TN THE MATTER of an application pursyant to Section 141 of the said Act

AND: R.A. COOK, J.S. ARDAY, RRIAN J. PALMER, C.L.H. HASTWELL, J. WORRALL, P.J. MOODY, N.W. CONNOLLY, D. HICKEY, BRUCE J. PALMER and _ R.O. 'REILLY

IN THE MATTER of the Conciliation and Arbitration Act 1904

IN THE MATTER of an application pursuant to Section 171C of the said Act

BETWEEN: THE PLUMBERS AND GASFITTERS EMPLOYFES' UNION OF AUSTRALIA, G. CRAWFORD, G.L. SMITH, R. FAIRWEATHER, R. HEVEY, T. BOURKE _ and

S .MUTTON Applicants ANP: ROBERT ARTHUR COOK Respondent 4 March 1981 EVATT J.

On 1 and 2 May 1979 certain members of the Federal Executive (the Executive) of the Plumbers and Gasfitters Employees' Union of Australia(the organization), an oraganization registered under the Conciliation and Arbitration

Act 1904 (the Act), heard charges laid by Ronald Ivor

-3- Masterson, a member of the organization against five other members, namely; Ulich Colin Bignel], Harold Shooter, Kenneth

Lewis Tyler, Royce Lawrence Cummins and Gregory Laurence

On 2 May 1979 the Executive found Mr Bignell guilty of the first of three charges laid against him and each of the other four members guilty as charged. In all cases it imposed a penalty of expulsion from the organization and dismissal from the respective office or offices held by them within the

At that time Mr Bignell held himself out as being the holder of the following offices, namely; (a) Branch Secretary of the Sydney Branch of the organization having been elected to that office for a period of six years in July 1977; (b) Sydney Branch delegate to Federal Council having been elected to that office in 1977 ana (c) a member of the Federal Executive having been elected to that office in 1977 by and

Mr Shooter then held himself out as being the holder of the office of Assistant Secretary/Organizer of the Sydney Branch of the oraanization having heen elected te that office

"Messrs Tyler, Cummins and Waters then held themselves

-4- out as being full time organizers of the Sydney Branch of the organization having been elected to those offices in 1977 for a period of 6 years. In addition Mr Tyler held himself out as a Sydney Branch delegate to the Federal Council of the

organization having been elected to that office in 1977.

In May 1979 there was registered under the New South Wales Trade Union Act 1881 and the Industrial Arbitration Act 1940 a union with the name of The New South Wales Plumbers and Gasfitters Employees' Union (the State union). The said five members of the Sydney Branch of the organization were then and still are members of the State Union holding offices in that

union similar to the respective offices held by them in the

The charges against the five members were laid on 30 March 1979 pursuant to r.13(6) of the then certified rules of the organization by Mr Masterson who was then and had been for some years the secretary of the Newcastle Branch of the

6. Any member shall have the right to lay a charce against any member or officer direct to the Ceneral Secretary and/or President. Such charge to be dealt with by the Federal Executive under the provisions of Rule 35. "

member or officer lodged pursuant to Rule 13(4) or Rule 51(3);

(b)to hear and determine charges made against any member direct to the Secretary pursuant to Rule 13;

(d) for the purposes of Sub-Rules (a) and (b) hereof the Federal Fxecutive shall have power to (i) pending the investigation of the

charges or complaints to suspend any officer from performing all or any of his duties for a period not exceeding three months; (i2) to impose a fine not exceeding $200; (iii) to dismiss from office any officer found guilty of misappropriation of the funds of the Union or gross misbehaviour or gross neglect of duty or who has ceased according to the Rules to be eligible to hold the Office; (iv) to expel any member. "

The letters to the General Secretary of the organization in which Mr Masterson laid charges against the five members were each dated 30 March 1979. Each of the four letters relating to Messrs Shooter, Tyler, Cummins and Waters was in identical terms except for the particulars of the names and places of employment of the members of the Newcastle Branch who were allegedly persuaded, encouraged and aided to resign from membership of the organization. The Letter

concerning Mr Shooter (omitting formal parts) was as follovs:

I, Ronald Ivor Masterson of 2 Speers Street, Speers Point, N.S.W. being a member of the Plumbers and Gasfitters Employees' Union of Australia and Secretary of its Newcastle Branch hereby lay charges pursuant to Rule 13(6) against H. Shooter a member of our Union and Assistant Secretary of its Sydney Branch that being an officer of the Sydney Branch he is guilty of gross misbehaviour in that he has actively persuaded, encouraged and aided members of the Newcastle Branch of our Union to resign from membership of our Union.

The grounds upon which I lay these charges against H. Shooter are that between the 23rd February, 1979 and 29th March, 1979 he has actively persuaded, encouraged and aided within the area of the Newcastle Branch as defined in Rule 47 the following members of the Newcastle Branch: (14 names were set out) employed by the Royal Newcastle Hospital (Health Commission) to resign from membership of our Union.

As H. Shooter's actions are of the utmost importance I ask that the Federal Executive deal with them as a matter of urgency and that H. Shooter be summoned to show cause why he should not be dismissed from the office of Assistant-Secretary of the Sydney Branch or otherwise dealt with pursuant to Rule 35(d) and why he should not be expelled from membership of our Union pursuant thereto.

(sgd) R. MASTERSON. Mr Masterson's letter (omitting formal parts) to the

General-Secretary concerning Mr Bignell was as follows:

I, Ronald Ivor Masterson of 2 Speers Street, Speers Point, N.S.W. beilnag a member of the Plumbers & Gasfitters Employees' Union of Australia and Secretary of its Newcastle Branch hereby lay charges pursuant to Rule

13(6) against U.C. Bignell a member of our Union and Branch Secretary of the Sydney Branch that:

A. Being an officer of the Sydney Branch he is guilty of gross misbehaviour in that he ordered and directed H. Shooter, R. Cummins, K. Tyler and G. Waters being officers of the Branch under his direction and control to actively persuade, encourage and aid members of the Newcastle Branch of our Union to resign from Membership of our Union and he has approved and endorsed their actions in doing so.

The grounds upon which I lay these charges against U.C. Bignell are that between 23rd February, 1979 and 29th March, 1979 he

has so ordered and directed the said officers and has approved and endorsed their action in carrying out those orders and directions.

B. Being Branch Secretary of the Sydney Branch of our Union he is guilty of gross neglect of duty in that he has failed to forward to Head Office the Statement he is required to send pursuant to Rule 42(8) formerly numbered Rule 42(6) in respect of the financial year ended 31st March, 1978.

Cc. Being Branch Secretary of the Sydney Branch of our Union he is guilty of gross neglect of duty in that he has failed to forward to Head Office the sum he is required to send pursuant to Rule 42(8) formerly numbered 42(6) for the financial pericd ended the 3lst March, 1978.

As these matters are of the utmost importance I ask that the Federal Executive deal with them as a matter of urgency and that U.C. Pignell be summoned to show cause why he should not be dismissed from the office of Secretary of the Sydney Branch or otherwise dealt with pursuant to Rule 35(d) and why he shouid not be expelled from membership of our Union pursuant thereto.

(sgd) R. MASTEPSON" The relevant parts of r.42(2) referred to in

maragraph C of the letter addressed to Mr Pignall reads: "each

~8- Branch Secretary shall within 8 weeks of the close of each financial period forward Head Office a duly audited and signed statement for such financial period; together with the amount prescribed in sub-r.(6)". Sub-rule (6) deals with capitation fees, being a percentage of total receipts of branch members

On 3 April 1979 the General Secretary in accordance with the rules of the organization conducted a ballot of the members of the Executive seeking answers to proposals that an Executive meeting be held on 1 May 1979 to hear and determine the charges and that the General Secretary be directed to summon the said five members to show cause why each of them should not be dismissed from office or otherwise dealt with pursuant to r.35(d) and why each of them should not be expelled from membership of the organization pursuant thereto. (see rules 35(4) and (5), 36 and 23(3)). Such proposals were

Accordingly on 10 April 1972 the General Secretary wrote to each of the five members in identical terms. The

-9- full time paid officials of Sydney Branch, including yourself. A copy of the charges laid against you is attached.

