The decisions of the Full Bench - the absence of jurisdictional error
46 In contrast to the two decisions of the Deputy President as to whether the Commission could be "satisfied" as to whether the employees had "genuinely agreed" to the proposed enterprise agreement in the face of a notice which did not comply with s 174, the decision of the Full Bench covering both decisions was confined to the question as to the validity of the two notices. That was in accordance with the written submissions advanced by ALDI, albeit in the context of identifying what that conclusion had led to on the part of the Deputy President in refusing approval of the two proposed enterprise agreements. The Full Bench, having found no error by the Deputy President in relation to the invalidity of the notice, did not proceed to determine whether an invalid notice would preclude a state of "satisfaction" being reached for the purposes of s 186. The decision that was made dismissing the appeals therefore left the Deputy President's decision in that regard intact. No jurisdictional error has been argued in the Full Bench not going further; nor could there have been unless that could have been shown to constitute a failure to exercise jurisdiction, which was not attempted to be demonstrated by ALDI and seems inherently unlikely in any event. As already observed, the Full Bench did not have to answer the questions posed in any particular way, provided it was within jurisdiction and there was no basis for saying that such jurisdiction had not been exercised merely by not exploring every alternative remedy that might be hinted at.
47 Any jurisdictional error on the part of the Full Bench, accordingly, had to be found in its interpretation and application of s 174(1A) to the notice given to the employees. Its decision-making process proceeded upon the basis that there had to be strict compliance with the terms of s 174(1A), but that "a minor variation in wording might not constitute a departure from the prescribed form or lead to invalidity" (at [24]).
48 Any error as to the construction of s 174(1A) would be an error within jurisdiction and hence not susceptible of review upon the basis of jurisdictional error: Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission [2000] HCA 47, 203 CLR 194. That is because an error in the construction of s 174(1A), or indeed of any other provision of the Act, will ordinarily involve only the erroneous exercise of jurisdiction within the ambit of that jurisdiction, rather than in some way reflecting going beyond the metes and bounds of that jurisdiction. It is part and parcel of the jurisdictional task of the Commission, in common with many executive decision-makers, that they interpret and apply the laws that they are charged with administering, such as the Act, including making decisions that affect rights. An error in doing so, be it factual or legal, will be an error of that character and no more, unless it affects the very jurisdiction being exercised, and does so in a way that is sufficiently material to have the quality or character that crosses the line into jurisdictional error: see Hossain v Minister for Immigration and Border Protection [2018] HCA 34; 92 ALJR 780 at [29]-[30], [40] and [72]; see also Wei v Minister for Immigration and Border Protection [2015] HCA 51; 257 CLR 22 at [23]; and Minister for Immigration and Border Protection v SZMTA; CQZ15 v Minister for Immigration and Border Protection; BEG15 v Minister for Immigration and Border Protection [2019] HCA 3 at [44], endorsing the materiality principle identified by the plurality (Bell, Gageler and Keane JJ) in Hossain at [29]-[31], and discussing that principle further at [44]-[50]; but cf Nettle and Gordon JJ at [84] ff, especially at [93]-[95].
49 At the time of the decision in Coal and Allied, s 45 of the Workplace Relations Act 1996 (Cth) provided for an appeal to a Full Bench from an order made by a single member of the Commission. In allowing an appeal from a decision of a Full Court of this Court, Gleeson CJ, Gaudron and Hayne JJ concluded (at [29]-[32], footnotes omitted):
… the Full Court held that the Full Bench of the Commission fell into jurisdictional error by treating an appeal under s 45 as an appeal of the kind which obliged the Full Bench to determine, in the absence of error on the part of Boulton J, whether there was or was not a circumstance within the meaning of s 170MW(3) of the Act. It may be noted that, had the Full Bench proceeded on that basis, it would have exceeded its jurisdiction. It would not have failed to exercise its jurisdiction, whether actually or constructively.
The Full Court concluded that the Full Bench of the Commission fell into jurisdictional error because it proceeded on the basis that the decision of Boulton J was attended by appealable error when it was not. And it did so, in the view of the Full Court, because of its "fundamental misconception ... of the Commission's role arising from the combined operation of s 170MW(1) and (3)." To misconceive the role of the Commission under s 170MW of the Act (assuming that that is what the Full Bench did) does not constitute jurisdictional error on the part of the Full Bench.
