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~ duoc? PONT MOA SB nnmnnie
CATCHWORDS
Industrial Law - proposal by Council of Union that Union
affiliate with A.C.T.U. - treated as urgent business - postal
ballot - earlier plebiscites of members voting against
affiliation - whether proposal in breach of Rules - whether Rules
unjust etc. - Conciliation and Arbitration Act 1904, ss.140, 141
- Reg.115(1)(d)(v).
JOHN LOCKWOOD LAWRENCE v. BARRY PORTER & ORS.
No.1 19 of 1987
Beaumont, J.
Sydney
24 August 1987
IN THE FEDERAL COURT OF AUSTRALIA )
)
NEW SOUTH WALES DISTRICT REGISTRY ) No. 19 of 1987
)
INDUSTRIAL DIVISION )
IN THE MATTER of the Conciliation
and Arbitration Act, 1904
AND IN THE MATTER of an Application
under Sections 140 and 141 of the
Act
BETWEEN: JOHN LOCKWOOD LAWRENCE
Applicant
AND: BARRY PORTER, JANE SINGLETON,
BRENDAN DONOHOE, CHRISTOPHER WARREN,
CATRIONA WILSON, PAT O'DONNELL,
WAYNE WATSON, JOHN BRITTLE, NORMAN
TAYLOR, RICHARD SCHERER, TOM
BARRASS, ADRIAN WILD
First to Twelfth Respondents
NEAL SWANCOTT, GAVIN CANTLON, BRAD
TURNER, KATRINA WILLIS, GAIL
LUXFORD, LINDSAY FOYLE, GEOFFREY
HUGHES, BOB BEATTY, RADA ROUSE,
DAVID HALPIN, LIZ FELL, MARK CAMM,
RICHARD MCGREGOR, BILL PREECE,
MICHAEL SUTHERLAND, RAY FRAWLEY,
LACHLAN MCDONALD, ANNE-MARIE
STRICKLAND, GAVIN WHYTE, AGNES
WARREN, SUSAN PEAK, KEVIN GROVER,
MARGARET SIMONS, DUNCAN CLARKE, NORM
HARRIDIEN, LIZ ALLEN, ARTHUR CORRIE,
DES DRIBERG, BARTON GREEN, WILLIAM
RUST, JULIE DUNCAN, PETER BAKER,
RICHARD CRESWICK, ANNE GILES, GENINE
READ, JERRY MAHER, PAUL LEWER, WILL
ATKINS, MAXWELL WATSON, CHARLES
PHILLIPS
Thirteenth to Fifty Second
Respondents
THE AUSTRALIAN JOURNALISTS
ASSOCIATION
Fifty Third Respondent
MINUTES OF ORDER
Judge making order: Beaumont, J.
Date order made: 24 August 1987
Where made: Sydney
THE COURT ORDERS:
l. That the amended rule nisi be discharged.
2. That the interim orders made by the Full Court on
20 May 1987 restraining the respondents from taking
any step to prosecute the AJA's affiliation
application, be discharged.