I have now been directed by the Federal Executive to summon you, H. Shooter, to a meeting of the Federal Executive commencing 11.00 a.m., on Tuesday, lst May, 1979, in the Oriental Room, Carlton Pex Hotel, No.56 Castlereagh Street, Sydney, New South Wales, to show cause why you should not be dismissed from office or otherwise dealt with pursuant to Rule 35(d) and why you should not

be expelled from membership of the Union pursuant thereto.

You will be given the fullest opportunity to present your case and may bring any member of the Union as a witness.

These letters with the respective charges attached were forwarded to the home addresses of all the officers other than Mr Waters by certified mail on 10 April 1979 and copies thereof in separate envelopes addressed to each member were

hand delivered to the office of the Sydney Branch of the

By rule to show cause granted on 31 May 1979 jin matter N.S.W. 19 of 1979 the claimant Robert Arthur Cook, a member of the organization and the Chairman of its Sydney Pranch, sought orders pursuant to s.14l1 of the Act that the resrondents G. Crawford, G.L. Smith, Ss. Mutton, Re Fairweather, R. Hevey, T. Bourke and R. Masterson being rercers cf the Federal Fxrecutive perform and observe the rules

of the organization by treating as null and void resolutions

cf£ the [Fxecutive adopted on 2 May 1979 purrorting to expel

-10- from membership of the organization the five named members of the Sydney Branch and dismissing those five members from their respective offices and further that the said respondents recognise the said five members as the holders of their respective offices on grounds that r.13(6) and r.36(10)(d) of the rules of the organization were invalid and on the further ground that each of the five members had been denied natural

justice by members of the Executive who heard the charges.

The affidavit of Mr Cook sworn 31 May 1979 and filed in support of the said order nis: alleged (1) that the procedural steps provided for in the rule amending rule of the rules of the organization had not been complied with prior to the adoption by the rule-making body, the Federal Council, of rr.13(6) and 35(10)(d): that the sub-rules providing for such steps were mandatory and the failure to observe them effectively invalidated rr.13(6) aré 35(10)(d): (2) that r.35(10)(d)(1v) was contrary to s.140{1)(a) of the Act, being contrary to the provisions of s.144 ard that such sub-rule was also contrary to s.140(1)(c): (3) that the Fxecutive that dealt with the five applicants was invalidly constituted because its members had been electec by and from a Federal Council of the organization which itself was invalidly constituted under r.21 as that rule rrovided for a Council that was "grossly undemocratic ans unreflective of the membership" of the oraqanization. Acceréingly it was claimed

that the rule constituting the Council {r.21{1)) and the rule

-11- constituting the Federal Executive (r.35(1)) were contrary to $.140(1)(c) of the Act: and (4) that the charges laid

purported to be laid pursuant to r.35({d) and that no such rule

Further, particulars of the aJlegation that the five applicants were denied natural justice were given. Such particulars alleged that the claimants had not been given adequate particulars of the charges laid against them, that they had been denied an adjournment of the hearing of the

charges when requested; that the Executive or some of its members were biased against them or a]Jternatively that there were reasonable grounds for suspicion of bias; that the evidence before the tribunal was such that no reascnable tribunal acting honestly could find the charges to be proved and further that no reasonable tribunal acting honestly could find that such charges or the evidence in support of those charges constituted gross misbehaviour or gross neglect of duty such as would justify dismissal frem office within $.133(1)(f£) of the Act or within the purported rules of the

The said rule to show cause was made returnable for directions hearira on 11 June 1979 when Mr Ccok and the first respondert Mr cC. Crawford, General Secretary cf the

orgaénizaticn, were each represented by Counsel. Certain

directions setting out a tinetable for the filire of points cf

claim and points of defence, mutual discovery and interrogatories were given so that Mr Cook had to file any affidavit in reply on or before 31 July 1979. Accordingly a date early in August for the hearing of the matter could have been granted but at the request of Counsel for Mr Cook 3 September 1979 was set for the hearing of the matter. Liberty

was granted to all parties to apply to the Court for further

On 27 June 1979 in matter V.23 of 1979 Mr Crawford was granted a rule to show cause pursuant to s.141 of the Act calling upon certain respondents including Mr Cook, the first applicant in matter N.S.W. 19 of 1979, and nine other named respondents (being the holders of various offices in the Sydney Branch of the organization other than the five members referred to above) to show cause why certain orders should not be made giving directions to those respondents to perform and observe the rules of the organization by (a) constituting a meeting of the Committee of Management of the Sydney Branch of the organization and for that meeting to appoint a member of the Branch eligible to nominate for the office of Branch Secretary in accordance with the rules to carry out the functiors of the office of Branch Secretary; (b) paying er causing to be paid into the Head Office of the organization Branch contributions for the financial period ending 31 March 1978 anc 31 March 1979; (c) ensuring that the person avroirte?

to carry out the functions of Brench Secretary of the Sydnev

Branch ccorpiy with the provisions of r.42 of the orcanization by forwarding a dviv audited and signed statement for the saie two financial perices and (d) making available to a ncninated chartered accountext all books of account etc. of the Branch for the rerrose cf enabling the same to be audited in

accordance with é& particular resolution of the Federal

The retcrm cate shown in such rule was 16 Culy 1279

which date was steted to be the date on which directiors would

be given ard a Gaze set for the hearing of the matter.

(i) that such proposals had been validly raised before the 1978 Federal Council pursuant to an express general power in the Federal Council to make or amend the rules of the organization in accordance with r.27(5) as certified by the

(ii) alternatively, the respondents claimed that if the Court determined that the 1978 r.27(5) was invalid or that such sub-rule did not give an express general power to the Council to make or amend rules then the adoption by the 1978 Council of both rr.13(6) and 35(10)(d) resulted from proposals set out in a document referred to as document R. Such proposals, it was claimed, were the result of the redrafting and renumbering of certain rules which had been certified following the 1975 and 1977 Federal Council meetings so as to incorporate in such redrafted rules the substance of such earlier certified rules left unaffected by the substance of amendments validly proposed by branches in 1978 for consideration of the 1978 Federal Council together with the

Such redrafted and renumbered rules had been prepared as proposed amendments to the rules to be considered by the 1978 Federal Council meeting and incorporated in document R. The proposals in such document, copies of which were made available to Federal Council members present at that meeting,

were then fully explained to those members by the Solicutcr

for the organization. and (11i) that in any event the adoption of such amendments by the 1978 Council was valid pursuant to

(i) Respondents' claim that proposals to amend rr.13(6) and

35(10)({d) made under an express general power giver to Council by r.27(5)

rule amendment had been validly adopted by the 1978 Council as the procedural steps provided for in the rule amending rule (r.28) considered in Rceots -v- Mutton & Ors (1978) 32 F.L.R. 15 for placing proposed rule amendments before the Federal Council had not been complied with. In that case the Court was considering r.28 as certified during the period

L. The Pules of the Union shall not be amended except on a resolution carried by a majority of the Council.

Any member desiring to submit to the Council anv proposal to amend the Pules must first submit such proposal to the meeting of his Brénch specially convened for the purpose. 3. If such proposal be approved by a rajority of the ~embers fpresent at such meeting it shall ce forwarded to the Head Office for submissicn to the Council.

