Dundee Fashions Pty Ltd v Clothing & Allied T/U of Australia & Ors [1987] FCA 86
Federal Court of Australia
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IN THE FEDERAL COURT OF AUSTRALIA )
QUEENSLAND DISTRICT REGISTRY ) QLD Q1 of 1987
INDUSTRIAL DIVISION )
BETWEEN: DUNDEE FASHIONS PTY. LIMITED
, Applicant
AND: THE CLOTHING AND ALLIED TRADES UNION OF AUSTRALIA
First Respondent
AND: ANGELA BURT, PATRICIA MANSFIELD, STEPHANIE
McFARLANE, CAROLYN WATSON and ESTELLE WESTAWAY
Second Respondents
MINUTES OF ORDER
JUDGE MAKING ORDER: PINCUS J.
DATE OF ORDER: 2 MARCH 1987
WHERE MADE: BRISBANE
THE COURT ORDERS THAT:
1. The application be struck out.
NOTE: Settlement and entry of orders is dealt with in
Order 36 of the Federal Court Rules.
CATCHWORDS
INDUSTRIAL LAW - award - application for interpretation - principally
a challenge to validity - no present intention to pursue -
whether should be struck out.
Conciliation and Arbitration Act 1904 ss.60, 110
Dundee Fashions Pty. Limited
v. The Clothing and Allied Trades Union of Australia & Ors.
Qld Q1 of 1987
PINCUS J.
BRISBANE
2 MARCH 1987
IN THE FEDERAL COURT OF AUSTRALIA )
QUEENSLAND DISTRICT REGISTRY ) QLD Q1 of 1987
INDUSTRIAL DIVISION )
BETWEEN: DUNDEE FASHIONS PTY. LIMITED
Applicant
AND: THE CLOTHING AND ALLIED TRADES UNION OF AUSTRALIA
First Respondent
AND: ANGELA BURT, PATRICIA MANSFIELD, STEPHANIE
McFARLANE, CAROLYN WATSON and ESTELLE WESTAWAY
Second Respondents
PINCUS J. 2 MARCH 1987
REASONS FOR JUDGMENT
The respondents ask for an order that this application
for an interpretation of an award of the Australian Conciliation
and Arbitration Commission be struck out. The applicant does not
oppose the application's being adjourned sine die, but resists an
order to strike out. It is not clear to me that it makes much
practical difference whether or not the application is struck out,
but since the respondents have pressed for that order, it 1s
necessary to examine the matter in some detail.
In February 1986, the applicant dismissed a number of
its then employees. On 23 April 1986, Mr. Commissioner Neyland
varied the Clothing Trades Award 1982 in a number of ways, one of
which was the insertion of a new clause 51 relating to redundancy;
it provided for severance pay. Mr. Commissioner Neyland's order
was expressed to come into force from the beginning of the first
pay period to commence on or after 16 October 1985, and to
continue in force for 12 months.
Subsequently, a dispute arose as to the entitlement of
certain of the dismissed employees to severance pay under the
order of Mr. Commissioner Neyland. A notification of that dispute
was set down for hearing in November 1986, and then was adjourned
to 18 December 1986. On 20 January 1987, the applicant filed an
application in this Court claiming "an interpretation of clause 51
- (redundancy) of Clothing Trades Award 1982". The application
did not specify the point of interpretation required to be
determined, although it was accompanied by an affidavit giving an
outline of the facts underlying the dispute.
On 22 January 1987, the matter came before Mr. Deputy
President Riordan who was informed of the institution of
proceedings in this Court. After argument, the decision was
reserved and it was handed down on 11 February 1987. Mr. Deputy
President Riordan decided to make an order in the form of a
further variation to the Clothing Trades Award 1982, requiring
that severance payments be made in specified amounts to each of
the employees whose entitlements were in question, the variation
being expressed to be retrospective from 1 February 1986. The
decision concluded:
"The parties are directed to confer on the form of
the Order giving effect to this decision and report
the result of the conference to me within seven
days hereof. If necessary, further argument will
be heard so as to ensure that the order finally
made would not be misunderstood by either party."