There would only have been jurisdictional error on the part of the Full Bench if it had misconceived its role or if, in terms used by Jordan CJ in Ex parte Hebburn Ltd; Re Kearsley Shire Council, it "misunder[stood] the nature of [its] jurisdiction ... or 'misconceive[d] its duty' or '[failed] to apply itself to the question which [s 45 of the Act] prescribes' ... or '[misunderstood] the nature of the opinion which it [was] to form'". The Full Bench did none of those things.
In his reasons for decision, Giudice J proceeded on the basis that the Full Bench could intervene only if there was error on the part of Boulton J. In this his Honour was correct. Giudice J held that there was error on the part of Boulton J. If he was wrong in that view (a matter upon which it is unnecessary to express an opinion), that was an error within jurisdiction not an error as to the nature of the jurisdiction which the Full Bench was required to exercise under s 45 of the Act. Accordingly, it was not an error in respect of which relief could be granted by way of prohibition or mandamus under s 75(v) of the Constitution.
50 The decision made by the Full Bench as to the correct construction and application of s 174(1A) to the notice given in the present case was the very basis upon which permission to appeal was advanced and the very subject-matter of decision-making entrusted by the legislature to the Commission. Any argument that the Full Bench were stepping outside the jurisdiction entrusted to it by the legislature must therefore be rejected.
51 The Full Bench's conclusion that the "modification" to the notice in the present case was not "trivial" would, if erroneous, even more readily be classified as an error within jurisdiction.
52 Although it may be accepted that "illogicality" or "irrationality" may in some circumstances constitute jurisdictional error, no jurisdictional error is demonstrated where a conclusion reached is one open to be made: Minister for Immigration and Citizenship v SZMDS [2010] HCA 16; 240 CLR 611 at [130]. Crennan and Bell JJ further observed (at [135]):
… Whilst there may be varieties of illogicality and irrationality, a decision will not be illogical or irrational if there is room for a logical or rational person to reach the same decision on the material before the decision maker. A decision might be said to be illogical or irrational if only one conclusion is open on the evidence, and the decision maker does not come to that conclusion, or if the decision to which the decision maker came was simply not open on the evidence or if there is no logical connection between the evidence and the inferences or conclusions drawn. None of these applied here ...
53 The conclusion that the departure from the prescribed form was not "trivial" was one open to be reached by the Full Bench. Any argument that this conclusion of itself reached the extremity necessary to constitute jurisdictional error by reason of "irrationality" or "unreasonableness" must be rejected.
54 Even if the possibility of jurisdictional error loomed, this Court would be reluctant to find that error, and would more readily exercise the discretion not to intervene even if it were found to exist. The finding was made by a body of persons having special expertise in the area of industrial law and its myriad of applications and nuances, few of which would necessarily or readily be apparent to this Court. It is, accordingly, a finding from which this Court would depart with considerable hesitation and reservation. The finding that a departure from the legislatively mandated requirement is not, on the particular facts and circumstances prevailing, "trivial" is a value-laden assessment as to achieving the practical substance of that requirement when deciding whether or not to approve an enterprise agreement. This Court would be reluctant for that reason to second-guess such an assessment, especially as it does not involve any suggestion of the adoption of one of "several competing reasonable interpretations of the statute in question, so as to fit the facts to the desired result": see the passage from Corporation of the City of Enfield v Development Assessment Commission [2000] HCA 5; 199 CLR 135 at [42], quoted below at [56].
55 In the United States, it has been concluded that a Court may express "deference" to the construction of regulatory provisions and fact-finding by a specialist decision-maker: Chevron USA Inc v Natural Resources Defense Council 467 US 837 (1984). The Chevron doctrine has not been adopted in Australia. Rather, the High Court has decided that the "weight to be given to the opinion of [a] tribunal in a particular case will depend upon the circumstances": City of Enfield at [47], quoted more fully at [58] below; see also Minister for Immigration and Citizenship v Yucesan [2008] FCAFC 110; 169 FCR 202 at [13]-[15].