4. The Ceneral Secretery shall precare ar agenda of any sucn vropnosals ara@ forvard cop1res of same to all 2ranches, not lees than

six (6) weeks prior to the Council meetings to which such proposals are submitted.

5. The Council may at any time make or amend any Rules so that the Rules of the Union may comply with the requirements of the

Commonwealth Conciliation and Arbitration Act, or any similar State Act."

The Court in that case held that on its proper construction r.28 as set out above conferred upon the Federal Council an implied general power to amend the rules in accordance with the procedural requirements prescribed by that

rule and that such procedural requirements were to be

But r.28 had itself been amended before 8 Auaust 1978, the date of the commencement of the 1978 Federal Council Meeting, by deleting from sub-r.(5) all words after "Rules" where first appearing in the sub-rule and re-numbering the rule r.27. Rule 27(5) then read: "The Council may at any time make or amend any Rules".("the 1978 r.27(5)"). This amenéement was adopted by the Federal Council meeting held on 19~23

September 1977 and was certified by the Registrar on 1

When the fact that the old r.28(5) had been so amended was appreciated by the applicants leave was granted to

them to fille and serve additioral points of claim. Such x

of claim alleged that the amendment to old r.28 as certi fie

on 1 February 1978 was invalid because (a) there was neo

"validly cenvened specially summoned meeting" of any branch

+29- - which proposed such amendment and accordingly there was no valid proposal in this regard from any branch of the organization before the 1977 Federal Council meeting. (It is to be noted that the description of the meeting referred to in the points of claim and quoted above is different to that referred to in sub-r.(2) of the old r.28.); (b) the 1977 Federal Council was invalidly constituted and accordingly could not validly adopt such amendment; and (c) if it was found that such Council was validly constituted and that the 1978 r.27(5) had been validly adopted by that Council then

(a) Applicants' claim that proposed amendment to r.28(5) not

The respondents led evidence, which is accepted, that the proposal to amend r.28(5) as adopted by the 1977 Federal Council was placed on the agenda of rule amendment proposals prepared by the General Secretary for consideration by that Council and that the agenda had been forwarded to all branches in accordance with the then r.28(4); that the proposal had been forwarded in accordance with r.28(3) to the Head Office for submission to the Council after it had been approved ky @ majority of the members of the South Australian Pranch of the organization present at a meeting held by that brarch on °5 June 1977; that notice of the prcposal to amend r.28{5) Fy

Geleting all the words after the words "The Council may at any

~30- time make or amend any Rules" was given to the members of the South Australian Branch in a bulletin forwarded to them by Mr Fairweather, the then Secretary of the Branch, on 10 June 1977; that such bulletin on its front page clearly showed under a heading "Annual General Meeting" the time, place and date of such meeting as Wednesday, June 15, 1977, Union Office, Trades Hall, Adelaide, 7.30 p.m. and that clearly listed amongst the business to be dealt with was "Proposed Rule Changes"; and that on the second page of the bulletin the proposed rule amendments including the amendment to

Rule 60 of the then certified rules of the organization made provision for branch meetings. Sub-r.(3) of that rule provided that the Annual Meetings for the reception of the balance sheet and financial statement shall be held on the last meeting night of June each year. Sub-r.(4) provided that notice of all Special or General Summoned Meetings shall be given by summon notice forwarded at least two days prior to the time of the meeting to each member to the address last

I am satisfied on the evidence that at least two days

notice of the particular meeting held on 15 June 1977 wa

given to the members of that branch. Further I am satisfied that the particular meeting was a meeting of the South

Australian Branch of the organization specially convened for

the purpose of considering the proposal to accordingly amend r.28(5) within the meaning of the then r.28(2) especially when one considers the varying descriptions of meetings referred to in the rules of this organization at that time. (cf. the then rr.27, 44(1)(b), 47(2), 48(1)(b) and (c), 51(1)(v111), 60(4) and (5) and 65(4)). The then sub-r.28(2) did not, in my view, restrict the purpose of the meeting referred to in the sub-rule to one particular purpose and no other. A meeting 1s specially convened for any purpose set forth in the notice convening it. The sub-rule does not provide that the meeting which is to consider proposals for rule amendments cen rot also be specially convened for some other purpose, for example, for the reception of the balance sheet and financial statement of the branch. The fact that the meetirg was entitled in the notice summoning the meeting, "Annual General Meeting", does not mean that it was not a meeting specially convened for certain purposes including the purpose of considering rule amendments. In this particular case the notice had clearly indicated the nature and intent of the business to be considered at the meeting and in regard to the Proresed rule amendments clearly set out such proepesals in

Accordingly in my opinion the procedural stens Provided for in the then r.?S were complied with ard the relevant proposal to amend r.28 was validly before the 19

Fecgeral Council. The certification of such amendment anc tre

-32- re-numbering of r.28 to r.27 by the Registrar pursuant to

s.139(4) on 1 February 1978 meant that such rule then became

Having so determined that the proposal to amend the old r.28(5) was validly before the 1977 Federal Council then it follows that no invalidity within the meaning of s.171C of the Act occurred in the proposal to make such amendment and it becomes unnecessary to make any determination in this regard under that section in matter V. 24 of 1979. But should it be determined that the meeting of the South Australian Branch of the organization held on 15 June 1977 was not a meeting specially convened for the purpose of considering the proposal to so amend the then r.28(5) prior to forwarding same, if approved, to the 1977 Federal Council meeting with the result that an invalidity within the meaning of s.171C(1) occurred in the making of the amendment to r.28(5) then, assuming that the 1978 r.27(5) was not contrary to s.140 of the Act, I would have been satisfied on the evidence that, in the exercise of the Court's discretion, an order should have been made under s.171¢C(2)(a) validating such amendment. The evidence, in ny view, shows that it is clear that no member of the South Australian Branch would have been misled as to tke intention that rule amendments, including the proposed amendment to the

then r.28(5), were to be discussed at the particular meetind.

The respondents further claimed that the act of the

-33- 1977 Federal Council in adopting the amendment to old r.28 by deleting those words in sub-r.(5) referred to above and the renumbering of the rule to r.27 was in any event valid by and under the provisions of s.171B of the Act. Fven if this be so, (and I express no opinion in this regard) then the

respondents can not rely upon that section in this proceeding.

Section 171B is in Part IX A of the Act which was inserted in 1974. The section provides that, subject to the section, "acts" done in good faith by a collective body such as the Federal Council of the organization or by persons holding office therein shall be valid notwithstanding any invalidity afterwards discovered in the election of the collective body or any member thereof or the election of the person purporting to hold office or in the making or alteration of a rule of the organization. However sub-s.(6) of s.171B provides that nothing in the section validates the expulsion of or the imposition of a penalty on a member of an organization which would not have been valid if the section had not been enacted. The Court has held that the removal or dismissal of an officer on grounds going to his conduct or for alleged breaches of rules and of his duties to the organization is clearly the imposition of a "penalty" ard that the use of the word "member" in sub-s.(6) does rot mean that the protection given by the suk-sectior does not extend to an officer of the organization or a branch thereof assuminc that

the officer is a member of *he organization (Lean and Pavis

-34- -v- Harradine & Ors (1975) 6 A.L.R. 507 @ 541-2). Consequently it is unnecessary for the Court to express a view whether the proposing and adoption of a rule amendment by a rule making body of an organization is an "act" within the meaning of s.171B of the Act (cf.Morris -v- Wood (1975) 8 A.L.R. 342 @ 344 and 346 regarding an "election" referred to

(b) Applicants' claim that 1977 Federal Council invalidly

The applicants' attack in this regard is based on the claim that the 1977 Federal Council as constituted by the then r.22 was "grossly undemocratic and unreflective of the membership" of the organization. That rule provided that the Council consist of two representatives from each State, excepting the State of New South Wales which was entitled to three representatives, two from the Sydney Branch and one from the Newcastle Branch. At that time the rules of the organization did not provide for any weighting of the votes of such delegates, the only relevant rule being the then sub-r.26(2) which provided that in the event of there being only one representative present at the Council Meeting frem

principles decided in McLeish v Kane & Ors (1978) 22 A.L.P.

