for an election. That may not mean that a
procedure may not be devised for electing one person to fill
two positions. If that be done there has been a choice in
respect of each of the positions, albeit a limited choice.
But that procedure may constitute an election satisfactory
for the purpose of regulation 115(1) (d) (i). Similarly it
dces not mean that elections for multiple positions may not
be conducted on a common baliot paper.
But it does mean that after the specified procedure
has been carried out it must be possible to say of a
candidate acquiring a particular position, thut he acquired
it by election. Accordingly, a rule which says, in effect,
that there will be no election for a particular position,
arses tore meer he
10.
such as membership of the Committee of Management, would not
comply with regulation 115(1) (d) (i). And it would not cure
the situation to provide that a person elected to, say, the
position of secretary shall be a member of the Committee of
Management.
The first question which arises is whether the rules
of the Association, the terms of which are sufficiently
indicated above, provide for the election of a Committee of
Management in accordance with regulation 115(1)(d)(i). When
the regulation prescribes that the rules shall provide for
the election of a Committee of Management it is manifest that
what is intended is that the rules shall provide for the
election of members of the contemplated Committee and of all
the members thereof. As was said by Kerr J. as he then was,
in Bicknell v. Amalgamated Engineering Union (1969) 15 F.L.R.
215 at 228:-
"This regulation means that the rules
must provide for the election of the
committee of management, conferences,
councils, paneis or other bodies
referred to and of the officers referred
to. The rules must provide fer the
election of all members of these bodies
and all officers."
It is necessary then to consider what is involved in
an election. Reference to Halsbury's Laws of England Volume
15 pp. 551 et seq. and to May's Parliamentary Practice and to
we.
li.
various decisions in this Court confirms that the concept of
conducting an election extends to the initiating process such
as the issue of the writ calling for nominations and their
scrutiny, as well as the actual process of arranging for and
receiving the votes and declaring the poll. See for instance
Friend v.- Barnes (1969) 15 F.L.R. 184 at 201 et seq, Jones v.
Farrow (1971) 20 F.L.R. 73, and Re Election for office in
Australian Institute of Marine and Power Engineers (1973) 20
F.L.R. 407. Express authority is lacking as to what precise
steps are required to be taken to ensure that those concerned
in an election both as nominating candidates and electors are
apprised of the positions or offices with respect to which
they are invited to nominate or to vote. But there can be
little: doubt that it is essential that in calling for
nominations and preparing ballot papers steps must be taken
to notify those concerned as to what office or position it is
with respect to which, the election is to be held. When
therefore regulation 115(1)(d)(i) refers to a rule providing
for an election with respect to a position or office it must
be taken to be referring to an election in which those basic
requirements are observed,
Accordingly what is contemplated by regulation
115(1)({d) (i) is that the rules of an organization shall
provide for the election of,
(a) - the members of the Committee of Management of the
12.
organization and each branch of the Organization at
elections in which those concerned will be informed
that the position or office in the election in which
they are invited to participate is the position or
office of member of the Committee of Management; and
(b) officers of the organization and of each branch
thereof at elections in which those concerned will be
informed as to the office or offices in respect of
which such eiections are being held.
The rules of the Association do provide for the
election of federal offices identified as the Federal
President, Vice-President and Secretary. But so far as the
Committee of Management is concerned they provide for the
election only of certain branch delegates, described as
additional delgates, from branches, the number of whom in
respect of each branch depends upon the numerical strength of
the branch. According to rule 27 the other five members of
the Federal Council are the Federal President, Vice President
and Federal Secretary and the President and Secretary of each
branch, the last two of whom are described as branch
delegates. The rule purports to confer membership of the
Federal Council upon each of those five officers and to do so
by reference to their holding the positions mentioned. The
rules do not provide for the election of those officers to
membership of Federal Council. Accordingly it would seem
13.
that the rules fail to comply with the requirements of
regulation 115(1)(d)(i) in that they fail to provide for the
election of a Committee of Management. They provide for the
election of part only of a Committee of Management.
It is put that so far, for instance, as the Federal
Secretary is concerned the requirements of Regulation
115(1) (d) (i) are satisfied by the provision made in Federal
r.55 for the election of the Federal Secretary and the
provision of Federal r. 27 that the Federal Council shali be
composed of certain designated offices and delegates, one of
which offices is that of Federal Secretary. It is said that
the electors know, or must be taken to know the rules, and
therefore know when they are voting in an election for
Federal Secretary that they are also voting in respect of the
accession of the person elected in that election to the
position or indeed the office of Federal Councillor. But I
think the better view is that what the informed voter knows
or is deemed to know is more accurately expressed by saying
that he knows that the person elected in the ballot relating
to the office of Secretary will without further election
accede to the office of the Federal Councillor. He knows
that there is to be no election at which any members will be
asked to vote in respect of the position of one Federal
Councillor, namely, that which will be assumed, ex officio by
the Federal Secretary. And the effect of r.27 is to create a
position and office of Federal Councillor which is reserved
we
14,
for the person who may be elected Federal Secretary. That
person will accede therete not as the result of being elected
thereto but as the result of being elected to an entirely
different position and office.
This process would appear to be the antithesis of the
process of electing a member of the Council. By it a person
becomes a member of Council without facing an election in
respect of that position and that occurs because the rules
fail to provide for the election of every member of the
Committee of Management and thereby fail to provide for the
election of a Committee of Management.
Considerations to the Contrary
There are a number of considerations by reference to
which it is urged that what seems a very plain provision
should be qualified to the extent that at least with respect
to Federal President, Vice President and Secretaries rules
providing for their appointment to the position of member of
the Committee of Management without election to that position
are to be considered, in some way, as rules providing for
election to that position. There is said to be a generally
accepted view that organizaticns are entitled to arrange
their governing and administrative structure in a way
suitable to themselves. Evatt dg. and I in Lovell v.
nd Allied Industxies Employees' Union of
Federated Liquor a
15.
