Allen, Francis & Anor v Henderson, Frederick Horatio & Ors [1983] FCA 83
Federal Court of Australia
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CATCHWORDS
Conciliation and Arbitration Act 1904 - application
for orders to perform and observe rules of registered
organization - suspension and dismissal of branch
organizers from "office" within meaning of s.4 of the
Act - power to suspend branch organizer - rules of
natural justice - bias - compliance with notice
requirements of branch rules
Conciliation and Arbitration Act 1904, ss.4, 115(1), 141.
FRANCIS ALLEN and LESLIE ALAN SEMPLE PARK v. FREDERICK
HORATIO HENDERSON and THE BUILDING WORKERS INDUSTRIAL
UNION OF AUSTRALIA
FRANCIS ALLEN and LESLIE ALAN SEMPLE PARK v. FREDERICK
HAGGER, THOMAS HORATIO HENDERSON, P. SIDERIS, N.G. PARKER,
J.P. FRENCH, K.B. HALL AND THE BUILDING WORKERS INDUSTRIAL
UNION OF AUSTRALIA
Nos. WA 1 and 2 of 1983
WA 3 of 1983
Toohey J.
Perth
6 May 1983
a
IN THE FEDERAL COURT
OF AUSTRALIA
WESTERN AUSTRALIA
DISTRICT REGISTRY
INDUSTRIAL DIVISION
Nos. WA 1 and 2 of 1983
WA 3 of 1983
IN THE MATTER OF THE CONCILIATION
AND ARBITRATION ACT 1904
BETWEEN:
FRANCIS ALLEN and LESLIE ALAN
SEMPLE PARK
Applicants
and
FREDERICK HAGGER and THOMAS
HORATIO HENDERSON and
THE BUILDING WORKERS INDUSTRIAL
UNION OF AUSTRALIA
Respondents
FRANCIS ALLEN and LESLIE ALAN
SEMPLE PARK
Applicants
and
FREDERICK HAGGER, THOMAS HORATIO
HENDERSON, P. SIDERIS, N.G. PARKER,
J.P. FRENCH, K.V. HALL AND
THE BUILDING WORKERS INDUSTRIAL
UNION OF AUSTRALIA
. Respondents
Oo R D E R
JUDGE MAKING ORDER : Toohey J.
WHERE MADE Hy Perth
DATE OF ORDER H 6 May 1983
THE COURT ORDERS THAT:
1. In applications Nos. WA 1 and WA 2 of 1983
the respondent Thomas Horatio Henderson
perform and observe the rules of the Federal
organization by treating as null and void the
suspension of the applicants as organizers
of the Western Australian Branch of The
Building Workers' Industrial Union of Australia
on 2 February 1983.
In application No. WA 3 of 1983 the respondents
Frederick Hagger, Thomas Horatio Henderson,
P. Sideris, N.G. Parker, J.P. French and K.V.
Hall perform and observe the rules of the
Federal organization by treating as null and
void the resolution of the committee of management
carried at its meeting on 25 February 1983
suspending and dismissing the applicants as
organizers of the Western Australian Branch of
the Building Workers Industrial Union of Australia.
In applications Nos. WA 1 and WA 2 of 1983 the
applicants have liberty to apply within 14 days
to extend the operation of para.1 of the order
to the respondent Frederick Hagger.
In application Nos. WA 1 and WA 2 of 1983 and
in application No. WA 3 of 1983 the applicants
have liberty to apply within 14 days to extend
the operation of paras. 1 and 2 of this order
to the respondent The Building Workers Industrial
Union of Australia.
°
IN THE FEDERAL COURT
OF AUSTRALIA
WESTERN AUSTRALIA
DISTRICT REGISTRY
INDUSTRIAL DIVISION
Nos. WA 1 and 2 of 1983 and
WA 3 of 1983
ween
IN THE MATTER OF THE CONCILIATION
AND ARBITRATION ACT 1904
BETWEEN:
FRANCIS ALLEN and LESLIE ALAN
SEMPLE PARK
Applicants
and
FREDERICK HAGGER and THOMAS
HORATIO HENDERSON and
THE BUILDING WORKERS INDUSTRIAL
UNION OF AUSTRALIA
Respondents
FRANCIS ALLEN and LESLIE ALAN
SEMPLE PARK
Applicants
and
FREDERICK HAGGER, THOMAS HORATIO
HENDERSON, P. SIDERIS (MALE),
N.G. PARKER (MALE), J.P. FRENCH
(MALE), K.V. HALL (MALE) and
THE BUILDING WORKERS INDUSTRIAL
UNION OF AUSTRALIA
Respondents
CORAM: TOOHEY J.
6 May 1983
REASONS FOR JUDGMENT
There are three applications before the court.