~35- 547 (see also McLeish -v- Faure (1979) 25 A.L.R. 403; Luckman

-v- Australian Postal and Telecommunications Union (1978) 28

A.L.R. 393, Crealy -v- Commonwealth Bank Officers' Association

(1957) 1 F.L.R. 153, McKenzie -v- Administrative and Clerical

Officers' Association 5 F.L.R. 342, Scott -v- Rolfe (1979) 36

F.L.R. 249 and Sheriff & Ors -v-~ Townsend & Ors (1980) 30

It is clear from those decisions that the answer to the question whether a rule or the rules of an organization making provision for the number of delegates to its Federal or Mational controlling body contravene s.140(1) of the Act is dependent not simply upon the number of delegates each branch of the organization is entitled to have as recvresentatives on such body but is fundamentally a question whether the voting strength of such delegates at meetings of such a body fall

within the spectrum referred to in McLeish -v- Kere. As was

pointed out in that case, and repeated in the more recent cases referred to, the Court in determining whether a rule or the rules of an organization contravene the Act in this regard has to comsider whether there 1s a disparity Ytetween, on the one hand, the number of members attached to a particular branch expressed as a percentage of the total rembersnhip of the organization and, on the other, the voting strength of that branch expressed as a percentage of tke 'total voting strenath of members of the body entitled to vote. If such a

Gisvarity exists which is tco creat or too unme'en then it mav

-36- be said that the voting strength of particular branches may be outside the spectrum referred to in those cases and so render a particular rule or the rules of that organization invalid as

But the Court can only make such a determination where there is evidence of the total membership of the organization and of the branches making up the organization at the time when its is claimed that such disparity existed. In the present case there is no acceptable evidence before the Court as to the total membership and the number of members attached to the various branches of the organization in 1977.

In this regard the onus of proof rested on the applicants.

The only evidence before the Court as to what was termed "the precise figures as to the percentage membership" in the different branches of the organization is that for the year ended 30 June 1975. Those percentages are set out in para. 20 of the affidavit of the applicant Mr Bignell sworr 3 September 1979. Paragraph 19 of such affadavit states that "during the period of my association with the Union, the size

of the different branches of the union has not significantly

fluctuated. During most of this time the different branches of the union have c aimed the following approximate percentages of union mexbersbip". There is then set out a

table of the various bra shed with a percentage shcwn against

Mr Bignell gave oral evidence during a period extending in all over eight hearing days. He was cross-examined by Counsel representing Mr Masterson and by Senior and Junior Counsel representing other respondents in this matter. I am not prepared to accept any evidence that Mr Bignell gave which is not corroborated by independent documentary evidence. His prevarication in answering questions in cross-examination which he apparently believed might be damaging to his case together with his demeanour clearly demonstrated that it would be unsafe to accept his evidence unless it was corroborated by acceptable evidence. It was apparent that he was a man with above-average intelligence, who, on appreciating that his answers to a line of cross-examination were such that it was only a matter of time before it would be patently clear that answers that he ha@ given to obviously clear and unambiguous questions some hours or even days before could not be correct, would turn to the Bench, pause, give a pensive look and ask whether he had answered some nominated guestion in a certain way because he felt that if he had he must have then been confused either in his understanéing of the earlier question or ain his recollection of facts on which he had based his answer to that earlier aquesticn. This often repeated act, masterly performed, ard his general t r in the witress box together with certain contradictionsy of factval matters fron time to time have caused me to cohelude that I shoulé not

Mr Crawford, who was the General Secretary of the organization at all relevant times, was called to give oral evidence in the proceedings on at least two occasions. No questions were put to him in cross-examination by Counsel representing the applicants in this matter as to the

membership of the organization and its various branches at any

In my view the so called principle of the presumption of continuance does not apply, and indeed should not apply, in relation to the number of members belonging to an organization or its branches at any time subsequent to a certain period in relation to which evidence of such numbers is available which could reasonably be accepted, particularly where the period of

This then means that there was no acceptable evidence before the Court as to the actual membership of the various branches of the organization at the relevant time. Consequently the applicants have failed to prove the existence of an imbalance in the voting strength of the branches at the 1977 Federal Council which fell outside the spectrum referred

to and their claim that the 1977 Council was invalidly

Further, even if the approximate percerrace of urion

mempership as set out in para.19 of Mr Bignell's said

affidavit which show some imbalance in the voting strength of some of the branches were accepted such imbalance, in my view, would not, when considered with other relevant rules of the organization in force in 1977, fall outside the spectrum. As

was stated in McLeish -v- Faure @ 416, "the Court in its

reasons for judgment in McLeish -v~ Kane dealt in some detail

with the vexed questions concerning the spectrum over which rules dealing with the weighting of the voting power at meetings of branch delegates to or mwembers of federal bedies of organizations might validly range (and) the conditions under which a plebiscite of members might be sought on any matter together with rules generally providing for checks and balances." It is unnecessary to repeat those observations. The rules of the present organization have provided for a plebiscite during relevant times. Such rule has been the same for many years and certainly since 1975. (see 1975 r.28, renumbered r-.27 in 1976, renumbered r.26 in 1977) The plebiscite rule provides that in case where the decision of the Federal Council or the Federal Fxecutive 1s disagreed with by a majority of the members of any two branches in any two States, present at a meeting of the respective branches specially called for that purrose the qvestion shall be supmitted to a referendum of the wembers of the organization

ard the decision of those members at suck referendum shall

supersede the decision of the Council or the Erecutive. Purind

this period the branch rules have provided that a branch

ecretary (Chairman) shall corvene a special summoned meetira

~40- of the branch at the written request of any number of members required to constitute a guorum at such meeting. At all

relevant periods a maximum guorum at branch meetings was

Accordingly, the result of the combination of the plebiscite rule and branch rules making provision for the calling of branch meetings is that fifteen members in each of two States are able to requisition a special summoned meeting in each of those States to consider any decision of the Federal Council. If the decision is disagreed with by the majority of members attending each of the two branch meetings then there is an automatic referendum of the whole of the membership of the organization on that question. The result of such referendum is binding on the Federal Council. Consequently it is possible for sixteen members, eight in each of two States, to bring about a Situation where such a referendum be held on any decision of Federal Council (see rr.60 and 65 of 1976 and 1978 rules and r.60 of 1979 rules). Sucn control by members of the Federal Council was, in my view, a proper check to any imbalance in the voting strength of certain branches at Federal Council at that time(re

"Contrel"- see Boland & Aror. -v- Federated Liquor ané@ Allicd

Inéustries Employees Union of Australia, Sweeney J., jvdament 3 April 1979 (not yet reported) cited with approval by Fvatt

anc Yorthrop JJ. in Bolené & Ors -v- Munro & Ors, judament 23

(c) Dad the 1978 r.27(5) give the Federal Council an express

general power to amend rules and, if so, was such sub-rule

I am satisfied that on its proper construction the 1978 r.27(5) conferred an express general power to make or amend the rules of the organization on the Council. In my view it was the intention of the draftsman when omitting the words from the old r.28(5) which read: "so that the rules of the union may comply with the requirements of the Commonwealth Conciliation and Arbitration Act or any similar State Act" that the express power which had been clearly given to the Council to make or amend the rules in order to attain compliance with legislative requirements should be extended so

as to give the Council such express power in regard to rules

that"the first thing to be noted about the provisions of r.28 is that they do not, 1n express terms, confer upon the federal councl1l any general scwer to amend the rules. The provisicns of sub-cl.(l) of r.22 are, in terms, prohibitory: the rul2s shall not be amencec except on a resolution carried by a majority of the courcil. The following three sub-clauses cf

r.-22@ prescribe a serccedure desianed to lead un to the

-42- - consideration by the council of a proposed amendment to the rules. Sub-clause (5) of r.28 dispenses with the need to comply with that prescribed procedure and confers an express power to amend when, and only when, the proposed amendment to the rules is in order to attain compliance with legislative

