[2025] FCAFC 59
General information, not legal advice.
Federal Court of Australia (Full Court)
2025-04-29
Mr J, Raper JJ
Original judgment source is linked above.
The third respondent filed a submitting notice, save as to costs
AUSTRALIAN MUNICIPAL**, ADMINISTRATIVE, CLERICAL AND SERVICES UNION**
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
248 Single interest employer authorisations
(1) The following may apply to the FWC for an authorisation (a single interest employer authorisation) under section 249 in relation to a proposed enterprise agreement that will cover two or more employers:
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(b) a bargaining representative of an employee who will be covered by the agreement.
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249 When the FWC must make a single interest employer authorisation
Single interest employer authorisation
(1) The FWC must make a single interest employer authorisation in relation to a proposed enterprise agreement if:
(a) an application for the authorisation has been made; and
(b) the FWC is satisfied that:
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(v) the requirements of either subsection (2) or (3) (which deal with franchisees and common interest employers) are met; and
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Common interest employers
(3) The requirements of this subsection are met if:
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(b) it is not contrary to the public interest to make the authorisation.
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(3AB) If:
(a) the application for the authorisation was made by a bargaining representative under paragraph 248(1)(b); and
(b) an employer that will be covered by the agreement employed 50 employees or more at the time that the application was made;
it is presumed that the requirements of subsection (3) are met in relation to that employer, unless the contrary is proved.
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Operation of authorisation
(4) The authorisation:
(a) comes into operation on the day on which it is made; and
(b) ceases to be in operation at the earlier of the following:
(i) at the same time as the enterprise agreement to which the authorisation relates is made;
(ii) 12 months after the day on which the authorisation is made or, if the period is extended under section 252, at the end of that period.
30D Extended meaning of national system employer
(1) A national system employer includes:
(a) any person in a State that is a referring State because of this Division so far as the person employs, or usually employs, an individual; and
(b) a holder of an office to whom subsection 30E(2) applies.
(2) This section does not limit the operation of section 14 (which defines a national system employer).
Note: Section 30H may limit the extent to which this section extends the meaning of national system employer.
3A Fundamental workplace relations principles
The following are the fundamental workplace relations principles under this Act -
(a) that the Commonwealth Fair Work Act should provide for, and continue to provide for, the following -
(i) a strong, simple and enforceable safety net of minimum employment standards;
(ii) genuine rights and responsibilities to ensure fairness, choice and representation at work, including the freedom to choose whether or not to join and be represented by a union or participate in collective activities;
(iii) collective bargaining at the enterprise level with no provision for individual statutory agreements;
(iv) fair and effective remedies available through an independent umpire;
(v) protection from unfair dismissal;
(b) that there should be, and continue to be, in connection with the operation of the Commonwealth Fair Work Act, the following -
(i) an independent tribunal system;
(ii) an independent authority able to assist employers and employees within a national workplace relations system.
...for the obligation to make an authorisation to arise, the Commission must be satisfied that it is not contrary to the public interest to do so. Where an employer employed 50 employees or more at the time the application was made, s 249(3AB) means that it is presumed that the requirements of subsection (3) are met, unless the contrary is proved. This includes the public interest requirement in s 249(3)(b).
[69] It has long been recognised that the expression "in the public interest" imports a discretionary value judgment to be made by reference to undefined factual matters, confined only "in so far as the subject matter and the scope and purpose of the statutory enactments may enable ... given reasons to be [pronounced] definitely extraneous to any objects the legislature could have had in view". In which direction the public interest points may not be easy to discern. Ascertainment in any particular case of where the public interest lies may require a balancing of countervailing public interests. In Re Queensland Electricity Commission; Ex parte Electrical Trades Union of Australia [1987] HCA 27; (1987) 61 ALJR 393, for example, Mason CJ, Wilson and Dawson JJ said (at 395):
... Ascertainment in any particular case of where the public interest lies will often depend on a balancing of interests, including competing public interests, and be very much a question of fact and degree. In this case the Commission was called upon to weigh in the balance two competing public interests. One was the importance of settling in its entirety the dispute initiated by the E.T.U.'s log of claims. The other was the importance of leaving the dispute to be resolved by the State tribunal despite the limitations on its jurisdiction if that course was likely to maintain the marked improvement in industrial relations in the industry that had occurred since the dispute arose and thereby contribute to industrial peace and an efficient power supply.