Australia (1978) 35 F.L.R. 72 at p.81 said,
"A constitution suitable for one union
may be unsuitable for another ... The
rules must be designed to ensure
stability in management and at the same
time to avoid installing officers who
cannot be removed. In the designing of
rules appropriate for an organization of
employees much must be left to the
judgment of those who make the rules."
And this is true, as is, with respect, what O'Mara J. said in
Thornton v. Mackay (1945) 56 C.A.R. 561 at p.590:-
"The nature of the provisions to be made
for the election of committees and
officers is primarily a matter for the
members of the association to determine
having regard to the nature of that body
and the circumstances which exist in
relation to its membership. The same is
2 true of the provisions for the control of
such committees by members of the
association."
But this freedom, must be exercised in accordance with the
law, or as O'Mara J. pointed out at p.590, subject to the
prescribed conditions. And it is no real fetter upon it to
have rules providing that a Committee of Management shall be
elected. And it can be done in appropriate cases by election
even by the collegiate system.
So far as a President of the organization is concerned
it is usual and desirable for that officer to be a member of
and preside at the meetings of the governing bodies thereof
and the rules of the Association so provide. There is much to
be said for the view that the person elected President
>
16.
occupies two positions in the categories set out in paras. A,
B and C of regulation 115(1)(d)(i). And it is suggested that
if he has to stand for separate elections for each position he
might fail to be elected for, say member of the Committee of
Management, and would then be a presiding officer without a
vote. However, I think the better view is that election to,
and occupancy of, the position of President incorporates
membership and Presidency of the Committee of Management and
that the Presidency is one position with various aspects.
Each may be an office. But whether they are offices or not is
really not to the point, save that if it were necessary to
have separate elections each must comply with the conditions
enacted by s.133 of the Act. The definitions of the
expression "President" to be found in the Oxford English
Dictionary and set out hereafter, support this view of the
President's position. But if this be not so and an election
for each of the positions is necessary by law, the situation
would be unusual but far from unworkable. If it were the will
of the electorate that the President be not automatically a
member of the Committee of Management that would be at least
the working of full membership participation. If, as I think
is the case, the election for the position of President is in
form and substance an election for a position in which
membership of the Committee of Management is incorporated,
both by the rules of she Asseciation and according to the
ordinarily held concept of the position, then the one election
is an election for each office within the concept of the
17.
Presidency.
It was said by counsel supporting the proposed rules of
the Association that each organization should be able to
determine its structure by providing for composite offices in
the rules so long as the holders of those offices were
elected. Thus the rules could provide that the positions of
Branch President and certainly other officers such, no doubt,
as Vice President, Secretaries and Assistant Secretaries and
possibly Trustees or Organizers carried with them membership
of the Federal or Branch Councils. The notion that these
offices might have membership of Federal or Branch Councils so
conferred upon them was based on the provision in s.133(1) (a)
that rules required to be made pursuant to that section should
provide for the election of the holder of each office within
the organization. But this section is not directed to such a
notion. It is directed to the making of rules providing "for
the election of the holder of each office within the
organization by" a particular type of voting method and by
secret ballot and subject to other requirements. It is not
directed to the making of rules providing what elections shall
be held. That has been done by regulation 115(1)(d)(i). But
that regulation gives no guidance as to what particular mode
of election is to be adopted in respect of the election of the
holder of each office within the organization. And that gap
is filled by s.133.
ccna tae
18.
The language used is hardly adequate to indicate that
notwithstanding that the whole of s.133 is additional to
regulation 115(1)(d)(i), through s.132, it nevertheless
authorises rules which will provide for a kind of blanket
election to one office, which will remove the necessity for
an election in respect of any other office Federal or Branch.
One would feel that the notion that election for one office
will suffice for every office would be a provision contrary to
the plain words of regulation 115(1)(d) (i), and would have to
be found in equally plain words elsewhere, and certainly not
in a provision such as s.133 which is expressly declared to be
introducing conditions additional to those in regulation
115(1) (d) (i). But the notion must be regarded as contrary to
the chief objectives of the Act (see s.2, particularly
8.2(f)), and 'to the whole thrust of the provisions for
elections in s.132, s.133, regulation 115(1)(d)(i) and
regulations 136B and 136C and Part IX of the Act. And yet
acceptance of this notion would seem to be vital to the case
put forward on behalf of those supporting the proposed rules
for the Association. Mr. Caston who appeared as amicus curiae
pointed to the surprising consequences of accepting the view
that election of one office was a sufficient foundation for
appointment to another. He pointed out also that if the
"netion actuaily represents the law as established by statute,
even its more bizarre effects could hardly be regarded as
contravening the provisions of s.140(1).
sere NRA in ETE Ca ee ae ae ee ee aes Mem ame So nee E ane orm
It is more important to observe that although
acceptance of the notion involves that a person elected to one
position may on that ground be appointed to another, its
critical effect for current purposes, is to render regulation
115(1) (ad) (i) inoperative to the extent that persons elected as
officers are appointed to the Committee of Management. It
would permit creation of a Committee of Management to which no
member was elected. This is in no way far fetched. As
appears from the reasons for judgment in Sheriff v. Townsend
(supra) the Committee of Management of the Victorian Branch of
the Vehicle Buiiders Union is, according to the Union rules,
comprised of sixteen persons being the elected holders of
offices other than membership of the Committee, including a
number of elected organizers, and only four persons elected to
that Committee. If the notion referred to above be accepted,
then total elimination of elected members from such a
Committee would be lawful. And, of course, a situation where
the Committee elects the officers and the officers become ex
officio members of the Committee, as is the case in some
organizations, is calculated to promote continuance in office
of particular officers, and a kind of official inbreeding
seriously to the prejudice of democracy and member partici-
pation. It is difficult to see how rules permitting this state
of affairs or anything approaching it could possibly be
thought to comply with the requirement of regulation
115(1) (d) (i) that they must provide for the election of a
Committee of Management.
