[2019] FWC 7850
General information, not legal advice.
Fair Work Commission
2019-11-18
At DP
Original judgment source is linked above.
[33] Justice Jagot's reasons for judgment in Hutchison Ports include the following, none of which have been disturbed on appeal given the confined nature of the issues raised in the appeal by the FWO:
"61. In an email to an international colleague on 11 August 2015 Mr Carnegie described Mr McAleer as the MUA person who was "leading the fight in Sydney against Hutchison". I consider this statement was accurate and was not intended to mean only that Mr McAleer was simply arranging the picket, community support, and public relations exercise in Sydney, as opposed to doing all of those things and also having ensured or ensuring the employees continued their industrial action.
To "organise" industrial action involves positive conduct which is intended to, and does in fact, induce or procure others to engage in conduct by "marshalling" "rallying" or "co-ordinating" employees to bring about or maintain the industrial action: Director of the Fair Work Building Industry Inspectorate v Robinson [2016] FCA 525 at [53]; Australian Building and Construction Commissioner v Huddy [2017] FCA 739 at [66] - [72]; [147].
[34] In Patrick Stevedores Holdings Pty Ltd v CFMMEU[17] (Patricks No. 2), Justice Lee determined that Mr McAleer and the CFMMEU (arising in part from Mr McAleer's conduct) contravened sections 417, 421 and 340 of the Act. Declarations have been made reflecting these contraventions, but the proceedings are still before the Federal Court and no penalties have yet been determined or ordered.
[35] Patricks No. 2 concerned allegations, inter alia, that the CFMMEU and Mr McAleer organised and were involved in industrial action that took place at Port Botany, New South Wales during various shifts in April and May 2017. Justice Lee's reasons for judgment in Patricks No. 2 include the following:
"41. ... A good illustration of the view taken as to the use of the Sublease Area, and the suspicions harboured as to the motives of Patricks and Qube within the Union branch around this time, is recorded in the MUA National Office Report of March 2017 (Exhibit N 346-347), where the following was noted under the topic "Patrick and Qube attack stevedoring work":
The Sydney Branch reports that Patrick Terminals are in the process of undermining the definition of stevedoring work and attacking wharfie's jobs at [the Terminal]. With the support of the National Office, the Sydney branch is developing a domestic and international campaign to stop these moves and seeks the support and vigilance of all other MUA branches.
The branch believes this attack is the first front in Qube's reorganisation of Patrick Terminals since their 50% purchase of the terminals in August 2016 and the appointment of Qube management and directors, such as Chris Corrigan, Maurice James, Paul Digney and Michael Jovicic to the Patrick board and management. Qube has a well-established tactic of undermining stevedoring work in other ports through the use of subsidiary companies.
Patrick have cordoned-off area an area which they say they are not using and are simply leasing to Qube Logistics to use for empty containers for the next 2-3 years. However, the location of the area means that it is also inextricably connected to work processes in the terminal, and it will in all likelihood remove work form the terminal. The area in question is also adjacent to an underused railway line. The use of the rail line is critical to Qube's business strategy, which involves linking all aspects of the container supply chain and in particular, development of Australia's largest intermodal container terminal at Moorebank near Liverpool NSW. Due to protests by local residents, containers will only be able to travel from the port to the 1.5 million TEU terminal by rail. The branch believes that establishing the separation of the land near the rail line from the work processes in the terminal is part of Qube and Patrick's longer-term strategy to remove wharfies from the future rail work at the Port Botany terminal.
The branch is determined to see off this challenge for Qube and Patrick, as we did in 1998, again in 2012 with the automation of Port Botany, and again in 2016 when Qube sought to break up their national agreement with the MUA.
The position taken by the Union (through the actions of Mr McAleer), was persisted in and indeed became more widespread and extended beyond the Ban.
