Need for rules and their content
10 Pursuant to s 140 of the FWRO Act, the HSU must have rules, including rules which address the matters specified in s 141 of the FWRO Act. One of the matters which the rules must provide for is "the times when, and the terms on which, persons become or cease (otherwise than by resignation) to be members" of the HSU: s 141(1)(b)(vii).
11 Section 142 sets out general requirements for the rules which include that the rules:
(a) must not be contrary to, or fail to make a provision required by this Act, the Fair Work Act, a modern award or an enterprise agreement, or otherwise be contrary to law; and
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(c) must not impose on applicants for membership, or members, of the organisation, conditions, obligations or restrictions that, having regard to Parliament's intention in enacting this Act (see section 5) and the objects of this Act and the Fair Work Act, are oppressive, unreasonable or unjust; and
(d) must not discriminate between applicants for membership, or members, of the organisation on the basis of race, colour, sex, sexual orientation, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin.
12 Further, the rules of the HSU must provide for election of the holder of each office (s 143 of the FWRO Act) including rules in relation to the manner in which persons may become candidates for election and the conduct of the elections.
13 The HSU's rules have been amended over time. Two sets of the HSU's rules are relevant. One set of rules came into force from 1 January 2014 (the Previous Rules). New Rules came into force from 5 June 2014.
14 Some of the relevant events in this Inquiry occurred pursuant to or under the Previous Rules while others occurred pursuant to or under the New Rules.
15 Under the Previous Rules, rules 8(f)(v) and (vi) relevantly provided:
(f) Notwithstanding anything contained elsewhere in these Rules:
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(v) Where a member's payment of an instalment has not been received by the Branch by the date on which it was due, the Branch Secretary shall notify that member:-
A. the Branch has not received that member's instalment payment;
B. of the consequences to the member of the failure to pay that instalment as provided by this Rule; and
C. of the amount of the balance of the member's annual contribution owing for the year to which that contribution relates.
(vi) A member notified in accordance with paragraph (v) above shall pay the instalment within 21 days from the date of the written notice from the Branch Secretary. A member who fails to pay that instalment within those 21 days shall cease to be entitled to pay the membership contribution by instalment and shall within a further 7 days from those 21 days be liable to pay the balance of that member's contribution for the relevant year.
The letter Ms Asmar sent to Ms Govan on 1 May 2014 (see [54] below) was sent pursuant to rule 8(f)(v).
16 Rule 10 of the Previous Rules dealt with a member's financial status, and relevantly stated:
(a) A member owing contributions, fines, fees or levies equivalent to an amount in excess of 13 weeks contributions shall be deemed to be unfinancial.
(b) An unfinancial member shall not be entitled -
(i) to any of the rights and privileges of membership;
(ii) to nominate for or hold any office or in any way participate in any ballot or election in the [HSU] or any branch of the [HSU];
(iii) to attend or speak or vote at any meeting of the [HSU] or branch of the [HSU].
(c) Any member exempted pursuant to Rule 8(e) of these Rules from payment either in whole or in part of any contribution, fee or levy shall, for the purposes of these Rules, retain continuity of membership and be deemed financial but shall not, during the period of exemption, be eligible to nominate for or hold any office in the [HSU] or any branch of the [HSU].
17 The New Rules are relevant to events after 5 June 2014, including the Election. Rule 3, entitled "Conditions of Eligibility for Membership" relevantly provides, for example:
The [HSU] shall consist of an unlimited number of persons -
A. employed or usually employed -
(a) throughout Australia in or about or in connection with the carrying on of all hospitals, benevolent homes, dispensaries, asylums, mental hospitals, sanatoriums, rest homes, convalescent homes, medical schools, laboratories, colleges, industrial and other homes, charitable institutions, ambulance work, all classes of nursing, public or private;
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B. employed or usually employed -
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C. such other persons, whether or not employees in the industries of the [HSU] as have been elected or appointed full time National Officers or Branch Officers or organisers of the [HSU] or any Branch thereof and admitted as members of the [HSU]. For the purposes of this Clause C of this Rule, the full-time Officers of the [HSU] and of any Branch thereof shall be the holders of any of the offices of National Officers or Branch Officers where the duties of such office are of a full-time nature; and,
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(Emphasis added.)
18 Rule 6 entitled "Admission to Membership" includes Rule 6(g)(v) which relevantly provides:
(g) On receipt of the application for membership:
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(v) where the applicant has previously been a member of the [HSU] and owes a debt to the [HSU], the Branch Secretary shall either accept the application unconditionally, or accept it on the condition that the applicant shall first pay the whole or part of the debt owed, or otherwise refer the matter to the Branch Committee of Management.
19 Rule 10 addresses "Termination of Membership". The rule relevantly states:
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Termination because the member ceases to be eligible
(i) Membership terminates automatically when the member ceases to be eligible to be a member of the [HSU] unless the person is a National or Branch life member, in which case the person shall continue to be a National or Branch life member.