Note: Settlement and entry of orders is dealt with in
Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA )
)
NEW SOUTH WALES DISTRICT REGISTRY ) No. 19 of 1987
INDUSTRIAL DIVISION
BETWEEN:
AND:
)
)
IN THE MATTER of the Conciliation
and Arbitration Act, 1904
AND IN THE MATTER of an Application
under Sections 140 and 141 of the
Act
JOHN LOCKWOOD LAWRENCE
Applicant
BARRY PORTER, JANE SINGLETON,
BRENDAN DONOHOE, CHRISTOPHER WARREN,
CATRIONA WILSON, PAT O'DONNELL,
WAYNE WATSON, JOHN BRITTLE, NORMAN
TAYLOR, RICHARD SCHERER, TOM
BARRASS, ADRIAN WILD
First to Twelfth Respondents
NEAL SWANCOTT, GAVIN CANTLON, BRAD
TURNER, KATRINA WILLIS, GAIL
LUXFORD, LINDSAY FOYLE, GEOFFREY
HUGHES, BOB BEATTY, RADA ROUSE,
DAVID HALPIN, LIZ FELL, MARK CAMM,
RICHARD MCGREGOR, BILL PREECE,
MICHAEL SUTHERLAND, RAY FRAWLEY,
LACHLAN MCDONALD, ANNE-MARIE
STRICKLAND, GAVIN WHYTE, AGNES
WARREN, SUSAN PEAK, KEVIN GROVER,
MARGARET SIMONS, DUNCAN CLARKE, NORM
HARRIDIEN, LIZ ALLEN, ARTHUR CORRIE,
DES DRIBERG, BARTON GREEN, WILLIAM
RUST, JULIE DUNCAN, PETER BAKER,
RICHARD CRESWICK, ANNE GILES, GENINE
READ, JERRY MAHER, PAUL LEWER, WILL
ATKINS, MAXWELL WATSON, CHARLES
PHILLIPS
Thirteenth to Fifty Second
Respondents
THE AUSTRALIAN JOURNALISTS
ASSOCIATION
Fifty Third Respondent
CORAM: Beaumont, J.
DATED: 24 August 1987
REASONS FOR JUDGMENT
The applicant, a member of the Australian Journalists
Association ("the AJA"), an organisation of employees registered
under the Conciliation and Arbitration Act 1904 ("the Act"),
seeks orders under ss.140 and 141 of the Act in respect of steps
taken by the AJA to affiliate with the Australian Council of
Trade Unions ("the ACTU"). The proposal to affiliate with the
ACTU originated at a meeting of the Federal Council of the AJA
("the Council") held in November 1986. The applicant says that
the procedures followed at this meeting departed from the rules
of the AJA in a number of respects. He asks for orders under
s.141 accordingly. He also contends, in the alternative, that
even if it should be held that the rules were in fact complied
with, then it should be declared, pursuant to s.140(1)(c), that
the rules were oppressive, unreasonable or unjust.
The Council is the "governing body" of the AJA (rr. 5,
6(a)). Control and management of the AJA are vested in a number
of organs. "Supreme control" rests with financial members voting
by plebiscite. As has been noted, the governing body is the
Council. The general administration of the AJA is vested in the
Federal Executive and, through it, the Federal Management
Committee which runs the day to day affairs of the AJA (r.5).
The Council has "complete authority over policy,
Management and all matters concerning the [AJA] and/or its
members" (r.6(a); cf. r.5). Amongst other special powers, the
3.
Council has power to amend the rules of the AJA (r.6(a)(2)). The
Council consists of a Federal President, two Federal
Vice-Presidents, the Federal Secretary, the Assistant Federal
Secretary, the President and Secretary of each Branch and
additional delegates from each Branch (r.6(b)).
The Council commenced its biennial meeting on 2
November. On that day, Mr. Swancott moved that a number of items
of urgent business be accepted for consideration by the Council
at a later stage. One such item was:
"UB-(8) Affiliation
THAT Federal Executive be authorised to arrange a
national plebiscite on AJA affiliation to the ACTU
during 1987."
The Minutes record that the resolution that this item be
accepted as an urgent business for consideration at a later stage
by the Council was "carried with the required majority."
The Minutes do not explain what the "required majority"
was. When a delegate to the Council wishes to bring forward as
urgent business "any matter of a substantive nature" not on the
business paper of a biennial council meeting, written notice
shall be given to the Chairman (r.8(a)). (It 1S common ground
that the guestion of affiliation with the ACTU was not on the
business paper). The Chairman shall read it aloud and then ask
the Council to decide whether the nature of the matter is, in its
opinion, sufficiently urgent to be dealt with by the meeting
(r.8(a)). Unless delegates representing at least 60 per cent of
total delegates vote in favour of the matter being accepted for
consideration later, its merits shall not again be brought before
4.
the meeting (r.8(b)). These rules must be read in conjunction
with r.61 as follows:
"61 - ALTERATIONS TO RULES
(a) The Constitution, Objects and Rules of the
Association shall not be altered, amended, added
to, or repealed, except by resolution of a
meeting of Federal Council.