Subsequently there were some communications concerning
the decision, one of which was a telegram from the Registrar of
the Australian Conciliation and Arbitration Commission referring
to the dispute and advising the parties that "settlement of
decision", by which was meant determination of the final form of
the order, is to take place on 4 March 1987.
On 24 February 1986 there was filed in this Court an
affidavit annexing particulars of the application, the details of
which are set out below. Each side was on that day represented by
counsel and contended for the outcomes to which I have referred:
that is, the respondents asked for an order that the application
be struck out and the applicant opposed that but said it would not
oppose the application's being adjourned sine die.
Section 110(1) empowers "the Court" to give an
interpretation of an award; by reason of the terms of s.118A, this
Court has the jurisdiction in question. The particulars of the
application I have referred to above are rather long but may he
summarised as follows:
l. The order of Mr. Commissioner Neyland could not (as it
purported to do) operate retrospectively from October 1985.
2. The terminations of employment which occurred in February
1986 are not subject to the variation of April 1986.
3. "That in the event that the variation is not enforceable at
law for determinations that occurred prior to 23 April 1986"
the applicant is not liable to make severance payments to the
relevant employees.
4. If the variation 1s, so far as it operates retrospectively,
enforceable at law, the applicant 1s not liable to make the
severance payments claimed to the relevant employees because
1t was not possible for the applicant to hold discussions
with employees as contemplated by the award.
5. The provision of clause 51 (inserted by Mr. Commissioner
Neyland) are "vague and uncertain and ... are unenforceable
because of their vagueness and uncertainty".
In giving "Details of this vagueness and uncertainty" in
seven numbered sub-paragraphs, the applicant says or implies that
in a number of respects 1t desires clarification of clause 51.
Counsel for the respondent questioned whether the Court
should entertain an application for interpretation of clause 51
after the handing down of the decision of Mr. Deputy President
Riordan the practical effect of which is, or will shortly be, to
resolve the dispute, leaving no live question of interpretation.
Counsel for the applicant disclaimed any intention of pursuing the
application as presently formulated, but said that the application
should not be struck out but left on foot; he asserted that the
applicant might later desire to raise certain questions of
interpretation, even given the effect of Mr. Deputy President
Riordan's decision and the order proposed therein. It should be
added that on 16 February 1987, solicitors for the applicant
informed Mr. Deputy President Riordan that the applicant intended
to appeal against his decision under s.35 of the Act.
Counsel for the respondents argued that, insofar as the
application had sought to raise matters other than validity, it
was not appropriately brought under s.110. He also argued that
this Court had no right to consider the question of validity. On
the former point counsel argued that there is an important
difference between enforcement of an award and its interpretation
and that s.110 gives this Court power with respect to the latter
only. It does not seem to me necessary to say anything conclusive
as to the question whether any point of interpretation, in the
sense in which the word "interpretation" 1s used in the section,
is raised by the application as presently particularised. That is
so because it is not, in that form, being pressed.
Counsel for the respondents' point as to validity relied
of course upon s.60 of the Conciliation and Arbitration Act 1904,
sub-s.(1) of which reads as follows:
"Subject to this Act, an award (including an award
made on appeal) -
(a) is final and conclusive;
(b) shall not be challenged, appealed against,
reviewed, quashed or called in question in
any court; and
(c) is not subject to prohibition, mandamus or
injunction in any court on any account."
That provision has been read down: see R. v. Coldham
and Others; Ex parte The Australian Workers' Union (1983) 153
C.L.R. 415 at p.418, but counsel for the respondents contended
that none of the three conditions constituting, in effect,
exceptions to the rule that validity may not be challenged applies
here. That appears to me to be so, but apart from that there is
the more fundamental point that s.110, which is the jurisdiction
invoked, is not concerned with questions of validity.
As the particulars disclose, the principal purpose of
institution of the proceedings was to challenge the validity of
the award variation of 23 April 1986. To bring such proceedings
under s.110 was in my view entirely misconceived and may properly
be characterised as an abuse of process. I also take into account
that there 1s no present intention to pursue the application.
The order will be that the application be struck out.
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