Consideration
86 Subsection 659(2)(e) refers to three events: (1) the filing of a complaint and (2) the participation in proceedings, where the complaint or the proceedings are against an employer involving alleged violation of laws or regulation; and (3) recourse to competent administrative authorities. An employer must not terminate an employee's employment on account of any of these events. No issue arises in relation to "proceedings". Accordingly, two matters may now fall for consideration. Did Mr Claveria's communication to the union on the morning of 24 January 2007 constitute "recourse to competent administrative authorities"? Alternatively, did the action of Mr Claveria, or Mr Claveria and Mr Seneviratne, constitute the "filing of a complaint"? If the answer to either question is 'yes', then the respondent contravened s 659(2)(e) of the Act.
87 The expression "competent administrative authorities" is not defined in the Act. It is not an expression that has any particular accepted meaning in Australian law. Nor is it defined in the International Labour Organization ('ILO') Convention concerning Termination of Employment at the Initiative of the Employer 1982 (C158) (done at Geneva on 22 June 1982; entered into force on 23 November 1985), from which s 659(2)(e) and the expression "competent administrative authorities" plainly derive. The Act refers to the ILO Convention C158 as "the Termination of Employment Convention". I refer to it in this way hereafter.
88 Section 659(2)(e) must be construed having regard to its statutory context and purpose, in this case, both general and particular. At least one object of s 659(2)(e) is "to assist in giving effect to the Termination of Employment Convention": see ss 635(1)(e), 637(5) and [90]-[94] below. Section 659(1) confirms the importance of the Convention in the context of s 659 by proving that an additional object of the section is "to assist in giving effect to" the Termination of Employment Recommendation, 1982 (R166) (done at Geneva on 22 June 1982) ('Termination of Employment Recommendation 1982'): see also s 637(6). Though it has no direct relevance to the present case, according to its preamble, the Termination of Employment Recommendation 1982 "supplements" the Termination of Employment Convention.
89 Pilkington argued that the words "to assist in giving effect to" in s 635(1)(e), as opposed to the stronger form, "to give effect to", were significant in the present case. It noted that the legislature had altered the language of the objects provision from its original and stronger form to the present, weaker version.
90 Examination of the history of the objects provision shows this change in language. Section 170CA(1) of the Industrial Relations Act 1988 stated that the object of Div 3, which included an equivalent provision to s 659(1)(e) (namely, s 170DF(1)(e)), was "to give effect, or further effect, to" the Termination of Employment Convention and the Termination of Employment Recommendation 1982. Section 170CA(1) was later amended, with the effect that s 170CA(1)(e) of the Workplace Relations Act 1996 took on the form it now has in s 635(2)(e), which states as an object "to assist in giving effect" to the Termination of Employment Convention.
91 I do not, however, consider that the change has any significance for the construction of the expression "competent administrative authorities", although it may be important for other purposes. Whilst the present language may indicate that the legislative object of the Division as a whole is more qualified than it was earlier, there is no suggested basis for the contention that this affects the meaning attributable to the particular expression "competent administrative authorities" in s 659(2)(e) and its predecessor provisions.
92 The legislative history of s 659(2)(e) supports the conclusion that: (1) the particular object of s 659(2)(e), as opposed to Div 3 as a whole, has always been to give effect to art 5(c) of the Termination of Employment Convention; and (2) the meaning of the expression "competent administrative authorities" in s 659(2)(e) has not altered since first introduced into Australian legislation and has always borne the same meaning as in the Convention.
93 An identical provision to s 659(2)(e) was introduced into the Industrial Relations Act 1988, as s 170DF(1)(e) of that Act, by s 21 of the Industrial Relations Reform Act 1993. This followed very shortly after Australia's ratification of theTermination of Employment Convention in February 1993. Section 170DF(1)(e) was virtually the same in terms as art 5(c) of the Termination of Employment Convention. Article 5(c) provides, amongst other things, that "the filing of a complaint or the participation in proceedings against an employer involving alleged violation of laws or regulations or recourse to competent administrative authorities" "shall not constitute valid reasons for termination". At the time s 170DF(1)(e) entered Div 3 of Pt VIA of this Act, s 170CB stated that "[a]n expression has the same meaning in [Div 3] as in the Termination of Employment Convention". That is, unsurprisingly, the meaning of the expression "competent administrative authorities" in art 5(c) and s 170DF(1)(e) of the Industrial Relations Act 1988 was the same.
94 Section 170DF(1)(e) was renumbered as s 170CK(2)(e) by the Workplace Relations and Other Legislation Amendment Act 1996 (Cth) and renumbered again as s 659(2)(e) by the Workplace Relations (Work Choices) Act 2005 (Cth). Save for renumbering and some contextual changes, there has been no change in the language of s 659(2)(e) since its introduction as s 170DF(1)(e) of the Industrial Relations Act 1988. Further, in s 642(5), the current Act continues to provide that "[a]n expression used in this Subdivision [A] or Subdivision C or D has the same meaning as in the Termination of Employment Convention". Section 659 forms part of Subdivision C. Although the respondent argued to the contrary, I infer from the statutory objects provisions, s 642(5), and the legislative history of s 659(1)(e) and s 642(5) that the meaning of the expression "competent administrative authorities" in s 659(1)(e) bears the same meaning as in earlier equivalent provisions and art 5(c) of the Termination of Employment Convention, from which the statutory provisions derive.