Two have been consolidated and, at the request of the
parties, the third was heard together with them. To
understand the issues raised by the applications it
is necessary to say something about the personalities
involved.
The Building Workers Industrial Union of Australia,
one of the respondents, is an organization registered
under the provisions of the Conciliation and Arbitration
Act 1904 ("the Act"). I shall refer to it as "the
Federal organization". It has a Western Australian branch
which I shall refer to simply as "the Branch". The name
of the Branch 1s The Western Australian Carpenters and
Joiners, Bricklayers and Stoneworkers Industrial Union
of Workers, State Branch of the Building Workers Industrial
Union of Australia. The Western Australian Carpenters and
Joiners, Bricklayers and Stoneworkers Industrial Union
of Workers is a union registered under the provisions
of the Industrial Arbitration Act 1912 of Western
Australia. I shall refer to it as "the State union".
The State union has no direct involvement in these
proceedings but some reference to it is necessary because
its affairs and those of the Branch were not always
conducted with due regard for the separate corporate
existence involved in federal and state registration.
The applicants Francis Allen and Leslie Alan
Semple Park are members of the Federal organization and
until their suspension and subsequent dismissal each
was a Branch organizer. That position is an "office"
within the meaning of s.4 of the Act. Each of the
applicants is also a member of the State union and is
employed by it as an organizer.
Within the Branch the highest governing body
1s the state council, comprising members of the
committee of management and branch councillors (rule 16
of the Branch Rules). State council meets bienially
or as specially convened in accordance with rule 16(d).
The executive body of the Branch is the committee
of management consisting of the president, two vice-
presidents, secretary, assistant secretary and six
committee members. Two of the respondents, Frederick
Hagger and Thomas Horatio Henderson, are respectively
secretary and assistant secretary of the Branch, and
as well, hold comparable offices in the State union.
The Federal organization is also a respondent in
the consolidated applications. The respondents in the
third of the applications are the Federal organization
and six members of the committee of management including
Mr. Hagger and Mr. Henderson.
Some reference must also be made to another body,
the Building Trades Association of Unions of Western
Australia, registered in the State Industrial Commission.
It 18 an assoc1ation of unions concerned with the
building trade. It consists of the State union
involved in these proceedings, The Plumbers and
Gasfitters Employees' Union of Australia, West
Australian Branch, Industrial Union of Workers;
the Operative Painters and Decorators Union of Australia,
West Australian Branch, Union of Workers; The Western
Australian Carpenters and Joiners, Bricklayers and
Stoneworkers Industrial Union of Workers; The Operative
Plasterers and Plaster Workers Federation of Australia
(Industrial Union of Workers) Western Australian Branch; and
The Australian Builders' Labourers' Federated Union of
Workers, Western Australian Branch.
In February this year there was trouble between
Mr. Park and Mr. Allen on the one hand and Mr. Hagger
and Mr. Henderson on the other. The trouble sprang from
an account opened on 27 May 1981 with the Commonweaith
Savings Bank of Australia, James Street branch. This
was the bank and branch for financial transactions of
the Branch and of the State union. The account was
opened in the following name :
"Western Australian Carpenters &
Joiners Bricklayers and Stoneworkers
Industrial Union of Workers - State
Branch BWIU
North West Account".
It will be seen that the account was in the name of the
Branch.
4.
The signatories were Mr. Henderson, one of the
respondents and Mr. K.M. Burgess, another Branch
organizer. Apparently the bank did not require a
list of names authorised to operate the account but
was content that it be conducted pursuant to authority
already given in regard to other accounts of the Branch.
This meant that a cheque could be drawn on the account,
signed by the secretary or assistant secretary on the
one hand and a branch organizer on the other.
The account came about in this way. About May 1981
some of the unions in the Building Trades Association
agreed to open an office at Karratha. The purpose was
to provide someone on the spot to deal with industrial
problems in what was then an area in which a great deal
of development was taking place. The State union or
Branch (perhaps both) agreed to make one of its then
organizers, Mr. G. Young, available for this purpose.
It agreed to accept responsibility for Mr. Young's
salary and to provide a car for him. Ail other expenses
were to be met from an account to be established to
which those unions or branches of federal organizations
{again it was not made clear) agreed to contribute on
a monthly basis. The Western Australian Cleaners, Care-
takers, Lift Attendants, Window Cleaners, Attendants
and Watchman's Industrial Union of Workers Union was to
make contributions on a more irregular basis as it did
not stand to derive the same benefit from the North West
office as did the other unions.
To give effect to this arrangement Mr. Henderson
opened the account to which I have referred. He could
not point to any resolution of the Building Trades
Association, the Federal organization, the Branch
or the State union expressly authorizing the establish-
Ment of the account. Nor was any express authority ever
given by any of the bodies concerned to the operation
of that account by any particular person.
