Ward, Leonard Edward & ors v Hughie Williams & ors [1984] FCA 138
Federal Court of Australia
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CATCHWORDS
Industrial Law - Commonwealth - Registered organization -
Rules - Construction - Resolutions of Branch Committee of
Management - Whether authorised by the rules - Requirement
of notice of motion to reconsider prior resolution - Inter-
relation of powers of Branch Committee of Management and
Branch Secretary - Organizers to be elected or appointed -
Power to appoint additional organizers following triennial
election for such positions - Relationship between Branch
Committee of Management, Branch Secretary and organizers -
Provision of staff and facilities for exclusive use of
sub-branch - Custody of moveable property of the branch -
Payment of legal expenses from branch funds.
Cone? iation and Arbitration Act 1904, section 141
McKay v. Oliver (1967) 15 F.L.R. 39
Dugmore v. Porter (Northrop J. - unreported - 17 December 1982)
Gordon v. Carroll (1975) 6 A.L.R. 579
Re Penhallurick (1983) 51 A.L.R. 589
Jess v. Scott (Beaumont J. - unreported - 2 March 1984)
Porter v. Dugmore (Full Court - unreported - 2 April 1984)
Q No. 3 of 1983
LEONARD EDWARD WARD & ORS v. HUGHIE WILLIAMS & ORS.
Neaves J.
29 May 1984
Sydney.
IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY
INDUSTRIAL DIVISION
BETWEEN:
Q No. 3 of 1984
wee
LEONARD EDWARD WARD, GREGORY JOHN RAY,
LAWRENCE JOHN TURNER, BRIAN STUART LEE,
LESLIE RONALD LEE, ROY LESLIE LINCOLN,
DONALD LYNALD BARDEN, RONALD JAMES POTTER
and JOHN CHARLES PENHALLURICK
Applicants
HUGHIE WILLIAMS, ALLAN McPAUL, CLARENCE
ROHWEDER, GREGORY NEWTON, HENRY ASPLIN,
STUART CROSBY, DAVID PEARCE, MERVYN
KENDALL, PETER THOMSON and JOHN HINSPETER
Respondents
ORDFR
JUDGE MAKING ORDER: Neaves J.
DATE OF ORDER: 29 May 1984
WHERE MADE: Sydney
THE COURT ORDERS THAT:
1. The rule to show cause be discharged.
2. The injunction granted by way of interim relief
on 28 March 1984 be dissolved.
3. All questions of costs be reserved for further
consideration.
IN THE FEDERAL COURT OF AUSTRALIA
)
)
QUEENSLAND DISTRICT REGISTRY ) Q No. 3 of 1984
)
INDUSTRIAL DIVISION )
BETWEEN: LEONARD EDWARD WARD, GREGORY JOHN RAY,
LAWRENCE JOHN TURNER, BRIAN STUART LEE,
LESLIE RONALD LEE, ROY LESLIE LINCOLN,
DONALD LYNALD BARDEN, RONALD JAMES POTTER
and JOHN CHARLES PENHALLURICK
Applicants
AND: HUGHIE WILLIAMS, ALLAN McPAUL, CLARENCE
ROHWEDER, GREGORY NEWION, HENRY ASPLIN,
STUART CROSBY, DAVID PEARCE, MERVYN
KENDALL, PETER THOMSON and JOHN HINSPETER
Respondents
CORAM: Neaves J.
DATE: 29 May 1984
REASONS FOR JUDGMENT
This is the return of a rule issued on
28 March 1984 at the suit of Leonard Edward Ward, Gregory
John Ray, Lawrence John Turner, Brian Stuart Lee, Leslie
Ronald Lee, Roy Leslie Lincoln, Donald Lynald Barden,
Ronald James Potter and John Charles Penhallurick ("the
applicants"). The rule called upon Hughie "Jilliams,
Allan MePaul, Clarence Rohweder, Gregory Newton, Henry
Asplin, Stuart Crosby, David Pearce, Mervyn Kendall,
Peter Thomson and John Hinspeter ("the respondents")
to show cause why orders should not be made under section
141 of the Conciliation and Arbitration Act 1904 ("the
Act") that the respondents observe rules 22, 30, 32, 33
and 47 of the rules of the Transport Workers' Union of
Australia ("the Union") and why ancillary orders should
not be made in terms of sub-paragraphs 1 to 11 inclusive
of paragraph A of the application dated 19 March 1984
filed in these proceedings on behalf of the applicants.
Those sub-paragraphs relate to the implementation of
a resolution of the Branch Committee of Management of
the Queensland Branch of the Union carried on 15 March
1984.
The Union is an organization registered pursuant
to the Act. There is a branch of the Union known as the
Queensland Branch. That Branch is divided into nine sub-
branches, one of those sub-branches being known as the
Brisbane Sub-Branch.
Each of the applicants is a member of the Union.
At elections held for the Queensland Branch (the results of
which were declared on 9 March 1984), Mr. Ward was elected
Branch Secretary. The full title of his office (see sub-
rule 61(h)) is "Secretary-Treasurer-Federal Committee of
2.
Management - Federal Council Representative" but, for
convenience, I shall refer to the office as that of
Branch Secretary. Messrs. Ray, Turner, B.S. Lee, L.R.
Lee and Lincoln were elected Branch Organizers to carry
out duties in the Brisbane Sub-Branch area or as directed
by the Branch Secretary. Mr. Barden was elected Branch
Organizer to carry out duties in the Ipswich and Kingaroy
Sub-Branch area or as directed by the Branch Secretary.
Mr. Potter was elected a Branch Trustee. Mr. Penhallurick
does not hold any office in the Queensland Branch. Of
the applicants, only Messrs. Ward, Barden and Potter are
members of the Branch Committee of Management.
Of the respondents, Mr. Williams, who previously
held office as Branch Secretary, was defeated in the
election for that position by Mr. ward. Mr. Williams was,
however, elected Brisbane Sub-Branch Secretary, an honorary
position which he had held before the election. Each of
the other respondents is a member of the Branch Committee
of Management. Mr. Asplin is the Branch President. Mr.
Newton is the Branch Vice-President. Mr. McPaul is a
Branch Trustee. Messrs. Rohweder, Pearce, Kendall and
Thomson are Committeemen elected by the Brisbane Sub-
Branch. Mr. Crosby is the Committeeman elected by the
Toowoomba, Warwick and Roma Sub-Branch and Mr. Hinspeter
the Committeeman elected by the Northern Queensland Sub-
Branch. Two members of the Branch Committee of Management
are not parties to the proceedings.
The Union was granted leave to intervene in
the proceedings: see Owens v. Australian Building Con-
struction Employees' and Builders Labourers' Federation
(1978) 19 A.L.R. 569 at p. 575. The Court was much
assisted by the careful and detailed analysis of the rules
of the Union presented by counsel appearing on its behalf.
The resolution that was carried by the Branch
Committee of Management, by a majority of 8 votes to 5,
on 15 March 1984 was in the following terms -
"That in view of the almost total change of
Organisers in the Brisbane Sub-Branch and the
considerable lack of experience by the newly-
elected Organisers, and taking into consideration
the detrimental effect this will have on the rank
and file members, particularly in the Brisbane
Sub-Branch, this BRANCH COMMITTEE OF MANAGEMENT
DETERMINES THAT -
The Branch shall make available to the Brisbane
Sub-Branch Secretary, Hyghie williams, Room
twenty-one (21), First Floor, Trades Hall,
Brisbane, for the purpose of conducting the
business of the Brisbane sub-Branch.
Room twenty-one (21) will also be utilised
for the purpose of the Brisbane Sub-Branch
Executive Meetings.