56 In City of Enfield, Gleeson CJ, Gummow, Kirby and Hayne JJ stated (at [42]):
An undesirable consequence of the Chevron doctrine may be its encouragement to decision-makers to adopt one of several competing reasonable interpretations of the statute in question, so as to fit the facts to the desired result. In a situation such as the present, the undesirable consequence would be that the decision-maker might be tempted to mould the facts and to express findings about them so as to establish jurisdiction and thus to insulate that finding of jurisdiction from judicial examination. Commentary upon Chevron has seen it as indicative of a "delegalisation" of the administrative process; Professor Werhan writes that:
"Except for the unusual case in which Congress unambiguously has settled the particularised meaning of an enabling act, Chevron gives agencies, not courts, the dominant role in interpreting and enforcing legislative authority. The Court accomplished this role reversal by reconceptualising the process under which ambiguous statutes are interpreted. Before Chevron, the traditional approach viewed the interpretation of ambiguous laws to be a 'question of law' [See 5 USC s706 (1994)]; after Chevron, this task became simply a 'policy choice.' [See Chevron (1984) 467 US 837 at 844-845]. Having transformed the legal into the political, the Justices ceded interpretative authority to the agencies."
[Werhan, "Delegalising Administrative Law" [1996] University of Illinois Law Review 423, at p 457. See also Merrill, "Judicial Deference to Executive Precedent", Yale Law Journal, vol 101 (1992) 969, at pp 993-998.]
57 Gleeson CJ, Gummow, Kirby and Hayne JJ in City of Enfield went on to consider, as a pathway to a different approach, the fundamental distinction between the judicial and executive function in Australia, stating (at [43]) that "an essential characteristic of the judicature is that it declares and enforces the law which determines the limits of the power conferred by statute upon administrative decision-makers". This observation was made by reference to the judgment of Brennan J in Attorney-General (NSW) v Quin (1990) 170 CLR 1 at 35-36, who in turn had relied upon the United States Supreme Court decision of Marshall CJ in Marbury v Madison (1803) I Cranch 137 at 177; 5 US 87 at 111. The well-established principle from Quin at 36 that "[t]he merits of administrative action, to the extent that they can be distinguished from legality, are for the repository of the relevant power and, subject to political control, for the repository alone" was described by their Honours as the "product not of any doctrine of 'deference', but of basic principles of administrative law respecting the exercise of discretionary powers". Their Honours:
(1) cited the warning by Mason J in Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24 at 40 that"[t]he limited role of a court [in] reviewing the exercise of an administrative discretion must constantly be borne in mind";
(2) drew attention to the leading case on beneficially reading executive decisions in Minister for Immigration and Ethnic Affairs v Wu Shan Liang (1996) 185 CLR 259 at 271-272;
(3) referred to the leading case on restraint by the High Court in ordinarily not making a declaration that has the effect of usurping executive decision-making, in Minister for Immigration and Ethnic Affairs v Guo (1997) 191 CLR 559 at 576-578, 597-598); and
(4) noted the observation by Brennan J in Waterford v The Commonwealth (1987) 163 CLR 54 at 77 that there is not even an error of law in an administrative or executive decision-maker making a wrong finding of fact.
58 The position in Australia was summarised by Gleeson CJ, Gummow, Kirby and Hayne JJ in City of Enfield (at ([47], omitting footnote):
The weight to be given to the opinion of the tribunal in a particular case will depend upon the circumstances. These will include such matters as the field in which the tribunal operates, the criteria for appointment of its members, the materials upon which it acts in exercising its functions and the extent to which its decisions are supported by disclosed processes of reasoning. A similar view appears to be taken by the Supreme Court of Canada.
59 A "restrained approach" may thus be required when reviewing findings made by a tribunal "having expertise in making assessments": Attorney-General (NSW) v XY [2014] NSWCA 466 at [159] per Basten JA. Such a "restrained approach" is especially appropriate in the present case when considering the finding made by the Full Bench that the departure from the prescribed form in the present case was not "trivial". It is not a conclusion that can be disturbed as a matter of jurisdictional error, or alternatively that should be disturbed in the exercise of discretion and restraint.