Mr. Henderson and Mr. Hagger claimed that at all
times they regarded the account as relating to the
affairs of the Building Trades Association and therefore
not an account required to be audited by the Branch as
part of its financial operations. The precise status
of the account has been the subject of debate before
the court and is not easy to characterize. I am satisfied
that the account was not and was not intended to be part
of the financial operations of the Branch. So far as
the Branch was concerned, its relationship was one of a
contributor on a monthly basis. It was not strictly a
Building Trades Association account since not all members
of the Association participated in the North West
organization; and one union, the Cleaners and Caretakers
Union, which did contribute, was not a member of that
Association. Since these proceedings were commenced the
name of the account has been changed to "Three Unions
North West Account". This more accurately reflects
the fact that the account is contributed to and operated
for the benefit of the Branch (or State union), the
Plumbers and Gasfitters Union and the Operative Painters
Union, leaving aside the Lesser involvement of the
Cleaners and Caretakers Union.
It is not necessary for me to express a firm view
as to the precise status of the account. I accept that
it was established in good faith by Mr. Henderson,
believing that he was thereby giving effect to the agreement
made by those unions concerned in the establishment of the
North West office. But equally I accept that to give the
account its original title led inevitably to a belief
on the part of some persons including the applicants and
Mr. Rogers, the president of the Branch, that the account
was part of the financial operations of the
Branch. So viewed it was also inevitable
that it would lead to concern on the part of persons
connected with the Branch because the account did not
feature in the financial transactions which the committee
of management was called upon to approve from time to
time. Nor did it feature in the audited statement of the
affairs of the Branch.
It is against that background that the events
of February 1983 must be viewed. It would be unreal
not to recognize that there was in any event some
illfeeling between the applicants and Mr. Rogers on
the one hand and Mr. Hagger and Mr. Henderson on the
other. This tended to militate against a situation
an which a fuller explanation on the part of Mr. Hagger or
Mr. Henderson and a greater willingness to listen on
the part of the applicants might have avoided these
proceedings.
It seems that some time before February 1983
Mr. Allen and perhaps Mr. Park did countersign one or
more cheques drawn on the north west account. But I
accept that each had misgivings about the account and
I am satisfied that each was genuinely concerned at
being called upon to countersign a cheque on an account
when the authority to do so was not clear to them,
Earlier Mr. Allen had discussions with Mr. Rogers about
the account and Mr. Park had approached the Branch's
accountant. This had done nothing to lessen their
misgivings.
On 24 January 1983 Mr. Park was presented by
Mr. Henderson with two cheques drawn on the north west
account and asked to sign them. He declined to do so
without more information about the account. On 26 January
Mr. Park attended a meeting of the committee of
management. Although not a member of that committee,
organizers were entitled to attend its meetings and,
to speak with the permission of the president (Branch
rule 23(3)). At that meeting Mr. Henderson reported
that some of the organizers had refused to sign cheques
and that he (Henderson) wished a direction from the
committee of management. It was resolved that
"the organizers be informed that the
question of the North West account
has been settled by the Committee
of Management, and the State Council.
Any further refusal to carry out
instructions will be considered as
a breach of the organizers duties,
under the rules and that the
Secretary of the Building Trades
Association be invited to address
the next Committee of Management
Meeting".
Before the resolution was passed Mr. Park was given
permission to speak. He told the meeting that he was
the Branch organizer referred to and that he could not
sign cheques unless he was given enough information about
them.
On 2 February 1983 Mr. Henderson asked both Mr. Allen
and Mr. Park to countersign cheques drawn on the north west
account. Mr. Allen said that he was not prepared to do
so unless he was satisfied that the payment was proper.
Mr. Henderson then produced part of the minutes of the
committee of management meeting held on 26 January which
included the resolution to which I have referred.
He then called upon Mr. Allen to countersign the
cheque or be suspended. Mr. Allen replied "I will
need to have further information about it". Mr. Henderson
then told him he was suspended. On the same day and, it
would appear, on the same occasion, Mr. Henderson produc
a cheque to Mr. Park drawn on the north west account and
asked him to countersign it. Mr. Park said he would
not do so unless he knew what it was all about and was
then told : "You've refused to sign the cheque. You're
suspended".
There was some issue between Mr. Allen and
Mr. Park on the one hand and Mr. Henderson on the other
as to the precise words used and as to what warning the
applicants were given before their suspension. . However
satisfied that each applicant made it clear that he was
not arbitrarily refusing to countersign a cheque, rather
they he required more information before doing so. I
accept that each applicant was genuine in his attitude.
ed
And it is a fact that the applicants were never expressly
authorised to operate the north west account. Nor was
it explained to them, if it be the case, that their
authority to operate accounts of the Branch extended
to that account.
Mr.
10.