20.
It has keen argued that a system under which an
election is held for one candidate to fill two positions is
unacceptable because it deprives members of the opportunity to
stand for and vote in respect of each of the positions. But
the actual removal of the necessity to hoid an election at all
for a particular position or office by appointing to it a
person elected to another office is a much more shattering
blow to the members' right to stand for office and to the
notion of full member participation in Union affairs.
The rules of the Association differ from those before
the Court in Bicknell v. Amalgamated Engineering Union
(supra) .~ In that case apart from the temporary appointments
of the officers approved by the Court the rules did provide
for the election of such officers and it was not unreasonable
to say that in respect of the positions of those officers, the
rules did, in a general sense, provide for election. But the
same cannot be said concerning the positions of members of the
Committee of Management in the Airline Hostesses' Association.
It is of course appropriate that there should be branch
representation in the Federal governing bodies and that
delegates elected by the branches should be members thereof.
But to achieve this cshere is no necessity to adopt an
interpretation of regulation 115(1)(d) (i) which would permit
appointment by rule instead of election. And indeed a
a eect mee ete SA tant el aR en aoe abe Mam Ra
21.
provision in a rule that officers elected to Branch offices
accede ex officio to the position and office of Federal
Councillor would seem to offend the provision of regulation
115(1)(d) (i) in a very direct way. Election for branch
representation on Federal Council is the democratic way.
Appointment of officers in quantity may well lead not to the
reflection of the will of the members, but to rule by
officials.
The view urged appears to be based on the significance
said to lie in the use of the word "holder" in $.133(1) (a).
But this is to attribute a meaning to that word out of harmony
with the statutory expression in s.133 that the conditions
enacted "by it are additional to those already imposed by
s.132(2) as implemented by regulation 115(1)(d)(i). This is
apparent if the provisions of regulation 115(1)(d)(i) and
s.133 are read together. For purposes of construction it is
necessary to do this, and the two, put together read in
sequence as follows:-
the affairs of the organization shall be regulated by
rules providing in relation to the organization for-
(1) the election of,
A a committee of management...
B offices of the association...
Cc any conference, council, panel ...
22.
and in addition, by rules which,
(a) shall provide for the election of the
holder of each office within the
association or organization either by
(i) a direct voting system; or
(ii) a collegiate electional system...
(b) shall provide for the conduct of every
such election ...
(c) shall provide that if the returning
officer ...
(d) shall provide that every such election
shall be by secret ballot with provision
for,
(i) absent voting;
(ii) the manner in which persons may
e
become candidates for election:
. (iii) the duties of returning officers;
(iv) the conduct of the ballot;
(v) the appointment, conduct and
duties of scrutineers ...
(vi) the declaration of the result of
the ballot...
(da) eee
(db) eee
(e) eee
(£) eee
And so far as the word "holder" is used in s.133(1) (a) in
conjunction with the word "office" it is tc be noted that
since the introduction of the definition of office in the 1949
use of the expression "election of the holder of each office"
+ Ee aes ee ere
cera eve nee Se wn hie ane et Rae a Sh ne anand oe Oe EE
23.
is a convenient way of referring to the elections tc be held
pursuant to rules to be made under regulation 115(1) (d) (i).
The circumstance that the positions comprised in paras. A, B
and € of regulation 115(1)(d)(i) are or are not "offices" in
accordance with the definition in s.4 of the Act has no
relevance to the duty of the organization to have rules for
the election cf holders of those positions as reguired by
requlation 115(1) (d) (i). That duty existed long before the
@efinition was introduced into the Act.
The main contention on behalf of the parties supporting
the proposed rules of the Association, appears to depend on
the use of the expression "holder" of each office. It is from
this, as-I understand it, that the notion is said to arise
that once a person has been elected to one office he is
qualified to be appointed by rules to any other office. The
argument involves the proposition that to the extent that
rules provide that once persons have been elected to
particular offices, for instance, offices not being those of
members of the Committee of Management, elections need not be
held for positions on the Committee of Management. And of
course this necessarily goes further. It would appear to be
in the teeth of the requirement that the affairs of the Union
shall be regulated by rules providing for the election of a
Committee of Management. And it is put that the view arises
out of the use of the expression "holder" of each office,
rather than, for instance, "for each office","in respect of
24,
each office", or "to each office" or some other expression of
that nature. In my opinion the view contended for does
considerable violence to the plain requirement of regulation
115(1) (d) (i)and indeed of s.133 itself. To achieve such a
result plain words would be required. To my mind if the
provisions of s.133 are -read in conjunction with regulation
115, as set out above, it is inevitably seen that no such
violence is intended. On the contrary as it appears to me the
whole thrust of s.133 is to assert the intention of
Parliament, not only that elections be provided for in respect
of the positions referred in regulation 115(1) (dj) (i), as
required by s.132, but that those elections be conducted under
the strict conditions provided by s.133 to ensure the fair and
regular expression of the opinion of the electorate in
relation to the election of the holder of every office. it
would be strange indeed to construe the section as a provision
authorising a union, by its rules, to escape the requirement
of holding elections for particular offices by the simple
expedient of appointing thereto persons who have been elected
to some other office.