95 The meaning of the expression "competent administrative authorities" in the Termination of Employment Convention thus falls for consideration. In Andersen v Umbakumba Community Council (1994) 56 IR 102 at 104-105, von Doussa J commented that "[t]he rules which govern a national court when construing an International Convention which has been enacted into Australian domestic law are more liberal than the traditional canons of construction of the English common law". His Honour's comment was cited with approval in Mohazab v Dick Smith Electronics Pty Ltd (No 2) (1995) 62 IR 200 ('Mohazab') at 203. The Vienna Convention on the Law of Treaties 1969 (done at Vienna on 23 May 1969) 1155 UNTS 331 (entered into force on 27 January 1980) ('the Vienna Convention') provides relevant interpretative principles: see AB v Registrar of Births, Deaths and Marriages [2007] FCAFC 140 ('AB v Registrar') at [80] per Kenny J; Povey v Qantas Airwas Ltd (2005) 2223 CLR 189 at 202 per Gleeson CJ, McHugh, Gummow, Kirby, Hayne, Callinan and Heydon JJ; and Applicant A v Minister for Immigration and Ethnic Affairs (1997) 190 CLR 225 at 231 per Brennan CJ, 240 per Dawson J, 251-6 per McHugh J and 277 per Gummow J. Article 31(1) of the Vienna Convention requires that the Termination of Employment Convention be interpreted "in good faith in accordance with the ordinary meaning to be given to [its] terms … in their context and in the light of its object and purpose". Context, for this purpose, includes the text and the preamble. State practice may be relevant: see Vienna Convention, art 31(3)(b). The Vienna Convention, in art 32, permits recourse to the preparatory work of the Termination of Employment Convention and the circumstances of its conclusion.
96 Neither party suggested that any guidance on the present question could be gleaned from any other international instruments, such as other ILO instruments that might affect termination of employment.
97 The preamble to the Termination of Employment Convention indicates that the Convention was designed to state international standards with regard to the termination of employment at the initiative of the employer. The Convention is obviously aimed at providing protection for workers against unjustified termination: see also Mohazab at 205 per Lee, Moore and Marshall JJ.
98 The Termination of Employment Convention sets out general principles in terms that allow ratifying countries a deal of flexibility in their manner of observation. Thus, art 1, which falls into Pt I headed "Methods of Implementation, Scope and Definitions", contemplates that States will differ in the manner in which effect is given the Convention, taking account of national differences. The basic principle affirmed in art 4 of the Convention is that an employee's employment is not to be terminated without a valid reason, being a reason relating to the employee's capacity or conduct or based on the operational requirements of the employer's undertaking. Article 5, with which this case is principally concerned, lists reasons that do not constitute valid reasons. Article 5 states reasons that "shall not constitute valid reasons for termination" include union membership or participation in union activities, acting as a workers' representative, race, colour, sex, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin, and maternity leave. I have already referred to art 5(c), which is reproduced in s 659(2)(e) of the Act. I interpolate that thebalance of art 5 is expressed in s 659(2)(b), (d), (f) and (h), although not always in terms identical with art 5. For example, s 659(2)(f) is wider than the equivalent art 5(d), presumably to give effect also to other international instruments such as the Convention concerning Discrimination in Respect of Employment and Occupation 1958 (C111) (done at Geneva on 25 June 1958: entered into force on 15 June 1960) and the Termination of Employment Recommendation 1982: see s 659(1). Article 6 provides that temporary absence from work because of illness or injury is not a valid reason for termination of employment: see s 659(2)(a).
99 Article 7, within Div B of Pt II, concerns procedure prior to or at the time of termination. Article 8 and 9, within Div C of Pt II, deal with appeal procedure. Other articles within Pt II relate to the period of notice (art 11) and severance allowance and income protection (art 12). Part III of the Convention is devoted to "Supplementary Provisions concerning Termination of Employment for Economic, Technological, Structural or Similar Reasons".
100 The Termination of Employment Convention uses the expression "competent administrative authorities" only once - in art 5(c). Elsewhere the Convention refers to "competent authority": see, e.g, arts 2.4 and 2.5 ("measures may be taken by the competent authority or through the appropriate machinery"; art 8.2 ("competent authority" as opposed to "a court, labour tribunal, arbitration committee or arbitrator" in art 8.1 and "bodies" in arts 9.1 and 9.3; and arts 14.1 and 14.3 (notification to the "competent authority"). It may be inferred from this usage that the expression "competent authority" embraces any body that has the relevant capacity under national law to act in the way that the relevant article contemplates, as for example, to take the measures contemplated in arts 2.4 and 2.5, or to receive the notifications referred to in arts 14.1 and 14.3. It may also be inferred that the expression "competent authority" is wider than the words "a court, labour tribunal, arbitration committee or arbitrator". The expression "competent administrative authorities", on the other hand, apparently contemplates competent authorities of a particular kind. That is, the expression contemplates competent authorities of an administrative kind, as opposed to competent authorities of another variety (such as competent legislative authorities or competent judicial authorities).
101 The preparatory work is of some limited assistance. The Termination of Employment Convention has its immediate origins in the ILO Termination of Employment Recommendation, 1963 (R119) (done at Geneva on 26 June 1963). This instrument laid down basic standards regarding, amongst other things, the need for a valid reason for employment termination (point 2). It also contained the predecessor provision to art 5(c). It provided, at point 3(c), "the filing in good faith of a complaint or the participation in a proceeding against an employer involving alleged violation of laws or regulations" "should not constitute" a valid reason for termination. As can be seen, this early provision differed from the current art 5(c) in two respects: first, it contained a "good faith" requirement; and, secondly, it did not contain the expression "recourse to competent administrative authorities".