Room twenty-one (21) will be supplied with a
Committee table for the conduct of the Exec-
utive Sub-Branch Meetings, Office desk,
telephone, and all necessary office equipment
and furniture to conduct the administration
and business of the Brisbane Sub-Branch.
The Branch Secretary shall make available to
the Brisbane Sub-Branch, the necessary meeting
rooms to conduct the Branch monthly General
Meetings that are held on the first Friday of
each month, and any other such meetings that
may be necessary to be convened within the
Brisbane Sub-Branch.
The Brisbane Sub-Branch Secretary shall have
free access to all sections of the Queensland
Branch Offices, also the Brisbane Sub-Branch
Secretary shall have complete access to all
correspondence and documents that may be re-
required to carry out his necessary duties.
The Brisbane Sub-Branch Secretary is authorised
to deal direct with the Union's Solicitors -
McCrossan & Douglas - on all matters pertaining
to the Brisbane Sub-Branch and its members,
provided that all costs incurred are authorised
by the Branch Committee of Management.
All Brisbane Sub-Branch Organisers shall report
verbally and in writing to the Brisbane Sub-
Branch Secretary on all matters, including all
disputes. The Brisbane Sub-Branch Secretary
will notify the Branch Secretary of all these
matters.
The Brisbane Sub-Branch Secretary shall be Co-
ordinator and Minute Secretary of the Transport
Workers' Union Safety Committee, and the Trans-
port Workers Union-TUTA Trade Union Training
Committee.
The Sub-Branch Secretary shall call the above
Meetings as deemed necessary. He shall forward
the copies of all minutes to the Branch Secretary.
The Brisbane Sub-Branch Secretary shall be com-
petent to make press statements on all matters
pertaining to the duties so outlined.
The Branch shall continue to make available to
the Brisbane Sub-Branch Secretary any necessary
office staff which will at least consist of a
Stenographer and Clerk/Typist for the purpose
of attending to correspondence, membership
records, and any other purpose necessary to
administer the Brisbane Sub-Branch. The Staff,
as mentioned, shall be immediately responsible
to the Brisbane Sub-Branch Secretary. All
correspondence to the Brisbane Sub-Branch shall
immediately be forwarded to the Brisbane Sub-
Branch Secretary for his attention and action.
The Branch shall make available a telephone at
the residence and at the office of the Brisbane
Sub-Branch Secretary, and shall pay all Union
calls and the rent of such telephones.
The Branch shall continue to make available
to the Brisbane Sub-Branch Secretary the
Branch Motor Vehicle, Ford, Registration No.
7440XI, and shall pay for the fuel and
maintenance costs.
This Branch Committee of Management further
determines that in pursuance to Rule 30, the
Brisbane Sub Branch Secretary Hughie John
Williams be appointed as a Branch Organiser.
He shall be domiciled in Brisbane and carry
out organising duties in all parts of the
Brisbane Sub-Branch. He shall assist in
all other matters relevant to the Branch.
The Organiser, having regard for all other
responsibilities, e.g. Brisbane Sub-Branch
Secretary and all other duties as previously
outlined, shall be paid a salary and allowance
equal to that paid to the Branch Industrial
Research Officer as determined by the Branch
Committee of Management.
He shall be entitled to retain all accrued
Annual Leave, Sick Leave and Long Service
Leave and he shall continue to accrue all
such leave in accordance with the Rules and
Policy of the Union.
The Branch Secretary will ensure that the
necessary Certificates of Authorities are
immediateiy supplied to all Orgauise:s and
Officers, whether elected or appointed.
He will take up his duties as above, com-
mencing on Friday, 16th March, 1984."
On the date on which the rule to show cause
was issued, viz. 28 March 1984, the Court granted the
applicants interim relief by way of injunction restraining
the respondents, pending the hearing and determination
of the matter or until further order, from giving effect
to so much of the resolution of 15 March 1984 referred
to above as provided that -
(1) the Brisbane Sub-Branch Secretary Hughie
Williams be appointed as a Branch organizer;
(2) all Branch Organizers performing duty in
the Brisbane Sub-Branch area report
verbally and in writing to the Brisbane
Sub-Branch Secretary on all matters,
including all disputes;
(3) the Brisbane Sub-Branch Secretary have
free access to all sections of the
Queensland Branch Offices and complete
access to correspondence and documents
of the Queensland Branch; and
(4) the Queensland Branch make available to
the Brisbane Sub-Branch Secretary staff
at present employed by the Queensland
Branch and performing duty in the Queens-
land Branch Offices.
The ordez or tne Court made clear chat the injunction so
granted was not to prevent the Brisbane Sub-Branch Secret-
ary having access to the membership records of the Queens-~
land Branch relating to the members of the Brisbane Sub-
Branch.
The rule to show cause was expressed to be
returnable before the Court at Brisbane on a date and at
a time to be notified to the parties. Subsequently, but
prior to 17 April 1984, 26 April 1984 was notified to the
parties as the date upon which the hearing of the matter
would commence.
ment was held on 19 April 1984.
A meeting of the Branch Committee of Manage-
At that meeting a series
of resolutions was- carried including resolutions in the
following terms -
"3,
The above resolutions were carried by a majority of 9 votes
to 5.
That in respect of the application to the
Federal Court of Australia by LEONARD EDWARD
WARD and others in relation to a meeting of
this Committee that the Queensland Branch
of the Union reimburse all respondents to
the application all loss of wages incurred
by them as a result of having to attend at
Court as a result of these proceedings to-
gether with all travelling expenses, such
payment to be made on the same basis as
when such persons attend at a meeting of
the Branch Committee of Management and such
payments to be made within two (2) days of
request for payment being made.
(a) That this meeting of the Branch Committee
of Management notes the report of the
President HENRY ASPLIN given at a special
meeting of the Branch Committee of Manage-
ment on 21 March, 1984 and notes furcher
that the report given by the President
HENRY ASPLIN was endorsed at that meeting.
(b) This Committee determines that all accounts
rendered by the Union's solicitors Macrossan
Douglas of and incidental to resisting the
proceedings brought by LEONARD EDWARD WARD
and others in the Federal Court including
all reasonable outlays including Counsel's
fees be paid by the Branch within seven
(7) days of such accounts being rendered by
the Union's solicitors."
At the same meeting notice in writing was given
of motions that the Branch Committee of Management recon-
sider "to any extent necessary in accordance with Rule 47(c)"
of the rules of the Union as an item of special business
8.
at a special meeting of the Branch Committce of Management
to be held on 26 April 1984 at 8.00 a.m. -
(a) the whole of the resolution passed on
15 March 1984 the text of which is set
out above;
(b) that part of the resolution passed on
15 March 1984 which provided that the
Brisbane Sub-Branch Secretary have free
access to all sections of the Queensland
Branch Office; and
(c) the resolution passed on 16 February 1984
which provided -
"That the policy of this Union in
respect of press statements being
made is that the Branch Secretary
be solely responsible for ali media
statements and releases."
proposed should be moved at the special meeting to be
held on 26 April 1984 were set forth.
The meeting resolved that the Branch Committee
of Management call a special meeting at 8 a.m. on 26
April 1984 to deal with urgent and outstanding business,
namely the motions referred to above.
The special meeting was held at 8 a.m. on 26
April 1984 and carried, by a majority of 8 votes to 5,
a resolution in the following terms -
"That this Branch Committee of Management, noting:-
(a)
(b)
(c)
(d)
(£)
(g)
That proceedings are presently before
the Federal Court of Australia at Bris-
bane in relation to resolutions passed
by the Committee on the 15th day of
March, 1984 and that doubts have arisen
as to the Committee's intentions.
