Electrolux Home Products Pty Ltd v Australian Workers' Union
[2004] HCA 40Electrolux Home Products Pty Ltd
vAustralian Workers' Union
Judges:
Gleeson CJ
McHugh J
Gummow J
Kirby J
Hayne J
Callinan J
Heydon J
Legislative References:
Workplace Relations Act 1996 (Cth) - Pt VIB; Div 2; Div 8; s 170ML; s 170LI
Industrial Relations Act 1988 (Cth) - s 4(1); Section 170MD
Workplace Relations Amendment (Prohibition of Compulsory Union Fees) Act 2003 - The Act
Workplace Relations Act 1996 - Pt VIB; s 170L; s 170NI)
Conciliation and Arbitration Act 1904 - s 4(1)
Judgment date: 2 September 2004
Order
1. Appeals allowed.
2. Set aside the orders of the Full Court of the Federal Court of Australia made on 21 June 2002 and, in place thereof, order that each of the appeals to the Full Court Nos S 6/2002, S 11/2002 and N18/2002 be dismissed.
Counsel for the appellant:
F Parry SC
with
C B O'Grady
Counsel for the first to the seventh respondents:
S C Rothman SC
with
S J Howells
Counsel for the eighth respondent:
H J Dixon SC
with
M P McDonald
Solicitors for the appellant:
Cutler Hughes & Harris
Solicitors for the first to the seventh respondents:
Lieschke & Weatherill, Taylor & Scott and Moloney & Partners
Solicitors for the eighth respondent:
Blake Dawson & Waldron
(1972) 127 CLR 353
(1994) 181 CLR 96
Mason CJ, Brennan, Deane, Dawson, Toohey, Gaudron and McHugh JJ
(1994) 181 CLR 96 at 106-107
(1972) 127 CLR 353 at 357
(1972) 127 CLR 353 at 359 and 362
(1950) 81 CLR 64 at 84
(1972) 127 CLR 353 at 357-358 per Menzies J
Bank of NSW v The Commonwealth (1948) 76 CLR 1 at 186 per Latham CJ
See, for example, Melbourne Corporation v Barry (1922) 31 CLR 174 at 206
Coco v R (1994) 179 CLR 427 at 437; Plaintiff S 157/2002 v Commonwealth (2003) 211 CLR 476 at 492 [30]
Public Service Assn (SA) v Federated Clerks' Union (1991) 173 CLR 132 at 160; Plaintiff S 157 / 2002 v Commonwealth (2003) 211 CLR 476 at 492-493 [32]
(2003) 214 CLR 269 at 284 [36]
[1955] AC 169 at 191
(1994) 179 CLR 427 at 437
The quotation is from Potter v Minahan (1908) 7 CLR 277 at 304, where O'Connor J cited a passage from Maxwell on Statutes, 4th ed (1905) at 122
[1998] AC 539 at 587 , 589
(2002) 118 FCR 177 at 195
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177 ("AMWU")
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600
Electrolux [2001] FCA 1600 at [52]-[54]
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1840
AMWU (2002) 118 FCR 177 at 194
AMWU (2002) 118 FCR 177 at 195
AMWU (2002) 118 FCR 177 at 196-197
Section 3(c)
Section 170LH
Australia, Workplace Relations and Other Legislation Amendment Bill 1996 (Cth) Senate Explanatory Memorandum, (1996) at 69 ("Explanatory Memorandum")
Section 170LN
Section 170LT(1)
See, eg, ss 170LT and 170LU
Section 170LV(1)(a)
Section 170LX(1)
Section 170LY(1)
Section 170LZ
See, eg, ss 178 and 179
AMWU (2002) 118 FCR 177 at 196
Section 170M(1)
Section 170M(2)
Section 170MD(3)(b)
Section 170ME(1)(a)
Sections 170MI-170MK
Sections 170ND, 170NE, 170NF(1)
Section 170NG
Electrolux [2001] FCA 1600 at [40]-[41]
Electrolux [2001] FCA 1600 at [42]
Electrolux [2001] FCA 1600 at [53]
Electrolux [2001] FCA 1600 at [45]
Electrolux [2001] FCA 1600 at [54]
AMWU (2002) 118 FCR 177 at 196
AMWU (2002) 118 FCR 177 at 196