The removal of the qualification 1n the old r.28(5) brought about a situation that the sub-rule dispensed with the need that the procedures prescribed earlier in r.27 be complied with where and when the Council itself determined that a rule amendment should be effected. Members could still, 1£ they so desired, submit proposals for rule amendments under and in accordance with sub-r.(2)}. In my opinion there is no vice in vesting in the body which exercises "the supreme control" of the organization (see r.22, 1976 rules renumbered r.21 ain 1978 rules) an express general power to amend the rules of the organization especially where all branches are entitled to be represented on such body and where the rules themselves provide readily available controls by the members of the apparent unfettered power in the Council to amend the rules. It has recently been stated by the Court that "it is difficult to think of any subject matter more important in the

affairs of an organization than its own legislative power".

(see Australian Transport Officers' Federation -v- The State NSp' ~

Public Services Federation, N.S.W. Vo.25 of 1989 - judament 13

February 1981 - not yet reported). But, 1n my view, such power

-43- may, if the certified rules so provide, be exercised by the governing body exercising the supreme control of an organization under an express general power to amend its rules if that body is subject to adequate and readily available controls by the members. Neither the Act nor the Regulations made thereunder specifically require that proposed amendments er additions to the rules of any organization be first submitted to branches for their consideration prior to such amendments or additions being raised by way of proposals at a meeting of its rule making body. Reference has been made to the rules providing for the control of the Federal Council of the organization by the members earlier in these reasons and

to the decision in Boland & Anor. -v- Federated Liouer and

Industries Employees Union of Australia (supra) in this

regard. Such rules, in my view, provide adequate control of both the Federal Council and the Federal Executive by the

It must be remembered that any proposal to amend rules that may be forwarded by a branch for consideration of the Federal Council does not have to be adopted by that body. The Council may if 1t so wishes adopt the substance of all or part of such proposal providing the overall substance in the full proposal is not thereby altered. Further, any amendment procedure carries with it an implied restriction that rules

that do not conform with the Act shall not be adopted bry the

rule making body. (see Morris-v- Federated Liaucor and Allie

Industries Employees Union of Australia (1978) 21 A.L.R. 425 @

434). Further, before any amendment becomes effective it must be certified by the Registrar pursuant to s.139(4) of the Act. The Registrar has power to refuse certification of any amendment to rules which, in his opinion, is contrary to the provisions of the Act or the Regulations or which has not been made in accordance with the procedures laid down by the rules. Even after an amendment to a rule is so certified a member has the right to challenge its validity 1n an application brought under s.140 or s.141 and the Court in such an application may make a declaration that such rule or part of such rule contravenes s.140(1). Such a declaration has the effect of rendering that rule void from the date of the order. (s.140(5G) and s.141(8A).). In such a case it is not the rule conferring an express general power to make and alter rules which is contrary to s.140(1) but only the invalid rule which the rule-making body has purported to make.

In all the circumstances I am of the view that the 1978 r.27(5) on its proper construction empowered the Federal Council cf the organization tc make or amend the rules of the organization without proposals for such amendments or alterations being first submitted by a member to his branch for consideration by that brarch and being dealt with in accordance with r.27(2), (3) end (4). Further, in my view, such sub-rule was then not ccntrary to the provisions of

s-140(1)(a) or (c) of the Act for the reasons expressed.

The respondents in this matter further claimed, that if it be determined that the Federal Council at its meeting held on 8-11 August 1978 did not have an express general power to amend the rules of the organization pursuant to r.27(5) then the proposals amending the rules which were adopted at that meeting were validly before the meeting in any event. Having determined that that Council did have an express general power to amend its rules it is unnecessary to make a determination on this aspect of the respondents' claim. However the matter having been fully argued it is considered that a view should be expressed concerning this claim especially in regard to the adoption of the amendments to

It is clear that at the time of the 1978 Council meeting the certified rules of the organization included amendments adopted by both the 1975 and 1977 Federal Councils. Other than the amendment to old r.28(5) by the 1977 Council which was certified on 1 February 1978, none of the rule amendments adopted by either the 1975 or the 1977 Federal Council have been challenged by the apnjJicants herein. Further, no claim was made by the applicants that the 1975 Council was invalidly constituted. As T read the peints of claim the applicants did challenge the constitution cf the

1977 Council which challenge has been determined against them

Further, it has to be remembered that the 1978 Pederal Council Meeting was a special meeting of Federal Council convened primarily to consider rule amendments

following the decision of the Court in Roots ~v- Mutton

(supra) on 21 March 1978. The Court in that case stated that "the rules (of the organization) appear to be in a somewhat unsatisfactory state and will inevitably present further difficulties of interpretation both to members and officers and, in event of dispute, to the Court. It is clearly desirable that steps be taken, aS soon as practicable to

After consultation between the President of the organization and the General-Secretary and on the advice of Mr Ryan, Solicitor of Ryan, Carisle, Needham and Thomas, solicitors for the organization a decision was taken by the Federal Executive in accordance with the then rules that a special Federal Council meeting be convened for 8 August 1978. Accordingly on 9 May 197€ all branch secretaries were advised by letter from the General-Secretary of the history leading up to the purported suspension of Mr Roots on l November 1977,

the decision of the Court in Roots -v- Mutton and that a

special meeting of Council was to be beld on 8 August 1378 to consider rule amendments including amendments to the then r.36

dealing with the powers of the Federal Fxecutive. Branches

were requested "to hold special summoned meetings in accordance with the rules for the purpose of enabling any member through his branch to submit proposals to alter any of the rules" of the organization. The letter went on to point out that the holding of such branch meetings "will give every branch and all members of the union the opportunity to consider (for themselves) the unions rules and to make their recommendations for changes to them", The General Secretary an the last paragraph of his letter went on to say "I enclose for the use of the branch a copy of the rules of the union certified by the Industrial Registrar on 16 March 1978 and

also a copy of the decision of the Federal Court in Root's

Thereafter on 29 May 1978 at a special summoned General Meeting of the Melbourne Branch of the organization resolutions were passed adopting proposals for amendments to the rules including r.29 dealing with the dismissal of any officer or member of the Federal Council, r.21(3)(e) dealing with the power of the Council to remove any officer at any time in accordance with the rules and r.51 dealing with the removal from office of any branch officer. Such resolutions were forwarded to Head Office in accordance with r.27(3) and were included in the agenda for the meeting of Federal Council

-48- the West Australian Branch of the organization was held. The minutes of that meeting show that a proposal was adopted "to amend r.36 and that such proposal be placed on the agenda for the special meeting of the Federal Council be held on 8 August". The proposed amendment to r.36 is then set out in full in the minutes and is in terms identical to those of r.36 as certified on 1 February 1978 following the 1977 Council Meeting. In addition that West Australian Branch Meeting passed a resolution as follows: "This meeting re-endorses the Federal Council's decisions for the alteration of rules carried at the 1975 Council Meeting held in Brisbane and the 1977 Council Meeting held in Newcastle. These rules to be forwarded to be included in the agenda of the August 1978 Council Meeting." Then set out in the minutes is a list of forty-six rule numbers and headings. These correspond with the amendments certified following the Federal Council Meetings in 1975 and 1977. Both resolutions were forwarded to Head Office pursuant to r.27(3) and later were incorporated in the agenda

for the Federal Council meeting to be held on 8 August 1978.