Of the seven Branch Organisers of the
Queensland Branch of the TWU of Australia
who are resident within the geographical
area of Brisbane Sub-Branch to carry out
organisational duties within that Sub-
Branch area, four have no experience as
organisers whatsoever. Further the
Organiser resident within a reasonable
area of Ipswich is also inexperienced.
The position of Branch Secretary and
Brisbane Sub-Branch Secretary are presently
held by different members of the Union for
the first time in about forty-five years
and consequently difficulties have arisen
in relation to the Union's functioning in
the Brisbane Sub-Branch area.
Complaints have been made by the rank and
file members of the Union as to the hrad-
lins by the new Organisers of their duties
because of their inexperience.
Of the 'seven office staff of the Branch at
Brisbane six have resigned and the seventh
has indicated an intention to resign, and
that this will cause difficulty to and add
to the burden of work on the Branch Secret-
ary and the Brisbane Sub-Branch Secretary.
It is economically desirable that the
Brisbane Sub-Branch utilise presently
available office space and facilities
of the Branch so far as is practicable.
That for many years no sizeable Sub-Branch
has been able to function effectively
without an organiser, either appointed or
elected, being also Sub-Branch Secretary.
resolves -
(A)
That the Committee reaffirms and makes
clear its view that there is a need for
an additional Organiser to be resident
10.
(B)
(Cc)
(D)
(E)
(F)
(G)
(H)
in the Brisbane Sub-Branch area and
to assist in the work of the Branch
in the Brisbane Sub-Branch area.
That the number of Organisers resident
within the geographical area of the
Brisbane Sub-Branch be increased from
seven to eight available for full-time
work;
That the additional Organiser in accord-
ance with the Rule just referred to be
appointed.
That Hughie John Williams be appointed
to the vacant positon as from 16th March,
1984.
To reaffirm the requirement that, in
addition to their other obligations to
report all Branch Organisers performing
duty within the Brisbane Sub-Branch .
area give prompt reports verbally (sic) and
in writing to the Brisbane Sub-Branch
Secretary on all matters, including all
disputes.
That the Brisbane Sub-Branch Secretary
have such access as he may require to
the membership records of the branch
celating to the members of the Brisbane
Sub-Branch and that the Branch Secretary
make himself reasonably available for this
purpose having regard to Rule 13.
That in addition to (F) the Brisbane
Sub-Branch Secretary be similarly granted
full access at reasonable times to the
correspondence and documents of the Queens-
land Branch except those which have no
direct or indirect relationship to the
interests and affairs of that Sub-Branch
and its members.
That the Brisbane Sub-Branch Secretary
be similarly granted reasonable access
to all sections of the Queensland Branch
office except any section where staff are
employed or records are kept which staff
or records have no direct or indirect
relationship to the interests and affairs
of that Sub-Branch or its members.
11.
(I) That there be five office staff on
the Branch assigned to the Branch
Office and affairs of the Branch and
that these staff be selected by and
responsible to the Branch Secretary
subject to final approval being given
to their engagement by the Branch
Committee of Management.
(J) That there be two office staff paid
by the Queensland Branch assigned
for the exclusive use of the Brisbane
Sub-Branch, to be selected by the Sub-
Branch Executive and responsible to the
Sub-Branch Secretary and that those
office staff consist of:-
(a) Senior Stenographer;
(b) Filing Clerk.
subject to final approval being given
to their engagement by the Branch
Committee of Management and that these
two staff be employed in room 21, i.e.,
Branch premises not now used as part of
the Branch office."
The meetinz also carried, by a similar majority, a
resolution -
"That all Sub-Branch Secretaries shall be
competent to make press statements on all
matters pertaining to their duties as out-
lined in the rules and/or resolutions of
this Committee".
When the hearing commenced the applicants
contended that the resolutions carried on 19 April and
26 April 1984 to which reference has been made were con-
trary to the rules of the Union. Counsel for the appli-
cants foreshadowed the filing of an amended application
which would include references to those resolutions. It
was contended by the respondents, and not disputed by the
12.
applicants, that the effect of the resolutions carried
on 26 April 1984 was not to displace the whole of the
resolution of 15 March 1984 some parts of which still
remained operative. It seems to be unnecessary for the
purposes of this judgment to set out those parts of the
resolution. It will be sufficient to refer generally to
them in the course of considering the parties' submissions.
An amended application was subsequently filed
on behalf of the applicants. In anticipation of its being
filed the matter proceeded on the basis that the rule
issued on 28 March 1984 be treated as calling upon the res-
pondents to show cause why orders similar to those sought
in relation to the resolution of 15 March 1984 should not
be made in relation to the later resolutions. It is
appropriate that the rule be amended to call upon the
respondents to show cause why orders should not be made
under section 141 of the Act that the respondents observe
rules 22, 30, 32, 33 and 47 of the rules of the Union and
why ancillary orders should not be made in terms of sub-
paragraphs 1 to 11 inclusive of paragraph A of the amended
application dated 11 May 1984 filed in these proceedings
on behalf of the applicants and I so order.
It is convenient at this point to refer to
certain of the rules of the Union. They provide that,
subject to the provisions of the Act, the supreme control
13.
of the Union is vested in a Federal Council constituted
by the Federal Secretary, the Federal Assistant Secretary,
the Branch Secretary for the time being of each branch
and any additional Federal Councillor or Councillors
representing a branch to which such branch is entitled
under the rules (sub-rule 5(a)). The Federal Council
elects by and from its members a Federal President, a
Federal Vice-President and three Federal Trustees (sub-
rule 5(e)). There is a Federal Committee of Management
consisting of the Federal Secretary, the Federal Assistant
Secretary, the Federal President, the Federal Vice-President
and each Branch Secretary not already a member by virtue of
being elected to the office of Federal President or Federal
Vice-President (sub-rule 5(4)). When the Federal Council
is not assembled in meeting anu subject to the rules the
Federal Committee of Management is invested with execucive
powers for the purpose of determining any matter affecting
the interests of the Union or its members or any business
submitted to it (through the office of the Federal Sec-
retary) inwriting by a branch (sub-rule 24(a)).
Sub-rule 5(g) provides that, for the purpose of
assisting the Federal Council to control and manage the
Union, a Branch may be constituted in each State and
Territory where 100 or more members reside. Rule 6 makes
provision for the formation of branches when fifty or more
members are residing in a State or Territory where no
14,
branch is constituted. The Federal Committee of Manage-
ment may call a meeting of those members. Upon the passing
of a resolution at such meeting (at which not less than
15 financial members who reside in the State or Territory
are present) that a branch be formed and the election at
the meeting of a Branch President, a Branch Secretary, two
Branch Trustees and not less than 7 and not more than 11
Committeemen the branch is to be deemed to be formed (sub-
rule 6(a)). Sub-rule 6(c) provides that, notwithstanding
anything prescribed elsewhere in the rules or any previous
resolution of the Union or of its members, upon registration
of the rules, branches in the terms of rule 6 are to be
deemed to be constituted in each State and Territory.
Each branch elects on a triennial basis a
Branch Committee of Management consisting of a Rraucn
President, Branch Vice~President, Branch Secretary, two
Trustees and not less than 7 and not more than 11
Committeemen (sub-rules 5(g) and 30(a)). The Branch
Committee of Management, subject to the rules, has control
of all business of the Union within the area over which it
is constituted to operate (sub-rule 30(a)). Sub-rules
30(d) and (e) provide -
"30. - Branch Committee of Management
- Constitution and Powers
Branch Committee of Management and Officers
(d) Without limiting its powers in any way each
15.