AMWU (2002) 118 FCR 177 at 196-197
AMWU (2002) 118 FCR 177 at 197
See, eg, Australian Tramway Employes Assn v Prahran and Malvern Tramway Trust ("Union Badge Case") (1913) 17 CLR 680 at 705 per Higgins J, 718 per Powers J; R v Portus ; Ex parte ANZ Banking Group Ltd (1972) 127 CLR 353 at 371 per Stephen J; R v Coldham ; Ex parte Fitzsimons (1976) 137 CLR 153 at 163-164 per Stephen J
Portus (1972) 127 CLR 353; Re Alcan Australia Ltd; Ex parte Federation of Industrial, Manufacturing and Engineering Employees (1994) 181 CLR 96
See, eg, Portus (1972) 127 CLR 353 at 357 per Menzies J (Barwick CJ and McTiernan J agreeing), 368 per Walsh J; Coldham (1976) 137 CLR 153 at 163-164 per Stephen J; Federated Clerks' Union (Aust) v Victorian Employers' Federation (1984) 154 CLR 472 at 481-482 per Gibbs CJ, 488 per Mason J; Re Manufacturing Grocers' Employees Federation of Australia; Ex parte Australian Chamber of Manufactures (1986) 160 CLR 341 at 353; Re Finance Sector Union of Australia ; Ex parte Financial Clinic (Vic) Pty Ltd (1993) 178 CLR 352 at 363 per Mason CJ, Deane, Toohey and Gaudron JJ; Re Alcan (1994) 181 CLR 96 at 106-107
(1913) 17 CLR 680
(1919) 27 CLR 207
See R v Kelly ; Ex parte State of Victoria (1950) 81 CLR 64 at 85; Portus (1972) 127 CLR 353 at 358-359 per Menzies J
(1994) 181 CLR 96
Re Alcan (1994) 181 CLR 96 at 106
Re Alcan (1994) 181 CLR 96 at 106
Re Alcan (1994) 181 CLR 96 at 107
Re Alcan (1994) 181 CLR 96 at 107
Re Alcan (1994) 181 CLR 96 at 106
(1972) 127 CLR 353
(1994) 181 CLR 96 at 106-107
Portus (1972) 127 CLR 353 at 357-358, citing Kelly (1950) 81 CLR 64, see also at 359
Portus (1972) 127 CLR 353 at 360
Portus (1972) 127 CLR 353 at 363
Portus (1972) 127 CLR 353 at 364
Portus (1972) 127 CLR 353 at 365
Portus (1972) 127 CLR 353 at 368
Portus (1972) 127 CLR 353 at 369
Portus (1972) 127 CLR 353 at 370
Portus (1972) 127 CLR 353 at 371
Portus (1972) 127 CLR 353 at 371-372
Portus (1972) 127 CLR 353 at 372
Portus (1972) 127 CLR 353 at 372
Constitution, s 51(xx) See Explanatory Memorandum at 68; AMWU (2002) 118 FCR 177 at 180
Constitution, s 51(xxxv)
Re Alcan (1994) 181 CLR 96 at 105
Re Alcan (1994) 181 CLR 96 at 101 The Court held that a dispute as to the deduction of union dues from the wages of employees who authorise that course would constitute an "industrial dispute" for the purposes of s 51(xxxv) of the Constitution: at 103-104, applying R v Coldham; Ex parte Australian Social Welfare Union ("CYSS Case") (1983) 153 CLR 297) The Court said (at 104):
"In an industrial relations system involving the active participation of trade unions as the recognized representatives of their members, a claim that employers should deduct union dues is, in our view, inherently industrial in character Certainly, that is so where the claim is for deductions authorized by individual employees"
The Court queried (at 104) whether the constitutional term "industrial dispute" would cover a claim for the deduction of union dues where the deductions are not in some way authorised by at least some of the employees In such a situation the union would be acting in its own interest, not that of its members as employees, and the Court observed that it may be necessary for the employees' interests to be seen as coinciding with the union's if the matter is to be regarded as industrial