The agenda for that meeting was tendered in evidence. In the introduction is set out the resolution carried at the special summoned meeting of the West Australian Branch referred to in the last paragraph above and a note which states: "Accordingly these said rule amendments have been put on the agenda in itallics for the convenience of Councillers,

rule changes carried at special summoned meetinas in different

type". Included in such agenda was the proposal, set out fully, from the West Australian Branch that r.36 be amended. In addition to the said proposals from the Melbourne and West Australian Branches referred to, other proposals ,for rule amendments from the Melbourne Branch and other branches which are not relevant to the matter presently under discussion were

Between the time of the compilation of the agenda for the 1978 Federal Council Meeting and the 8 August 1978, the commencing date of that meeting, a document was prepared in which composite proposals for rule amendments for the consideration of the Council were set out. This document is Known as document P, reference to which has been made earlier herein. Included in those proposals were proposals to amend r.13 and the then r.36 in the form of the amendments to those rules (together with the renumbering of r.36 to 1.35) which were subsequently adopted by Council on 10 August 1978 and certified by the Registrar under s.139(4) on 18 January 1979. Relevant parts of these two rules have been set out earlier

been vrior to 1@ January 1979 headed "Fines ard Chrarces" has

-50- since at least 1975 provided for the laying of charges by a member against another member alleging that that member has committed one or more of several specified offences set out in r.13(1). The rule lays down the procedure for the making of such charge in writing to the Secretary of the branch to which the member charged is attached, its hearing before the Committee of Management of that branch together with the right of appeal by either party from the decision of that committee

to the Federal Executive or the Council held thereafter.

Prior to two amendments to r.13 adopted by the 1977 Counc1l being certified on 1 February 1978, the only penalty provided for in the rule was a fine. The first of such amendments provided that in addition to such fine a member found guilty of such an offence could also be expelled from the organization. The other amendment added a sub-r.(6) to the rule which provided that any member shall have the right to lay a charge against any member or officer direct to the General Secretary and/or President and in that case the charge was to be dealt with by the Federal Executive under "r.36.12". Sub~-r.36.i2 which was also adopted by the 1977 Federal Council and certified on 1 February 1978 gave the Executive the power to suspend from office or impose a fine upon any member who

was found guilty of certain specified offences set out in

The 19°77 Federal Council further amended the rules

-5l- by deleting r.20 which had provided for the expulsion of a member from the organization. Reference 1s made to that rule later herein when the history of the rules dealing with

expulsion from membership is more fully considered.

The proposal before the 1978 Council to amend r.13 set out in document R commenced "that the present r.13 be deleted and the following new rule be inserted in IJlieu thereof". Thereafter the proposed new rule was set out under a new heading "Offences and Charges". The new rule was in the same terms as r.13 adopted at the 1977 Federal Council and certified on 1 February 1978 other than alterations which are now considered. Such proposal was adopted by the 1978 Federal

Although r.13 as adopted by the 1978 Council still only made provision for the expulsion of or the imposition of a fine on a member by the Committee of Management of the Branch to which the member was attached, the introductory words to such amended rule were altered to include a proviso to the effect that no member elected to an office shall be dismissed from any office unless he has been found guilty in accordance with the rules of any matter then set out, being matters identical to those referred to in s.133(1)(£) of the Act. Apparently such proviso was inserted to limit the penalty that might be imposed on a member who was the holder

of any office within the organization to a fine only where the

-52- offence with which he had been charged was one set out in r.13 but was not one referred to in s.133(1)(£) on the basis that the imposition of a penalty of expulsion from membership upon such a member would necessarily carry with 1t a dismissal from

such office and accordingly be invalid as being contrary to

The further amendment to r.13 adopted by the 1978 Council was the substituting in sub-r.(6) of the figure 35 for the figures 36.12. It is clear, in my view, that this amendment is purely machinery. The reference to "Rule 36.12" in the rule as adopted by the 1977 Council was merely a reference to the particular rule making provision for an Executive of the Council and certain of its powers. The reference to "Rule 35" in r.13(6) as adopted by the 1978

In my view the alterations to r.13 made by the 1978 Council (assuming that such Council was validiv constituted) were validly adopted by that body even without an express general power to amend rules that may have been given to the Council by r.27(5). Such alterations to the heading, the add@ition of the words referred to in the intrcductory words to the rule and the substitution of "Rule 35" fer "Rule 36.12" are in my view merely a redraftinag or a re-editing of the rule for the sake of clarity or for machinery purposes only which

ian no way altered the substance of the rule. As sucn, they

~53- are not amendments to the rules of the type referred to in r.27(2) which necessarily were reguired to have been

considered by a branch prior to adoption by the Council. (cf.

Morris -v~ Federated Liquor and Allied Industries Employees

Union of Australia 21 A.L.R. 425, Boland and Anor. -v-

Federated Liquor and Allied Industries Employees Union of

Australia (supra) and Boland and Ors. -v- Munro and Ors

(supra).). This being so the inclusion of the proposal to delete r.13 and substitute what 1s termed the new r.13 in document R was not necessarily dependent upon the purported proposal to amend that rule forwarded by the West Australian branch following its meeting on 24 May 1978 and it is unnecessary in all the circumstances to determine whether such proposal to re-endorse earlier amendments to the rules was a proposal to amend rules within the meaning of r.27(2) and (3). If it were so necessary, then I am of the view that even if the purported proposal from the West Australian Branch was a proposal within the meaning of r.27(2) then it would not be a valid proposal as the notice convening the meeting of the West Australian Branch on 24 May 1978 was not a valid notice under

that sub-rule for the reasons later expressed herein

The proposal to amend and renumber this rule as r.35

as set out in dccument R was adopted by the 1978 Council

without amendment. Such proposal differed materially in certain relevant respects to that proposed by the West Australian Branch following its meeting on ?4 May 1978. Relévant variations were that sub-rr.1l and 12(a) and (b) of the West Australian Branch proposal to amend r.36 were deleted from the proposal in document R. Sub-r.12(a) was identical to

the certified sub-r.12(a) which the Court in Roots ~v- Mutton

had held to have been invalidly adopted by the 1975 Federal Council. The West Australian proposal to amend r.36(12)(b) was in identical terms to that paragraph which formed part of the proposal to amend r.36 that had been forwarded by the Queensland Branch for the consideration of the 1975 Council

Meeting which had been held by the Court in Roots -v- Mutton

not to have been validly before the 1975 Council Meetang. Although no specific reference is made to r.36(12)(b) in that decision it was apparently considered by the draftsman of document R that that paragraph of sub-r.12 also had been ruled

invalid by the Court which determined Reots -v- Mutton for the

same reasons that r.36(12)(a) had been held to be invalid.

Accordingly what the draftsman of the proposal to amend r.36 as set out in document R did so far as is relevant to this proceeding was to insert new suo-r.(10) as set out earlier herein and sub-r.(11) which reads:

35.-FEDERAL EXECUTIVF "(1l) ... to... (10) (11) The Federal Fxecutive shall have all powers of Council between meetircs of the Council. All acts of the Federal Fxecutive done in pursuance of the powers cranted by

-55- these Rules shall have full force and effect and be of full validity until such acts shall

be confirmed or otherwise dealt with by the next ensuing meeting of the Council."