Allen challenges his suspension on the
ground that :
(a)
(b)
(a)
(b)
(c)
(da)
1t was contrary to the rules of natural
justice in that he was not given notice
of nor was he present at the meeting on
26 January 1983 when the resolution was
passed, and
his suspension was carried out by an
officer of the Branch who was not empowered
to suspend an organizer.
Park challenges his suspension on the grounds
1t was carried out in a manner contrary
to the rules of natural 'justice,
it was carried out by the assistant
secretary of the Branch who was not
authorised to suspend a Branch
organizer,
there is no power under the Branch
rules to suspend a branch organizer,
and
the action was carried out without
the lawful authority of the state
council or committee of management.
11.
There is no substance in the contention by
Mr. Allen that he was not given notice and was not
present at the committee of management meeting on
26 January 1983. That was not a disciplinary hearing.
It was a meeting of the committee at which a view was
expressed regarding the duties of organizers and the
signing of cheques. That meeting did not purport
to suspend anyone.
It is not correct to say that there is no power
under the Branch rules to suspend an organizer.
Rule 17(n) empowers the committee of management to
suspend Branch officers in accordance with that rule
and the other rules referred to. But of course it was
not the committee of management that purported to
suspend either Mr. Allen or Mr. Park on 2 February 1983.
It was Mr. Henderson, the assistant secretary, and he
did not assert at the time or during this hearing that
in suspending the two organizers he was carrying out an
instruction given to him by the committee of management
or acting pursuant to any delegated authority. As regards
the suspension, the question is essentially whether or
not Mr. Henderson had power to do what he did.
In my view Mr. Henderson did not have power to
suspend either Mr. Allen or Mr. Park. The respondents
did not contend that he had express power to do so but
eo
12.
they argued that there was an implied power by reason
of his position as "senior executive" of the branch.
It should be noted that Mr. Henderson was the assistant
secretary but it was argued that at the time he was
carrying out the duties of secretary. The analogy
suggested was with the senior executive of a company.
This submission overlooks the true position of an
organizer. He is not merely an employee. An organizer
1s elected to that position for a term of four years
pursuant to rule 26 of the Branch rules and he is
therefore the holder of an "office" as that term is
defined in s.4 of the Conciliation and Arbitration Act.
His position is controlled by the rules of the Branch
in accordance with the provisions of the Act (Conciliation
and Arbitration Regulations reg. 115(1) (d) (iv)). It as
true that rule 23(4) provides that organizers "shall
be under the direction and control of the Branch
Secretary and carry out duties determined by State
Council or COM". But I am unable to read into that
provision a power in the secretary to suspend an organizer.
In my view such a step must be taken by the committee of
management or by state council pursuant to the rules.
Mr. Allen and Mr. Park each obtained a rule nisi
on 7 February 1983. Thereafter certain events occurred
that led to the bringing of the third application.
13.
On 21 February 1983 Mr. Allen and Mr. Park each
received notice of a meeting of the committee of management
to be held on 25 February 1983. The notice was under the
name of Mr. Hagger as secretary, though issued by
Mr. Henderson. It recited that at the meeting "the
following disciplinary motion will be discussed". It is
as well to set out the motion in full :
"Pursuant to the Rules of the Union
and particularly rules 17(€); 17(n);
21(a); 21(1)3 21(m); 21 (r); 22;
23(4); 25 and 29 the Committee of
Management is asked to consider
and resolve upon disciplinary action
against Organisers Brothers Francis
Allen and Leslie Alan Semple Park
as a result of their refusal on
the 2nd day of February 1983 to
comply with requests and directions
from the Assistant Secretary,
Brother Thomas Horatio Henderson
such requests relating to the
countersigning of cheques properly
drawn upon the North West Account
and their refusal constituting
"knowingly refusing to comply with
the Rules, or the decisions of
Council or the Committee of
Management, or knowingly refusing
to carry out the policy of the
Branch" within the meaning of
subrule (n) of rule 17 of the Union
Rules and thereby being liable to
be found guilty of 'a substantial
breach of the Rules of the Branch
or a gross misbehaviour or gross
neglect of duty' within the
terms of rule 25 of the Union Rules".
The notice concluded by requesting the recipient
to attend the meeting, which he might address in his own defence
and where he might present such evidence as he and the committee
of management might consider appropriate. It concluded with
14.
notice that, should the recapient not attend, the
committee might hear evidence and determine the
matter "in accordance with the Rules of the Union
notwithstanding your absence".
Despite the reference to rules of the union,
the matter proceeded before this court on the basis that
it was the Branch that was concerned.
Neither Mr. Allen nor Mr. Park attended the
meeting. There are before the court the minutes of what
was described as a special committee of management
meeting held on 25 February 1983. The accuracy of those
minutes was not contested although the respondents did
not contend that they reflected all that was said.