102 The ILO prepared two reports, Report VIII (1) and Report VIII (2), on the Termination of Employment at the Initiative of the Employer, in preparation for the sixty-seventh session of the International Labour Conference ('ILC') convened at Geneva in 1981. Neither report throws any light on the present question: see ILC, 67th Session 1981, Report VIII (1): Termination of Employment at the Initiative of the Employer Eighth Item on the Agenda (International Labour Office, Geneva, 1981) p 25 and ILC, 67th Session 1981, Report VIII (2): Termination of Employment at the Initiative of the Employer Eighth Item on the Agenda (International Labour Office, Geneva, 1981) pp 34-36. The ILC adopted these reports at its sixty-seventh session and resolved to take up the adoption of a new recommendation and convention at the sixty-eighth session: see ILC, 68th Session 1982, Report V (1): Termination of Employment at the Initiative of the Employer Fifth Item on the Agenda (International Labour Office, Geneva, 1982), Introduction. A report containing the proposed texts for a new Recommendation and a convention was prepared and transmitted to members. At this stage, there were no proposed departures in the new convention from the language of Point 2 (c) of the ILO Recommendation, 1963 (No 119): see Report V (1) pp 16, 53, 73; and Report V (2): Termination of Employment at the Initiative of the Employer Fifth Item on the Agenda (International Labour Office, Geneva, 1982), p 21.
103 The sixty-eighth session of the ILC, which met in Geneva in 1982, examined the Report of the Committee on Termination of Employment concerning the proposed convention: see ILC, Sixty-eighth session, Geneva, 1982, Record of Proceedings, (International Labour Office, Geneva, 1982), Provisional Record, 30/1. Following the defeat of the workers' members' proposal to delete the words "involving alleged violation of laws or regulations" from proposed art 5(c), the Government member of Greece successfully introduced an amendment that sought to insert at the end of this subparagraph the words "or recourse to competent administrative authorities". The Provisional Record indicates that this expression was included to widen the scope of proposed art 5(c), which was not to be limited by the phrase "involving alleged violation of laws or regulations". With this amendment, art 5(c) assumed its final form: see Provisional Record, 30/21. The plenary session of the ILC adopted the Report of the Committee on Termination of Employment. The Termination of Employment Convention and Recommendation 1982 was adopted on 22 June 1982: see Provisional Record, 35/8, 36/6, 36/17.
104 The Termination of Employment Convention entered into force generally on 23 November 1985. It has been ratified by around 35 countries, including Australia on 26 February 1993. It has not been ratified by Canada, the United Kingdom, the United States, or New Zealand and, accordingly, there is no relevant State practice to be derived from them.
105 In 1995, the ILO prepared a retrospective survey on the effect of the Termination of Employment Convention and Recommendation, 1982. This resulted in the ILO Report of the Committee of Experts, Protection against Unjustified Dismissal, International Labour Office, Geneva, 1995 ('Report'). The Committee affirmed that, "[t]he need to base termination of employment on a valid reason is the cornerstone of the Convention's provisions": see Report, p 31. The Committee observed that art 5 "lists a minimum number of grounds that do not constitute valid reasons for termination of employment": Report, p 40. Regarding art 5(c), the Committee said, at pp 46-7 :
This invalid reason for termination of employment is an important aspect of employment security as it provides protection for workers against retaliatory measures. …
Protection of this kind can be established through provisions to protect workers against retaliatory measures when they try to defend their rights under the Constitution, the Labour Code or other legislative provisions. …
In the General Survey on equality in employment and occupation, the Committee emphasized more specifically that the effective protection of the principle of equality presupposes the existence of guarantees providing protection against retaliatory measures for a person who lodges a complaint with the appropriate body, who institutes proceedings to enforce his or her rights, or who is a party to such proceedings as a witness. Such measures, the most brutal form of which is termination of employment, taken against a person who has suffered discrimination and who has availed himself of a right which is his in accordance with the national policy of equal opportunity and treatment, are of a particularly serious nature …
106 The Report makes two things clear, although they are probably apparent from the terms of the Termination of Employment Convention and its history. First, the specific object of art 5(c) is to protect an employee from termination in retaliation for his or her recourse to an appropriate body in relation to some alleged misconduct on the employer's part: see also Zhang v The Royal Australian Chemical Institute Inc (2005) 144 FCR 347 ('Zhang') at 352. Secondly, the expression "competent administrative authorities" has no technical meaning or fixed application. It may signify no more than an "appropriate body" (other than a legislative or judicial body or the employer) in the ratifying State to receive the communication of an allegation of misconduct on the employer's part. A body will be appropriate in this context if it has the legal capacity to manage or suitably address the allegation in some way (whether by investigation, a dispute resolution process, or otherwise).
107 To approach the expression in this way is in keeping with its ordinary meaning. I refer in this connection to English language dictionaries, such as the Oxford English Dictionaryor The Macquarie Dictionary. The expression "competent administrative authorities" is plainly a compound one. Bearing in mind the terms, history and object of the Convention, as well as the specific object of art 5(c), it apparently signifies bodies (other than the employer) within the ratifying State having the legal capacity to manage, deal with, or suitably address the allegation in some way (other than by judicial decision or legislative action). In this context, an allegation of misconduct on the employer's part might be managed or suitably addressed in a variety of ways, including by investigation, reporting, prosecution, engagement of a dispute resolution process, making a determination or recommendation, or providing information and advice. I reject the respondent's submission that the expression "competent administrative authorities" refers only to "an authority with the capacity and the right to determine a controversy which is properly raised with it". This is to adopt an unjustifiably narrow approach, which is at odds with the history of art 5(c), and the aim of the Termination of Employment Convention and art 5(c). The purpose of art 5(c) is best served if a liberal interpretation of the expression "competent administrative authorities" is adopted, because it extends to an employee the protection against illegitimate retaliatory termination that art 5(c) was designed to give.
108 As previously noted, I infer from the statutory objects provisions, s 642(5), and the legislative history of s 659(1)(e) and s 642(5) that the meaning of the expression "competent administrative authorities" in s 659(1)(e) bears the same meaning as in art 5(c) of the Termination of Employment Convention, from which the expression derives. In particular, I reject the respondent's submission that the expression in s 659(2)(e) should be given a more restrictive meaning than in the Convention because of ss 660 and 661. I can discern no warrant for so doing.