No claim was made that a proposal had been submitted from any branch during 1978 to amend r.36 expressly in the form of the proposals set out in document R and in particular the deletion of r.36.12 and the insertion of r.35(10) and

Dealing first with the proposal to adopt sub-r.35(11): this is in identical terms with those of r.36(12)(b), certified following the 1975 Council Meeting. The basis for placing the proposal to adopt this paragraph of that sub-rule before the 1978 Council in document R was the proposal from Western Australia which dealt with amendments to r.36 as a separate item and not merely as the proposal to "re-endorse" the earlier decisions of the 1975 and 1977 Councils to amend the rules referred to earlier herein. If the West Australian meetina of 24 May 1978 was a validly convened meeting within the meaning of r.27(2) (as to which see later herein) then this proposal was validly before the 1978

Turning then to the proposal in docurent R to adopt r-35(10). It is clear that the powers given in r.35(10)(d) to

the Federal Executive are more extensive than the powers of

that body referred to in the proposed amendment to r.36(12)(a) which had been forwarded from the West Australian Branch following its meeting of 24 May 1978. That proposal dealt only with the power of the Executive to suspend any member from office or to impose a fine under certain circumstances. Rule 35(10)(d) as proposed in document R gave to the Executive not only the power to suspend any officer pending investigation and to impose a fine but if adopted and certified would empower that body to dismiss any officer found guilty of certain charges of the type referred to in s.133(1)(£) and also to expel any member from the Organization. Clearly such proposals could not have been founded on the proposal to amend r.36 passed by the West

As has been pointed out earlier in these reasons, the respondents herein claim that the proposals set out in document R were but a redrafting and renumbering of earlier certified rules without alteration to the substance of those rules together with amendments including the substance of new proposals forwarded for consideration of the 1978 Council from meetings of certain branches held after 4 May 1978. In effect it was claimed that the 1978 Council in addition to so redraftinag and renumbering certified rules could adert resolutions incorporating part or parts cf such a vroposal or proposals in conjunction with provisions already to be found

an the certified rules as long as the substance of the

proposal and the certified rules into which the prorosals were to be incorporated, or vice versa, were not departed from. Consideration is given to this claim of the respondents in respect of the proposals to amend old r.36(12) to the form of renumbered r.35(10)(d) and r.35(11) in document R as fully set out earlier herein. Such consideration involves an examination of former rules dealing with dismissal from office

History of rules providing for dismissal frem office

Prior to 1975 the rules provided for dismissal of officers under certain circumstances. The Federal Council had power to remove from office any officer or member of the

Council named in a resolution before it who was alleged to be not performing his duties in a proper manner etc. (r.3l Ex.9). In such a case no direct appeal was provided for but the Council decision could be overruled by referendum of the whole membership of the Union (r.28 Ex.9). A Branch officer under certain circumstances might have at that time been dismissed from office by the branch Committee of Management and in such @ case the dismissed officer could appeal to a special summoned meeting of the branch (see r.52 Fx 9). In October 19735 r.20A - Dismissal from office ~ was adorted by a postal Dallot of the Council in accordance with the then rules in

order to comply with s.133(1)(f) of the Act which had come

-58- into force some time earlier. This new rule, which was certified on 3 February 1976, provided that notwithstanding anything to the contrary in the rules, a person elected to any office shall not be dismissed from office unless he is found guilty of certain specified offences which followed the

The 1975 Federal Council which was held at Brisbane on 10 - 14 November of that year adopted a proposal which had been forwarded by the Newcastle Branch to amend the then r.22(6) by inserting therein a para (c). Sub-r.22(6) set out the powers of the Federal Council. That amendment provided that those powers include a power to "empower the Federal Executive to take .... appropriate action including the dismissal from office of any member elected to any office of the union who has been found guilty" of certain offences

In addition the 1975 Federal Council, pursuant to a proposal forwarded from the Newcastle Branch adopted an amendment to the then r.28 - Decisions of Council (renumbered

"*all decisions of the Council and/or Council Executive shall be binding on the members and BRrancres of the Union.

'Any Branch or member that deliberately fails to carry out the decisions of Council and/or Council Fxecutive shall be open to penalty and/or removal from Cffice as may be decided by Council and/or the Branch concerned."

The amendment further made provision for the referendum referred to earlier in these reasons, such provision being in terms identical with the earlier rule except that decisions which could be reviewed by the whole of the membership were those of both the Council and the

Such amendments to r.22(6)(c) and r.27 were certified

The 1977 Federal Council at its meeting held in September repealed r.20A; renumbered r.22 as r.21 but made no amendment to r.22(6)(c): made no amendment to r.27 bvt renumbered it r.26 and amended both r.30 (renumbering to r.29

• formerly r.3l Ex.9) and r.51, the then rules dealing with Council and Branch office vacancies respectively, limiting the grounds for dismissal from office of any officer to those provided for in s.133(1I)(f). The amendments made by the 1977

Council were certified by the Registrar on 1 February 1978.

Accora@ingly the respondents claimed that immediately prior to the 1978 Council Meeting the certified rules provided for the dismissal frem office of any officer of the organization. The power to dismiss an officer or member of

Federal Council was in the Council (r.29 formerly r.31) whilst

the power of dismissal of branch officers was in the Committee of Management of the branch to which that officer was attached (r.51). Further at that time the Federal Council had pursuant to 4r.22(6)(c) referred to above the power to empower the Federal Executive to dismiss from office any member elected to any office found guilty of "misappropriation of the union funds or a substantial breach of the rules of the union or gross misbehaviour or gross neglect of duty or has ceased, according to the rules of the union, to be eligible to hold

Further, for completeness, reference is made to proposals to amend both the then r.29 and the then r.51l adopted by the meeting of the Melbourne Branch held on 29 May 1978 and subsequently included in the agenda for the consideration of the 1978 Council. Parts of those proposals were incorporated in document R which were adopted by the Council and certified on 18 January 1979. The respondents placed no reliance on such proposals for proposals to be found in document R that the Executive have the power to hear an appeal from a decision of the Branch Committee of Management given under r.51 as was adopted by Council and certified as part of r.35(19)(a) or the power to dismiss any officer under

History of rules providina for exnulsion from merbershio

Prior to 1977 r.20 of the certified rules provided for the expulsion of a member who "refused to abide by and conform with the rules or resolutions of the branch to which he was attached or of the Council or who violates any essential principle of unionism". Such expulsion may have come about after due inguiry upon a recommendation of the Committee of Management or resolution of the branch being agreed to by a majority of the members present at any summoned meeting. Any member so expelled had the right to appeal to

The 1977 Federal Council repealed r.20 and amended r.13 to give the Branch Committee of Management a power to expel any branch member found guilty of an offence set out in r.13(1) and further to give any member the right to lay a charge direct to the General Secretary and/or President against any member which charge was to be heard by the Federal

Further the certified rules had for many years and certainly prior to 1975 included a rule allowing for appeals to the Federal Executive of charges laid by a member under r.13(1) so that the addition of a pewer to expel in r.13(1) following the 1977 Federal Council meeting meant that the Federal Fxecutive had thereby been empowered to expel a member

when dealing with a charae on appeal under r.13(4).

-62- None of the rule amendments adopted by the 1977 Federal Council (other than that to r.28(5) which has been

considered earlier herein) has been challenged by the

Accordingly the respondents argued that the adoption by the 1978 Federal Council of the amendment to r.35(10)({d) (iv) was no more than the redrafting or repetition of the power to expel which the Executive had prior to that meeting. As such expulsion would carry with it dismissal from office (if any) of the member then the charge in such case

would have to be one alleging conduct which a valid rule (that is a rule that did not contravene s.133(1)(£)) made liable to

To summarise, the effect of relevant rules after the adoption by the 1978 Federal Council of the proposals in

document R (which amendments were certified on 18 January

(i) The power of the Branch Committee of Management to expel and/or fine any member attached to that Pranch who 1s found guilty by such Committee of any of the offences set cut in r.13(1) was unchanged, both the member layina the charge

and the member charged having the right of avreal to the

(i1) A reference was included in r.13(1) to the fact that any officer could only be dismissed from office on certain grounds set out which conformed with the provisions of

and (1ii) retained in r.13(6) the right of a member to lay a charge against any member or officer direct to the General Secretary and/or President, which charge was to be heard by the Federal Executive under r.35, the rule providing

Former r.21(6)(c) which had given the power to Council to empower the Executive to dismiss any officer from

office on grounds complying with s.133(1)(f) was repealed.