[70] In identifying matters that may be relevant to an assessment of the public interest, a distinction is often drawn between matters affecting the public interests and the private interests of the parties. In Re Kellogg Brown and Root, Bass Strait (Esso) Onshore/Offshore Facilities Certified Agreement 2000 (2005) 139 IR 34, the Full Bench explained (at [23]):
The notion of public interest refers to matters that might affect the public as a whole such as the achievement or otherwise of the various objects of the Act, employment levels, inflation, and the maintenance of proper industrial standards. An example of something in the last category may be a case in which there was no applicable award and the termination of the agreement would lead to an absence of award coverage for the employees. While the content of the notion of public interest cannot be precisely defined, it is distinct in nature from the interests of the parties. And although the public interest and the interests of the parties may be simultaneously affected, that fact does not lessen the distinction between them
[71] The distinction between matters that affect the public interest as opposed to the private interests of the parties will often not be clear. A consideration may affect both the interests of the public at large and the interests of one of more of the parties to the proceedings. The interests of the public might also be affected as a result of the impact of an authorisation on one of the parties. The assessment of whether the making of an authorisation is contrary to the public interest will depend, very much, on the facts of a particular case.
[72] Section 249(3AB), when it is applicable, means it must be proved that there is some consequence that would result from making an authorisation that could lead to the conclusion that it is contrary to the public interest to do so. Of course, the identification of one consideration or consequence of making an authorisation that might be said to be contrary to the public interest may not be sufficient. It will, in such a case, be necessary to assess the whole of the facts and circumstances to determine whether, as a whole, it had been proved that making an authorisation would be contrary to the public interest.
[81] The second reason advanced by Goldfields Council is that making a single interest employer authorisation would be contrary to the fundamental workplace relationship principles set out in the Intergovernmental Agreement for a National Workplace Relations System for the Private Sector made in 2009 (the National Agreement) and the Fair Work (Commonwealth Powers) Act 2009 (Vic) (the Referral Act)...
[82] The same two principles are set out at clause 1.2 of the National Agreement which records that the parties acknowledge that the "National Workplace Relations System" will be built on those principles, amongst others.
[83] The direct relevance of the fundamental workplace relations principles is dependent on Goldfields Council being a national system employer only by reason of the referral of powers by Victoria. A local council in Victoria is a body corporate. Whether it is a "constitutional corporation" for the purposes of the Act in that it is a "trading or financial corporation" requires the application of the "activities test". The outcome of the application of that test to local government has been mixed, and there is at least some uncertainty in relation to that question in any particular case. No evidence was before the Full Bench in this matter which would permit the application of the activities test. Goldfields Council relied on the statement of agreed facts which recorded that it is covered by the Victorian Local Government Award 2015 which only covers a "State reference public sector employer".
[84] That appears to us to be an unsatisfactory basis to determine the constitutional status of Goldfields Council. Fortunately, however, it is not necessary to resolve that question. Even accepting that Goldfields Council is covered by the Act only by reason of the referral of powers by Victoria, the fundamental workplace relations principles do not, in themselves or together with other considerations, suggest that it would be contrary to the public interest to make the authorisation.
[85] The ACTU submitted, and we accept, that only operative effect of the fundamental workplace relations principles in the context of the Referral Act is that Victoria may withdraw its referral of powers to the Commonwealth on three months' notice instead of six months' notice if the Act is amended in a manner that is inconsistent with the principles. That demonstrates that the fundamental workplace relations principles could not provide a basis to construe the Act itself or limit the manner in which the Commission exercises its powers or discretions under the Act. The remedy, if powers are conferred on the Commission the exercise of which would be inconsistent with the fundamental workplace relations principles, is that Victoria could withdraw its referral. The principles do not justify the Commission exercising its powers in a manner other than as required by the terms of the Act itself.
[86] In any event, the two principles relied upon do not support a finding that it would be contrary to the public interest to make the authorisation. The principle referred to in s 3A(a)(ii) of the Referral Act refers to principles of freedom of association and the protection of the rights of individuals to join and be represented by a union and participate in collective activities. The making of a single interest employer authorisation does not affect the principles of freedom of association. The principle referred to in s 3A(A)(iii) of the Referral Act refers to the Act providing for collective bargaining at the enterprise level. For the reasons set out above with respect to the relevance of the object of the Act and the objects of Part 2-4, that principle does not suggest, as a general matter, that it is contrary to the public interest to make a single interest employer authorisation in any particular case.
