[2024] FWC 2267
General information, not legal advice.
Fair Work Commission
2024-08-23
Original judgment source is linked above.
The application has been made by Transgrid in this matter seeking orders pursuant to section 424(1) of the Act. There are two notices of protected industrial action that have recently, on 9 August, been issued.
Considering those particular notices, I note particularly the first notice that provides for what has been described as unlimited stoppages and would consider that that notice itself clearly outlines action that is threatened, impending or probable but that will have an effect of such action would have the effect of threatening consequences of the type set out in section 424(1)(c). As to the second notice, I consider that parts of that notice would also - and can be identified as protected industrial action that will have the effect as outlined in section 424(1)(c).
In particular, I note and I find that the bans outlined in that particular notice at (1), (3), (5), (11), (12), (14), (17), (18) and (20) of that notice would have the effect of threatening to have the consequences outlined in section 424(1)(c). I therefore see that there is then the consideration as to the appropriate order as to what should occur in relation to this matter. Contrary to the position that existed at the time of the Full Bench decision in Svitzer, the legislature has disclosed an object or purpose to terminate intractable enterprise bargaining as such.
In light of the fact that there is an application that has been made, I would consider that a short suspension that would allow that process to most likely run its course would be the appropriate suspension. It is not exactly clear as to how long those matters will take before the Commission because they are of such novel and recent incarnation. However, I would expect that a suspension of two months would allow for that avenue to run its course.
So in those circumstances, an order will be issued today suspending the industrial action for a period of two months from today's date.
[1] Pursuant to s 424(1) of the Fair Work Act 2009 (Cth) (the Act), the Fair Work Commission orders that the following protected action in relation to the proposed agreement replacing the TransGrid Enterprise Agreement 2020 (Proposed Agreement) be suspended for a period of two (2) months effective from the date of this Order:
(c) bans on starting and finishing work anywhere other than at the prescribed Transgrid depot;
(d) bans on issuing Access Authority and Field Access Authorities to non-TransGrid staff;
(e) bans on using non-Transgrid toilets, changerooms and showers facilities where those facilities are required;
(f) bans on having Meal Breaks (Morning Tea, Lunch, Dinner and Afternoon Tea) anywhere other than in a Transgrid meal room;
(g) bans on training people who are not Transgrid staff;
(h) bans on the use of equipment used to test high voltage equipment;
(i) bans on the use of equipment used to test high voltage system protective devices and relays; and
(j) bans on staff on submitting and processing RFAs (Request for Access) that are submitted within 28 days of planned outages start date.
(a) NSW Electricity Networks Operations Pty Limited As Trustee For NSW Electricity Networks Operations Trust T/A Transgrid (Transgrid);
(b) Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU);
[3] This Order comes into operation at 11:59PM on 16 August 2024.
[4] Reasons for my Decision will follow in due course.
1. An employee will temporarily suspend industrial action to perform Emergency Work, where such an employee is directed in writing to perform Emergency Work or where suspending the action is necessary to perform work affected by and during a "Declared Incident".
2. A "Declared Incident" will be declared by the Chief Executive Officer of Transgrid and covers major emergency situations such as storms, bushfires, IT breakdown and major equipment failures.
3. "Emergency Work" is work that if not performed imminently, would create a serious and imminent threat to human life or a serious and imminent risk of personal illness or injury.
4. An Employee who is ordinarily rostered to perform work will keep the mobile device they ordinarily use for communicating with the Employer on their person for the purpose of being notified of Emergency Work and/or a Declared Incident and will answer their phone if contacted by the employer.
5. At all times, a minimum of one Network Control Manager and One Senior System Operator who are ordinarily rostered to work will attend the Control Room and monitor their systems and respond and deal with alarms, hazards relating to system security and/or with requests from AEMO, generators, distributors, other transmission authorities, fire, police and emergency services and direct connect customers, with the exception of all planned and/or commissioning work.
6. The Employees undertake to take all reasonable steps to ensure reliable supply to the Tomago Aluminium Smelter at all times.
While the CEPU point to the continued existence of the undertaking not to engage in certain protected industrial action (namely, locking and switching bans) until 30 September 2024, and say that Transgrid mischaracterises the ambit of the protected industrial action under contemplation, it is clear that the action notified in in both the Stoppages PIA Notice and the Bans PIA Notice facilitate vastly increased levels of action and probable disruption.
Indeed, the Stoppages PIA Notice notifies of 24 consecutive 1 hour stoppages occurring on Thursday 15 August 2024, and each day following. Just how such action could co-exist with the notified safety commitment was the subject of evidence. Mr Murphy stated that when an employee is on a stoppage, they may be at a rally or fishing. Either way, if at such rallies, fishing, or otherwise engaged, those CEPU members would not be standing available, and would not be available to deal with issues arising under the safety commitment. Curiously for a registered organisation, the CEPU urged that Transgrid could avail itself of non-union
employees and contractors in the case of an emergency arising during a stoppage.