Section 4(5) of the Act which was introduced by Act
117 cf 1976 was inserted to permit the election of a member to
an office by a collegiate body some of the members of which
were not elected te the offices entitling them to membership
of that body by a direct voting system. From the reference in
the sub-section to an officer holding an "office entitling him
25.
to membership" of the collegiate body, and the fact that the
collegiate body might be identified as a Committee of
Management, it is arguable that there is an implied statutory
recognition that there may be a holder of an office not being
a member of the Committee of Management by virtue of election
by direct voting system but whose office entitles him to such
membership and that, accordingly, the plain terms of
regulation 115(1)(d)(i) must be qualified in some way. The
precise modification is unstated.
But the situation envisaged is one in which the person
holds the relevant office, presumably by a collegiate
election, and that that office entitles him to membership not
to a body of the organization such as a Committee of
Management, but to "a body of persons" forming an electoral
college. And this form of words reflects the primary concept
of collegiate body to be found in the definition thereof,
namely a group of officers. I would think, as a matter of
construction, if a relevant college were referred to as a
Committee of Management it would, for the purpose of the
collegiate electoral system, be in substance but a body of
persons and to be treated as such. In addition the situation
described would in any event, arise in cases where a President
ox Vice President held office other than by direct vote, and
those offices were included in the category of offices the
holders of which were members of the college. Also the
definition of collegiate electoral system in s.4 and s.4(5)
te.
26.
being but the instrument of s.133(1) (a) which commences with a
recognition, and indeed confirmation, of the continuing
operation of regulation 115(1)(d)(i), it would require clear
and uneguivocal expressions to operate to qualify the
requirements of the regulation. Accordingly, in my view, the
provision referred to is not to be interpreted as giving rise
to an implication that the provisions of regulation
115(1) (d) (i) do not operate according to their plain meaning.
The effect of s.4(5) was not argued at the hearing of
this matter and the decision in The Queen v. Dunphy ex parte
pea ennai hiedeniemeamat lid we it amv anda a ae
Maynes (1977) 139 C.L.R. 482 was not referred to. The
construction of section 4(5) was discussed in that case. But
the question of its possible influence upon the meaning and
operation of s.132 and regulation 115(1) (d) (i) or the possible
conflict between it and s.132 and that regulation was not the
subject of discussion therein, that matter not having been
raised. Also in that case rules resembling those proposed for
the Airline Hostesses' Association were examined and found not
to offend regulation 115(1)(d)(i), but the question whether
they complied with regulation 115(1)(d)(i) was not discussed.
That matter had not been raised.
There are numerous decisions which have dealt with
issues concerning union rules, where, although the point was
not taken, it was clear that such rules purported to confer
the. office of member of a Committee of Management upon persons
Mbit ied: tens Sem a ee
27.
who had been elected to other offices including offices other
than that of President. And of course a large number of
Organizations have such rules and have had them for a long
time. So far as the decided cases are concerned it would seem
that until some remarks of my own appeared in Maher v. Egan
and Ors.[Nc. 1] (1978), 35 F.L.R. 197, the problem associated
with such rules had escaped judicial comment. What is more
important is that it would appear that before Sherriff v.
Townsend (supra) in this Court relief had never been sought,
on the ground, that because of regulation 115(1)(d)(i) such
rules were invalid or defective. When in that case relief was
claimed on that ground the Court was divided in opinion, the
majority holding that the rule in question was invalid.
However in that case the relief granted was also supported on
another ground. Bicknell v. Amalgamated Engineering Union
(supra) was a case in which rules providing for appointment of
branch Secretaries on a temporary basis to meet a special
situation were held to be valid. It was held that such rules
did not contravene the provisions of regulation 115(1) (a) (i).
For present purposes the importance of the decision is
that the-Branch Secretaries whose appointment was held to be
valid were officers in respect of whom it was contemplated by
the rules that they would by virtue of holding the office of
Secretary, be members of State Conference and State Council.
No suggestion was made that this factor introduced invalidity
in the rules or that that factor had any relevance to the
28.
Matter in issue, namely whether temporary appointments might
lawfully be made to the offices of Secretary, and it was not
treated by the Court as having any significance, it was simply
not raised or adverted to. The matter did have some relevance
to the decision as the nature of the functons of the branch
Secretaries was a matter taken into consideration by the
Court. Nevertheless the most that can be said of the decision
is that it was assumed by the Court that the officers in
question would be members of the State Conference and Council
and that that matter was of no significance to the issues
before it. Much the same, I think can be said of the case of
Rupert Steele v. The Federated Ironworkers Association of
Australia and Others (1943) 52 C.A.R. 594 where rules having
similar "features were the subject of consideration. No
suggestion was made that the rules were invalid on the ground
mentioned and the Court did not advert to the possibility.
Comments to similar effect may be made in respect of other
cases, including Crealy v. Commonwealth Bank Officers'
Asscciation (1957) 1 F.L.R. 153, Mackenzie v. Administrative
and Clerical Officers' Association, Commonwealth Public
service (1962) 5 F.L.R. 342, Egan v. Maher (1977) 35 F.L.R.
197 and McLeith v. Kane (1978) 3 F.L.R. 80. But in no
decision has the point in issue in this reference been taken
or come up for decision. It is correct to say therefore that
it has been commonly and tacitly assumed by organizations and
in judicial proceedings, that appointments of officers, such
as Presidents, Vice Presidents, Secretaries and Assistant
Msn Sede
29.
Secretaries and sometimes Organizers as members of a Committee
of Management were not irregular. Accordingly that position
might be accepted, were it not that "the judicial mind" when,
as in Sherriff v. Townsend (supra) and in this case, is
directly faced with the problem, "reaches a clear conviction
that consistently with [the law] the validity thereof cannot
be sustained." See R.v. Kirby and Others, Ex Parte
Boilermakers Society of Australia (1957) 94 C.L.R.254 at 296.