The evening shift commenced at 2:00pm on 20 April 2017. Following a "toolbox" meeting at the commencement of the shift, all of the employees waited in the crib room and did not commence work. The employees subsequently confirmed that they were supporting "the guys in rail" (that is, the rail employees) and that they would call Mr McAleer to ask him to come down and "tell us what to do" (Exhibit C at [83]-[93]).
At around 3.30pm Mr McAleer was standing close to the yellow fence that divides the open area of the Terminal's meal room from the carpark. A number of workers were gathered together on the meal room side of the fence and Mr McAleer was talking to the workers through the fence from the carpark (Exhibit J [25]-[26]). After he had a conversation with a security supervisor, Mr David Fox, during which Mr Fox asked Mr McAleer to leave the premises, Mr McAleer turned to the workers who were gathered on the other side of the fence and said words to the effect of "C'mon guys, let's go". Mr Fox then had a conversation with Mr May and Mr Guy and said to them that "McAleer will be going and the guys might be going with him". Shortly thereafter a large number of workers left the Terminal (Fox affidavit, sworn 30 August 2018 at [16]-[25]). Following this activity, the employees on the evening shift on 20 April did not return to work (Exhibit C at [102]). I am satisfied this action was taken because of Mr McAleer's entreaties, which were designed by him to marshal or rally the employees and were directed at achieving the result of a large number of workers leaving the Terminal.
Matters then escalated quickly. An application was made by Patricks to stop what was contended to be unprotected industrial action in accordance with Part 3-3 of the FW Act (Second FWC Application). The order was sought against employees who were members of the Union pursuant to s 418(2)(b). Employees, including rail employees, maintained the refusal to work (Exhibit C at [106]-[145]) and very late in the evening of 20 April, Deputy President Booth of the FWC issued interim orders. These orders required, in effect, that the employees not engage in industrial action in the form of a ban on the loading or unloading of trucks arriving at the Rail Yard, or in a stoppage or refusal to attend for or perform work (General Stoppage of Work).
On the night shift of 20 April, leading into 21 April, the General Stoppage of Work at the Terminal continued. At that time, the employees on shift were represented by Mr Matthew Bonner (Exhibit H at [40]-[46]). That night, Mr Bonner placed telephone calls to Mr McAleer, lasting 67 seconds, at 10:36pm; and Mr Keating, lasting 143 seconds, at 10:37pm.
Despite the order, the General Stoppage of Work continued the following day. During the day shift on 21 April, the employees on shift were represented by Mr Dean Harris (Exhibit H [55], [62], [64]). That morning, Mr Harris made two telephone calls to Mr Keating at 11:55am and 11:56am (seemingly without success as each call lasted only a few seconds); and then made a further telephone call lasting 29 seconds to Mr McAleer at 12:29 pm. At 1:48pm Mr McAleer was at the entrance of the Terminal carpark addressing employees who were due to commence their shift (Denham affidavit Annexure JPD-10 [101]-[104]). In the absence of any countervailing evidence, it is necessary to conclude that it was more likely than not that Mr McAleer was aware of precisely what was occurring concerning the General Stoppage of Work and it conformed to his wishes as to the appropriate industrial strategy to undertake to escalate the dispute.
G.3 A Summary of Contraventions of s 417(1) and s 421(1)
A person to whom an order under section 418, 419 or 420 applies must not contravene a term of the order.
A person must not take adverse action against another person:
(ii) has, or has not, exercised a workplace right; or
(iii) proposes or proposes not to, or has at any time proposed or proposed not to, exercise a workplace right; or
(b) to prevent the exercise of a workplace right by the other person.
The Company Management has rights and responsibilities and nothing within this Agreement shall be taken to diminish these in any manner. In accordance with clause 15, the Company at any time may determine which positions, structures and work practices shall exist and the manner in which employees placed by the Company to those positions and structures carry out their duties.
194. Clause 15.2 of the Enterprise Agreement, provided that:
An employee of the Company shall perform any work as the Company may reasonably require including any function for which the employee is qualified including work of a higher or lower grade provided that the employee is remunerated in accordance with the Award and this Agreement.