Branch Committee of Management shall have
power to:
(i) cancel the whole or any part of
the members arrears of contribu-
tions, fines or levies; and
(ii) Vote and expend any money that may
be necessary in connexion with the
business of the Branch; and
(iii) Determine such assistance as it
deems necessary to employ to carry
on the work of the Branch; and
(iv) Determine whether organizers shall
' be elected or appointed and the
number of such organizers, and to
reduce the number at any time; and
(v) Determine what salaries or other
remuneration shall be paid to
Branch Officers and others employed
by the Branch.
(e) All paid officers, Organizers and employees
of a Branch shall be subject to the control and
direction of the Branch Committee of Management
as expressed through the Branch Secretary.
Each branch is to control the funds available to
it for the purpose of payment of contributions to the
Federal Council and for both ordinary and extraordinary
purposes by resolutions of the Branch Committee of Manage-
ment (sub-rule 38(e)(v)). By virtue of sub-rule 47(c) (i),
when the Branch Committee of Management has made a decision
it is to have full effect and be observed by members of the
branch.
A Branch Committee of Management may establish
sub-branches within the State or Territory within which
it is constituted. Such sub-branches are to function
only within the area determined from time to time by the
Branch Committee of Management concerned (sub-rule 5(g)).
16.
Each sub-branch elects a Sub-Branch Executive Committee
consisting of a Chairman, Vice-Chairman, Secretary and
6 Committeemen. That Committee is to conduct the busi-
ness of the sub-branch (sub-rule 30(c)). The duties of
sub-branch officers are to be, insofar as relevant in
respect of their sub-branch, the same as apply to branch
officers (sub-rule 32(f)).
The Branch President, Branch Vice-President,
Branch Secretary and Branch Trustees and, in branches which
are not divided into sub-branches, the Committeemen are
elected by a ballot of the whole of the members of the
branch who are eligible to vote. In branches which are
divided into sub-branches, the Committeemen are elected
by a ballot of the members of their respective sub-branches
who are eligible to vote on the isis set out in the rulic
(sub-rule 30(b)). Im the case of the Queensland Branch,
the Committeemen are elected on the following basis -
Brisbane Sub-Branch 4; Rockhampton Sub-Branch 1; Wide
Bay Sub-Branch 1; Toowoomba, Warwick and Roma Sub-Branch 1;
Ipswich and Kingaroy Sub-Branch 1; and Northern Queensland
Sub-Branch 1 (sub-rule 30(c)). The Branch Committee of
Management of the Queensland Branch, therefore, consists
of 14 members.
Although the Queensland Branch Secretary is
elected by the members of the branch who are eligible to
17.
vote and the Brisbane Sub-Branch Secretary is elected
by the members of that sub-branch, the situation for
many years has been that the same person has been
elected to both offices. As already appears that
pattern of voting did not emerge at the recent election,
Mr. Ward defeating Mr. Williams for the position of Branch
Secretary and Mr. Williams defeating Mr. Ward for the
position of Secretary of the Brisbane Sub-Branch.
Historically the affairs of the Brisbane Sub-
Branch have been administered from the offices of the
Queensland Branch in Brisbane and the sub-branch has not —
had separate premises. In this respect the Brisbane Sub-
Branch differs from some of the other sub-branches where
office premises are provided by the Queensland Branch for
the use of the honorary secrecary of the sub-brarch,
the sub-branch executive and the branch organizer per-
forming duties in the area. The mode of operating the
Brisbane Sub-Branch was no doubt a convenient one when
the Queensland Branch Secretary also occupied the hon-
orary office of Brisbane Sub-Branch Secretary. The records
maintained in respect of the membership of the Brisbane
Sub-Branch are kept at the office of the Queensland Branch
and the records so maintained are the only set of records
kept in respect of the membership of that sub-branch.
Other sub-branches maintain the records relating to sub-
branch membership and a copy of those records is kept at
the office of the Queensland Branch.
18.
It is against this background that the
validity of the resolutions of 15 March, 19 April and
26 April 1984 must be considered.
Principal Resolution of 26 April 1984
The main thrust of the applicants' attack on
this resolution centred on paragraphs (A), (B), (C) and
(D) thereof. Those parts of the resolution provide for an
increase of one in the number of organizers resident within
the geographical area of the Brisbane Sub-Branch and the
appointment of Mr. Williams to the additional position as
from 16 March 1984. Related to those paragraphs are the ™
provisions, which are said to remain on foot, contained in
the resolution of 15 March 1984 conferring on Mr. Williams
an entitlement to retain accrued annual leave, sick leave
and long service leave audi to continue to eeerue such Leave
in accordance with the rules and policy of the Union.
In support of the submission that paragraphs
(A), (B), (C) and (D) of the resolution of 26 April 1984
and the provisions of the resolution of 15 March 1984 to
which I have referred are contrary to the rules, the
applicants rely on sub-rule 22(b) (iii), sub-rule 30(d) (iv)
and sub-rule 33(a)(vii). Those sub-rules provide -
"22. - Eligibility to Hold Office
(a) ....4.
(b) Subject to para (a) hereof a person
is eligible to hold the office of -
19.
(iii) Organizer (whether elected or
appointed); if he is a financial member
of the Union continuously for the previous
three years and is financial at the time
of his nomination for election (or appoint-
ment as the case may be) but not otherwise."
"30. - Branch Committee of Management
- Constitution and Powers
Branch Committee of Management and Officers
(d) Without limiting its powers in any way
each Branch Committee of Management shall
have power to:
(iv) Determine whether organizers shall
be elected or appointed and the
number of such organizers, and to
reduce the number at any time;
tw
"33. - RBeancn and Sub-Branch Elsctions
(a) Elections shall be held in 1979 and
every three years thereafter for the follow-
ing Branch Officers and representatives:
(vii) Branch Organizers in each Branch
which has determined that an
election is required to fill such
positions.
For the applicants it was submitted that, on
their proper construction, the rules require a Branch
Committee of Management to make a choice whether all
positions of branch organizer are to be filled by election
20.
or whether all are to be filled by appointment. The
Branch Committee of Management of the Queensland Branch,
it was said, has had such positions filled by election
and, that option having been taken and followed, there
is no power in the Branch Committee of Management to
make an appointment to any position of organizer other
than an appointment under rule 34 to fill a casual
vacancy. Reference was made to the specific power
expressly conferred by sub-rule 30(d)(iv) to reduce the
number of organizers at any time and the absence from
the rules of any similar power to increase the number.
It was submitted that the only power in the Branch Com- ~
mittee of Management to increase the number of organizers
derives from its power to fix the number of organizers
at the same time as it exercises the power, which may
be exercised from time to time. to uecermne whether such
positions are to be filled by election or appointment.
The provisions of sub-rule 30(d) (iv), so it was said,
require the inference to be drawn that the power to
determine the number of organizers is ancillary to the
power to choose the method of selection. That inference
was said to be consistent with the manifest intent of the
rule.
Reference was also made to rule 34 which
provides -
"34. - Casual Vacancies - Branch and
Sub-Branch
21.
If any of the officers referred to in
Rule 33(a) or (r) dies or resigns his office
or for any reason ceases to be entitled to
hold his office, or is unable to perform
his duties by reason of illness or incapa-
city or has been granted leave of absence,
the Branch Committee of Management in the
case of the offices referred to in Rule
33(a), and the Sub~Branch Executive Com-
mittee in the case of the offices referred
to in Rule 33(r) and in Branches divided
into Sub-Branches the office of Branch
Committeemen representing the Sub-Branch,
shall appoint a member of the Union to
take the place of such officer for a
period not exceeding twelve months, pro-
vided that such member is eligible to hold
the office pursuant to Rule 22. If the
unexpired portion of the term of the officer
who ceased to hold office exceeds twelve
months nominations for election as his
successor shall be called for, and if
necessary an election conducted in accord-
ance as far as practicable with Rule 33,
but the successful candidate shall only
hold office for the remainder of the term
of office of his predecessor."