For the foregoing reasons I have reached such a conviction.
It is for Parliament to say in what cases elections
shall be held. The holding of elections is part of the
process of full participation by members in Union affairs
which, Parliament has declared to be of great importance. If
the provisions laid down by Parliament are to be relaxed that
is a matter for Parliament itself.
General
In the observations above, I have used terms which
treat the Federal Council as the Committee of Management of
the Association. It may be that the Federal Executive
conforms more to the concept of a Committee of Management.
However, even if the Federal Council be not technically a
Committee of Management the substance of the issue arising
under the first question does not change, because it is
certainly a panel which is empowered to determine policy
sa.
30.
within the meaning of Regulation 115 (1) (da) (i)C.
It is to be noted that so far as it uses the
expression "election, of the holder of each office"
s.133(1)(a) enacted in 1976 is in the same terms as
s.133(1) (a) enacted in 1973 by s.52 of Act No. 138. It is
to be noted also, having regard to the introduction of the
definition of "direct voting system", the terminology of
S.133(1)(a) of 1976 reflects precisely the terminology of
s.133(1) (a) of the Act of 1973 in respect of that expression.
And it is of interest to note that the precursor of s.133(1)
as in force when the 1973 Act became law was s.70A of the Act
introduced by s.9 of the Act No. 18 of 1951 in the following
form, namely,
"JOA. - (1) In addition to the conditions
referred to in sub-section (2) of the
last preceding section, the conditions
to be complied with by associations
applying for registration as organiz-
ations, and, subject to this section, by
organizations, include a condition that
the rules of the association or organiz-
ation relating to an election for an
office in the association or organiz-
ation or in a branch of the association
or organization (being an office spec-
ified in paragraph (a), (aa), or (b) of
the definition of ""Office" in section
four of this Act) -
(a) shall provide that the election shall be
by secret ballot; and
(b) shall make provision for -
(i) absent voting;
31.
(ii) the manner in which persons may
become candidates for election;
(iii) the appointment, conduct and
duties of returning officers;
(iv) the conduct of the ballot;
(v) the appointment, conduct and
duties of scrutineers to
represent the candidates at the
ballot; and
(vi) the declaration of the result of
the ballot.
and a condition that those rules' shall
be such as will ensure, as far as
practicable, that no irregularity can
occur in connexion with the election.
(2) eee,
(3) eee
>
= (a) Lee
(5) uae
(6) oof
The change in 1973, which was maintained in 1976, and
by which the expression "rules relating to an election for an
office in the organization", was changed to "the rules ...
shall provide for the election of the holder of each office",
would seem to reflect the intention of Parliament that
provisions for secret ballots and other aspects of conducting
elections provided for in s.133 should apply to elections for
all positions which were "offices" and not only to some of
them. It was convenient therefore to use the expression
"holder of each office". Its use tended also to eliminate
any suggestions that the section only applied to elections
Dee ANE ae en dc NS a oo Nl a a
cium des nnd a
dt nae rane mt LL me delia
32.
for those offices in respect of which the organization might
decide to hold elections, and to avoid any suggestion that
the imperative requirement of regulation 115(1) (d) (i), might
be qualified in some way.
Offices
Having regard to the foregoing it is my conclusion
that with respect to the various positions referred, to in
regulation 115(1)(d)(i) rules must provide for the election
of the holders 'thereof. Those positions are of two
categories, first members of governing or managing bodies and
secondly officers. There is a distinction between the two.
Officers are persons with some degree of individual authority
to take administrative action. Officers act individually
normally in an executive role. Members of governing or
Managing bodies act in conjunction with other members
thereof, in the exercise of functions normally not .of an
executive nature.
It would not, I think, occur to members cf the
Committee of Management that they were officers of the
organization. Certainly regulation 115(1)(d) (i) appears to
assume that the members of a Committee of Management are not
officers of the organization within the meaning of para. B
thereof. And I think that this has been a characteristic of
a becnscenersnins nntin Ma sninee es oa caine Samet ee
33.
the Act since 1910 or even since 1904. According to Schedule
B to the original Act it was a condition of registration of
an organization that its affairs were regulated by rules
providing, inter alia, for "the appointment and continuance
of a Committee of Management, a Chairman or President and a
Secretary". But by Act No. 7 of 1910 that Schedule was .
repealed and replaced by Schedule B requiring that the
affairs of an organization be regulated by rules providing
for, inter alia, "a Committee of Management and Officers".
Again in regulation 5 of S.R. No. 331 of 1913 this same
terminology appears. 'A change in terminology and substance
appeared in an amendment to Schedule B enacted by s.58 of Act
No. 18 of 1928. Thereby the terms of Schedule B provided
that the rules of Associations or Organizations should
provide for, inter alia, "the election of a Committee of
Management of the organization and of its branches and of
offices of the organization and of its branches under a
system of voting which makes adequate provision for absent
voting". The repetition of the word "of" emphasises that the
rules are to provide for an election for each category of
position. It is to be observed that for the first time
election of a Committee of Management and of officers was
made compulsory. And clearly by the form of words used it is
to be seen that what was contemplated was that provision
would be made for the election of al] the persons to hold
positions whether as members of the Committee of Manaqement
or as officers. Although a Iember of the Committee of
ae ae Bat re cae Sead mined eae a ote Ste
an nae ALAN te nn a oe nen ae = wine eee ee ewes Aebeee eerie sent se aetetae ate meet ee Cane nn eke ta nln Ane ee nti leases i Sar A
34. ,
Management was not and is not regarded as an officer, it is
not incompatible with this that a member of the Committee of
Management might be regarded as holding an office in the
organization. And the situation that the member of the
Committee of Management has an office but is not an officer
is not, I think, affected by the introduction of the
definition of "office" by para. (a) of s.4 of the Act.