109 The critical question is, therefore, whether, in the present context, the union can be properly characterized as a "competent administrative authority" in the sense outlined above.
110 To date, s 659(2)(e) has received limited judicial attention and the expression, "competent administrative authority" even less. In He v Lewin (2004) 137 FCR 266 ('He') at 280, a Full Court held that s 170CK(2)(e) (a predecessor of s 659(2)(e)) was "directed to the making of complaints to outside authorities, either by way of instituting proceedings against the employer, or by way of making allegations to officials who are empowered to investigate such allegations" (emphasis added). Thus, the ground could not be established by the making of complaints directly to an employer. Zhang followed He on this point: see Zhang at 351 per Lander J, with whom Spender and Kenny JJ agreed.
111 As already stated, absent authority on the point, the natural meaning of the expression "competent administrative authority" is a body with legal capacity to manage, deal with, or suitably address an employee's allegation against his or her employer, in some way. In Leicester v Western Desert Puntukurnuparna Aboriginal Corporation (unreported, IRCA 16/97, 10 February 1997) Ritter JR reached much the same conclusion: see also Weier v Modern Alarms [2007] AIRC 432 at [59] per Senior Deputy President Richards. Thus, the Occupational Health and Safety Officer at the Victorian Trades Hall Council had no relevant competence to deal with the email communication made by Ms Zhang and was not a "competent administrative authority": see Zhang at 350; see also Crowley v Parker Hannifin (Australia) Pty Ltd (2006) 154 IR 88 at 92 per Marshall J.
112 In conformity with this too, it has been held that an application for compensation under the no-fault compensation scheme established by the Accident Compensation Act 1985 (Vic) does not fall within s 659(2)(e); rather it is merely a claim for compensation: see Jennings v Salvation Army (2003) 128 IR 366 at 370-371 per Marshall J approved in Zhang at 352; see also Zhang v The Royal Australian Chemical Institute Inc [2004] FCA 1392 at [15] per Finkelstein J.
113 The specific question that arises here has apparently been considered on only one earlier occasion, by Murphy JR, in Catusanu. Murphy JR held that the expression "competent administrative authorities" in s 170DF (1)(e) embraced the union of which Mr Catusanu was a member. Mr Catusanu was employed by the respondent company as a security guard from May 1996 until his employment was terminated on 17 November 1997. Two days' earlier, on 15 November 1997, his union had sent a letter of demand to the employer alleging underpayment of some of its members, including Mr Catusanu, and foreshadowing proceedings if the matter were not rectified. Murphy JR stated:
[T]he applicant's participation in the union's investigation of the alleged award breaches, and the service of a letter of demand on his behalf by the union, a registered organisation under the Act, is comprehended within the phrase "recourse to competent administrative authorities". Registered organisations are established under the Act. They have been accorded a particular status, and have privileges under the Act. They may be parties to an award. Their privileges include the right of appearance by their officers or employees (s 469), the right to sue for recovery of a penalty for a breach of an award (s 178), or to bring an application under Part VIA (s 170EA). Registered organisations thus have a clearly recognised and important role within the framework of the Act and for that purpose can be easily accommodated within the term "competent administrative authorities".
The recourse by the applicant to the union, in circumstances [where] the union lodges a letter of demand on his behalf alleging a breach of an award, is recourse to a 'competent administrative authorit(y)' within the meaning of s 170DF(1)(e). I am not satisfied that the respondent has excluded this recourse as a reason for its termination of the applicant's employment. The respondent has breached s 170DF(1)(e).
114 As previously noted, s 170DF(1)(e) was renumbered as s 170CK(2)(e) by the Workplace Relations and Other Legislation Amendment Act 1996 (Cth) and renumbered again as s 659(2)(e) by the Workplace Relations (Work Choices) Act 2005 (Cth). The terms of the provision have not changed. There was no formal letter of demand in the present case. However, Mr Claveria's communication to Mr Skourdoumbis about his treatment at Pilkington's factory and his request for assistance, which was taken up by the union and led to Mr Seneviratne requesting Mr Dunstan for a meeting to discuss Mr Claveria's bullying and harassment allegation would constitute "recourse to a competent administrative authority" providing the union is to be regarded as such an authority.
115 The respondent argued that not only was the decision in Catusanu wrong and that I should reject the reasoning in it, but also that under the Act as it now stood the standing of trade unions was significantly diminished. Accordingly, the reasoning in Catusanu had even less force than before. For the following reasons, I reject this submission.
116 Although not constituted by statute, trade unions continue to have a particular and distinct status as registered organizations under the Act. This status indicates that, for some purposes at least, they are capable of constituting "competent administrative authorities", although whether a union has such status in any particular case will depend on the nature of the allegation an employee makes against his or her employer, the relief sought, and whether the union is legally capable of managing, dealing with, or addressing the grievance appropriately.
117 The distinctive status of trade unions appears from the Act. The union in this case is an organisation of employees registered or taken to be registered under the Registration and Accountability of Organisations Schedule (Schedule 1 to the Act). There are various types of workplace agreements to which such a union may be party. Thus, an employer may make an agreement with a trade union in the circumstances referred to in s 328 of the Act, or a union greenfields agreement in the circumstances set out in s 329. Unions may be involved in multiple-business agreements: see s 331. Unions continue to be parties to awards: compare ss 543, 557, 559, 560. They continue to enjoy various rights to make applications to the Commission on behalf of employees: see, e.g., s 559(6). They also enjoy the right of appearance by their officers or employees (ss 100(8), 854(9)); the right to sue for recovery of a penalty for a breach of an award and other industrial instruments and for certain remedies (s 718); or to bring an application under s 643 in respect of termination of employment (s 643(3)); and to apply for an order under s 665 in respect of contraventions of ss 659 and 661. As perusal of the Act readily shows, this list is not in any way exhaustive.