Rule 33, which is headed "Branch and Sub-Branch Elections"
iscatifies in sub-rule (a) tue Urawch officers and represen-
tatives who are to be elected on a triennial basis. Para-
graph (vii) of that sub-rule has already been set out. Sub-
rule 33(r) identifies the sub-branch offices for which
elections are to be held. It was argued that rule 34
contemplates that all offices are to be filled for a
specific term and that the power of a Branch Committee of
Management to determine the mode of selection of organizers
and, if appropriate, to increase their number may be
exercised only at or near the end of the term of those
currently holding office.
22.
A related submission based on rule 34 was that
the rules require that each appointment of an organizer
be for a definite duration or term. Mr. Williams having
been appointed without a duration or term having been
fixed, his appointment was said to be contrary to the rules.
Mr. Williams' appointment was also attacked on
a narrower basis. It was pointed out that by virtue of sub-
rule 22(¢) a person is not eligible to nominate for election
to more than one office where the offices concerned are
full-time salaried offices. The position of Branch Secretary
of the Queensland Branch and the positions of branch organ-
izer are full-time salaried offices. Mr. Williams had
nominated at the recently held elections for the full-time
salaried position of Branch Secretary and could not, consist-
ently with the rvlee, nave nominated for a position of
branch organizer. Sub-rulle 22(g) was said to give rise to
an implied requirement that any power which the Branch
Committee of Management may have to increase the number
of organizers and make appointments to the additional
positions may not properly be used, immediately after the
results of an election are declared, to appoint to a
full-time salaried position of organizer a person who has
been an unsuccessful candidate at that election for another
full-time salaried office.
It was also submitted that Mr. Williams was
elected to an honorary position, that of Brisbane Sub-Branch
23.
Secretary, and that it is inconsistent with his election
to that honorary position to provide for him to receive
a salary, albeit that appropriate to a position described
as that of full-time organizer.
In my opinion each of these submissions must be
rejected.
In McKay v. Oliver (1967) 15 F.L.R. 39, a case
concerning the rules of the Australian Workers' Union,
Kerr J. (as he then was) commented generally upon the
position of organizer in an organization registered
pursuant to the Act. His Honour said at p. 47 -
"Nothing in the Act or regulations requires
an organization to have organizers. If an organ-
ization by its rules provides for organizers
nothing in the Act or regulations prevents
orgerizers rrom veing employees. Rule 64 would
be valid if it said merely that branches shall
have the right to employ organizers at any time.
"Nothing in the Act or regulations requires
organizers to be members of an organization.
However, the rules of an organization may pro-
vide for an office of organizer, may make it
obligatory for an organizer to be a member, and
may make an organizer an officer who has speci-
fic rights under the rules as to term of office,
removal, and powers and duties. Such an organ-
izer may or may not be an employee. The rules
may provide for the selection of an organizer
by a process of election but may in all respects
leave him, as an employee, with no rights and
duties under the rules and subject to dismissal
like any ordinary employee. On the other hand,
he may have some rights, under the rules, in
relation to dismissal."
The rules under consideration in the present
case clearly contemplate that eligible persons may be
24,
elected to offices of organizer or may be appointed
as such. Apart from making provision for eligibility
to hold the position of organizer, the rules are silent
as to the method of appointment. I have no doubt,
however, that the power is to be found in sub-rule 30(a)
which confers on the Branch Committee of Management
power to control all the business of the Union within
the area over which it is constituted to operate. The
appointment of organizers is but a matter of branch
management (Roughan v. Coulson (1982) 3 I.R. 393 per
Smithers J. at p. 395).
I am unable to read the provisions of the rules
conferring upon the Branch Committee of Management a
discretion whether to have positions of organizer filled
by eleccsun 01 appointment as requiring that the Branch
Committee of Management determine that all positions be
filled by one method of selection rather than the other.
The language of the rules is consistent with the Branch
Committee of Management having power to determine that
some positions be filled by election by the members of
the branch and that others be filled by appointment by
the Branch Committee of Management. It is not difficult
to envisage circumstances, which may be of a permanent
or transient nature, which would make an increase or
decrease in the number of organizers desirable, or in the
view of the Branch Committee of Management desirable,
25.
in the interests of the proper conduct of the affairs
of the branch. To adopt the submission put forward on
behalf of the applicants would mean that, where the
Branch Committee of Management has opted for the filling
of positions of organizer by election, the number of
organizers may not be increased until the next triennial
elections are held whereas there would be no similar
limitation where the Branch Committee of Management has
determined that the positions of organizer be filled by
appointment. Such an inconvenient result is not to be
attributed to the draftsman of the rules unless the
language is such as to compel its adoption.
The circumstance that sub-rule 30(d)(iv) confers
an express power to reduce the number of organizers "at
ant time '
does not have the consequence that the Branch
Committee of Management may not appoint additional organ-
izers whenever it considers it appropriate te do so. The
draftsman may well have considered that the power to reduce
the number required express mention but to my mind its
inclusion does not have the consequence of limiting the
extent of the power of appointment to be found in the
general language of sub-rule 30(a).
Rule 34 does not, in my opinion, require that
the appointment of an organizer be for a specified duration
26.
or term. The subject matter dealt with by that rule is
the filling of casual vacancies. Such a vacancy will
occur when an elected officer dies or resigns, or for
any reason ceases to be entitled to hold, his office or
is unable to perform his duties by reason of one of the
circumstances referred to in the rule. The reference in
the rule to the unexpired portion of the term of an
officer who has ceased to hold office is clearly a
reference to an officer who was elected: it has no
application where the person concerned was appointed.
I am also of opinion that the fact that Mr.
Williams was a candidate for the full-time salaried
position of Branch Secretary at the most recent elections
cannot affect his eligibility to he appointed to a
position of branch organizer. Eligibility is to be
determined by applying the provisions of rule 22 and
there is nothing in the material before the Court to
indicate that Mr. Williams is other than eligible under
that rule to be appointed to such a position. Nor can
it affect the matter that Mr. Williams was elected to
the honorary position of Brisbane Sub-Branch Secretary.
The evidence establishes that there are a number of sub-
branch secretaries within the Queensland Branch, each of
whom holds that office on an honorary basis, who are also
branch organizers. It was not suggested that to be both
a sub-branch secretary and an organizer is in contravention
of the rules.
27.
For these reasons I am of opinion that para-
graphs (A), (B), (C) and (D) of the resolution of 26
April 1984 have not been shown to be contrary to the
rules in any respect.
Paragraph (E) of the resolution of 26 April
1984 requiring all Branch Organizers performing duty
within the Brisbane Sub-Branch area, in addition to
their other obligations to report, to give prompt reports
orally and in writing to the Brisbane Sub-Branch Secretary
on all matters, including all disputes was said to be
contrary to sub-rule 30(e), sub-rule 32(c), sub-rule 32(e)
and sub-rule 32(f). Those sub-rules provide -
"30. - Branch Committee of Management
- Constitution_and Powers
Branch Committee of Management and Officers
(e) All paid officers, Organizers and
employees of a Branch shall be subject
to the control and direction of the
Branch Committee of Management as ex-
pressed through the Branch Secretary."
"32. - Branch Officers and Organizers -
Duties of
Branch Officers and Branch Organizers:
The duties of Branch Officers and Branch
Organizers shall be as hereunder:
(c) Secretary: The Branch Secretary
shall be competent to discharge
all duties assigned to him by the
28.