An employee will perform such work under this award as the employer, from time to time, reasonably requires.
These provisions allowed Patricks the right to have employees perform work Patricks reasonably required. I accept the submissions of Patricks that this is a benefit under a "workplace instrument" (that is, the Enterprise Agreement) and hence a "workplace right" within the meaning of s 341(1)(a) of the FW Act. The only answer advanced to this case is the contention of the respondents that they did not organise the ban or limitation because of the exercise of a workplace right by Patricks, but rather the campaign against Patricks was "connected with its restructuring of its operations".
The difficulty for the respondents is that they bear the onus to disprove that they organised industrial action with the alleged intent: FW Act s 361(1). The respondents would appear to submit that the presumption under s 361 that the respondents organised industrial action for the reason that Patricks exercised or proposed to exercise a workplace right has been displaced. Although I accept that the material in evidence demonstrates that the Union had an ongoing community and social media campaign against Patricks connected with its "restructuring of its operation", this is not to the point. In the absence of any evidence in relation to the respondents' intentions, the respondents have failed to discharge that onus insofar as the allegation is advanced against them: see, for example, Seymour v Saint-Gobain Abrasives Pty Ltd [2006] FCA 1452; (2006) 161 IR 9 at 14 [29].
My finding is that the industrial action commenced on 20 April, following the "escalation" of the dispute and communications between Mr Balzan, Mr Keating and Mr McAleer. Mr McAleer intended "escalation" once aware, the day after the 11 April Direction, that Qube was "running boxes into the rail". It was just before a Qube train was to be unloaded at 10:30am on 20 April that the phone calls between Mr Balzan, Mr Keating and Mr McAleer took place. The ban on unloading the Qube truck then was put in place and the General Stoppage of Work, in which Mr McAleer was particularly instrumental, followed. As noted above, the industrial action was manifestly directed towards stopping the work pursuant to the 11 April Direction and because Patricks maintained the requirement that the Qube trucks be unloaded in the Rail Yard.
Moreover, as Patricks submit, the FW Act recognises that there may be multiple reasons for which adverse action is taken and it is enough to establish a contravention that one such reason be unlawful. Patricks alleged that each respondent took adverse action for reasons including reasons proscribed by the FW Act, and as my finding reflects, all the evidence points to the correctness of that allegation. No evidence has been led explaining why the respondents acted as they did. Accordingly, I am satisfied, in the absence of any relevant evidence from the respondents, that they contravened s 340(1) of the FW Act as pleaded.
In addition to having organised the employees' contraventions of s 340, it was submitted that by reason of s 550 of the FW Act the respondents were also "involved" and "knowingly concerned" in either all (or in the case of Mr Keating, only some) of the employees' contraventions. On each occasion that an employee engaged in industrial action, "adverse action" was taken: FW Act s 342(1), item 5(b). The employees did so for the same reasons as the respondents and by taking adverse action for those reasons, the employees contravened s 340(1).
As my findings indicate, the respondents had knowledge that the employees would and did engage in industrial action; that Patricks had workplace rights under the Enterprise Agreement and were exercising rights by requiring the employees to do the relevant work. They also knew the reason for the employees taking industrial action was Patricks' actual and proposed exercise of its workplace rights. The evidence establishes that each of the respondents (to the extent pleaded) abetted, counselled and advised the employees to engage in the conduct which constituted the contraventions and that they procured it. It follows inexorably, that they were each "involved" in the employees' contraventions, and hence are taken to have contravened s 340(1) in this respect.
Finally, for completeness, the submission that Mr McAleer (and therefore presumably the Union) acted in accordance with their view of the Enterprise Agreement and clause 1.3 is no defence. Whether or not that is so (and again, there is no evidence that it is), they have not disproved that they also acted in part for the reasons alleged by the applicants. Mr McAleer's belief that his conduct was lawful does not make it so: see Esso Australia Pty Ltd v Australian Workers' Union [2017] HCA 54; (2017) 92 ALJR 106 at 111 [2], 124-125 [61] (Kiefel CJ, Keane, Nettle and Edelman JJ)..."
