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austlii:cth/CthArbRp/1923/2
appellant. The Court held that it had jurisdiction to make awards binding upon State governments and their instrumentalities under s 51(xxxv) of the Constitution. The doctrine of reserved State powers was...
This landmark decision, known as the 'Engineers' Case', fundamentally changed Australian constitutional law. The Court decided that the Commonwealth government has the power to make industrial relations laws that bind State governments when they act as employers. Previously, it was thought that the States had 'reserved powers' that the Commonwealth could not touch. The Court rejected this idea, ruling that the Constitution should be interpreted according to the ordinary meaning of its words. This meant that the Commonwealth's power to settle industrial disputes extending across State borders could be applied to State government employers like railway departments. The decision established that Commonwealth powers are not limited by implied protections for State governments, fundamentally reshaping Australian federalism.
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The Court held that it had jurisdiction to make awards binding upon State governments and their instrumentalities under s 51(xxxv) of the Constitution. The doctrine of reserved State powers was rejected. The Commonwealth's power to make laws with respect to conciliation and arbitration extends to industrial disputes involving State employers where the dispute extends beyond the limits of any one State.