(e)
Branch Committee of Management,
and shall attend all meetings
connected with the Branch when
practicable. He shail attend
to all correspondence, keep a
copy of all letters and wires
despatched. He shall give an
official receipt for all moneys
received, and bank such moneys to
the credit of the Branch at least
weekly. He shall keep all docu-
ments books and accounts relating
to the business of the Branch.
He shall issue notices to members,
particularly to those who are in
arrears with their dues. He
shall hand over to the Branch
Auditor.all property, books, docu-
ments and moneys belonging to the
Branch within twenty-four hours
after being requested to do so
by resolution passed at any
meeting of the Branch Committee of
Management. He shall further dis-
charge such duties as may be alloca-
ted to him from time to time by the
Branch Committee of Management. He
shalt, if deemed necessary, find
security iu such a sum as the
Branch Committee of Management
may decide, the premium to be paiu
by the Branch. He shall be allowed
a sum not exceeding $100 as deter-
mined by the Branch Committee of
Management from time to time.
Such amount, once determined, shall
be reimbursed by cheque drawn from
the Branch Bank account for petty
cash, to be drawn by cheque from the
Branch General Fund account. The
Secretary shall be custodian of the
moveable property of the Branch.
Notwithstanding anything contained
elsewhere in these rules he shall
also be in sole charge of the
Branch office and those employees
connected with the work thereof.
Organizers:
(i) Branch Organizers shall be
29.
eligible for election on the
Branch Committee of Management.
(ii) Branch Organizers shall assist
in the work of the Branch gen-
erally, and discharge such duties
as may be allotted to them by the
Branch Secretary. All moneys
collected by them shall be paid
over to the Branch Secretary
within one week of collection.
(£) Sub-Branch Officers: The duties of
Sub-Branch Officers shall be, insofar
as relevant in respect to their Sub-
Branch, the same as apply to Branch
Officers."
It was submitted that, under the rules, the
structure of a Branch is such that the governing body,
namely the Branch Committee of Management, controls and
directs the organizers through the Branch Secretary and
as a corollary of that the reports of the organizers go
to the Branch Secretary and through hin ro the Branch
Committee of Management. Particular attention was directed
to sub-rule 30(e), to the reference in sub-rule 32(c) to
the Branch Secretary being in sole charge of the Branch
office and those employees connected with the work thereof
(an expression said to be wide enough to include the
organizers) and to sub-rule 32(e)(ii). Those provisions,
it was submitted, put the organizers under the supervision
of the Branch Secretary. Paragraph (E) of the resolution
was said to tamper with the structure created by the rules
by requiring the organizers performing duty in the Brisbane
Sub-Branch area to report to the Brisbane Sub-Branch Sec-
retary. This change of structure, it was submitted, could
30.
not be effected by a resolution of the Branch Committee
of Management but would require an amendment of the rules.
It was also said that to give to a Sub-Branch Secretary
the function of supervising branch organizers is contrary
to sub-rule 32(f) as that sub-rule, by the words "insofar
as relevant in respect to their Sub-Branch", limits the
powers of a Sub-Branch Secretary to those falling within
the Sub-Branch structure and Branch organizers are outside
that structure.
The rules, on their proper construction, place
the organizers under the control and direction of the
Branch Committee of Management and, subject to that power
to control and direct, the supervision of the work of the
orgenizers is vested in the Branch Secretary. Further,
any directions given by the Brauch Committee of Management
are to flow to the organizers through the Branch Secretary.
A resolution of the Branch Committee of Management which
purported to subvert the line of control from the Branch
Committee of Management through the Branch Secretary to
the organizers would, in my opinion, be contrary to the
rules and of no force or effect. The question for con-
sideration is whether paragraph (E) of the resolution of
26 April 1984 is properly so described.
By that paragraph of the resolution the organi-
zers performing duty within the Brisbane Sub-Branch area
are, in addition to their other obligations to report,
31.
to give prompt reports orally and in writing to the
Brisbane Sub-Branch Secretary. That language is to be
contrasted with the corresponding paragraph of the res-
olution of 15 March 1984 which made no reference to the
organizers' other obligations to report and, having
required the organizers to report orally and in writing
to the Brisbane Sub-Branch Secretary, cast the obligation
on that official to notify the Branch Secretary of the
Matters on which the organizers had reported. The vice in
the resolution of 15 March 1984 was that it could be read
as purporting to direct that the organizers report to the
Brisbane Sub-Branch Secretary and not to the Branch Secretary
with the consequence that, if valid, the Brisbane Sub-Branch
Secretary would occupy a position as an intermediary between
the Branch Secretary and the organizers.
In my opinion paragraph (E) of the resolution of
26 April 1984 does not, and does not purport to, place the
organizers performing duty within the Brisbane Sub-Branch
area under the control, direction or supervision of the
Brisbane Sub-Branch Secretary or give him any role in
allotting the duties which those organizers are to discharge.
It is not to be read as interfering, or as authorising the
Brisbane Sub-Branch Secretary to interfere, in any way with
the Branch Secretary's undoubted power, subject to the
general control and direction of the Branch Committee of
Management, to control and supervise the work of the
organizers. The paragraph does no more than require that
32.
the organizers keep the Brisbane Sub-Branch Secretary
informed, either orally or in writing, of matters relevant
to the business of the sub-branch. So read the paragraph
is not contrary to the rules.
Paragraphs (F), (G) and (H) of the resolution
relate to the Brisbane Sub-Branch Secretary having access
to membership records, correspondence and documents of
the Queensland Branch and to the Queensland Branch office.
Those provisions, it was submitted, interfere with the
Branch Secretary's sole control of the branch office and
the employees connected with the work thereof - see sub-_
rule 32(c), the text of which is set out above. Reference
was directed to the amendment of that sub-rule made in
1976 when the sub-rule took its present form. Prior to
that amendment tie relevant part of the sup-rule read -
"He [the Branch Secretary] shall also be
in charge of the Branch office and those
connected with the work thereof."
The amendment was said to have strengthened the position
of the Branch Secretary vis-a-vis the Branch Committee of
Management. Attention was also directed to the circumstance
that the control of the business of the Union which sub-
rule 30(a) confers upon the Branch Committee of Management
is expressed to be subject to the rules and one of the
relevant rules, so it was said, is sub-rule 32(c). The
power which rule 294A confers on the Branch Secretary to
empower an elected official of the branch to perform his
33.
functions during his temporary absence for a period
not exceeding four weeks on any one occasion was also
adverted to as indicating the extent of the control
within the branch office which the rules confer on the
Branch Secretary. He was said to be no mere clerk to
the Branch Committee of Management but an officer with
extensive powers and responsibilities and with a large
measure of independence.
A further reason advanced in support of the
submission that the Branch Committee of Management had
no power to resolve as they did in paragraphs (F), (G)
and (H) of the resolution was that the subject matters
dealt with in those paragraphs are regulated expressly
by the rules. Reliance was placed on sub-rule 12(b)
and rule 13. Guverule 12(b) requires tue oramwch Secretary
of a branch to keep or cause to be kept at the respective
branch office a membership register and a record of all
contributions and levies paid by each member, the register
and record to be available to the Federal Secretary on
demand. Rule 13 provides -
"13. - Inspection of Books
All financial members interested in the
funds of the Union shall be permitted to
inspect the books and register of members
at all reasonable times, on an order signed,
as regards the books of the Federal Council,
by the Federal President thereof, and as
regards, the books and register of members
of a Buanch or Sub-Branch, by the Branch
President of such Branch or Sub-Branch.
Provided that no suck authority shall
entitle a member to inspect any books or
register of members or make any other
34.
inspection of the moveable property of
the Union unless the Secretary concerned
is present when the inspection is being
made."