Present at the meeting were Mr. Rogers (president) as
chairman, Mr. Sideris (vice-president), Mr. Hagger
(secretary), Mr. Henderson (assistant secretary), all
of whom were members of the committee ex officio. The
committee also comprises six committee members five
of whom - Messrs. Hall, French, Thistlewaite, Withnall
and N.G. Parker - were present. The remaining member
of the committee, Mr. Fisher, was not notified of the
meeting, the reason given by Mr. Henderson and Mr. Hagger
being that he had been in the country for some time and
that notices of previous meetings had been returned
unclaimed. There was some dispute as to how long
Mr. Fisher had been away from Perth and whether he would
15.
have received a notice sent to him. Mr. Fisher did
not give evidence and in the end I do not think that
particular aspect is of much importance. The
respondents acknowledged that no notice was sent to
Mr. Fisher. The other person entitled to be present
as a member of the committee was Mr. D.C. Parker, the
other vice-president, whose apology was received.
When the meeting began Mr. Rogers commented
that it had been called contrary to the provisions of
the rules of the organization and of the union. He
added :
"Therefore, it is my duty, as
the elected Branch President
to disallow this meeting to
proceed.
I formerly [sic] declare the
meeting closed".
The point of Mr. Roger's comment was that rule 27
of the Branch rules provides that the committee of
management shall meet at least once in each three months.
Rule 17(£) (1) reads :
"(1) A special meeting of the COM
may be called by the Branch President
and Branch Secretary when requested
in writing by at least three members
of the COM".
On Saturday 19 February Mr. Henderson showed
Mr. Rogers a document described as "notice of demand for
a special meeting of the committee of management", calling
upon the Branch president and Branch secretary to convene
16.
such a meeting to consider a motion in terms similar
to the notice received by Mr. Allen and Mr. Park.
The notice of demand was signed by Messrs. French,
Parker and Hall, three committee members. Mr. Rogers
declined to sign the notice, taking the view that it
was within his discretion so to do. Nevertheless,
Mr. Henderson caused notice of the meeting in the
name of the secretary to be sent to each member of the
committee of management, together with a copy of the
notice of demand with the motion attached thereto.
On the motion of Mr. Hagger, seconded by
Mr. Hall, it was resolved (6 for and 3 against) that
the president's declaration be overruled "and that the
Meeting as constitutionally notified proceed". Mr. Sideris
took the chair.
The minutes record that the state secretary
"then addressed the Committee of
Management on the subject of the
special meeting, and gave a report
on events leading up to the
Suspension of Bro. F.M. Allen and
Bro. L. Park. He read extracts
from the BWIU Minute Book,
referring to the North West
activity and progress associated
with the Pilbarra [sic] Projects".
The conclusion I draw from the evidence is that while
Mr. Hagger did address the meeting as recorded, the
principal account of events was given by Mr. Henderson
who, although assistant secretary, appears to have played
17.
the leading role in these events. This may have been
due in part to the fact that Mr. Hagger had been ill
and that at the time the secretarial duties were being
performed largely by Mr. Henderson.
A resolution was then distributed to those present
and was passed by six members to one. Again I think it
necessary to set out this resolution in full :
" RESOLUTION BY COMMITTEE OF MANAGEMENT
The Committee of Management at a duly
convened special meeting notice of
which had been given to the members
thereof and to Organisers Brothers
Francis Allen and Leslie Alan Semple
Park and having heard and considered
the evidence placed before it hereby
resolves:
1. That Brothers Francis Allen and
Leslie Alan Semple Park be and hereby
are suspended without pay from their
duties as Organisers as from 9.25 a.m.
on the 2nd day of February 1983 until
6.22 p.m. on this day the 25th day
of February 1983 and further that from
6.22 p.m. this day the said Brothers
be and hereby are dismissed from their
positions as Organisers of this Union;
and
2. That pursuant to item 1 of this
resolution the said Brothers Francis
Allen and Leslie Alan Semple Park be
ordered and directed to return to
the Secretary within 24 hours all
Union credentials and Union property
including Union right of entry cards,
credit cards and keys.
3. That the Committee of Management
approves of, endorses and ratifies
the actions of the Secretary and
Assistant Secretary in temporarily
suspending Brothers Francis Allen and
Leslie Alan Semple Park as from 9.25 a.m.
on the 2nd day of February 1983 in the
interests of the proper administration
of the Branch and its office; and
18.
4. The Committee of Management being
concerned for the welfare of workers
and their families and in particular
the families of Brothers Francis Allen
and Leslie Alan Semple Park hereby
directs the Secretary to pay to the
said Brothers Francis Allen and Leslie
Alan Semple Park out of Union funds
a sum of money equal to their wages
lost as a result of the suspension
ordered in item 1 hereof such payment
being made without prejudice and
entirely ex gratia on the part of the
Union".