118 Having regard to the breadth and importance of the rights of unions under the Act (some more of which are referred to below) it does not seem to me that a union is appropriately characterised as merely "a partisan player in the industrial field", as the respondent would have it. Whilst individuals may have some of the same rights as a union, they do not have the same aggregate of rights. Nor do they have them for precisely the same reasons as trade unions. Moreover, even if a union were appropriately characterised as "the advocate and advisor" of the employee, the union would not thereby cease to be a body "outside" the employer. Further, whilst the current Act may impose greater restrictions than previously on unions and their powers (for example, regarding a union representative's right of entry to investigate a suspected breach, discussed below) the character of trade unions and their powers remain largely the same.
119 Plainly enough, a trade union will not be a "competent administrative authority" for every grievance. Whether or not it has this status will depend on the nature of the grievance and the union's legal capacity to manage, deal with, or otherwise appropriately address it. As it happened, the union in this case had power by virtue of statute and the certified agreement to investigate and manage the allegation of workplace bullying and harassment, which Mr Skourdoumbis reasonably believed Mr Claveria had communicated to him on the morning of 24 January 2007.
120 By virtue of the Pilkington (Australia) Limited - Automotive Division, Laverton Operations Agreement 2006 ('the certified agreement'), which was made pursuant to the former s 170LJ and certified by the Commission pursuant to the former s 170LT, the union could manage Mr Claveria's grievance. The certified agreement applied to Mr Claveria's employment.
121 The objectives of the certified agreement relevantly included the provision of "a healthy, safe and non-discriminatory working environment whilst ensuring compliance by the parties with all applicable occupational health and safety, equal opportunity and WorkCover legal requirements" (clause 6(v)). The certified agreement entitled the union to participate in a process to resolve grievances raised by Pilkington's employees. Amongst other things, the parties agreed, in clause 18(ii), that:
… subject to the provisions of the Workplace Relations Act 1996 as amended, all grievances, claims or disputes whether relevant to this Agreement or any other matter, shall be dealt with in the following manner so as to ensure the orderly settlement of the matters in question:
(a) Any grievance or dispute that arises shall, where possible, be settled by discussion on the job between the employee and direct supervisor (e.g. Shift Co-ordinator or Site Leader).
(b) If the matter is not resolved at this level, the matter will be further discussed between the employee concerned, the shop steward, the supervisor and the appropriate manager.
(c) If no agreement is reached, the relevant Union official and shop steward will discuss the matter with the manager and the Company's nominated industrial relations representative.
(d) Subject to the rights of the parties, should the matter still not be resolved, it shall be referred by either party to the Australian Industrial Relations Commission or to a third party mutually agreed.
That is, under the certified agreement, the union was entitled to require that Mr Claveria's grievance be dealt with by discussion between union representatives and Pilkington and, if this failed, the union was entitled to refer the matter to the Commission. Pursuant to s 718 of the Act, the union was entitled to institute proceedings in a court for a penalty in relation to a breach of a term of the agreement. Further, as appears below, certain union representatives had rights of entry to the workplace in respect of suspected breaches of the agreement: see [123] and [125].
122 There was a further way in which, in exercise of statutory powers, the union might have addressed Mr Claveria's complaint. The potential for the union to invoke these powers arose from the nature of his complaint. As we have seen, Mr Skourdoumbis considered that, if Mr Claveria's account were accepted, Mr Dunstan's conduct towards him amounted to bullying and harassment on the employer's part. He conveyed this opinion not only to Mr Claveria, but also to Mr Seneviratne, whom he asked to look into the matter. Bullying and harassment on an employer's part is conduct that might in some circumstances constitute a breach on the employer's part of State occupational health and safety legislation, particularly s 21 ofthe OHS Act. The OHS Act provides, in s 21, that an employer must, so far as is reasonably practicable, provide and maintain for employees a working environment that is safe and without risks to health. This circumstance had the potential to attract certain rights of entry to the workplace held by representatives of the union.
123 In addition to the rights already mentioned, trade unions also enjoy particular rights under the Act to liaise with their members in the workplace and investigate suspected breaches of industrial laws and agreements and occupational health and safety laws. Part 15 of the Act provides a regime for the grant of entry permits to union officials. A permit holder may enter workplace premises if the permit holder suspects, on reasonable grounds, that a relevant breach has occurred, including a breach of a certified agreement under the former statutory regime (such as the certified agreement with Pilkington). Other provisions relate to the right of union officials to enter premises under an OHS law (broadly, a State or Territory occupational health and safety law such as the OHS Act: see ss 755-759).
124 Part 8 of the OHS Act alsoprovides a regime for the grant of entry permits to officers, employees and authorised representatives of unions: see s 83. A permit entitles the holder to enter a workplace during working hours to enquire into any suspected contravention of that Act or regulations: see s 87. On entry, the permit holder may exercise various powers, including inspecting any thing at the work place, observing work, and consulting with certain employees and the employer: see s 89.
125 There was evidence that, as at January 2007, three employees of the union (Messrs Dolman, Vendramini and Cooke) held entry permits under the Act, and two of them held entry permits under s 83 of the OHS Act.
126 These rights of entry are also germane to the question whether in this case the union constituted a competent administrative authority for the purpose of s 659(1)(e). This is because of the evidence of Mr Skourdoumbis that he considered that, if Mr Claveria's account were substantiated, the conduct of which he complained amounted to bullying and harassment on the employer's part. As I have said, in the circumstances disclosed to Mr Skourdoumbis, this opinion was reasonably held and had the potential to attract the rights of entry by the union's permit holders. Thus, when Mr Claveria resorted to the union on the morning of 24 January 2007, he initiated the union's management of his complaint or grievance under the certified agreement, as well as action of the union's part that had the potential to lead its permit holders to exercise their rights of entry to the workplace.