[36] The conduct of Mr McAleer in connection with the Hutchison Ports proceeding and the Patricks No.2 proceeding, albeit not in relation to the exercise of a right of entry in accordance with Part 3-4 of the Act, is relevant and weighs against a finding that Mr McAleer is a fit and proper person to hold a right of entry permit. It is also relevant to have regard to the fact that Mr McAleer was not solely responsible for the conduct which resulted in the findings being made against the CFMMEU in the Hutchison Ports proceeding and the Patricks No.2 proceeding. There were other officers of the CFMMEU who were involved in the conduct which led to the findings of contravention of the Act against the CFMMEU in those proceedings.
[37] I accept Mr McAleer's evidence that, apart from the proceedings referred to above, there have been no further complaints about his conduct as an MUA or CFMMEU official and there have never been any complaints made by any employers in relation to Mr McAleer exercising his rights of entry.[18] I have taken these matters into account in determining whether Mr McAleer is a fit and proper person to hold an entry permit under the Act.
[38] There are no other relevant matters that I consider relevant to the present application.
[39] In my view, Mr McAleer is not a fit and proper person to hold a right of entry permit. I have reached this conclusion after taking into account and weighing each of the permit qualification matters set out in s 513(1)(a) to (g) of the Act and addressed in paragraphs [19] to [38] above.
[40] Although there are a number of permit qualification matters which support a finding that Mr McAleer is a fit and proper person to hold a right of entry permit, they are outweighed by the permit qualification matters which tell against such a conclusion. A permit holder under the Act has important rights and obligations which non-permit holders do not have. One important consideration when undertaking the evaluative assessment of whether a person is a fit and proper person to hold an entry permit is the personal characteristics of the individual concerned in relation to the activities of a permit holder. Past conduct is relevant to the assessment of such personal characteristics. It is apparent from Mr McAleer's conduct in the Patricks No.1 proceedings, Patricks No.2 proceedings, DP World proceedings, and Hutchison Ports proceedings that he has repeatedly been involved in organising unlawful industrial action. Even in the context of his lengthy period since 2007 as a union official and prior to that time as a workplace delegate, Mr McAleer's conduct in organising unlawful industrial action has taken place over a considerable period of time (2012,[19] 2015,[20] 2017[21] and 2018[22]). Further, there is no evidence to suggest that Mr McAleer will conduct himself differently in the future.
[41] As demonstrated in the Federal Court proceedings to which I have referred, Mr McAleer has repeatedly preferred the interests of his union and/or its members over compliance with industrial laws. That was particularly the case in the DP World proceedings and the Hutchison Ports proceedings. In DP World, Mr McAleer's actions in organising unlawful industrial action involved "deliberate conduct which had the consequence that there was some disruption to work during each of the three shifts on 18/19 December 2012 [and] the contraventions were, in essence, an over-reaction on the part of the Respondents [including Mr McAleer] to the decision to dismiss Mr Wills".[23] In Hutchison Ports, Mr McAleer was one of the MUA officials who, in what the MUA "perceived to be a war for its own existence", organised unlawful industrial action and thereby preferred the interests of his union and its members over his interest in complying with the law.
[42] I recognise and have taken account of the fact that Mr McAleer's conduct the subject of the proceedings in Patricks No. 1 and Patricks No. 2 was somewhat different. In Patricks No. 1, Mr McAleer admitted to organising unlawful industrial action, but it is clear from the extracts from the judgment of Justice Flick in paragraph [26] above that Mr McAleer believed that the employees concerned had the right under clause 4.10 of Part B of the applicable enterprise agreement to engage in "no work". In Patricks No.2, Mr McAleer and another MUA official took a "coordinated and tactical course in putting the Ban in place", which they thought was a "proportionate and appropriate remedial response to an action which was perceived to be a broader plan by Patricks and contrary to the interests of the Union and its members".[24] Justice Lee was "not satisfied that... Mr McAleer subjectively believed that [he was] engaging in a contravention of the law..."[25] Nonetheless, as Justice Lee noted "Mr McAleer's belief that his conduct was lawful does not make it so".[26]
[43] I understand and have given appropriate weight to the fact that the Federal Court proceedings to which I have referred have not involved breaches of Mr McAleer's obligations under Part 3-4 of the Act.