It was submitted that those provisions set out exclusively
the relevant rights and duties as to inspection of the
books and records of a branch. Since the rules expressly
deal with the matter, the Branch Committee of Management
has no power, so it was argued, to interfere by granting
further or different rights to the Brisbane Sub-Branch
Secretary.
In my opinion the submission that paragraphs
(F), (G) and (H) of the resolution of 26 April 1984 are
contrary to the rules lacks substance. To give the
Brisbane Sub-Branch Secretary access to the Queensland
Branch office and to records, correspondence and documents
relevant to the conduct of the business of the sub-branch
cannot, I think, properly be characterised as interfering
in any relevant way with the sole control of the branch
office and the employees connected with the work thereof
which sub-rule 32(c) vests in the Branch Secretary. Nor
do I regard sub-rule 12(b) or rule 13 as dealing exclusively
with the rights and duties as to inspection of the books
and records of the branch.
The matters dealt with in paragraphs (F), (G)
and (H) are, in my opinion, clearly within the power given
to the Branch Commictee of Management by sub-rule 30(a) -
35.
they are properly described as matters of branch manage-
ment and, as such, fall within the authority of the
Branch Committee of Management.
Paragraph (1) of the resolution was said to
be contrary to sub-rule 32(c) the text of which has already
been set out. Paragraph (I) provides that there be five
office staff on the branch assigned to the branch office and
affairs of the branch, those staff to be selected by and
responsible to the Branch Secretary subject to final approval
being given to their engagement by the Branch Committee of
Management. The imposition of a ceiling of five on the
staff in the branch office was said to be an interference
with the sole control of the branch office and the employees
connected with the work thereof vested in the Branch Secret-
ary by sub-rule 32(c}. That sub-rule was to be read as
conferring on the Branch Secrétary the right to fix staff-
ing levels and staff including the right to engage and
dismiss employees without reference to the Branch Committee
of Management.
In my opinion sub-rule 32(c) has no such operation.
To say that the Branch Secretary is to be in sole charge of
the branch office and of those employees connected with the
work of the branch office (sub-rule 32(c)) is not equivalent
to conferring upon him power to determine the level of
staffing to be employed in the branch office or the power
to employ and dismiss staff. To have charge of the office
36.
and the employees is, so it seems to me, cquivalent to
having under his control the office and such staff as
the Branch Committee of Management deems it appropriate
to employ in the sense that he is to have power to direct
how they are to perform their duties in the course of their
employment.
I am unable to conclude that paragraph (I) of
the resolution is beyond the power of the Branch Committee
of Management.
Paragraph (J) of the resolution provides that :
there be two office staff (a senior stenographer and a
filing clerk) paid by the Queensland Branch assigned for
the exclusive use of the Brisbane Sub-Branch, the staff to be
selected by the Sub-branch Executive and responsible to
the Sub-Branch Secretary subject to final approval being
given to their engagement by the Branch Committee of
Management. It also provides that those two staff be
employed in room 21 in the branch premises. Those premises
are situated at the Trades Hall, Brisbane.
It was submitted that, on the evidence, room 21
is part of the Queensland Branch office and that any staff
of the Union working in that room are subject to the sole
control of the Branch Secretary by virtue of sub-rule 32(c).
Further, it was submitted that paragraph (J) of the resolution
provides for the staff to be employees of the Queensland
37.
Branch and it is contrary to sub-rule 30(e) for such
staff to be made responsible to the Brisbane Sub-Branch
Secretary.
In my opinion this paragraph of the resolution
is not beyond the powers of the Branch Committee of Manage-
ment. I see no reason to conclude that the Branch Committee
of Management may not, if it considers it proper to do so,
provide staff to assist in the carrying on of the business
of the Brisbane Sub-Branch.
A general attack was made on the resolution
of 26 April 1984 on the ground that the procedures pre-
scribed by sub-rule 47(c) (ii) had not been followed. I
have already referred to the notice given at the meeting
of the Branci. Cummictee of Management held on 19 April 1984
of a motion to reconsider at the special meeting to be held
on 26 April 1984 the resolution passed on 15 March 1984
and to the fact that it set out the text of the resolution
which it was proposed should be moved at the special meet-
ing. At the meeting held on 26 April 1984 a motion to
amend in a number of respects the text of the proposed
resolution as set out in the notice of motion was carried.
The proposed resolution as amended was then put to the
meeting and carried. No notice of the motion to amend
the proposed resolution or of the amended resolution was
given at any meeting of the Branch Committee of Management
38.
prior to that held on 26 April 1984 or to the members
of the Branch Committee otherwise than at that meeting.
This circumstance was said to render the resolution of
26 April 1984 invalid by virtue of the provisions of
sub-rule 47(c) (ii) which provides -
"47. - Rescissions and Recommittals
(c) (i) ....
(ii) The Branch Committee of Manage-
ment may reconsider the subject matter of
any resolution at a subsequent meeting of
the Committee on condition that notice of
motion to do so is given at a meeting of
such Committee and that notice of the
intended reconsideration be given to all
members of the Committee, and that the
motion to reconsider is made special busi-
ness at a subsequent meeting."
I om clearly of opinion that the applicants
have failed to establish any breach of sub-rule 47(c) (ii).
That sub-rule does not, in terms, require that notice be
given of the resolution which the member seeking to have
an earlier resolution of the Branch Committee of Management
reconsidered desires to have substituted for that resolution
and there is no basis for implying any such requirement.
All that the rule requires is that notice be given at a
meeting of the Branch Committee of Management and to all
members of that committee "of the intended reconsideration".
The requirement is similar to that under sub-rule 43(g)
which requires notice to be given of "the nature of the
business" to be considered at a special meeting of the
39.
Branch Committee of Management. It is not suggested
that notice of the proposal to reconsider the earlier
resolution was not given to all members of the Branch
Committee of Management and in those circumstances the
requirements of sub-rule 47(c) (ii) were, in my opinion,
fulfilled. The suggestion that, because notice of the
proposed resolution was given, albeit in a form different
from that in which the resolution was in fact carried on
26 April 1984, what the Branch Committee of Management
could do at that meeting was in some way limited is
untenable.
Resolution of 15 March 1984
An attack was made on those parts of the reso-
lution of 15 March 1984 that provide that the Brisbane
ouv-branch Secretary be co-ordinator and minute secretary
of the Transport Workers' Union Safety Committee and the
Transport Workers' Union - TUTA Trade Union Training Com-
mittee with power to call meetings thereof as deemed
necessary and with an obligation to forward copies of all
minutes to the Branch Secretary.
Those committees are concerned with matters
of interest to all members of the Queensland Branch and
it was said to be beyond the power of the Branch Committee
of Management to shut out the Branch Secretary except so
far as the resolution provides for him to receive copies
of the minutes. Reference was again made to sub-rule 32(c)
and sub-rule 32(£).
40.
In my opinion the challenge to the above
provisions cannot be sustained. The resolution does not
interfere, or enable the Brisbane Sub-Branch Secretary
to interfere, with the Branch Secretary's right to attend
any meeting of either committee. There is nothing in the
rules that requires that the Branch Secretary be the co-
ordinator and minute secretary of committees such as those
with which the resolution is concerned. As a matter of
branch management the Branch Committee of Management may
make such arrangements as it deems appropriate.
The part of the resolution dated 15 March 1984
providing that the branch continue to make available to
the Brisbane Sub-Branch Secretary the branch motor vehicle,
Ford, registration number 744-OXI and pay for the fuel and
maintenance costs was challenged as being in conflict wich
sub-rule 32(c) in so far as that sub-rule provides that
the Branch Secretary is to be custodian of the moveable
property of the branch. It was submitted that the general
powers of the Branch Committee of Management have to be
read down to the extent necessary to leave unfettered the
Branch Secretary's custodial powers under that sub-rule.