(b) Any proposal to alter, amend, add to or repeal
the Constitution or Objects or any of the Rules
of the Association shall not be considered by
Federal Council unless all members of Federal
Council have been given notice of the proposal
in accordance with Rule 7(k), or unless the
provisions of Rule 8(b) have been complied
with."
Later in the meeting, a delegate, Mr. Donohoe, was given
permission to move a motion. The Minutes record the matter as
follows:
"UB-(8) AFFILIATION
Mr. Donohoe was given permission to move the motion
standing in his name in the following form:
THAT Federal Executive be authorised to
conduct a national plebiscite on AJA
affiliation to the ACTU between now and the
1988 Federal Council and that this Federal
Council supports the principle and
acknowledges the benefits of AJA_ state
branches affiliating to their respective Trade
Hall Councils.
Further, that the AJA make a donation of
$2,000 in 1986 and 1987 to the ACTU in
recognition of their assistance on
superannuation, wages, occupational health and
other matters.
AMENDMENT
Mr. Rust MOVED, Mr. Baker SECONDED
THAT Federal Executive be instructed to plan a
comprehensive national information campaign
among the membership, as a prerequisite to
such a plebiscite.
The Mover and Seconder accepted the amendment.
Ms Simons MOVED, Ms Strickland SECONDED
THAT consideration of this item be adjourned
pending a report from a sub-committee
comprising Messrs Swancott, Warren and
Donohoe.
CARRIED"
Subsequently, another delegate, Mr. Harriden, put a
motion which was recorded in the Minutes as follows:
"UB-(8) AFFILIATION
Mr. Harriden MOVED, Mr. Swancott SECONDED
l. THAT a new Rule 57(a) be inserted to read as
follows:
'Notwithstanding anything to the contrary in
these rules, Federal Council, a Branch or
sub-Branch shall be authorised to affiliate
with any industrial organisation or peak body
of bona fide trade unions.'
2. Amend Rule 57(c) by deleting the first sentence
and by inserting the following:
'A Branch or sub-Branch may only affiliate with
a Trades and Labour Council in its territory
after receiving consent from Federal Council.'
3. Renumber Rules 57(a),(b),(c),(d),(e) and (f)
accordingly.
The motion was CARRIED with Mr M. Watson and
Mr D. Driberg voting against.
Mr. Cantlon MOVED, Mr. Hughes SECONDED
THAT the Rules Committee examine Rule 56 appeal
procedures.
CARRIED"
As the Minutes record, there were two votes against the
motion. It appears that of the 52 members of the Council, 48
were then present, so that 46 voted in favour.
6.
Immediately thererafter, the Minutes record the carrying
of the following motion proposed by Mr. Donohoe:
"UB-(8) AFFILIATION
Mr. Donohoe MOVED, Mr. Baker SECONDED
THAT Federal Council authorises Federal
Executive to consider and arrange, if
determined, a plebiscite on AJA affiliation to
the ACTU between now and the 1988 Federal
Council.
THAT this Federal Council instruct Federal
Executive to co-ordinate, before any plebiscite,
a comprehensive information campaign among the
membership on the benefits of affiliation to the
ACTU.
THAT Federal Council declares that AJA Branches
should affiliate with their respective Trades
Hall Councils, in keeping with the objects of
the AJA Rule 3({a)(3).
To enable Federal Executive to arrange the
timing for a plebiscite, in Rule 56(c) add the
words 'instruct Federal Executive to' after 'If
Federal Council decides to take a plebiscite it
shall.' Delete 'instruct Federal Executive'
from Rule 56(c)(2).
THAT the AJA make a donation of two thousand
dollars in 1986 and two thousand dollars in 1987
to the ACTU in recognition of its assistance on
Superannuation, wages, occupational health and
safety and other matters.
