Australian Rail, Tram and Bus Industry Union v Busways Northern Beaches Pty Ltd
[2022] FCAFC 55
At a glance
Source factsCourt
Federal Court of Australia (Full Court)
Decision date
2022-04-07
Before
Mr DP, Snaden JJ
Source
Original judgment source is linked above.
Judgment (11 paragraphs)
Background 30 The relevant factual background can briefly be stated. It emerges without material controversy from the evidence upon which the parties relied (the particulars of which needn't here be rehearsed). 31 Section 3C of the Transport Administration Act 1988 (NSW) establishes a New South Wales Government agency known as "Transport for NSW" (or "TfNSW"). Amongst others, its functions include contracting, on behalf of the state of New South Wales, with public transport agencies or the private sector for the delivery of public transport services, including bus services: Transport Administration Act 1988 (NSW), s 3E, Sch. 1. 32 Section 39 of the Passenger Transport Act 2014 (NSW) prohibits the provision of public bus transportation services that are "conducted according to regular routes and at regular intervals" unless they are provided pursuant to a "passenger service contract". By s 36 of that Act, TfNSW may enter into a "passenger service contract" for the provision of a "public passenger service" (including services involving the vehicular transportation of fare-paying passengers within New South Wales). 33 At times material to this application, the provision of public bus transportation services within defined parts of Sydney was undertaken by the State Transit Authority of New South Wales. Specifically, it oversaw the provision of such services in what are known as "Region 7", "Region 8" and "Region 9" (which incorporate Sydney's inner north-west, its northern beaches and lower north shore, and its CBD and eastern suburbs). As will be seen, it is those three regions that assume significance in this matter. 34 Those services might fairly be described as orthodox public bus transportation services. They involve the operation of buses upon prescribed routes, according to prescribed timetables and subject to prescribed fares. 35 On or around 24 October 2019, TfNSW announced that the New South Wales government intended to invite private operators to tender for passenger service contracts covering the provision of public bus transportation in various regions within Sydney, including regions 7, 8 and 9. It is convenient to set out in full the text of that announcement: New bus contracts to drive improved services Published 24 Oct 2019 Bus customers will receive additional services and innovative on demand options under new contracts to lift the standard of transport across Sydney. Minister for Transport Andrew Constance said the reform was designed to ensure the best outcomes for both customers and staff. "Our bus drivers are the best in the world. They do an amazing job in getting people around this incredible city and play a vital role in helping to tackle Sydney's congestion," Mr Constance said. "Bus patronage has increased by more than 50 per cent over the past six years. This rate of growth outstrips that of all other forms of public transport and we need to address this increasing demand as a matter of urgency." The NSW Government will invite the world's leading public transport operators, Australian and international, to bid for contracts for 13 of Sydney's bus contract regions over the next three years. This will include the three remaining State Transit operated regions. Mr Constance said a competitive tender of all Sydney metropolitan bus contracts will enable the NSW Government to reinvest more into delivering better services to commuters. "We know customers want more buses, more often, as well as a mix of bus services that cater to their needs. This includes high-frequency services on major routes, like the B-Line, and frequent direct options such as on-demand services for short, local trips." "The NSW Government will engage with the private sector to transform the current, one-size-fits-all model of service delivery, to one with multiple service types including high-capacity routes and local and on-demand travel." Contracts for the three remaining State Transit Regions 7, 8, and 9 - covering Ryde, Gladesville, the Northern Beaches, Lower North Shore, the CBD, and the Eastern Suburbs will be included and be put out to tender by early 2020. The NSW Government will continue to: own State Transit buses and all other assets such as depots, regulate timetables, safety, and service priorities, and set fares as they are today, under the Opal system. The reform will also see Sydney's ageing diesel bus fleet replaced by electric vehicles to reduce the impact of buses on the health and environment of our city. "Making the switch to an entirely electric bus fleet will deliver huge benefits to the community in terms of reducing air and noise pollution, as well as our incredible drivers," Mr Constance said. "As part of this process, we will challenge the industry to begin an ambitious transformation of our bus fleet from particulate emitting diesel to zero emission buses. "The experience of other leading European cities demonstrates that a rapid transition to zero-emission buses is possible and I have asked Transport for NSW to work with operators