The applicants challenge the validity of the
decision dismissing them as organizers of the Branch.
They do so on a number of grounds, some of which may
conveniently be dealt with together.
The applicants contend that, in the light of
Mr. Rogers' refusal to call the meeting held on
25 February, there had been a failure to comply with
rule 17(/) (1) of the Branch rules. The respondents
argue that the word "may" in that sub-rule must be
read as "shall". They point to the difficulties that
can arise 1f the rule is not so read, especially if
it as the conduct of the president or secretary or
both that is being called in question. By their
refusal to call a meeting, it was said, they could
stultify any action proposed to be taken against them.
I am unable to read "may" as "shail" simply
because of consequences that may otherwise ensue.
Rule 17 itself is replete with the use of "shall" and
I see no reason why the shift in language to "may"
19.
in sub-rule (1) should not be recognised. However, it
does not follow that on a request by at least three
members of the committee of management, a meeting
called by the Branch secretary, without the concurrence
of the Branch president, is inevitably invalid. The
committee of management sits as a domestic tribunal
although its proceedings are controlled by its rules and
those rules must meet the criteria imposed by the
Conciliation and Arbitration Act. On the other hand,
although a domestic tribunal, it may deal with the
livelihood of persons elected to office by members of
the Federal organization. I regard as applicable the
statement by Megaw L.J. in Reg. v. Hull Visitors, ex
parte St. Germain (1979) 1 OB 425 at pp.450-451.
Referring to proceedings of boards of visitors in
respect of offences against discipline, his Lordship
said :
"Tt is certainly not any breach
of any procedural rule which
would justify or require
interference by the courts.
Such interference, in my judgment,
would only be required, and would
only be justified, if there were
some failure to act fairly -
fairly, having regard to all
relevant circumstances ~- and
such unfairness could reasonably
be regarded as having caused a
substantial, as distinct from
a trivial or merely a technical,
injustice, which was capable of
remedy".
20.
Failure to obtain Mr. Rogers' concurrence to
the holding of the meeting on 25 February 1983 was
a breach of the Branch rules. When considering the
validity of the action taken by the committee of
management and whether this court should interfere with
that decision, the absence of Mr. Rogers' concurrence is
a relevant but by no means conclusive consideration.
The applicants further contend that they were
not given the requisite notice of the meeting. In
advancing argument on this point, counsel for the
applicants relied upon the rules of both the Federal
organization and the Branch.
I do not regard the rules of the Federal
organization as at all relevant on this point. It is
true that rule 25 of those rules makes the rules of
the Federal organization binding on all branches and
that rule 27 proscribes branches from making rules
inconsistent with the rules of the Federal organization.
But in my view there is no inconsistency involved;
nor is there anything in the rules of the Federal
organization dictating the period of notice to be
given for the calling of the meeting of the committee of
management held on 25 February. Counsel for the
applicants pointed to rule 15 sub-rule 9 of the
federal rules where provision is made for the imposition
of a penalty against officers of the Federal organization
21.
but only after an officer has been summoned to attend
a meeting at least 7 days prior thereto. But rule 15
is concerned with the functions and powers of the
national conference which is the supreme governing
body of the Federal organization. It is not warranted
to import a rule controlling the operations of the
national conference into a branch rule concerned with
the conduct of the committee of management.
Rule 17 of the Federal organization deals with
the composition and powers of the national executive
which is the executive body of the Federal organization.
Sub-rule 21 para. (i) provides that the national executive
may :
"Ensure that ... Branches carry
out the rules and decisions of
the union and subject to rule 19
impose penalties, (i.e. fines not
exceeding the sum of twenty dollars,
suspension, expulsion or dismissal
from office), on officers ... for
knowingly refusing to comply with
the rules or the decisions of
the National Conference or the
National Executive".
That same paragraph provides that no penalty shall
be imposed unless an officer has been summoned to attend
the meeting seven days prior thereto. But a reading of
para.. (1) makes it clear that the reference to the
imposition of penalties is where an officer is charged
with a breach of the rules or decisions of the national
conference or national executive. Again I am unable to
22.
import the procedural requirements of that paragraph
into a Branch rule concerned with the activities of the
committee of management.
Any requirement for notification applicable to
the meeting of 25 February 1983 must be found in the
rules of the Branch. And it is to be found in rule
29(d). To understand rule 29, some reference should be
made to rule 25 which provides that an officer may be
removed from office by majority decision of the
committee of management provided that he shall not
be dismissed unless he has been found guilty, in accordance
with the rules of the Branch :
"(i) of misappropriation of the funds
of the Branch;
(11) or a substantial breach of the
Rules of the Branch;
(112) or a gross misbehaviour, or
gross neglect of duty;
(iv) or has ceased, according to
the Rules of the union to
be eligible to hold office."