CARRIED"
In 1987, the Council purported to take steps under new
r.57(a) to affiliate with the ACTU. In this connection, in March
1987, the Federal Executive conducted a postal ballot of members
of the Council to consider the following resolutions:
"1, Do you agree that a decision of Federal Council
should be taken by postal vote on the urgent
matter of A.C.T.U. affiliation?
2. If more than 75 per cent of members of Federal
Council vote yes on question 1, do you agree
7.
that Federal Council should immediately seek
affiliation with the A.C.T.U. in accordance with
Rule 57(a)?"
The vote on the ballot was as follows:
Resolution 1 For 38
Against 9
Resolution 2 For 37
Against 10
The ballot was purportedly conducted pursuant' to
r.7(m)(n) and (0) which provide:
"SPECIAL COUNCIL MEETING
(m) A special meeting of Federal Council may be held
to deal with an urgent matter connected with the
Rules providing that at least 75 per cent of
Federal Council delegates consider the matter
urgent enough to warrant a special Federal
Council meeting. A special meeting of Federal
Council shall be held in the event of the
removal or suspension of a Federal Officer under
the provisions of Rule 50A.
(n) When 75 per cent or more of Federal Council
delegates consider a Special Federal Council is
warranted under Rule 7(m), or when a Federal
Officer is removed or suspended from office, the
Federal Secretary (or Federal President) shall
give each delegate and each Federal Officer at
least 72 hours notice of the meeting. The
notice shall set out the place, date and time of
the meeting and business which is to _ be
submitted to the meeting.
(0) Where appropriate, decisions of a Special
Meeting of the Federal Council may be made by
postal or telegraphic vote provided that
reasonable notice of the matter or matters for
decision has been given to all members of
Federal Council. Matters may only be submitted
to such a meeting by the Federal Executive or
Federal Management Committee."
On 30 April 1987, Mr. Warren, the Federal Secretary of
the AJA, wrote to the ACTU applying, on behalf of the AJA, for
affiliation with the ACTU. Under its Constitution and Rules, the
8.
ACTU is constituted by, inter alia, "(a)ffiliated unions"
(r.4(a)). To be eligible to attend the ACTU Congress, a union
seeking affiliation in a Congress year must lodge its application
with the ACTU not later than 30 April in that year and pay the
stipulated affiliation fees and levies (r.5(b)(i)). On 17 June
1987, Mr. Kelty, Secretary of the ACTU, wrote to the AJA
informing it that its application for affiliation had been
approved. Earlier, by letter dated 7 May 1987, Mr. Kelty had
informed the applicant's solicitors that if the present
proceedings were successful, the ACTU would abide by the Court's
decision.
The applicant challenges the steps taken by the AJA to
affiliate with the ACTU on a number of grounds. In the first
place, the resolution amending the rules by inserting new r.57(a)
is attacked. The applicant says that the procedures prescribed
by r.8 to be followed in the case of urgent business were not
complied with. It will be remembered that r.8 provides that a
number of steps be taken when a delegate wishes to bring forward
as urgent business "any matter of a substantive nature" not on
the business paper. By r.7(i), acceptance of any matter for the
business paper of Biennial Federal Council shall close at 5.00
p.m. on 15 October of the year in which the meeting is held; and
any matter, other than reports, shall be in the form of
substantive motions. But it will be recalled that, although the
question of affiliation was not on the business paper, the
Council agreed to accept as urgent business the following item:
"UB-(8) Affiliation
THAT Federal Executive be authorised to arrange a
'national plebiscite on AJA affiliation to the ACTU
during 1987."
In fact, as has been said, two resolutions were later
passed as urgent business under the item "affiliation". The
first of such resolutions (which is now under' challenge)
purported to introduce a new r.57(a) authorising the Council to
affiliate with any industrial organisation or "peak body of bona
fide trade unions". It is submitted on behalf of the applicant
that this resolution could not properly be brought forward as
urgent business pursuant to r.8. The applicant argues that this
resolution was not "the matter" previously accepted as urgent
business, namely, the item "UB-(8)" quoted above but something
different, that is to say, an amendment to the rules empowering
the Council to affiliate with any "peak" body of trade unions.