127 Having regard to the rights of the union under the certified agreement, its standing and statutory rights under the Act, as well as the rights of its representatives under the OHS Act, the union is properly regarded as a body with the legal capacity to manage, deal with and appropriately address the complaint or grievance that Mr Claveria communicated to it on the morning of 24 January 2007. It follows that it was one of the "competent administrative authorities" to which Mr Claveria might have recourse. The nature of his complaint or grievance meant that the union had the legal capacity to manage it appropriately until it reached some resolution.
128 In Zhang the Full Court indicated that, whilst the filing of a complaint and participation in proceedings must involve alleged violation of laws or regulations by the employer, recourse to competent administrative authorities need not: see Zhang at [23]; contra Zhang v The Royal Australian Chemical Institute Inc [2004] FCA 1392 at [3] per Finkelstein J. This conclusion is consistent with the structure of s 659(2)(e) (and art 5(c) of the Termination of Employment Convention) as well as the history of the formulation of art 5(c): see [103] above. If, however, recourse to competent administrative authorities must also involve alleged violation of laws or regulations, then this element is also satisfied. This is because Mr Claveria alleged, in substance, that Mr Dunstan was bullying and harassing him. This conduct involved an allegation of violation of s 21 of the OHS Act.
129 Two further considerations fortify my conclusion that the union was in this case a competent administrative authority. The first is that s 659(2)(e) is plainly a remedial provision protective of an employee's fundamental rights. Its interpretation is therefore governed by well-accepted principle. Though dissenting, Black CJ reaffirmed this principle in AB v Registrar at [10] when he observed:
One consequence of the principle that a statute should be interpreted in a way that promotes its objects (whether those are expressly stated or not) is that beneficial or remedial legislation should generally be given a liberal or generous construction in preference to a technical one.
130 Section 659(2)(e) contemplates that, in any particular situation, there may be a variety of competent administrative authorities to which an employee may have recourse. It is therefore immaterial that Mr Claveria may have turned to another body, which also had the legal capacity to deal with his grievance. It is enough that he turned to the union, which had relevant legal capacity to manage his complaint. It would defeat the purpose of this remedial provision if it were to be construed with too zealous a technical eye. To adopt an overly narrow interpretation of the expression "competent administrative authorities" is to narrow the practical protection that this provision is designed to afford.
131 This leads me to a second consideration that fortifies my conclusion with respect to the union. The history of trade unions in Australia is very different to the history of trade unions elsewhere (save perhaps for New Zealand). It is well-recognized that this is in large part because of Australia's conciliation and arbitration system, which developed around the beginning of the twentieth century. For a discussion of this phenomenon, see Peter Fairbrother and Charlotte AB Yates, "Unions in Crisis, Unions in Renewal?" in Fairbrother and Yates, (eds), Trade Unions in Renewal A Comparative Study (Continuum, New York and London, 2003) ('Fairbrother and Yates') 4-5; Stephen Frenkel, "Australian Trade Unionism and the New Social Structure of Accumulation" in Frenkel (ed), Organized Labor in the Asia-Pacific Region A Comparative Study of Trade Unionism in Nine Countries (ILR Press, Ithaca, New York) ('Frenkel') 250-253, 279, 312-313; David Peetz, Unions in a Contrary World The future of the Australian Trade Union Movement (Cambridge University Press, Cambridge) ('Peetz') 25; and Ian Turner, In Union is Strength. A History of Trade Unions in Australia 1788-1983 (Nelson, Melbourne, revised 1983 by Leonie Sandercock) 61-62.
132 It is equally well-recognized that, for more than sixty years from around 1920, Australian trade unions were central to the country's industrial organization. See, in this regard, the discussions in Gerard Griffin, Rai Small and Stuart Svenson, "Trade Union Innovation, Adaptation and Renewal in Australia: Still Searching for the Holy Membership Grail" in Fairbrother and Yates, 78; and Peetz 25. As J H Portus commented in 1958 (in The Development of Australian Trade Union Law, Melbourne University Press, Melbourne, 1958, at 115) there had been "a change in status of those trade unions which operated under arbitration Acts". That is:
From being associations tolerated by the state they have become semi-official associations which are given a part in the making and administration of law.
See p 115; also p 243. It is also well-recognized that union membership and power has diminished over at least the past two decades or so but, as the Act shows, in many contexts trade unions continue to have a significant role to play in workplace regulation. See Fairbrother and Yates in Fairbrother and Yates 10-16; Griffin, Small and Svenson in Fairbrother and Yates 78-79; Frenkel in Frenkel 265-7; and Peetz 1-8. In the Australian context, to deny to trade unions in such a case as this the status of one of the "competent administrative authorities" to which s 659(2)(e) refers would be also to diminish the practical protection the provision is designed to afford.
133 Having regard to my conclusion that the Mr Claveria had recourse to competent administrative authorities for the purposes of s 659(2)(e), when he communicated his grievance to Mr Skourdoumbis on 24 January 2007, it is unnecessary to consider the applicant's alternative submission that Mr Claveria filed a complaint within the meaning of s 659(2)(e) either when he telephoned Mr Skourdoumbis on the morning of 24 January 2007 or when his grievance was relayed by Mr Seneviratne to Mr Dunstan on the afternoon of that day.
134 For the reasons stated, I am satisfied that the respondent contravened s 659(2)(e) of the Act by terminating Mr Claveria's employment for reasons that included the reason that Mr Claveria had recourse to competent administrative authorities within the meaning of s 659(2)(e) of the Act.