Rule 25 continues with a provision that any
officer so removed shall have a right of appeal to the
state council. That rule says nothing about the
procedures to be followed before an officer of the branch
may be removed from office. But rule 17(n) empowers the
committee of management "Provided rules 25 and 28 are
adhered to", to suspend, expel or dismiss from office
23.
a branch officer "for knowingly refusing to comply
with the Rules, or the decisions of Council or the
Committee of Management, or knowingly refusing to carry
out the policy of the Branch". Rule 25 has already been
mentioned. Rule 28 is concerned with the duties of
members and appears to have no relevance to the matter
of disciplinary action against organizers. Counsel
accepted that what was intended was a reference to rule
29 dealing with the misconduct of members.
Rule 29(d) provides that charges under "these Rules"
(which in any event is wide enough to draw in rule 25)
shall be made in writing and the member so charged shall
be summoned to attend a meeting of the committee of
management by written notice "giving the short substance
of the charges and notifying the time and place of meeting".
Sub-rule (d) continues :
"Such notice shall be posted to
his last known place of abode
not less than five (5) days
--- before the date of such
meeting".
Counsel for the applicants contends that this is
a requirement of 5 clear days notice. Counsel for the
respondents argues that the day of posting notice and
the day of the meeting can both be taken into account
for the purpose of calculating the period of 5 days.
24,
In my opinion the expression "not less than
five (5) days" means 5 clear days. See Ayres v. Chacos
(1972) 19 FLR 468 and the authorities referred to therein.
That means 5 days exclusive of the date of posting the
notice and of the day of the meeting. In their joint
affidavit filed in support of the third application,
Mr. Allen and Mr. Park deposed to receiving notice of
meeting on 21 February. It would seem that this was a
reference to the handing of the notice to each of them
by Mr. Henderson on that day. Notice was in fact posted
to each of them on 20 February. In either case there
was a failure to give the applicants the requisite 5
clear days notice of meeting.
Failure to comply with this rule is a matter of
importance. But again, in the context of a domestic
tribunal, it does not provide a conclusive reason for
the court setting aside a decision of that tribunal.
It is a matter to be taken into account in considering
the fairness of the proceedings.
The applicants further contend that the notice
of meeting did not give them information regarding the
charge they had to meet. I do not accept this. The
notice makes it clear that it was alleged against the
applicants that they had refused on 2 February 1983 to
comply with requests and directions from Mr. Henderson
25.
to countersign cheques on the North West account and
that their refusal was in contravention of rule 17 (n)
of the Branch rules.
It is then said that the notice of meeting
presumed the guilt of the applicants and that the
committee of management had already determined that they
were guilty. That second contention is based upon a
circular issued under the name of Mr. Hagger as state
secretary, and sent to sub-branch secretaries and job
delegates before the meeting. The circular certainly
makes clear the views of its author and it can hardly
be said that he could approach the meeting with an open
mind.
The notice of motion is not formulated as a
charge, that 1s it does not make allegations against
the applicants. Rather it calls upon the members of the
committee "to consider and resolve upon disciplinary
action" against them as a result of their refusal to
comply with the requests and directions of Mr. Henderson
and their refusal to comply with the rules, "thereby
being liable to be found guilty" of a substantial breach
of the rules or gross misbehaviour or gross neglect of
duty within rule 25.
26.
The way in which the notice of motion is couched is
open to criticism, a criticism which is not disposed of
by saying that the notice was prepared by laymen
who may not have appreciated all the nuances involved.
It was in fact prepared by the Branch's legal advisers.
It would be too strong to say that 1t assumes the guilt
of the persons charged, although it goes close to doing
so.
The last ground of attack upon the decision of the
meeting of 25 February is that the decision was contrary
to the principles of natural justice. This is in part a
catchall in so far as the various grounds already
discussed may be seen as aspects of natural justice.
But, as a ground in 1ts own right, it is largely directed
at the participation of Mr. Hagger and Mr. Henderson at the
meeting and their conduct in voting for the dismissal of
Mr. Allen and Mr. Park.
The applicants concede that Mr. Hagger and Mr. Henderson
were entitled to be at the meeting, not only because it was
they who were presenting the case against the applicants but
because they were members of the committee of management.
But, it was said, having presented that case they should not
have participated in the decision to dismiss the applicants.
The resolution dismissing the applicants was passed by six
votes to one so that, in one sense, the vote of Mr. Hagger
and Mr. Henderson was not crucial. Nevertheless, it is not
27.
submitted by the respondents that that fact was enough
to answer any other criticisms that might properly be
made of the decision.