It would seem that the draftsman of the rules had in
mind the analogy of parliamentary practice dealing with the
process of debate. By the practice of Parliament, notice of a
substantive motion (i.e. notice of the intention of a member to
call the attention of the House to some particular subject which
does not arise out of the orders of the day) or to move a
resolution or to ask for a return, must as a general rule be
printed on the notice paper (see Halsbury's Laws of England, 4th
ed., Vol.34 at p.454). According to Erskine May's Treatise on
the Law, Privileges, Proceedings and Usage of Parliament, 20th
ed. at pp.374-5, a "motion" is a proposal made for the purpose of
eliciting a decision of the House. Motions may be classified
either as independent and substantive or as dependent and
subsidiary:
10.
"Substantive motions are self-contained; subsidiary
motions may be (1) ancilliary motions dependent on an
order of the day, such as the motion that a bill be
now read a second time, or that the House agrees with
the report of a committee; (2) motions made for the
purpose of superseding questions, such as motions for
the adjournment of a debate (see p.385); (3) motions
dependent on other motions such as amendments. In
general substantive motions require notice, whilst
subsidiary motions do not. The rules regulating the
requirement of notice, however, depend more upon
practical than upon logical considerations, and are
set out below. When notice is required, the terms in
which a motion is moved should be the same as the
terms of the notice, or should at any rate be covered
by them, without the importation of any fresh matter."
{See also Odgers, Australian Senate Practice, 5th ed. at pp.248,
265 and 268; Pettifer, House of Representatives Practice at
p.436.)
The first question here is one of characterisation of
the "matter" which was earlier accepted by the Council as urgent.
Was it, as the applicant contends, merely a_ resolution
authorising the Federal Executive to arrange a national
plebiscite on the question of ACTU affiliation? If so, the
resolution introducing r.57(a) could not have been brought
forward properly as urgent business. The respondents argue that
what was accepted as urgent was far wider than suggested by the
applicant and embraced any matter concerned with affiliation by
the AJA with another industrial body. The only difference
between what was accepted as urgent and what Mr. Harriden
proposed, the respondents say, was the employment of diverse
means to achieve the same end, namely, ACTU affiliation. That
being so, the respondents' argument runs, the subsequent
resolution amending r.57 qualified as urgent business within the
parameters of the earlier resolution (see Boland v. Munro (1980)
48 F.L.R. 66).
ll.
In my opinion, for the purposes of r.8(a), a resolution
introducing a new r.57(a) is a different "matter of a substantive
nature" from a resolution authorising the Federal Executive to
arrange a national plebiscite or AJA affiliation with the ACTU.
For one thing, the former resolution amends the rules. For
another, r.57(a) is not confined to affiliation with the ACTU.
Further, r.57(a) does not require a plebiscite. It follows that,
notwithstanding their common objective, viz., affiliation with
the ACTU, there were significant differences in character between
what was authorised to be brought forward as urgent business on
the one hand and the resolution which purported to amend r.57 on
the other. Although it was not necessary that Mr. Harriden's
motion follow the exact termsof what was earlier proposed (see,
e.g. In Re Trench Tubeless Tyre Co.; Bethell v. Trench Tubeless
Tyre Co. [1900] 1 Ch. 408; Torbock v. Lord Westbury [1902] 2 Ch.
871), the differences between the two resolutions proposed were
so significant that it is not possible to say that the later
resolution "fairly arises" out of the earlier one (see Boland v.
Munro, supra, at p.74; Halsbury's Laws of England, 4th ed. Vol.7,
pp.333-4; para.564). To put it another way, Mr. Harriden's
motion "exceeded the scope" of the earlier resolution (see
Pettifer, op. cit., at p.405; James v. Amott (1918) 14 Tas.L.R.
99; Wallace and Young, Australian Company Law and Practice at
pp.438,440).
But the respondents then say that the circumstances in
which r.57 was purported to be amended give rise to an inference
or implication that the requirements of r.8 as to the
12.
introduction, without formal notice, of urgent business, were
intended to be waived by the Council.
