clause 16
47 At trial the Union argued that a broad construction should be accorded to the words "grievance, dispute or claim" and the phrase "arising out of the application of this Agreement" at the commencement of clause 16 such that it was engaged even if Mr Hibble was mistaken in his belief that clause 8.2 applied to the recruitment and selection process for the OCE/Supervisor positions. It submitted that Anglo Coal had failed to satisfy its obligations under clause 16 and, as a result, had contravened that clause. On this appeal the Union complained that the primary judge had "failed to engage with and address" these submissions.
48 Anglo Coal, both at trial and on appeal, conceded that the complaints made by Mr Hibble on 19 May 2014 and 6 August 2014 were capable, as a matter of law, of being characterised as "a grievance, dispute or claim." The company, nonetheless, contended that the Agreement, properly construed, did not have the effect that a grievance, dispute or claim relating to a position not covered by it was caught by clause 16. It also sought to rely, if need be, on the grounds contained in its notice of contention (see above at [30]).
49 As already noted it was common ground that Mr Hibble's complaint constituted a grievance or dispute within the meaning of clause 16. What was (and is) at issue was whether that grievance or dispute arose out of the application of the Agreement.
50 In Alcoa of Australia Pty Ltd v Amalgamated Engineering Union (Australian Section) (1965) 7 FLR 180 Spicer CJ and Eggleston J considered the meaning of the words "dispute or claim arising out of the operation of this award." Their Honours expressed the view (at 183) that:
"It seems clear to us that a dispute or claim cannot be said to arise out of the operation of an award unless it has some kind of relation with the provisions of the award itself. What sort of relationship must exist may be a matter for argument in other cases."
51 The question which their Honours left for determination in other cases has been answered in later decisions having regard to grammatical norms and the context in which the words appear.
52 One such case, relied on by the Union, was Construction, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v Thiess Pty Ltd (2011) 212 IR 327. An employer exercised a discretionary power, under an agreement, to terminate rostering arrangements. The union invoked a dispute settlement clause in the agreement. It dealt with "procedures to settle disputes and grievances relating to any and all matters arising out of or in connection with the application or interpretation of this Agreement …". All parties accepted that the phrases "relating to", "arising out of" and "in connection with" were of wide import. Relevantly it was held (at 337) that:
"The phrase "arising out of" implies "a sense of consequence": see Government Insurance Office (NSW) v RJ Green & Lloyd Pty Ltd (1966) 114 CLR 437 at 447 (per Windeyer J). It refers to a less immediate association than a direct causal relationship between the dispute or grievance on the one hand and the application and interpretation of the Agreement on the other."
53 The construction of this phrase was not controversial. The question which divided the parties was what was meant by the word "application". It was held, having regard to the terms of the agreement as a whole, that "application" extended to a decision to terminate a rostering arrangement in the exercise of the company's discretionary power, conferred by the agreement, to do so: see at 339-340.
54 The terms of the Agreement, presently under consideration, differ materially from those in the Thiess case. Most obviously, the words which forge the link between the disputes and grievances and the Agreement ("arising out of") are more narrowly drawn. Furthermore, the grievance procedure in Thiess (unlike the present case) was attracted if a dispute or grievance arose in relation to the "interpretation" of the agreement.
55 In the context of clause 16.1 "the application of this Agreement" will occur when a party seeks to bring one of its provisions into use for some purpose. It may also be attracted if one party complains that another has failed to do something which the Agreement required that party to do. The clause will not, however, be engaged unless the association between the grievance and the Agreement is founded on something more substantial than an assertion that it has application. The grievance will not arise out of the application of the Agreement unless it can be said that, on its proper construction, the Agreement has the effect for which the aggrieved person contends.
56 The Union was unable to point to the invocation, by Anglo Coal, of any provision of the Agreement. Mr Hibble's complaint was founded in his belief that clause 8.2 applied to the process of appointment of OCE/Supervisors. Anglo Coal's response was that the process was not covered by the Agreement and that, as a result, neither clause 8 nor clause 16 was engaged. It may have been, in these circumstances, that there could be said to have existed a dispute over the interpretation of the Agreement. What cannot be said is that there was a dispute relating to its application. The Agreement was not applied simply because Mr Hibble thought, mistakenly, that clause 8.2 had been engaged.
57 Although it is not strictly necessary to do so we would add that we would not have been disposed to hold that Anglo Coal had contravened clause 16.2 had it applied. The process, prescribed by clause 16.2, was to commence with a discussion between an employee or Union representative and the employee's immediate supervisor. If that discussion did not resolve the matters in dispute there was a staged and ascending process which might, in a given case, end with a referral to Fair Work Australia (as it was then).
58 There was a dispute between the parties as to whether the first step had been taken. When Mr Hibble first raised his grievance in writing he did so in a document which referred to "step 2" which we understand to be a reference to paragraph 16.2 b). On the following day he told Ms Oppermann that he considered the grievance procedure had now reached step c), which we understand to be a reference to paragraph 16.2 c). That paragraph provided that an unresolved dispute "shall be referred for discussion between the Employee, the Employee's Workplace Representative and the relevant Department Manager or their representative." The obligation to refer for discussion was not imposed on any particular party. We note that paragraph 16.2 b) provides for referral in writing by the person who raised the grievance. It may be that the draftsman contemplated that the same, unsatisfied, party carried the obligation to make a referral at the next stage. If so that burden fell on Mr Hibble, not Anglo Coal.
59 We also note that the latter stages of the procedure (paragraphs d) and e)) also provide for referral but do not impose the obligation to do so on any particular party. At no stage did Anglo Coal impede or prevent Mr Hibble from referring his grievance to higher levels of management, to the Fair Work Commission or to a court of competent jurisdiction.