and bus suppliers to develop a plan to transition our fleet as part of the tender process. "Zero-emission buses are becoming the standard with the significant environmental, health and operational cost benefits being experienced now in cities like London, Paris and Amsterdam. As a truly global city Sydney deserves the same." Mr Constance said there would be jobs for the majority of State Transit award staff with the new operator(s), including all bus drivers and maintenance staff, whose jobs will be guaranteed for two years. These staff will also transfer with all their accrued entitlements such as annual leave, sick leave, long service leave, superannuation and their three-year travel pass. "Today's announcement is not a reflection on the performance of State Transit bus drivers who have been doing an excellent job dealing with the strong surge in passenger numbers and demanding road conditions," Mr Constance said. "We expect more jobs for bus drivers to be created due to the extra services that will be provided. "We have started engaging with all staff and their union representatives about today's announcement, and will continue this right through the tender and transition process." 36 The first of the three relevant regions to undergo the tender process was region 8. It was proposed that requests for tenders related to that region would be announced in June 2020, and that a transition to a new operator would complete by October 2021. Requests for tenders for region 7 were scheduled to be made in August 2020, with transition by December 2021. For region 9, the equivalent dates were November 2020 and April 2022. Some changes to those timings were made but need not here be recited. 37 In May 2020 (and consistently with the NSW Government's announcement), TfNSW undertook to guarantee that new operators who commenced to provide bus services in line with those timings would, for at least two years after that commencement, retain existing operational staff on their existing employment conditions. Additionally, those employees were guaranteed recognition of their service with predecessor providers. Those guarantees were provided in writing by correspondence that TfNSW sent to the secretary of "Unions NSW". 38 Each of the Busways entities was incorporated on 18 August 2020. The EA was made two days later, on 20 August 2020. At that time, the first respondent was preparing, or intended to prepare, for submission a tender relating to the operation of bus services within region 8, the third respondent was preparing a tender relating to the operation of bus services within region 7 and the second respondent intended to prepare and submit a tender relating to the provision of bus services within region 9. 39 By that point in time, TfNSW had already published a request for tender relating to region 8. That occurred on 24 June 2020. Equivalent documents followed in relation to regions 7 and 9 on 10 August 2020 and 27 November 2020 respectively. 40 It is necessary to record some (albeit limited) detail about the three requests for tender. Perhaps unsurprisingly, they were voluminous. Each comprised, as volume 1, an extensive document entitled "Overview & Tender Requirements"; and, as volume 3, a draft contract as between TfNSW and the incoming operator. 41 Each request for tender specified that the New South Wales government would continue to own the busses (and other assets) used to service each region and would maintain control over the applicable bus timetables. Additionally, they each recorded that TfNSW and the "Independent Pricing and Regulatory Tribunal" would continue to regulate passenger fares throughout each region. The requests stated that the incoming operators would be required "to offer employment to identified existing STA staff under their current awards and agreements" and "to work with stakeholders to ensure a smooth transition for [those] employees from a public to a private operator". They also set out various "operational outcomes" - relating to matters such as "customer experience", "stakeholder engagement", "workplace relations", and various "social and sustainability" initiatives - that the incoming operators would need to satisfy. 42 The requests also required that tenderers "provide sufficient information to enable TfNSW to determine their capability, methodology and approach to considering, designing and evaluating the benefits of additional On Demand Services". That requirement married with the TfNSW "On Demand Public Transport Pilot Program", a program "established to identify and test a diverse range of new service delivery models" so as to "improve customer outcomes and achieve better value for money in the delivery of public transport services". Schedule 1A to each of the draft contracts that were contained within the requests set out the specific requirements that would be imposed upon incoming operators in relation to "On Demand Services". 43 The request for tender "Overview and Tender Requirements" document and draft bus contract relating to region 9 foretold of additional requirements that would be imposed within that region relating to the introduction of zero-emissions busses, as well as the installation and maintenance of associated infrastructure (such as charging stations and other necessary depot upgrades).