Again, there is an analogy in the Parliamentary
practice. As Erskine May, op. cit. at pp.376-7 says, the House
can waive the requirement of a substantive motion if the motion
is moved under the sanction of the Chair and with the general
concurrence of the House. Yet the objection of any Member is
enough to prevent the waiver of notice.
In the present case, it appears that the Chair
sanctioned the immediate consideration of the motion proposed by
Mr. Harriden for the insertion of new r.57(a). It further
appears that no member objected to the course of acceleration of
the procedures to bring the matter before the meeting. Two
members voted against the resolution but they were then voting on
the merits, as an issue of substance. But it does not follow that
these members objected to Mr. Harriden's motion being dealt with
as urgent business. On the contrary, the minutes show his motion
as "UB-8" (i.e. urgent business) and it is proper to infer
unanimous consent from the acquiescence in that course, that is,
its acceptance as urgent business, on the part of all members
present (see War Assets Pty. Ltd. v. Federal Commissioner of
Taxation (1954) 91 C.L.R. 53 at p.88; Halsbury's Laws of
England, 4th ed. Vol. 9 p.763 para.1296). It follows, in my
view, that the requirements of r.8 were waived in this instance.
In this connection, it is submitted on behalf of the
applicant that strict compliance with the rule-changing
13.
procedures is mandatory (see, e.g., Cook v. Crawford (1982) 62
P.L.R. 34 at pp.99-101). But this 1s not to say that it was
never open to the members of the Federal Council to acquiesce in
Mr. Harriden's bringing forward his motion as urgent business
notwithstanding that this motion went beyond the scope of what
had previously been accepted as urgent business. In my view, it
is proper to infer that all members of the Council present agreed
to the urgent consideration of the motion. The fact that two
members were opposed to the motion on its merits 1s, of course,
beside the point.
I reject the applicant's first challenge.
The next subject of attack is the holding of the postal
ballot in March and April 1987. It will be remembered that no
actual meeting of the Council was then held and that the
resolutions for ACTU affiliation were put to the members in
purported reliance upon r.7(m)(n) and (0). These rules are to
the following effect:
(1) Providing at least 75 per cent of delegates
consider the matter urgent enough, a special meeting
of the Council may be held "to deal with any matter
connected with the Rules" (r.7(m)). (Emphasis added)
(2) At least 72 hours' notice of such meeting,
including notice of the business to be submitted,
shall be given (r.7(n)).
14.
(3) Where appropriate, decisions of such a meeting
may be made by postal or telegraphic vote provided
that reasonable notice of the matter for decision has
been given to all members of the Council. Only the
Federal Executive or the Federal Management Committee
may submit a matter to such a meeting (r.7(0)).
In the first place, the applicant argues that the
resolution passed as a result of the postal ballot was defective
because the rules, on their true construction, required that a
physical meeting of the Council actually be held even if it were
permissible to take the vote later by post.
I cannot accept this analysis.
It is true that, taken literally, r.7(0) does speak of a
"meeting". However, it would defeat the evident object and
purpose of the rule if it were construed in the manner contended
for by the applicant. The rule is clearly intended to avoid the
need to call together a large number of persons from different
parts of the country where urgent action is required. It would
defeat that object if delegates were first required to meet
physically but then adjourn, as the applicant's argument would
suggest, for the purpose of taking a postal vote. Such an
exercise would be pointless and, as a matter of construction of
the constating instrument of an organisation, such an absurd
result should be avoided, except if the language requiring such a
result is intractable (see Cooper Brookes (Wollongong) Pty. Ltd.
v. Federal Commissioner of Taxation (1981) 147 C.L.R. 297 at
pp.320-1).
15.
In my view, the language of r.7(o) is not intractable.
Although, in some contexts, a reference to a "meeting" has been
treated as requiring a "coming together" of at least two persons
(see Sharp v. Dawes [1876] 2 Q.B.D. 26 per Lord Coleridge C.J. at
p.29; Re_ London Flats Ltd. [1969] 1 W.L.R. 711; Higgins v.