(2003) 120 IR 438 at 452
(2002) 114 IR 62 at 66
See Re Printing and Kindred Industries Union ; Ex parte Vista Paper Products Pty Ltd (1993) 67 ALJR 604 at 609 , 612 per Gaudron J (Brennan, Dawson and Toohey JJ agreeing), 617-618 per McHugh J; 113 ALR 421 at 428, 432, 439-440
See, eg, s 170LN
See, eg, Flaherty v Girgis (1987) 162 CLR 574 at 594 per Mason ACJ, Wilson and Dawson JJ; Zickar v MGH Plastic Industries Pty Ltd (1996) 187 CLR 310 at 329 per Toohey, McHugh and Gummow JJ
See, eg, Health Minders (2003) 120 IR 438 at 454; but see Atlas Steels (2002) 114 IR 62 at 68-72
(1992) 174 CLR 345 at 357
(2001) 207 CLR 21
Section 5AA(2)
Section 5AA(3)
Section 494
See Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Unilever Australia Ltd (Unreported, PR940027, Australian Industrial Relations Commission, 31 October 2003, Munro J, Drake SDP and Larkin C) at [34]
Orr, "Agency Shops in Australia? Compulsory Bargaining Fees, Union (In)Security and the Rights of Free-Riders", (2001) 14 Australian Journal of Labour Law 1 at 20
Orr, "Agency Shops in Australia? Compulsory Bargaining Fees, Union (In)Security and the Rights of Free-Riders", (2001) 14 Australian Journal of Labour Law 1 at 21
Orr, "Agency Shops in Australia? Compulsory Bargaining Fees, Union (In)Security and the Rights of Free-Riders", (2001) 14 Australian Journal of Labour Law 1 at 21
Orr, "Agency Shops in Australia? Compulsory Bargaining Fees, Union (In)Security and the Rights of Free-Riders", (2001) 14 Australian Journal of Labour Law 1 at 21
Section 298Z(5)(b)
Section 298Z
Electrolux [2001] FCA 1600 at [50] (original emphasis)
Electrolux [2001] FCA 1600 at [50]
Electrolux [2001] FCA 1600 at [51]
(1992) 174 CLR 345 at 359 Shell concerned a machinery provision in a claim, rather than a term of an agreement
(1972) 127 CLR 353 at 372
AMWU (2002) 118 FCR 177 at 196
See Unilever (Unreported, PR940027, Australian Industrial Relations Commission, 31 October 2003, Munro J, Drake SDP and Larkin C) at [91]
The Commission may certify a non-compliant agreement -- that is, where not all the terms meet the requirements of Pt VIB and the Commission has grounds to refuse certification under ss 170LT and 170LU -- on the acceptance of undertakings from the parties in relation to the operation of the agreement: s 170LV(1)
Sections 170LT(1) and 170LU
Section 170LU(2)
Section 170LU(5), (6)
Section 170LU(3)
Section 170LT(9) The exception relates to the circumstances in which the agreement is made: the Commission must refuse to certify an agreement made under s 170LK if the employer coerced or attempted to coerce any employee not to request or to withdraw a request that a union negotiate the agreement on the employee's behalf
See also Pt VIE, especially s 170XA(2)
Construction, Forestry, Mining and Energy Union v Australian Industrial Relations Commission (2001) 203 CLR 645 at 658 [31]
Explanatory Memorandum at 60 (emphasis added)
Subsections 3(b) and (c)
Explanatory Memorandum at 6
(2002) 114 IR 62 at 67
AMWU (2002) 118 FCR 177 at 196
Section 170LY
Division 7 of Pt VIB
Section 178
Section 189
Section 285B
See, eg, s 86
See, eg, ss 298K and 298L(1)(h)
Section 170MB
Section 170LZ(4)