What is abundantly clear is that if action pursuant to the Stoppages PIA Notice is taken, which is impending and probable, that action would threaten to endanger the life, the personal safety or health, or the welfare, of the population or of part of it, because a large number of employees of Transgrid, who had given a safety commitment would be unlikely to comply with that commitment.
A particular factor in my determinations has been the position put clearly by the CEPU that, notwithstanding my conclusion in the First Decision that the actions of the CEPU in the July Application disclosed impermissible attempts to block and/or delay Declared Incidents and Emergency Work sought to be dealt with by Transgrid pursuant to the Extended Safety Commitment, the CEPU have unequivocally stated they will continue to act in the same manner. That position allows me to conclude that the conduct that formed the basis of the First Decision would, without the Order, certainly continue with the attendant risks.
(1) If, under section 604 or 605, the FWC hears an appeal from, or conducts a review of, a decision, the FWC may (except as provided by subsection (3)) order that the operation of the whole or part of the decision be stayed, on any terms and conditions that the FWC considers appropriate, until a decision in relation to the appeal or review is made or the FWC makes a further order.
In determining whether to grant a stay application the Commission must be satisfied that there is an arguable case, with some reasonable prospects of success, in respect of both the question of leave to appeal and the substantive merits of the appeal. In addition, the balance of convenience must weigh in favour of the order subject to appeal being stayed. Each of the two elements referred to must be established before a stay order will be granted.
We think that the two approaches referred to in Edwards are not in truth different tests but aspects of the application of the same test. The factors which are relevant to the balance of convenience may differ depending on a range of considerations including the type of application, the nature of the decision or act which is sought to be stayed and the impact of the decision or act on the one hand and the stay of its operation on the other upon each of the parties. When considering whether to stay the operation of a remedy granted pursuant to s 170CH, some matters may be relevant to the balance of convenience which may not be relevant in applications to stay orders made under other sections of the Act. For example, when considering an application to stay an order for payment under s 170CH it is clearly appropriate to have regard to the financial position of the person who stands to benefit from the remedy. Where the person is suffering financial hardship the stay order might be moulded to provide some access to the remedy pending the appeal. By way of contrast, where it is the operation of an order increasing award rates which is sought to be stayed, the financial position of the employees covered by the award is unlikely to be a very significant factor, although it may be. The statements to be found in various decisions that the Commission normally grants a stay to restore the status quo pending an appeal simply recognise that in most cases the balance of convenience favours the grant of a stay. This is because of the difficulty which may be encountered, if a stay is not granted, in restoring the parties to their original position, if the appeal is ultimately successful. Equally procedures have been developed to protect the interests of beneficiaries during the period in which the operation of an order is stayed. One common method of providing protection is to require that the applicant for a stay pay any moneys due into an interest-bearing trust account. The Commission has wide powers to make orders and require undertakings to meet the circumstances of particular cases. Care should be taken not to fetter the exercise of those powers by introducing principles or rules which might be a substitute for a proper examination of all of the relevant circumstances.
Where the balance of convenience lies may sometimes be difficult to discern, but in our view no purpose is served by formulating generalisations about where the balance might lie in particular types of cases. All of the circumstances must be considered. Our view in this respect may be thought inconsistent with some views tentatively expressed in Edwards v Telstra Corporation but we think that, when the matter is considered in the way we have outlined, there is no inconsistency in fact.
The Commission, in using its powers under the Act to conciliate, arbitrate and generally facilitate the resolution of industrial disputes, is engaged in an undertaking considerably removed from the adjudication of individual civil grievances. In furthering the objects of the Act (including the promotion of efficiency and productivity in the economy of the State and providing for the resolution of industrial disputes in a prompt and fair manner with the minimum of legal technicality), it is vital that the Commission recognise the broad discretion granted by the Act to fashion appropriate relief by reference to the merits of the industrial dispute itself and the steps necessary to resolve it. This will involve a variety of considerations, some of which may include those deriving from private litigation, but more usually will include the public interest in managing the industrial dispute in a fair and just manner with minimum disruption and disputation.
1. The Deputy President erred in issuing the order pursuant to s 424 of the FW Act:
(a) as he failed to take into account the re-examination of Mr Murphy concerning the priority that would be given to Emergency and Declared Incident work as a result of the undertakings to perform switching and locking whenever that work was required;
(b) as he failed to take into account the evidence of Mr O'Malley at (statement) [45] - [78] the substance of which was to the effect that where Emergency Work or Declared Incident work would not be delayed by the protected Industrial Action (PIA).
(c) As he failed to take into account the evidence of Mr Johns to the effect that the proposed bans would not impact upon CEPU's ability to identify and respond to emergencies at (at Ex R3, statement) [12] - [34].