Necessity for Elections In Fact
By Regulation 115(1)(d) (ii) it is provided that the
affairs of an organization shall be regulated by rules
providing for "the powers and duties of committees and of
officezs". The question arises as to whether in relation to
any officer identified by some particular title there are any
limits to the powers and duties that may be conferred on or
imposed upon him, Certain limits may be imposed by
8.140(1){c) of the Act. But within those limits one can
imagine wide ranging powers and duties being allotted to,
say, an officer designated as President, Secretary, Treasurer
or Trustee outside the powers and duties normally associated
with those of officers so designated. It is to be remembered
however that there may well be a difference between defining
the powers and duties of an officer designated by a
particular title and endowing him with the quality of holding
an office of quite a separate nature.
neha NNR A ae Nene Gone cnn ne nme ae ae mean
So far as a Secretary or Treasurer is concerned rules
may purport to confer on those officers the office of member
of the Committee of Management and the powers and duties
appertaining thereto. Regulation 115(1)(g) provides that
rules "may also provide for any other matter not contrary to
law". And there would appear to be no express law
prescribing that persons on whom particular functions have
been conferred shall be given any particular title or titles,
or that a person designated as an officer of the organization
under some particular title shall have any particular set of
functions. But it is essential that in relation to the
elections to be carried out pursuant to rules complying with
Regulation 115(1)(d) (i) it should appear to the electors in
respect of each election, for what position it is, that the
candidates are seeking their votes. And it would seem from
regulation 115(1)(d)(i) that for election purposes a position
may be specified by reference to its title. Certainly s.4
assumes that certain offices are identifiable by their
titles. Thus the offices of President, Secretary and Trustee
are treated as being recognizabie by their title with
sufficient precision for the purposes of the Act. But this
can only be so if the powers, duties and functions allotted
to the officers with those titles are such as are reasonably
within the normally understood limits of the powers, duties
and the functions of officers of organizations so titled.
And this consideration must apply with respect to the conduct
of an election for a particular position or office.
ce carat nem Ra At ene Me AD ae a oe a dN Bae Ne
es
ans * piel em ane ee att AEE hee Gy ai Meta eniAnbe nt aes oa
Ma cBstin eset a Mi wanes sa Neh an Cece ont tean ent an le aN tet tne ie Rene tne mae et Me
If for instance, the rules of an organization allot
to an officer entitled "Trustee" the functions normally
allotted to a Secretary, or if the functions allotted by
rules to an officer described as "Secretary" include those
normally performed by a Secretary and also service as a
member of the Committee of Management, then, so far as the
conduct of the relevant elections of those officers is
concerned an election purporting tc be an election for the
position of Trustee would in fact be for the office of
Secretary, and an election purporting to be an election for
Secretary would in fact be for the office both of Secretary
and member of the Committee of Management.
It is an attractive view that members of unions are
deemed to know the rules. Acting on this basis it can be
argued that if the rules of an organization create a position
or office and give it say the powers and duties ordinarily
associated with the name "Secretary", but give it the name
"Organizer", and the rules go on to provide that there shall
be an election for the position of Organizer, then the person
elected under the name Organizer would in fact be the person
who would perform the duties of Secretary, and would accede
to the office and have the duties and privileges ordinarily
those of a Secretary. But positions such as President,
Secretary, Trustee and Organizer are traditional positions
ee ed ihe Le Wate aot
a ee AY ee ai reer Ne Lae eid ane
37.
and, broadly speaking, with traditional powers and duties.
When a regulation dealing with elections of office holders
was introduced in its original form it reguired rules
providing merely for an election of two classes of office
holders, namely members of the Committee of Management and
officers. In its" latest manifestation regulation
115(1) (d) (i) requires that there shall be rules providing for
the election for various positions in the Union and it is to
my mind necessarily implied that it requires rules which will
provide for elections for positions recognisable by their
names or by a description as one or more of the positions
specified in paragraphs A, B and C of the regulation. From
the point of view of purpose and of common sense it would
hardly be thought desirable to authorise rules for holding
the election for an office by one name when in truth and
substance the election was for a different office. It is
difficult to think that when Parliament went to all the
trouble to ensure that there would be elections for different
offices and to enact that those elections would be carried
out with great care to ensure, inter alia, that there were no
irregularities, it would be contemplated that there could be
an election for an office. under one name which was really for
an entirely different office. It has to be recognised that
s.132 and s.133 of the Act are deliberate steps towards
achieving democracy in organizations, and what is perhaps
more important, full participation by the members in the
affairs thereof. Indeed it would be hard to think of a step
tt mat, OS
caneenen Acta tested Ans
38.
more likely to cause confusion and frustrate full partici-
pation of members than an election conducted apparently for
one office but in reality for another, or for a named office
and another.
In the light of the introduction of s.2(f£) of the
Act which declares full participation to be one of the chief
objects of the Act, it is more than likely that Parliament
would have intended that the rules to be enacted under
regulation 115(1)(d) (i), and in accordance with s.133 would
provide for elections concerning which the persons concerned
would actually understand the full impact of what was put
before them. It is not difficult to achieve.
In the light of the subject matter namely, full
participation by members, the fiction involved in a situation
where knowledge is "deemed" to exist, is quite out of place.
It is important. that organizations have membership in many
cases well exceeding 100,000, with members distributed all
over Australia, of whom many are transient in their
membership, persons of limited education and possibly
literacy. It is quite unreal to act by reference to
knowledge which those members are deemed to have because they
are deemed to have read the rules.
e
In the end the situation remains that an election is
an event complete in itself, that an election for Federal
eb eee nee se
39.