Section 170LZ(1)
Sections 170LZ(2) and (3)
See CFMEU (2001) 203 CLR 645 at 658 [34]
Section 170MI
Section 170MT(1)
The immunity does not apply if the industrial action has involved or is likely to involve personal injury, wilful or reckless destruction of, or damage to, property or the unlawful taking, keeping or use of property: s 170MT(2) In addition, the immunity does not prevent an action for defamation being brought in respect of anything that occurred in the course of industrial action: s 170MT(3)
Section 170MT(2)
See Coco v R (1994) 179 CLR 427 at 437 per Mason CJ, Brennan, Gaudron and McHugh JJ; Plaintiff S 157 / 2002 v The Commonwealth (2003) 211 CLR 476 at 492 [30] per Gleeson CJ
See Public Service Assn (SA) v Federated Clerks' Union (1991) 173 CLR 132 at 160 per Dawson and Gaudron JJ; Plaintiff S 157 / 2002 (2003) 211 CLR 476 at 492-493 [32] per Gleeson CJ
(2003) 214 CLR 269 at 284 [36]
AMWU (2002) 118 FCR 177 at 195
Explanatory Memorandum at 92 (emphasis added)
The Act is in the form of Reprint 4
Victoria v The Commonwealth (1996) 187 CLR 416 at 533-542
(1996) 187 CLR 416 at 558-560
Sch 1, Pt 2, Item 13
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 ; [2001] FCA 1840
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177
(2002) 118 FCR 177 at 196
(2002) 118 FCR 177 at 195
(2002) 118 FCR 177 at 195
cf Ryan v Textile Clothing & Footwear Union of Australia [1996] 2 VR 235
(1913) 17 CLR 680
(1972) 127 CLR 353
(1994) 181 CLR 96
(1994) 181 CLR 96 at 105
(1972) 127 CLR 353 at 364
(1972) 127 CLR 353 at 372
(1994) 181 CLR 96 at 107
(1994) 181 CLR 96 at 106
See, eg, in relation to R v Portus : R v Coldham ; Ex parte Fitzsimons (1976) 137 CLR 153 at 162 , 163-164; Federated Clerks' Union (Aust) v Victorian Employers' Federation (1984) 154 CLR 472 at 482 , 488; Re Manufacturing Grocers' Employees Federation of Australia ; Ex parte Australian Chamber of Manufactures (1986) 160 CLR 341 at 352-353 See also Re Finance Sector Union of Australia ; Ex parte Financial Clinic (Vic) Pty Ltd (1993) 178 CLR 352 at 363 and the cases there cited
cf Zickar v MGH Plastic Industries Pty Ltd (1996) 187 CLR 310 at 328-329
cf Flaherty v Girgis (1987) 162 CLR 574 at 594
(2002) 118 FCR 177 at 195
[2001] FCA 1600 at [40]-[41]
(2002) 118 FCR 177 at 195
See Seven Network (Operations) Ltd v Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (2001) 109 FCR 378 at 386-388
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177 (Wilcox, Branson and Marshall JJ)
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 ; [2001] FCA 1840
The same short descriptions are adopted as in the reasons of Gummow, Hayne and Heydon JJ ("joint reasons")
The Act, s 170LI(1) See joint reasons at [155]
Reasons of McHugh J at [32]-[39]; joint reasons at [139]-[141]; reasons of Callinan J at [225]-[230]
Reasons of Gleeson CJ at [12]; reasons of McHugh J at [40]-[52]; joint reasons at [130]-[138]; reasons of Callinan J at [236]-[239]
Joint reasons at [152]-[156]
Reasons of McHugh J at [34]-[39]; joint reasons at [142]-[148]; reasons of Callinan J at [225]-[230]
Joint reasons at [165]; reasons of Callinan J at [233]-[234]
Joint reasons at [147]-[148] citing Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177