...we are not satisfied that the reasons relied upon by Goldfields Council, individually or taken together, prove that it is contrary to the public interest to make the authorisation sought by the ASU. The presumption in s 249(3AB) has not been displaced. Accordingly, we are satisfied that it is not contrary to the public interest to make the authorisation for the purposes of s 249(3)(b) of the Act.
Ground 1
The Commission misunderstood the nature of the task that it was required to perform as set out in ss 249(1)(b)(v) and 249(3)(b) of the Fair Work Act 2009 (Cth) (FW Act): see in particular D[79]. The public interest criterion in s 249(3)(b) required the Commission to engage in a balancing or weighing exercise of all matters before it which may and may not suggest that a single interest authorisation would be contrary to the public interest: see D[69] (and the authority quoted therein). The Commission did not perform this balancing or weighing exercise. The presumption in s 249(3AB) did not change the nature of this exercise, it only placed a persuasive onus on Council to demonstrate that a single interest authorisation was contrary to the public interest once all matters before it were balanced against one another.
Ground 2
In purporting to perform the task set out in ss 249(1)(b)(v) and 249(3)(b) of the FW Act, the Commission erred in its consideration of the fundamental workplace relations principles in ss 3A(a)(ii) and (iii) of the Fair Work (Commonwealth Powers) Act 2009 (Vic) (Referral Act): see in particular D[85]-[86]. The error was in the Commission's construction of the effect of these fundamental workplace relations principles: it was an error to read down principle (ii) to only refer to "principles of freedom of association" (D[86]), and an error to read principle (iii) as if it referred to collective bargaining at common-interest level, in addition to bargaining at an enterprise-level.
Properly construed, the fundamental workplace relations principles are to the effect that the FW Act should provide Council a choice as to whether it engages in collective bargaining with other employers operating other enterprises, and the employees performing work for those employer at the other enterprises.
The Full Bench appears to identify its duty to conduct this balancing exercise at DB[69] and [72], but the reasoning that follows (and the test that it erected) makes clear that it did not engage in this exercise. The Full Bench's task was not one of merely considering and then dismissing the Council's arguments in a vacuum because they did not create "some consequence."
The High Court considered the notion of "public interest" in federal industrial law in Re Queensland Electricity Commission; Ex parte Electrical Trades Union of Australia [1987] HCA 27; (1987) 61 ALJR 393. At issue was the Conciliation and Arbitration Commission's discretionary power to decline to deal with an industrial dispute, if dealing with it was "not necessary or desirable in the public interest". Mason CJ, Wilson and Dawson JJ identified that this criterion required a balancing exercise to be undertaken (at 395):
["]Ascertainment in any particular case of where the public interest lies will often depend on a balancing of interests, including competing public interests, and be very much a question of fact and degree. In this case the Commission was called upon to weigh in the balance two competing public interests. One was the importance of settling in its entirety the dispute ... The other was the importance of leaving the dispute to be resolved by the State tribunal despite the limitations on its jurisdiction."
Brennan J (dissenting in the result) likewise found the public interest criterion as requiring "the balancing of competing public interests" (at 397). Justice Deane (concurring in the result) also found (at 400): "[the Commission's] ultimate decision to refrain from a further hearing of that part of the dispute was reached as a result of a weighing process involving a number of identified public interest considerations."
In short, every member of the High Court agreed that a public interest criterion in federal industrial law requires the balancing or weighing exercise. There is no reason to doubt that this balancing test has not been re-enacted in the criterion found in s 249(3)(b) of the FW Act. Indeed, and given the specialised and politically sensitive field that is industrial relations, it is "no fiction" to attribute the drafter of s 249(3)(b) with the knowledge of the High Court's ruling in Re Queensland Electricity Commission, and it would be an "astonishing" proposition to say that the draftsperson was unaware of it.
GROUND TWO: THE FUNDAMENTAL WORKPLACE RELATIONS PRINCIPLES
I certify that the preceding forty-seven (47) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justices Collier, Snaden and Raper.
Central Goldfields Shire Council
Australian Municipal, Administrative, Clerical and Services Union [2025] FCAFC 59
(2022) 276 CLR 80
(1987) 61 ALJR 393
(2005) 139 IR 34