2. The Deputy President erred in issuing the order pursuant to s 424 of the FW Act, as on the whole of the evidence he could not have been satisfied, within the meaning of s 424(1), that the bans set out at (1), (3), (5), (11), (12), (14), (17), (18) and (20) of the Second Notice would have the effect of threatening consequences of the type set out in s 424(1)(c). In this regard the Deputy President did not take into account the statements and oral evidence of Mr O'Malley and Mr Johns, and the statement and reexamination of Mr Murphy.
3. The Deputy President fell into error when considering the length of the period of suspension. In particular the Deputy President failed to consider that the effect of a 2 month period of suspension would effectively bring to an end the enterprise bargaining.
4. The Deputy President fell into error when he purported to consider the effect of the Respondent's claim that negotiations were intractable in circumstances where the evidence indicated continuing negotiations had resulted in further agreement between the parties.
5. The Deputy President fell into error when considering the reasoning of the Full Bench (of which he was a part) in Re Svitzer Pty Limited [2022] FWCFB 213 at [39].
(a) he said in transcript "Contrary to the position that existed at the time of the Full Bench decision in Svitzer, the legislature has disclosed an object or purpose to terminate intractable enterprise bargaining as such" in circumstances where s. 234 and 235 are not engaged in this matter.
(b) he took into account at [45] of the Decision, the amendments to the FW Act which provided power to the Commission to make an intractable bargaining declaration and subsequently an intractable bargaining workplace determination, when, those amendments, sections 234 and 235 of the FW Act had not been engaged, do not inform upon the discretion whether to order a suspension or to terminate protected industrial action under s. 424.

M Castles, solicitor, Maurice Blackburn, for the appellant.
R Dalton KC and A Crocker, counsel, appearing for Transgrid instructed by MinterEllison.
[1] Transcript of Proceedings, 12 August 2024 - PN885-889.
[3] Fair Work Act 2009 (Cth), s 413(7)(a). See explanation provided in Australian and International Pilots Association v Fair Work Australia [2012] FCAFC 65, 202 FCR 200 at [72] (Lander J), [130] (Buchanan J) and [182] (Perram J).
[4] NSW Electricity Networks Operations Pty Limited As Trustee For NSW Electricity Networks Operations Trust T/A Transgrid v Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia [2024] FWC 1914.
[5] Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v NSW Electricity Networks Operations Pty Limited As Trustee For NSW Electricity Networks Operations Trust T/A Transgrid [2024] FWCFB 333.
[6] [2024] FWC 2182 at [13].
[7] [2024] FWC 2182 at [14].
[8] [2024] FWC 2182 at [36].
[9] [2024] FWC 2182 at [37]- [39].
[10] [2024] FWC 2182 at [42].
[11] [2024] FWC 2182 at [45].
[12] Kellow-Falkiner Motors Pty Ltd v Edghill [2000] AIRC 785 at [5].
[13] Coal and Allied Operations Pty Limited v Crawford (2001) 109 IR 409 at [16].
[15] See, for example, Woodlawn Capital Pty Ltd v Motor Vehicles Insaurance Ltd [2015] NSWCA 227 at [9] (Beazley J); Pioneer Mortgage Services Pty Ltd v Columbus Capital Pty Ltd (No 2) [2015] FCA 1208 at [19] (Jagot J).
[16] Hermitage Motel Pty Ltd v PE Kafka Pty Ltd [2008] FCA 483 at [6] (Gyles J).
[17] Alexander v Cambridge Credit Corporation Ltd (1985) 2 NSWLR 685 at 694-695; Re Transport Industry - Waste Collection and Recycling (State) Award [2000] NSWIRComm 236; (2000) 102 IR 192 at [19] (Wright P).
[18] Fair Work Act 2009 (Cth), s 424(2).
[19] Unions NSW v Carter Holt Harvey Wood Products Australia Pty Ltd [2006] NSWIRComm 2; (2006) 149 IR 361 at [12]- [14].
[20] [2024] FWC 2182 at [39].
[21] Endeavour Energy Network Management Pty Ltd v Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia [2024] FWC 2232 at [6].
[22] [2024] FWC 2182 at [39] and [42].
[23] Electrolux Home Products Pty Ltd v Australian Workers' Union [2004] HCA 40; (2004) 221 CLR 309 at [196] (Kirby J).
Printed by authority of the Commonwealth Government Printer
Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia
NSW Electricity Networks Operations Pty Limited As Trustee For NSW Electricity Networks Operations Trust T/A Transgrid [2024] FWC 2267
(2006) 149 IR 361
(2004) 221 CLR 309
(2001) 109 IR 409
(2005) 146 IR 388
(1985) 2 NSWLR 685
(2000) 102 IR 192