cf R v Ludeke; Ex parte Queensland Electricity Commission (1985) 159 CLR 178 at 190-191; Attorney-General (Q) v Riordan (1997) 192 CLR 1 at 45 , 60
The Act, s 170ML(2)
See the terms of this provision of the proposed agreement set out in the joint reasons at [140]
Until the amendments to the Industrial Relations Act 1988 (Cth) inserted by the Industrial Relations Reform Act 1993 (Cth) incorporating Pt VIB ("Promoting Bargaining and Facilitating Agreements") in its original form Further amendments were inserted by the Workplace Relations and Other Legislation Amendment Act 1996 (Cth)
Joint reasons at [148]
(1998) 81 IR 15 at 18 See also the terms of s 3 of the Act and the objectives there set out, contained in the joint reasons at [132]
cf joint reasons at [157]-[158] with reference to the definition of "industrial matters" in s 4(1) of the Conciliation and Arbitration Act 1904 (Cth)
Attorney-General (Q) v Riordan (1997) 192 CLR 1 at 37-46
Rational decision-making is a characteristic normally to be attributed to the legal process: Whisprun Pty Ltd v Dixon (2003) 77 ALJR 1598 at 1619-1621 [116]-[126]; 200 ALR 447 at 477-479
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177 at 195 [93]
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177 at 195 [93]
The Act, s 170ML(2)
The terms are explained in the joint reasons at [138]
cf the mode of reasoning in Re Alcan Australia Ltd ; Ex parte Federation of Industrial, Manufacturing and Engineering Employees (1994) 181 CLR 96 at 106-107 cited by the joint reasons at [161]
Zickar v MGH Plastic Industries Pty Ltd (1996) 187 CLR 310 at 328-329 , 349-351 where R v Reynhoudt (1962) 107 CLR 381 at 388 per Dixon CJ is cited
cf Federal Commissioner of Taxation v Westfield Ltd (1991) 22 ATR 400 at 402 See Hill, "What Do We Expect from Judges in Tax Cases?", (1995) 69 Australian Law Journal 992 at 999
Automotive, Food, Metals, Printing, and Kindred Industries Union v Unilever Australia Ltd, Australian Industrial Relations Commission, Full Bench (Munro J, Drake SDP, Larkin C) at [142]-[148], [155]-[173]
Reasons of Gleeson CJ at [13]-[17]; reasons of McHugh J at [78]-[79]; joint reasons at [153]-[163]; reasons of Callinan J at [238]-[253]
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 at [40]-[41] See joint reasons at [165]
News Ltd v South Sydney Football Club (2003) 77 ALJR 1515 at 1524 [42]; 200 ALR 157 at 168
(1972) 127 CLR 353
(1994) 181 CLR 96
s 4(1) definition of "industrial dispute" and see joint reasons at [158] and the definition of "industrial matters"
Constitution, s 51(xx)
Constitution, s 51(xxix) See Kirby, "Human Rights and Industrial Relations", (2002) 44 Journal of Industrial Relations 562 at 566-568
Jumbunna Coal Mine, NL v Victorian Coal Miners' Assn (1908) 6 CLR 309 at 365 , 370; Federated Municipal and Shire Council Employees' Union of Australia v Melbourne Corporation (1919) 26 CLR 508 at 575; cf at 584
Federated State School Teachers' Assn of Australia v State of Victoria (1929) 41 CLR 569 at 575; cf at 588 per Isaacs J dissenting
See eg R v Commonwealth Court of Conciliation and Arbitration ; Ex parte Victoria (1942) 66 CLR 488; Pitfield v Franki (1970) 123 CLR 448; R v Holmes ; Ex parte Public Service Assn (NSW ) (1977) 140 CLR 63 and R v McMahon ; Ex parte Darvall (1982) 151 CLR 57