(j) A person who is a member of the [HSU] because the person is eligible for membership by virtue of rule 3C… shall, unless otherwise eligible to become or remain a member of the [HSU], automatically cease to be a member of the [HSU] when he or she ceases to hold the office or position referred to in that rule.
Termination as the result of purging the register
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(l) Each Branch Secretary shall, from time to time, review the register of the Branch's members and identify the names of members of the Branch who have been unfinancial for more than three months. The Branch Secretary shall write to each such member to his or her last address shown on the register and give the member one month's written notice of the intention to strike his or her name off the register.
(m) If the member does not become financial within a month of the letter being sent, the member's name shall be purged from the register of members. The member shall cease to be a member when his or her name is purged from the register.
20 Quite apart from the operation of Rule 10, reference should also be made to s 171A of the FWRO Act which relevantly has the effect that a person's membership of the HSU automatically ceases when the person is not, or is no longer, an employee or an officer. "Employee" has its "ordinary meaning and includes a person who is usually such an employee": s 6 of the FWRO Act.
21 Next, Rule 11 addresses "Union Dues". Rule 11(h) relevantly provides that a member was entitled to pay HSU dues by any one or more of the following methods - payroll deductions, direct debit, charge or credit card, cheque, cash or any other method approved by the Branch Committee of Management. Rule 11(k) addresses non-payment of HSU dues in the following terms:
Where a member's payment of [HSU] dues has not been received by the Branch within one month of the date on which it is due, the Branch Secretary shall notify the member:
(i) The dues have not been received;
(ii) The amount of the balance of the member's dues owing;
(iii) That if the member does not pay the dues owing within three months of the due date then member shall be unfinancial. (sic)
22 "Financial and Unfinancial Members" are addressed in Rule 12. It relevantly provides:
(a) Where a member's payment of [HSU] dues has not been received by the Branch within three months of the date on which it is due, the member shall be unfinancial. …
(b) An unfinancial member shall not be entitled -
(i) to any of the rights and privileges of membership;
(ii) to nominate for or hold any office in the [HSU] or any Branch;
(iii) to participate in any ballot or election in the [HSU] or any Branch;
(iv) to attend, speak at or vote in any meeting of the [HSU] or Branch.
(c) When the Branch Committee of Management has decided to waive a member's annual contribution or any levy, the member:
(i) shall retain continuity of membership and be deemed financial for the period covered by the waiver;
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23 "Elections" are addressed in Rule 23. The conduct of Branch elections are addressed in Rule 23A(d). Rule 23A(d)(vii) relevantly provides that when conducting elections and ballots of the HSU:
The Returning Officer shall check all nominations received for compliance with the requirements of these rules and shall reject any that do not so comply; provided that in the event that he or she finds a defect in any nomination, the Returning Officer shall before rejecting the nomination notify the person concerned of the defect, and, where it is practicable to do so, give the person the opportunity of remedying the defect where practicable within seven days of being notified.
24 Qualifications for office are relevantly set out in Rule 23A(e):
(i) Nominations for any position of paid Branch Officer shall have been a continuously financial member of the [HSU] for not less than twelve months immediate (sic) preceding his or her nomination and shall be a financial member of the [HSU] at the date of his or her nomination.
(ii) Nominations for any position other than that of paid Branch Officer shall have been a continuously financial member of the [HSU] for not less than three months immediately preceding his or her nomination and shall be a financial member of the [HSU] at the date of his or her nomination.
25 The positions of Branch Secretary and Branch Assistant Secretary are paid Branch Officer positions and therefore a nominee must have continuously been a financial member of the HSU for not less than 12 months immediately preceding the nomination and must be a financial member of the HSU at the date of the nomination: Rule 23A(e)(i). The position of National Council Delegate is not a paid Branch Officer position and therefore requires continuous financial membership for not less than three months: Rule 23A(e)(ii).
26 Team Nominations are governed by Rule 23A(f) as follows:
Notwithstanding sub rule (d) of this rule, candidates in an election of:
(i) Officers of a Branch;
(ii) Ordinary members of a Branch Committee;
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(iv) Branch delegates to the National Council:
may, subject to the following conditions, nominate as members of a "team nomination":-
a. Each candidate being nominated as a member of a team nomination must signify his or her acceptance of such nomination by signing the nomination to the Returning Officer.
b. No member of a team nomination may nominate or be nominated as a member of another "team nomination" or as an individual candidate.
c. A "Team" nomination must nominate a candidate (or the required number of candidates) for each position for which nominations have been called whereupon each candidate will be considered to have nominated for each position concerned.
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f. The Returning Officer shall ensure that the ballot paper makes provision for the recording of a vote for each member of a team nomination by way of marking one box at the top of the list of names of members of that team (a "team box"). The Returning Officer shall also ensure that the ballot paper contains clear instructions to the effect that a member voting may vote individually for candidates, including members of a team nomination, or, alternatively, vote for each member of a team by marking the team box.
g. Once a candidate has nominated for a team nomination he or she cannot withdraw unless with the consent of all the members of that team. Where there is consent for a candidate to withdraw, the team nomination form may be amended to provide for a replacement nominee.
(Emphasis added.)