[44] For the reasons given, I do not have confidence that Mr McAleer would, if granted a right of entry permit, comply with his obligations under Part 3-4 of the Act when faced with the competing interests between his union and/or its members and compliance with his legal obligations as a permit holder.
[45] I have considered whether any conditions should be imposed on any entry permit issued to Mr McAleer conjointly with my consideration of whether he is a fit and proper person to hold an entry permit.[27] No conditions have been proposed. My conclusion in relation to this issue is that I cannot reach the necessary state of satisfaction that Mr McAleer is a fit and proper person to hold such a permit, regardless of any conditions which may be imposed.
[46] In light of my conclusion that Mr McAleer is not a fit and proper person to hold a right of entry permit, the CFMMEU's application under s 512 of the Act is dismissed.

[2] Mr McAleer's witness statement dated 25 October 2019 at [7]-[10]
[4] Australasian Meat Industry Employees Union v Fair Work Australia and Anor [2012] FCAFC 85; (2012) 203 FCR 389 at 405 [57] per Flick J
[6] Citibank Ltd v Federal Commissioner of Taxation (1988) 19 ATR 1479 at 1481 - 1482; Federal Commissioner of Taxation v Citibank Ltd (1989) 20 FCR 403; and Darlaston v McAleer and Others [2010] FCA 771; (2010) 189 FCR 1 at 13 [44]
[7] Construction, Forestry, Mining and Energy Union v Fair Work Commission [2017] FWCFB 4141
[15] Fair Work Ombudsman v CFMMEU [2018] FCA 934
[16] Fair Work Ombudsman v CFMMEU [2019] FCAFC 69
[18] Mr McAleer's witness statement dated 25 October 2019 at [20]-[21]
Printed by authority of the Commonwealth Government Printer
"[32] The proper approach to the assessment of whether a person is a fit and proper person to hold an entry permit for the purpose of s.512 of the Act has been set out in a number of decisions including The Maritime Union of Australia [2014] FWCFB 1973, CEPU v Director of the Fair Work Building Industry Inspectorate [2014] FWCFB 4397, Director of the Fair Work Building Industry Inspectorate v CFMMEU [2014] FWCFB 5947, Construction, Forestry, Mining and Energy Union [2014] FWCFB 6497, Director of the Fair Work Building Industry Inspectorate v Construction, Forestry, Mining and Energy Industrial Union of Employees, Queensland [2014] FWCFB 7154 and Construction, Forestry, Mining and Energy Union v Director of the Fair Work Building Industry Inspectorate [2014] FWFCB 7194_._ The relevant principles may be summarised as follows:
"[17] The phrase a 'fit and proper person' is used in many different statutory contexts: e.g., Customs Act 1901 (Cth), ss 67H, 102CF; Migration Act 1958 (Cth), s 290; Marriage Act 1961 (Cth), ss 31(1), 33(1). Some statutes perhaps expand upon the generality of what would otherwise fall within the phrase 'fit and proper person' by expressly including a reference to whether an individual is of 'good fame, integrity and character...': e.g., Tax Agent Services Act 2009 (Cth), s 20-15. But the correct ambit in which that phrase operates is always to be determined by reference to the specific statutory context in which it is employed: Australian Broadcasting Tribunal v Bond [1990] HCA 33; (1990) 170 CLR 321 at 380. Toohey and Gaudron JJ there relevantly observed:
(1990) 170 CLR 321
(2017) 92 ALJR 106
(1989) 20 FCR 403
(2006) 161 IR 9
(2012) 203 FCR 389
(2010) 189 FCR 1