See Professional Engineers' Case (1959) 107 CLR 208; Creighton, Ford and Mitchell, Labour Law: Text and Materials, 2nd ed (1993), Ch 17 especially at 443; Williams, Labour Law and the Constitution (1998) at 68-78
See eg Clancy v Butchers' Shop Employés Union (1904) 1 CLR 181 at 207; cf Australian Tramway Employés Assn v Prahran and Malvern Tramway Trust (1913) 17 CLR 680 at 702; Federated Clothing Trades of the Commonwealth of Australia v Archer (1919) 27 CLR 207
(1966) 115 CLR 443 at 451; cf R v Flight Crew Officers' Industrial Tribunal ; Ex parte Australian Federation of Air Pilots (1971) 127 CLR 11 at 20
See eg R v Gallagher ; Ex parte Commonwealth Steamship Owners' Assn (1968) 121 CLR 330 at 335
Such as R v Kelly ; Ex parte State of Victoria (1950) 81 CLR 64 (shop trading hours); R v Hamilton Knight ; Ex parte The Commonwealth Steamship Owners Assn (1952) 86 CLR 283 (leave); Australian Federation of Airline Pilots v Flight Crew Officers Industrial Tribunal (1968) 119 CLR 16 (manning levels); R v Commonwealth Industrial Court Judges ; Ex parte Cocks (1968) 121 CLR 313 (use of outworkers); R v Portus ; Ex parte ANZ Banking Group Ltd (1972) 127 CLR 353 (deduction of union dues)
(1983) 153 CLR 297
(1908) 6 CLR 309 at 365-368
(1919) 26 CLR 508 at 572
(1983) 153 CLR 297 at 312 See also Re Lee; Ex parte Harper (1986) 160 CLR 430 at 453-454
(1986) 160 CLR 341 at 353
(1987) 163 CLR 117
(1994) 181 CLR 96
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 at [52]
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 at [40]-[45]
R v Portus ; Ex parte ANZ Banking Group Ltd (1972) 127 CLR 353 at 360
(1972) 127 CLR 353 at 365
(1972) 127 CLR 353 at 369
(1972) 127 CLR 353 at 372
Re Alcan Australia Ltd ; Ex parte Federation of Industrial, Manufacturing and Engineering Employees (1994) 181 CLR 96
(1972) 127 CLR 353 at 360
(1994) 181 CLR 96 at 104
Re Finance Sector Union of Australia ; Ex parte Financial Clinic (Vic) Pty Ltd (1993) 178 CLR 352 at 361-363 per Mason CJ, Deane, Toohey and Gaudron JJ
(1994) 181 CLR 96 at 103-104
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 at [53]-[55]
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177 at 195 [95]-[96]
Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union v Electrolux Home Products Pty Ltd (2002) 118 FCR 177 at 196-197 [99]-[102]
Re Alcan Australia Ltd ; Ex parte Federation of Industrial, Manufacturing and Engineering Employees (1994) 181 CLR 96 at 105-107; Re Manufacturing Grocers' Employees Federation of Australia ; Ex parte Australian Chamber of Manufactures (1986) 160 CLR 341 at 353
Australian Tramway Employes Assn v Prahran and Malvern Tramway Trust (Union Badge Case ) (1913) 17 CLR 680 at 705 per Higgins J and 718 per Powers J; R v Portus ; Ex parte ANZ Banking Group Ltd (1972) 127 CLR 353 at 371 per Stephen J; R v Coldham ; Ex parte Fitzsimons (1976) 137 CLR 153 at 164 per Stephen J
(1976) 137 CLR 153 at 164
(1972) 127 CLR 353 at 360
Electrolux Home Products Pty Ltd v Australian Workers Union [2001] FCA 1600 at [42]-[44]
R v Portus ; Ex parte ANZ Banking Group Ltd (1972) 127 CLR 353 at 357
(1972) 127 CLR 353 at 360
(1972) 127 CLR 353 at 368
(1972) 127 CLR 353 at 372
(1994) 181 CLR 96