RELIEF
135 The question arises as to what orders should be made. Mr Claveria seeks an order for reinstatement pursuant to s 665(1)(b), which the respondent opposes. The respondent argued that compensation in lieu of reinstatement was the more appropriate remedy. The respondent submitted that the Court should be satisfied that Mr Claveria "may not have worked for long, even if he had not been terminated on 24 January 2007", because of :
a. the nature of his work, being in automotive glass;
b. the reducing number of contracts …
c. the complaints about performance raised against the Applicant; and
d. the assertion that these had been raised for a lengthy period.
136 There was little evidence led at the hearing in support of the first two factors. There was some evidence that some redundancies were foreshadowed and that Mr Claveria was likely to be amongst them. It was, however, by no means clear from the evidence that redundancies were in any sense inevitable in the near future. At most the evidence showed that it was possible that, if reinstated, Mr Claveria might be made redundant at some time in the near or distant future. If this were to happen, he would be subject to the terms on which redundancies were made. This is not a significant factor against reinstatement.
137 The principal factors relied on in opposition to reinstatement were Mr Claveria's work performance and his relationship with Mr Dunstan. Mr Claveria had been given a final warning by Mr Dunstan's predecessor in July 2006. There was, however, evidence that, when Mr Dunstan began, he had no difficulty with Mr Claveria and that Mr Dunstan told him, in August 2006, "we're going to make this a clean slate". Further, there was no reliable evidence that Mr Claveria's work performance was poor. Mr Dunstan conceded that there was no reliable evidence about the quality and quantity of his output, and that he had never observed Mr Claveria's work.
138 The fact that Mr Dunstan did not see the movement of the snorkel in Mr Claveria's cubicle on the afternoon of 24 January 2007 was not a reliable indication that Mr Claveria was not engaged in performing work duties, as Mr Dunstan himself conceded. Mr Dunstan did not have a clear view from his upstairs vantage point; and, in any event, Mr Claveria might have been legitimately engaged on a task outside his cubicle. The 'gloves' incident on 23 January 2007 did not disclose any wrongdoing on Mr Claveria's part. Further, as Mr Dunstan conceded, there were numerous valid reasons why Mr Claveria might have been absent from his cubicle that day, if he were absent at all.
139 There was evidence that Mr Claveria had been given a written warning on 11 December 2006, because of some allegations made by a Mr Miller. Mr Claveria denied the allegations in December 2006 and at the hearing. Mr Miller did not give evidence at the hearing. Mr Claveria's evidence was that he did not sign the written warning given him on 11 December 2006 "because I didn't do it". His evidence was that he had permission from the shift coordinator to take alleged the 34 minute tea break in order to take his daughter to the doctor in Port Melbourne. The respondent did not seek to refute his evidence that, on this occasion, he had clocked in and clocked out. According to Mr Claveria, he explained this but "they didn't take notice". He also said that he "argued" with the allegation about his production output. Mr Dunstan conceded that Mr Claveria had explained his 34 minute absence at the time and, as noted above, that there was no reliable evidence about Mr Claveria's work performance. There were two other lesser incidents of lateness reported to Mr Dunstan by other unnamed individuals, which Mr Claveria denied. In the circumstances, I would attach little weight to this 11 December 2006 "written warning".
140 Mr Claveria denied that in and around the time of his termination he was absent from his cubicle for other than work-related reasons, as Mr Dunstan and Mr Ly maintained. Mr Claveria gave firm evidence that he did not leave his cubicle other than for good reason, because, amongst other reasons, "they [were] watching me already". There was some evidence that Mr Claveria and Mr Ly were not on good terms with one another. Ultimately, both Mr Dunstan and Mr Ly conceded that there were numerous valid reasons for Mr Claveria's absence from his cubicle from time to time. When the evidence is considered as a whole, there is nothing to substantiate the respondent's allegation that Mr Claveria was frequently absent from his cubicle other than for legitimate reasons.
141 When consideration is given the evidence as a whole, there is insufficient to justify the conclusion that Mr Claveria's work performance was such as to preclude or militate against reinstatement.
142 Whether there can be a satisfactory working relationship between Mr Claveria and the respondent's representatives in the event of reinstatement is a relevant consideration. Counsel for Mr Claveria referred me to various authorities concerning s 170EE of Industrial Relations Act 1988 as it then was: see Perkins v Grace Worldwide (Aust) Pty Ltd (1997) 72 IR 186 ('Perkins'); Abbott-Etherington v Houghton Motors Pty Ltd (1995) 63 IR 394; and Liddell v Lembke (1994) 127 ALR 342. This provision differed in terms from s 665. Some care must therefore be taken with these authorities. What they demonstrate, however, is that the Court has taken a reasonably robust attitude to an employer's claim of relationship breakdown with an employee following termination in contravention of a provision such as s 659(2)(e) of the Act: compare Perkins at 191. Moore J adopted much the same approach in Laz, in determining to make an order under s 170CR(1)(b) of the Act, which was in virtually identical terms to s 665. Although Mr Dunstan, Mr Findlay and Mr Claveria have been the subject of some strong criticisms in the course of this litigation, I doubt that this has created an insurmountable obstacle to Mr Claveria's reinstatement. The nature of Mr Claveria's work must be borne in mind, as well as the fact that he has worked for the respondent for many years. His long experience with Pilkington indicates that he has the capacity to take up employment with the company again. I accept that, if Mr Claveria returns to the Laverton factory, Mr Dunstan is likely to find the situation difficult initially, but I also accept that his embarrassment is likely to be short-term. Furthermore, the nature and extent of the Pilkington's workforce should be borne in mind. There was evidence, which was undisputed, that Pilkington employs about 15 workers on afternoon shift at the Laverton factory and about 23 on the day shift. It also operates a large plant in nearby Geelong.