"Custody" was said to be a word of wide import carrying
with it notions of being in charge of or having the care,
protection, safekeeping and guardianship of the moveable
property to which the sub-rule refers. Attention was drawn
to the absence from sub-rule 32(c) of any words similar to
41.
odang
the words contained in sub-rule 32(d) making the control
of the property of the branch which that sub-rule vests
in the Branch Trustees subject to the direction of the
Branch Committee of Management.
In my opinion, whatever meaning and operation
should properly be given to that part of sub-rule 32(c)
as provides that the Branch Secretary is to be the custodian
of the moveable property of the branch, that provision does
not operate to vest in the Branch Secretary power to determine,
to the exclusion of the Branch Committee of Management, who
within the organization is to have the use of the property
of the branch. The resolution has not been shown to be
invalid.
Further Resolution of 26 April 1984
This resolution provides -
"That all Sub-Branch Secretaries shall be
competent to make press statements on all
matters pertaining to their duties as
outlined in the rules and/or resolutions
of this Committee."
An objection was taken that the passing of this
resolution was not in accordance with sub-rule 47(c) (ii).
Notice of the proposed resolution was given to the meeting
of the Branch Committee of Management held on 19 April 1984.
The resolution then proposed was in the same terms as that
passed at the special meeting on 26 April 1984 but it was
42.
said that, because of the presence of the words "and/or
resolutions of this Committee", the proposed resolution
was too vague to be a sufficient compliance with the
requirement, said to arise under sub-rule 47(c) (ii),
that notice of the proposed resolution be given. The
vice in the notice was said to be that the proposed
resolution did not identify the "resolutions of this
Committee" to which it was referring.
I have already referred to what sub-rule
47(c) (ii) requires. In my opinion the submission has
no substance.
Alternatively, it was submitted that the
resolution purport. to give sub-branch secretaries
power to make press statements concerning any resolution
of the Branch Committee of Management - contrary to sub-
rule 30(£) which confines, so the argument ran, sub-branch
secretaries to matters relevant to their sub-branch.
In my opinion that submission misconceives the
meaning of the resolution. All that the resolution
authorises is the making by sub-branch secretaries of
press statements on matters pertaining to their duties.
The resolution postulates that the extent of those duties
may be found in the rules or in resolutions of the Branch
Committee of Management. The reference to such resolutions
43.
44% ¢
is, of course, to be read as a reference to resolutions
validly passed by the Branch Committee of Management.
So read, the resolution is within the power.
Resolutions of 19 April 1984
The resolutions of 19 April 1984 under challenge
provide for the payment by the Queensland Branch of the
respondents' legal and ancillary expenses in connection
with the present proceedings. It was submitted that there
is no express power in the rules enabling the Queensland
Branch to pay such expenses. In the absence of any express
power, so the argument ran, the resources of the Union are
to be used for the benefit of the members as a whole and not
for the benefit of particular individuals or officials and
the rules must be taken, by implication, to preclude the
selective use of the funds of the Union to aid one group
of members of the Union, the respondents, in a matter
arising under section 141 of the Act and not another group,
the applicants.
The applicants further submitted that the general
power of the Branch Committee of Management to control the
business of the branch (sub-rule 30(a)) is to be interpreted
in the light of the objects of the Union as set out in rule 2.
Those objects expressly include the provision by the Union
of assistance in various circumstances none of which are
appropriate to include financial assistance to members of
44.
fare
the Branch Committee of Management to meet the cost of
litigation and ancillary expenses. Reference was also
made to sub-rule 31(c) which empowers the Federal Council
to pay "all or any part of the expenses incurred by or on
behalf of a Branch in an appeal to a Board or Court of
Conciliation or Industrial Appeal or other approved tri-
bunal". The express reference in that sub-rule to the
payment of legal expenses was said to operate to exclude
any implication that a branch might meet the legal expenses
of individual members of the branch.
The respondents raised a jurisdictional point
in so far as the applicants sought to rely on an implied
provision in the rules limiting the power of the Branch
Commictee of Management to expend the funds of the Queens-
land Branch in the manner approved by the resolutions uder
challenge. There is, it was submitted, no scope for implied
rules in the affairs of an organization registered pursuant
to the Act or, alternatively, no jurisdiction in the Court
under section 141 of the Act to give directions for the
performance or observance of any such implied rules:
Dugmore v. Porter (Northrop J. - unreported - 17 December
1982): cf. Gordon v. Carroll (1975) 6 A.L.R. 579 at pp. 602-
3; Re Penhallurick (1983) 51 A.L.R. 589 at p. 595; Jess v.
Scott (Beaumont J - unreported - 2 March 1984; Porter v.
Dugmore (Full Court - unreported - 2 April 1984).
45.
On the view which I have taken it is not
necessary to consider further that jurisdictional argument.
The respondents also submitted that power to
pass the resolutions in question was clearly conferred on
the Branch Committee of Management by sub-rule 30(a) and
sub-rule 30(d)(ii). The first of those sub-rules confers
on the Branch Committee of Management control over all
the business of the branch. The second expressly confers
power to "vote and expend any money that may be necessary
in connexion with the business of the Branch".
I am prepared to assume for the purpose of
considering the validity of the resolutions of 19 April
1984 that the rules, as a matter of construction, require
that the funds avsilaple to the Queenslane D.anch are
to be expended only for the purposes which the Branch
Committee of Management bona fide and reasonably believes
to be for the benefit and in the interests of the members
of the Union as a whole. The respondents other than Mr.
Williams are parties to these proceedings by reason only
of their membership of the Branch Committee of Management
and the circumstance that, with the exception of Mr. Thomson
(who appears not to have been present at some at least of
the meetings), they formed the majority of that committee
voting in favour of the resolutions of 15 March 1984 and
19 and 26 April 1984 that are subject to challenge. Mr.
Williams is a party because consequential relief is sought
46.
oon
against him in the event that it is held that the reso-
lutions under challenge were not validly carried.
In these circumstances and having regard to the
nature and content of the resolutions under challenge and
the circumstance that no attack is made in these proceed-
ings upon the bona fides of the members of the Branch
Committee of Management who voted in favour of any of the
resolutions, I do not think it would be proper to conclude
that the Branch Committee of Management could not bona
fide and reasonably believe that the expenditure of the
funds of the branch in accordance with the resolutions of
19 April 1984 would be for the benefit or in the interests
of the membership of the Union as a whole. The fact that
it was the respondents, other than Mr. Williams, who voted
in favour of the resuiutions of 19 April 1984 1s nex, of
itself, sufficient to warrant a different conclusion. The
applicants have not satisfied me that those resolutions
travel outside the powers of the Branch Committee of Man-
agement.
Conclusion
For the reasons I have given the rule to show
cause is discharged.
I have not found it necessary to reach any con-
clusion upon the validity of the whole of the resolution
47.
of 15 March 1984. I have dealt only with those parts
of it which are said to remain on foot and not to be
superceded by the resolutions of 26 April 1984. The
respondents have agreed that, except to that limited
extent, the resolution of 15 March 1984 will not be
implemented. In those circumstances it is appropriate
that the injunction granted by way of interim relief
on 28 March 1984 be dissolved.
As requested by the parties I reserve all
questions of costs and will hear submissions thereon
if the parties so desire.
I certify that this and the preceding
forty-seven (47) pages are a true
copy herein of the Reasons for Judgment
of the Honourable Mr. Justice Neaves.
Cleon
Assoc¥ate.
Date: 29 May 1984
48.