Secretary or Branch President or Branch Secretary is not an
election for membership of the Federal Council, and that what
a knowledgeable member of the Association really knows is
under the rules of that Assocation the persons elected to the
positions mentioned will accede to membership of Federal
Council without being elected thereto.
What the rules to be made pursuant to regulation
115(1) (d) (i) must provide for are elections for the positions
within the categories A, B and C thereof which will be, in
fact, elections for those positions. Whether the elections
provided for by the rules will in fact be elections for these
positions may be determined by reference to the terms used in
the conduct thereof. If the terms in which nominations are
called and in which the contents of the ballot papers are
expressed indicate with reasonable clarity the position for
which nominations are called and for which the candidates are
Standing, then, with respect to those positions it would be
appropriate to make a finding of fact that the successful
candidates were elected to those positions, and such
elections would carry the privileges and entail the
performance of the functions reasonably understood to attach
to those positions.
In these reasons I have assumed thzt rules which
provide that the same person is to hold more than one office,
and for the holding of what may be described as a single
oe em eR A er nt NN dO RIN noe ai
: 40.
election for the purpose of electing one person to more than
one office, would be valid. But this may not be so. it is
not clear that such rules would not infringe a right of any
member to stand for any position in the organization. It is
possible that a rule the effect of which is that a member can
only stand for a particular position if he is willing also
to stand for some other position or positions might be
regarded aS an unreasonable fetter upon his right to stand
for a particular office, and thus prejudice his full
participation in the affairs of the Union. If this be so
rules which result in no election being held at all for
various positions offend this principle much more seriously.
t The discussion in these reasons concerning the
validity of an election for a position having a particular
name but which embraces some other and quite separate
position, or a single election to choose one man for more
than one office, does not require a final answer for the
purposes of the questions which have been asked by the
Registrar in this case. The rules of the Airline Hostesses'
Association do not provide for any such election. The
relevance of the discussion is that it might be thought
merely a technical exercise to declare the Association's
rules invalid if the same objective could be achieved with
respect say, to the position of Secretary, by defining his
powers and duties as the powers and duties of the position of
member of the Federal Council and the Executive. However it
a amd Noe
ce tn ar ane ene hee cot See Mee Sa te
41.
is not a technicality because, if my view is correct, namely,
that an election in such a situation could only proceed if
the nature of the two offices involved were disclosed and the
ballot papers make the position clear, then those voting
would know what positions or offices they were voting for and
they might judge the candidates accordingly. There has been
an election in fact for the positions concerned.
Having regard to the history of the statutory
provisions, including the statutory regulations from 1910
onwards, there is a strong implication that the Act assumes
that the duties of officers with titles, "President" and
"Secretary" in particular, and the other traditional titles
of traditional executive officers, are those within the
limits which those titles imply according to their ordinarily
understood connotation.
Accordingly a rule which provided for an election
for an office with specified duties, by a name which did not
reasonably indicate that the office concerned did relate to
those duties, would not provide for an election in respect of
that office, within the meaning of regulation 115(1) (d) (i).
Special Position of President
The elections for Federal President, Secretary and
Vice -President provided for in the rules of the Association
are elections in which, by reason of allocation of powers and
duties to those officers are elections in which the titles of
the positions correspond with the traditional functions of
positions so entitled. But because of the very nature of the
position of President an election conducted for that position
requires special consideration. All his duties and functions
including Council and Federal Executive duties and his other
functions are really aspects of the position of President
falling within the ordinary concept of the duties and
functions of a President of an organization. Of course in
this case the duties and functions allocated to the President
by the rules coincide with those ordinarily attributed to a
President. According to the Oxford English Dictionary a
President is one "appointed or elected head of a temporary or
permanent body of persons who presides at their meetings and
proceedings" Also he is "the head or chief of an advisory
council or administrative board or department of government,
for example The Lord President of the Council, The President
of the Board of Agriculture, of Education or of Trade."
In relation to a body like an organization registered
under the Act, which is required by law to be governed by
elected Committees and to engage in important transactions
involving the promotion and adjustment of the interests of
large bodies of employees or employers, the concept of the
rights, duties and functions of a President, according to
ordinary standards, is inevitably broad and of a wide range.
cm li
43.
Apart altogether from a provision in the rules to that effect
those functions would extend to presiding in Federal Council.
From the terms used in schedule B, as enacted in 1910, that
seems to have been a function contemplated at that stage. It
would normally be understood that a presiding officer of a
body would be a member thereof. And in relation to the
Federal Executive, which is but the day to day authority
"acting in lieu of the Council, it would I think, ordinarily
be understcod that a person elected as President of the
Organization would preside at and be a member of that
Executive. There can be little doubt that if an ordinary
Member of the public were asked if he thought the President
of the Melbourne Football Club was a member of the Committee
the answer would be "yes". If he were asked whether he would
expect the President of the Sydney Jockey Club to be a member
of its governing council or committee the answer would almost
certainly be "of course". If he were asked whether he
thought the President of the United States was a member of
Congress the answer would probably be that he would have
thought so; but he knows he is not". Membership of the
governing body of any institution by the President thereof
is, I think, regarded as the normal state of affairs. To my
mind the functions of the President arising under the rules
other than those relating to his Council duties are all
incidental to his Presidency of the whole organization. It
is from the nature of that position that Presidency and
membership of the two main governing bodies proceeds.
wae bi mnetntn t inR ae ed i a NE atin eh a RI
(catarsientih ety Haseeno sare swernticediiss ag eve bt Sa mente es eak See or bene
44,
Accordingly, when an elector considers the
candidature cf a nominee for Presidency of the organization
he would understand the general scope of the functions of the
office. The election is therefore in form and substance
calculated to ascertain the authentic will of the electorate
on the question of the accession to the position. The actual
attributes thereof by way of ordinary understanding of the
nature of the position with the title of President are before
the electors.