Nicol (1971) 18 F.L.R. 343 at p.357), this is not universally so.
The word can be used in other than its strict sense (see East v.
Bennett Brothers, Limited [1911] 1 Ch. 163 at pp.169-170; Regina
v. Leech, ex parte Tolstrup (1879) 5 V.L.R. (L.) 494 at p.502;
Patterson, Ednie and Ford, Australian Company Law, 3rd ed. at
p.- 59,624; Halsbury's Laws of England, 4th ed. Vol. 9 p.764
para. 1297, footnote (1)).
In the present context, 1t 1S plain that the reference
to a meeting was intended to describe a notional or "artificial"
meeting only (see per Kearney J. in Re Hastings Deering Pty. Ltd.
(1985) 9 A.C.L.R. 755). If given this construction, r.7(0o) has
an effective operation. By contrast, if, as the applicant's
argument would have it, the procedures at the meeting have to he
interrupted for the purpose of taking a postal vote, the rule
achieves a most inconvenient, and surely unintended, result.
It will be remembered that r.7(m) required that the
urgent matter be "connected with the Rules". The applicant also
contends that the resolution, carried by postal ballot, that the
Council should seek affiliation in accordance with s.57{a), was
not so connected and, the argument runs, the provisions of r.7(m)
and thus r.7(0), were not available here.
16.
In my opinion, the contention lacks substance. The
taking of a step pursuant to r.57(a) was necessarily connected
with the rules.
To understand the next ground of challenge, it 1s
necessary to refer to some of the history of the affairs of the
AJA. The issue of affiliation with organisations of trade unions
was debated by members of the AJA in the 1920's and in the
1940's. In 1944, a national plebiscite on the guestion - "Are
you in favour of the AJA affiliating with the ACTU?" - showed 843
votes against and 389 in favour. Similar results were obtained
in plebiscites in 1956 (1344 votes against; 624 for); 1973
(2409 against to 1083 for - out of a then total membership of
6,853); 1980 (2343 against; 1707 in favour); 1984 (2772
against; 1790 for). Against this background, it 1s submitted on
behalf of the applicant that the general powers of the Council
should be read down so as to give effect to what is said to be
the expression of the democratic will.
In support of this argument, the applicant relies upon a
number of rules to which reference should now be made. It will
be recalled that r.5 provides that "supreme control" rests with
financial members voting by plebiscite. Consistently with this,
by r.6(a), "complete authority" is conferred upon the Council
over policy, management and all matters concerning the AJA.
Inter alia, the Council may submit any matter or question for
opinion or decision by plebiscite to all financial members
(r.6(a)(4)). A decision of the Council shall be final and
17.
binding throughout the AJA and shall remain in force until
superseded, amended or rescinded (a) at a subsequent meeting of
Federal Council; or (b) by decision reached by plebiscite
(r.6(a)(14)). Plebiscites are dealt with as a separate subject
by r.56. A plebiscite of all financial members of the AJA may be
taken on a nominated question either by resolution of the Council
or at the request of at least two branches (r.56(a)). When two
or more branches request a plebiscite on any decision of the
Council, the notification shall be forwarded to the Federal
Secretary within 14 days of the close of the meeting at which the
decision was made. A plebiscite shall be decided by a majority
of valid votes cast in the plebiscite and that decision shall be
final and binding on all members of the AJA (r.56(m)).
As has been noted, r.57(a) provides that,
notwithstanding anything to the contrary in the rules, the
Federal Council is authorised to affiliate with any peak body of
bona fide trade unions. On its face, this provision confers
power on the Council to seek affiliation with a body such as the
ACTU and there is nothing elsewhere in the rules to justify a
reading down of the operation of the rule in the manner suggested
by the applicant. This is not to say that the plebiscite
provisions could have had no operation in the present case. It
was always open to the Council to submit the matter to a
plebiscite of all members pursuant to r.6(a)(4). Alternatively,
two or more Branches could have requested a plebiscite in
accordance with r.56(f).