It may be accepted that, in the context of
disciplinary proceedings taken by a registered organization
against a member, the mere fact that a member lays a charge
and then by virtue of his office sits as a member of the
tribunal to hear the charge does not of itself
vitiate proceedings. Campbell v. Higgins (1957) 3 FLR 317.
But that 1s not the gravamen of the applicants' complaint.
It is their submission that by reason of their active
part in the events giving rise to the suspension of Mr. Allen
and Mr. Park on 2 February 1983, their 1nitiative in the calling
of the meeting of 25 February and the formulation of the
charges against the applicants, and their very direct
participation in the meeting of 25 February, Mr. Hagger and
Mr. Henderson had prejudged the outcome of that meeting; that
they came to the meeting with an invincible bias against the
applicants and that they should have done no more than speak as
to the facts on which the committee was required to come to a
decision.
I accept that submission. Mr. Henderson and Mr. Hagger were
not only accusers in a formal sense. Mr. Henderson, in particular,
was the very person who had suspended or purported to suspend
the applicants; the acceptance of his account of thase
events was essential before any charges could be established
28.
against the applicants. The circular to which I have
already referred, sent to sub-branch secretarites and
job delegates, not merely presents the case against
the applicants but makes clear the view of the author
that the applicants have breached the rules and that
their suspension was warranted. Added to this is the
role played by Mr. Henderson and Mr. Hagger in the
calling of the meeting and the formulation of charges
against the applicants. I stress that I regard those
aspects of their conduct as no more than a link in the
chain. If nothing else emerged it would be wrong to
criticise the secretary and assistant secretary from
taking a step which was a logical one for someone
in their positions to take.
But it is clear that at the meeting of 25 February
Mr. Hagger and Mr. Henderson did not confine themselves
to a report on objective facts but were in truth arguing
the case for the dismissal of the applicants. In the
totality of those circumstances they assumed the roles
of prosecutors, witnesses, advocates and judges. They
should not have done so and there was a denial of natural
justice to the applicants. See Australian Workers' Union
v. Bowen (No. 2) (1947) 77 CLR 601, Cleworth v. Barrow
{1978} 20 ALR 359. The other breaches of rules add
strength to this conclusion.
29.
In all the carcumstances 1t would have been
better for the charges against the applicants to be
heard by state council and for the roles of those
participating to be clearly defined. There is a right
of appeal to state council from the decision of the
committee of management. The applicants did not exercise
that right but the respondents did not submit that this
stood in the way of the relief the applicants were
seeking.
I am satisfied that in terms of s.141 of the Act
there was a failure on the part of Mr. Henderson to
observe the rules of the Branch in suspending the
applicants on 2 February 1983. I am also satisfied that
there was a failure on the part of the members of the
committee of management to observe the rules and the
requirement of natural justice in dismissing the
applicants on 25 February 1983.
The respondents have not complained of the
presence of the Federal organization itself as a
respondent although doubt has been expressed whether an
organization, as distinct from individual officers,
may be the subject of an order under s.141 of the Act.
The matter was discussed by Joske J. in Egan v. Harradine
(1975) 6 ALR 507 at pp.523-524. In the circumstances I
do not propose to make any order against the organization
but I shall give the applicants an opportunity to apply for
we
30.
such an order. Also I am not satisfied that an order
against Mr. Hagger is appropriate in the consolidated
applications but the applicants will have liberty to
apply on that matter as well.
The order of the court will be as follows :
1. In applications Nos. WA 1 and WA 2 of 1983
the respondent Thomas Horatio Henderson
perform and observe the rules of the Federal
organization by treating as null and void the
suspension of the applicants as organizers
of the Western Australian Branch of The
Buialding Workers' Industrial Union of Australia
on 2 Pebruary 1983.
2. In application No. WA 3 of 1983 the respondents
Frederick Hagger, Thomas Horatio Henderson,
P. Sideris, N.G. Parker, J.P. French and K.V.
Hall perform and observe' the jrules of the
Federal organization by treating as null and
void the resolution of the committee of management
carried at its meeting on 25 February 1983
suspending and dismissing the applicants as
organizers of the Western Australian Branch of the
Building Workers Industrial Union of Australia.
3. In applications Nos. WA 1 and WA 2 of 1983 the
applicants have liberty to apply within-14 days to extend
the operation of para.1 of the order to the respondent
Frederick Hagger.
31. 7
In application Nos. WA 1 and WA 2 of 1983
and in application No. WA 3 of 1983 the
applicants have liberty to apply within 14 days to extend
the operation of paras. 1 and 2 of this order
to the respondent The Building Workers Industrial
Union of Australia.
I certify that this and the
thirty preceding pages are
a true copy of the Reasons
for Judgment herein of his
Honour Mr. Justice Toohey
Poor jokm
Associate
Dated: 6 May 1983
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