For the President so to accede to the office of
member of the Committee of Management by such an election is
not in conflict with regulation 115(1) (da) (i). That
regulation requires that the rules provide for the election
of a Committee of Management, namely of every member thereof.
An election for President is an election for membership of
the Committee of Management because it is an election for a
position the very name of which, in relation to the organ-
ization, embraces and is understood to embrace, presiding
membership of the Committee of Management and its Executive.
That it embraces other things as well does not detract from
that situation. Regulation 115(1)(d)(i) is satisfied so long
as every person who acquires the position of member of the
Committee of Management acquires it by election in an
election where that position is in form and substance, in
fact, the subject of an election. When the election is for
Pied ie! sistant atta barks sonnets tae a Cena te na Rem ne nm ae mem Ne eo ae
45.
the Presidency it is for a position, single in nature, but
embracing, inter alia, membership of the Federal Council and
the Federal Executive as incidental thereto. The same
considerations apply to the Vice Presidency. It may be a
question whether when a President is so elected he has three
offices or one. His Special type of membership of Federal
Council and Executive and his Presidency may all be
"offices". It is my view that he has one position, that of
President in which are incorporated presiding membership of
the Federal Council and of the Federal Executive. Each
aspect of that position would qualify as an office within the
Gefinition in s.4 of the Act. But that does not mean that
three elections were necessary. Election to the Presidency
was enough because it was, as a matter of fact, in form and
substance, an election for the named position having the
three aspects mentioned. Section 133(1)(a) is satisfied by
the conduct of that election in the manner proscribed by
rules made under that section. As indicated above, if this be
not the situation in respect of the Presidency, that state of
affairs would have to be recognised. It would not be sound,
on that account, to introduce modifications to the terms of
regulation 115(1) (d) (i).
Federal Secretary and Branch Officials
But the situation is very different in respect of the
position of Secretary. Accerding to the Oxford English
Pee
46.
Dictionary a Secretary is "one whose office is to write for
another, especially one who is employed to conduct
correspondence and keep records and (usually) to transact
other business for another person or for a _ society,
corporation or public body".
I think that the ordinary concept of the function of
a Secretary is that he serves the committee of the body of
which he is secretary. The rules of the Association reflect
this view. Accordingly the election of Secretary was one
which, according both to the rules and the ordinary concept
of the function of the Secretary, was not an election for a
position incorporating membership of the Committee of
Management. There is much to be said for the view that the
concept of the office of Secretary of a Union of employees is
that he is the senior executive officer of the Union. That
view is also reflected in the rules of the Association now
before this Court. That is a very different position from
that of member of the Committee of Management.
Accordingly a rule purporting to confer membership of
the Committee of Management, ex officio, on a person elected
as Secretary is a rule which does not comply with the
provisions of regulation 115(1) (d) (i). For similar reasons
the provision in the rules (rule 28) that the President and
Secretary of each Branch shall be a member cf the Federal
Council by reason of their occupancy of those positions does
annie ethene Mlb ne i Ake adh wit ni sina ae etc ison Sd
Ait retin: eee Neat tom ee
47.
not so comply. The effect of the provision is to create
positions of membership of the Federal Council and to provide
that they shall be filled 'otherwise than by election
therefor. Thus with respect to those positions of membership
of the Federal Council the rules fail to comply with the
requirements of regulation 115(1) (d) (i).
To my mind the words of regulation 115(1) (d) (i) which
require that the affairs of an organization shall be
regulated by rules providing for the election of a Committee
of Management and of each branch of the Association are
unambiguous and imperative, and that, at this stage, the
regulation is in full force and effect. It is equally clear
that the rules of the Association which provide for the
election of only a section of the members of its Committee of
Management, and purport to confer membership of that
Committee without election thereto, not only on the Federal
Secretary, but also on Branch Presidents and Secretaries fail
to comply with the provisions of s.132 of the Act as
implemented by regulation 115(1) (d) (i).
Having regard to the foregoing,
(1) Question one asked by the Registrar,
namely,
"Do the rules set out above provide fer the
cata eae tae ee ls eae he LF ts UN te a ean a
48.
election of the holder of each office (as
defined in section 4) within the
Organization as required by section
133(1) (a) and regulation 115(1) (d) (i) ?"
should be answered "No".
(2) Question 2(a), namely,
"Do rules 27 and 41 contravene section
113(1) (a) and reguiation 115(1)(d)(i) in so
far as those rules appear to provide that
persons elected to be Federal Officers
shall, without any further election, also
be members of the Federal Council and
Federal Executive?"
should be answered "Yes".
Question 2(b), namely,
"Does rule 27 contravene section 133(1) (a)
and regulation 115(1)(d)(i) in so far as
that rule appears tc provide that persons
elected to be Branch President and Branch
Secretary shall, without any further
election, also be members of the Federal
wo"
det mets ee tenes ai ee tee eee eres nine Se ae a eae Sante cee ve weieh enetnnes je natn einen ine es ms ees abt i la Lane sinner: wot ites Bt
49. ,
Council?*
should be answered "Yes".
Question 2(c), namely,
"Does rule 41 contravene section 133(1) (a)
and regulation 115(1)(a)(i) in so far as
that rule appears to provide that a person
elected to be Branch President shall,
without any further election, also be a
member of the Federal Executive?"
should be answered "Yes".
(3) Question (3), namely,
"Do the said rules satisfy the relevant
requirements of paragraphs (a) and (c) of .
section 140(1)?"
should be answered "No".