18.
Such plebiscites are, of course, taken subsequently to
the decision in question. The present case is different since,
according to the applicant's argument, plebiscites on _ the
affiliation issue taken years earlier can now fetter the powers
otherwise available to the Council. There are several
difficulties in accepting this argument. A preliminary question
arises as to the interpretation to be given to the negative
response to the question posed - Are you in favour of
affiliation...?" The use of the present tense 1s significant.
As one would expect, members were not asked to express a view on
the historical question whether, in the past, affiliation would
have been desirable. Nor were they requested to speculate as to
the future position, Their decision must be seen in its context,
that is to say, a decision by a majority of that generation of
members that affiliation was not then viewed with favour. It
would be wrong to draw from it the wider proposition that members
would always remain opposed to affiliation. Their views were not
immutable and could hardly have been intended to be so: the
possibility of a future change of circumstances may well have
been present to the minds of members who voted. Those who
elected to respond could only speak for their own time. The
responses to the several plebiscites should be seen as no more
than a negative attitude to affiliation at that point of time.
The future was left, as one would expect, for others to decide.
It is difficult to see any basis for reading down the
Council's general powers to amend the rules suggested by the
applicant. This 1s not to say that, in proceedings under s.14l,
it is not possible to seek relief which gives effect to
19.
implications properly made in the rules of an organisation (see
Michael Christie, Legal Duties and Liabilities of Federal Union
Officials (1986) 15 M.U.L.R. 591 at p.601). Nor is it to deny
that, in deciding whether to affiliate, the Council could
properly take into account the results of an earlier plebiscite.
But it is difficult to see any foundation for an implication in
the rules which would actually constrain the exercise by the
Council of its powers, first to amend its rules to permit
affiliation with another body and, secondly, to move for
affiliation with the ACTU. In my opinion, the results of the
plebiscite did not, as a matter of construction of their terms,
and, in any event, could not, as a matter of construction of the
rules, inhibit or fetter the Council for present purposes.
Finally, the applicant says that r.57(a), to the extent
that it empowers a decision contrary to a decision or contrary to
the spirit of a decision taken by plebiscite of the members 1s
oppressive, unreasonable and unjust and thus' contravenes
s.140(1)(c) of the Act. A similar submission is put in respect
of the rules as a whole. Then it is said the rules fail to make
provision required by regulation 115(1)(d)(v) of the Conciliation
and Arbitration Act Regulations for the control of committees of
the AJA by members of the AJA.
I cannot accept any of these arguments. In the first
place, as has been noted, the argument attributes to the earlier
plebiscite a wider operation, in terms of time, than they could
properly bear. In any event, Wright v. McLeod (1983) 51 A.L.R.
483 is squarely in point. The applicant cannot sustain the
20.
far-reaching proposition that s.140(1)(c) will be contravened
unless the rules provide for a plebiscite as the only method by
which the AJA could decide on a question such as affiliation with
another industrial organisation, in this instance the ACTU.
Similarly, Boland v. Munro, supra, at pp.80-l, as approved in
Wright v. McLeod, effectively answers the suggestion that
reg.115(1)(d)(v) has been contravened.
In the result, the application fails. I order that the
amended rule nisi be discharged. I further order that the
interim orders made by the Full Court on 20 May 1987, restraining
the respondents from taking any step to prosecute the AJA's
affiliation application, be discharged.
I certify that this and the
preceding 41 nefeen (/9 )
pages are a true copy of the
Reasons for Judgment herein of
his Honour Mr. Justice Beaumont.
fibers /Pond, Oo
Associate
Dated: 24 th Apert C7P7
Counsel and Solicitors R.C. Kenzie, Q.C. and M. Kimber
for Applicant: instructed by R.L. Whyburn &
Associates.
Counsel and Solicitors J. Shaw, Q.C. and Nolan
for Respondent: instructed by Turner Freeman
Dates of hearing: 10, 13 August 1987
Date Judgment Delivered: 26 August 1987