143 In any event Mr Claveria's interests must be borne in mind. Mr Claveria impressed me as an employee who greatly desired to have back his job with Pilkington and would do all he could to retain it. He had worked for the respondent for some thirteen years before his termination in contravention of the Act. Since this happened, Mr Claveria has since struggled to find work. He worked a few shifts as a labourer/store-person with one employer and some other irregular shifts with another employer. He also found some other casual work. At the time of the hearing, Mr Claveria was employed on an irregular on-call basis. An order for compensation would be an inadequate remedy in view of these employment difficulties. In these circumstances, Mr Claveria should not be left to compensation as a remedy for termination of his employment in breach of s 659(2)(e) of the Act: compare Laz at 259.
144 An order for Mr Claveria's reinstatement should be made. Mr Claveria argued that any order for reinstatement should be reinstatement "with continuity of service and in the same position and on the same terms and conditions of employment as he had immediately prior to his dismissal". He relied on Anthony Smith & Associates Pty Limited v Sinclair (1996) 67 IR 240. This was a decision concerning the former s 170EE of the Industrial Relations Act 1988, which was relevantly different in terms to s 665: compare Laz at 259 per Moore J concerning s 170CR(1) of the Workplace Relations Act 1996 (which was in the same terms as s 665(1)). The respondent argued that in truth Mr Claveria had confused the Commission's power under s 654(3) with the Court's power under s 665(1). It contended that the orders that Mr Claveria sought were beyond the power of the Court.
145 In Treadwell v ACCO Australia Pty Ltd (unreported, Federal Court of Australia, VG 538/1997, 16 December 1997, BC9707067) Parkinson JR made orders under s 170CR(1)(b) similar in terms to those Mr Claveria seeks. If there is power to make orders of this kind, it derives from s 665(1)(d) and (e). Whilst s 665(1)(b) permits the Court to make an order requiring the employer to reinstate the employee, s 665(1)(d) permits the Court to make any other order it thinks necessary to remedy the effect of such a termination and s 665(1)(e) permits the Court to make any other consequential orders. These latter powers are broad. Section 665(1)(d) alone, alternatively s 665(1)(d) and (e) together, would support an order that the position to which Mr Claveria is reinstated be the same position on the same terms and conditions as he held prior to termination on 24 January 2007 or to another position on terms no less favourable; and that his employment be treated as having been continuous between the date of termination and the date of reinstatement.
146 Mr Claveria sought an order for compensation under s 665(1)(c). In Laz at 261, Moore J thought it arguable that compensation and reinstatement could not be ordered in the same matter. Instead, his Honour considered that s 665(1)(d), or s 665(1)(d) and (e), would support an order for back pay. Indeed, in Laz at 260, Moore J thought that the power to order reinstatement may include the power to require the payment of lost wages or salary. There is, however, nothing in s 665(1) that in terms provides that an order for compensation under s 665(1)(c) - calculated by reference to the remuneration lost by an employee as a result of the wrongful termination - cannot be made where an order for reinstatement under s 665(1)(a) is appropriate. However characterized, Mr Claveria is entitled to an order for payment of wages lost as a result of his termination on 24 January 2007 until the date of his reinstatement. The parties stated at the hearing that they would be in a position to make this calculation in the event the Court made an order of this kind.
147 Mr Claveria also sought the imposition of a penalty under s 665(1)(a) of the Act. In Laz at 261, Moore J held that the mere fact that there has been a termination in contravention of the Act does not, without more, give rise to a situation where a penalty should (as opposed to might) also be imposed. In Laz, Moore J referred to French J's comment in Fox v St Barbara Mines Ltd [1998] FCA 621 that:
[penalties] are punitive in character and must be assessed having regard, inter alia, to the gravity of the conduct complained of, the existence of mitigating circumstances and the need to deter the repetition of the conduct whether by the employee in question or generally.
In Fox, the employer terminated the employee's employment with a calculated and contemptuous disregard for the law and the Court imposed a penalty of $9,000. The employer's conduct in Laz was not of this kind and the Court did not impose a penalty: see generally Laz at 261 per Moore J.
148 I consider a penalty should be imposed in this case. The respondent terminated Mr Claveria's employment with it on 24 January 2007 for reasons that included retaliation for Mr Claveria's having recourse to the union in connection with perceived bullying and harassment on his manager's part. The evidence in this regard was clear. The respondent acted so as to deny Mr Claveria the freedom to pursue a basic right protected by the Act. Further, there has been less than straight dealing on the respondent's part. This was evident in Mr Findlay's seeking to stop Mr Dunstan from reiterating to Mr Seneviratne and Mr Vari on 1 February 2007 that he had terminated Mr Claveria because he had gone behind his back to the union. Mr Findlay acknowledged in evidence that he knew that termination in retaliation for "going to the union" would be wrong and in breach of the Act. Mr Findlay and Mr Dunstan knew that Mr Claveria's going to the union had cost him his job on 24 January 2007, and the reasons that Mr Dunstan advanced to justify Mr Claveria's termination that day did not represent the whole picture.
149 The amount of penalty falls for consideration. The respondent submitted that, given the size of the company, there were "remarkably few" termination proceedings issued against it and that there was only a minimal need for specific deterrence. There was no evidence of these matters, however, and, if they are not common ground, then the respondent should have the opportunity to call evidence about its previous record. Indeed counsel for Mr Claveria accepted as much.
150 If it be necessary, I would also grant leave to file and serve the amended statement of claim dated 5 September 2007 and the Amended Defence also dated 5 September 2007. Further, for the reasons set out above, I would dismiss the respondent's strike out motion, notice of which is dated 17 July 2007.
151 I propose to adjourn the matter to 19 November 2007 to enable the parties to prepare short draft minutes of order to give effect to these reasons.
I certify that the preceding one hundred and fifty-one (151) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Kenny.