Commonwealth Bank of Australia v Finance Sector Union of Australia
[2006] FCA 1048
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2006-08-11
Before
Madgwick J
Source
Original judgment source is linked above.
Judgment (21 paragraphs)
Introduction 1 The applicants ('the bank') claim that in 2004 the respondent union took certain industrial and other action in violation of procedural requirements and with intent to coerce the bank to agree to make agreements certifiable under of the Workplace Relations Act 1996 (Cth) ('the Act'), Part VIB and that a penalty for such conduct should be inflicted on the union. 2 During that year the union wished to have the bank make such certifiable agreements in respect of bank employees. Among other things, such an agreement must be about 'matters pertaining to the relationship between a [corporate employer] … and … all persons who … are employed in a … business, [or a part of it] …of the employer': ss 170LH, 170LI(1). Further, such an agreement must only be about such matters: Electrolux Home Products Pty Ltd v Australian Workers' Union [2004] HCA 40; (2004) 221 CLR 309. 3 In March 2004, the union gave the bank a log of claims. Within a fortnight the union followed that with a notice to the employer pursuant to s 170MI(2), with the intention of initiating a bargaining period during which industrial action to support claims made in respect of the proposed agreement would have certain legal immunity, as provided for by Div 8 of Part VIB (ss 170MI-170NB) - particularly ss 170ML and 170MT. The notice was accompanied by what purported to be particulars of, among other things, 'the matters that the initiating party propose[d] should be dealt with by the agreement', as required by s 170MJ(c). 4 Negotiations between the parties ensued up to June 2004. By 17 June 2004, actual disagreement between the parties had narrowed to three issues, designated by the union as 'Staffing and Relief', 'Performance Management' and 'Pay'. 5 Between 28 June 2004 and 11 August 2004 the union gave the bank various notices of intention to take industrial action in support of those claims, and instigated various forms of industrial action involving strikes. 6 In August 2004 Mr Murray, the bank's chief executive officer (CEO) said that there was poor attendance of union members at stopwork meetings. 7 The High Court decided Electrolux on 2 September 2004. The effect of that decision was that industrial action in support of a claim for an agreement that contained any provision for a matter not relating to employer-employee relation was not protected. The decision surprised those concerned with industrial relations and the Commonwealth Parliament enacted 'savings clauses' in Div 10A of the Act. Section 170NHBA provided that if industrial action occurring before 2 September 2004 (the date of judgment inElectrolux) would have been protected action under the Act but for the fact that it included a purpose of supporting a claim about a matter that did not pertain to the employer-employee relationship, the action would nevertheless be protected. 8 On 1 October 2004, the CEO indicated that the bank, having earlier conceded and implemented some pay increases, was withdrawing from negotiations. 9 In the light of Electrolux, in a letter of 20 October 2004 the union clearly signalled that it no longer proposed that agreements as to matters not pertaining to the employer-employee relationship ('non-pertaining matters') should be implemented in otherwise certifiable agreements. Ms Caddie, the union's National Secretary said: '… I am cognisant of recent developments in the broader industrial environment' and 'We propose to carry forward all 2002 conditions with the exception of … · Provisions that may not pertain to employer/employee relationship and cannot be redrafted …' (emphasis added) 10 There was, by this time, no active dispute between the parties as to such matters. The union's indication in June 2004 that there were only three matters standing in the way of agreement had been confirmed. 11 The union conceived it as necessary to try to demonstrate to bank management that those of the union's demands it was continuing to press reflected real dissatisfaction on the part of bank employees, contrary to the bank management's stated perception of the matter. 12 The 'other action' complained of by the bank may be summarised as a 'shareholder campaign' whereby the union: · peacefully propagandized various holders of shares in the bank; · threatened the bank with this; · procured the preparation and signature by shareholders and/or proxies of resolutions for the AGM seeking to have the bank's constitution altered; and · arranged for people using shareholders or proxies to attend and make speeches at the AGM in support of a new agreement and a change of attitude in negotiation by the bank's officers. 13 On 1 November 2004 the union gave notice of a full day's stoppage of work to be undertaken on 5 November 2004, the day of the bank's annual general meeting ('the AGM'). 14 The bank first notified the union of its assertions that any past or intended industrial action was unprotected on 3 November 2004. 15 Up to and on 5 November 2004 the union aided and induced a number, but not more than about 150, of the bank's 36,000 odd employees to breach their contracts by attending the AGM as shareholders or proxies for shareholders when their contracts of employment obliged them to be at work.