C. Rule 29(4) - Removal of Council Members and Officers

The power of removal of any officer or member of the Federal Council under the circumstances set out in r.29(4)(a)

was left with the Federal Council with no rigrt of apveal.

D. Rule 51 + Removal of Branch Officers and members of Branch

The power of removal of such officer or member was left with the Branch Committee of Management (r.51(3)(a)) with the right of appeal to the Federal Executive (r.51(3)({c)).

Such right of appeal apparently extended to both the member

This rule gave to the Federal Executive the power under (a) to hear and determine an appeal by any member or officer lodged pursuant to r.13(4) (Expulsion and/or fine)or

(b) to hear and determine charges laid against any member

direct to the General Secretary and/or President under

and (d) in the exercise of those powers gave to the Executive the power to suspend an officer pending investigation and to

impose a penalty of either a fine, dismissal from office or

F. Rule 35(11) gave to the Federal Fxecutive all powers of

Council between meetings of Council and all acts done by it

under this power "shall have full ferce and effect and he o

full validity until confirmed or otherwise dealt with by the

The respondents' argument supporting the validity of the proposals in document R (independent of an express general power in the Council to amend rules) in relation to the granting to the Federal Executive the power to dismiss from office any officer found guilty by it of an offence which fell within those referred to in s.133(1)(f£) of the Act was simply that the Federal Council had but exercised its power under the then r.21(6)(c) to empower the Federal Executive to do what was specifically permitted by that sub-rule or a repetition of the implied power in r.13 to dismiss from office an officer found guilty of conduct constituting an offence under r.13(1) (which conduct was of the type referred to in s.133(1)(f) and set out in the proviso in r.13(1)) when imposing the penalty

of expulsion on a member who was the holder of office.

In my view, it is a valid argument that the proposal to amend r.35(10)(d)(iii) as set out in document R was simply a proposal to exercise the power given to Council under the old r.21(6)(c). It is significant that r.21(6)(c) was at the same time deleted from the new r.21(3) proposed in document R

Although not directly relevant to this proceedine it is noted that there was in document P a proposal to delete r.51 and substitute a new r.5l. This proposal which was adopted by the 1978 Council was partly in the terms of a

proposal from the Melbourne Branch adopted by its meetinag held

-66- on 29 May 1978. It will be remembered that the certified r.51l as at August 1978 gave the power of removal from office of a Branch Officer to that Branch's Committee of Management and provided for the right of appeal from the Committee's decision to a special summoned meeting of the Branch concerned (then yr.51(2)(viii)(ix) and (x)) with the final determination of the matter being possibly the result of a vote of the whole of the members of that Branch (then r.51(2)(x) and (xi)). The said proposal from the Melbourne Branch consisted of sub-rr.(1),(2) and (3)(a) and (b). Sub-rule 3 (a) and (b) provided for the removal of any officer or member of a branch Committee of Management following a hearing of a charge by that Branch's Committee of Management. No provision for an appeal from such Gecision was provided for at all in the proposal. Such proposal was included in the agenda prepared for the 1978 Federal Council Meeting and was included in toto in document R. But there was added a para.(c) to sub-rule (3) in document R which provided for an appeal from the decision of the Committee of Management to the Federal Executive. It would appear that the proposal to add r.51(3)(c) in document R had not been forwarded by any Branch in 1978. Included in the proposal to amend r.35 in document R was an amendment to r.35(10)(a) to give the Executive the power to hear and determine an appeal lodged pursuant to r.51(3). Roth proposals to amend rr.51 and 35(10)(a) set out in document R were adopted without amendment by the 1978 Council and Later

certified. It should be remembered that consideration is now

being given to the respondents' claim that the proposals in document R to amend r.35(10) were merely a redrafting of certified rules as at August 1978 incorporating proposals from the Branches forwarded under r.27(2) and (3) for the

In my view there was no basis (other than an express general power in the Council to amend rules) for the addition of para.(c) to sub-r.(3) in the proposal to amend r.51 forwarded from the Melbourne Branch after its meeting on 29 May 1978. The certified rules immediately prior to August 1978 made provision that any appeal from the decision of the Branch Committee of Management would be internal to the Branch itself. No doubt the failure to make provision for any appeal in the proposal submitted from the Melbourne Branch was an oversight but the substitution of an appeal to the Federal Executive in lieu of such internal appeal is not simply a redrafting of the certified rules. Further the respondents do not claim that the words "or Rule 51(3)" in r.35(10)(a) are essential to their argument that the proposal in document P to amendment r.35(10)(d)(2i1) was a valid redrafting of the powers to be found in the certified rules and incorporating therein proposals that had been forwarded by branches durina 1978. Nor does the inclusion of the words "or Rule 51(3)" affect that argument. But it is clear that 1f there was no express general power to amend rules in the Council in August

1978 tre right to appeal provided for in r.51(3){c} and the

-68- - power given to the Executive to hear an appeal under r.51(3) in r.35(10)(a) would be invalid and accordingly the Executive would have no power to hear such an appeal and of course would

Reference is made to r.35(11) on which some reliance has been placed by the respondents in support of their argument presently under discussion. It was claimed that this sub-rule would have empowered the Executive on 1-2 May 1979 with the power of the Council provided for in r.21(3)(e) which provides that the Council may remove any officer at any time

The proposal to adopt r.35(11) as set out in document R could only have come from the proposal from the West

Australian Branch held on 24 May 1978 to amend r.36. The

Court in Roots -v- Mutton (supra) had determined that

certified r.36(12)(which ancluded a paragraph in identical terms to r.35(11)) was invalid as the proposal to adopt that

sub-rule had not been validly before the 1975 Council.

The applicants' claim that the meeting cf the West Australian Branch of the organization held on 24 May 1978 was not a "meeting specially convened for the purpose" within the meaning of r.27(2) as the notice calling the meeting did not

specifically state that the question of amendments to the

~69- rules was to be considered by the meeting. Such notice which

had been inserted in a newspaper circulating in Western

PLUMBERS & GASFITTERS EMPLOYERS' UNION OF AUSTRALIA,

A SPECIAL SUMMONED MEETING is called prior to the normal Monthly Meeting in May to deal with Agenda Items to be forwarded to Head Office for the Special Federal Council meeting to be held in Melbourne on the 8th August 1978. SPECIAL SUMMONED MEETING - Wednesday 24th May "78 at 7.00 p.m. Perth Trades Hall.

The respondents argued that the particulars set out in the notice were sufficient to comply with r.27(2) as the referance, in. the ngtice to "agenda items to be forwarded to Head Office for special Federal Council meeting" would indicate to members who were familiar with the rules of the organization that such items necessarily meant prerposals for rule amendments whilst members who were not so familar with the rules but who were interested at all would enquire as to

what such reference meant. This argument is rejected.

The Court has held that the provisions of r.27(2) are mandatory (Roots -v- Mutton(supra)). In my view the sub-rule requires that the notice convening a meeting to consider proposals for amendments to the rules must state that fact clearly to enable any member receiving it to determine in his own interest whether or not he ought attend the meeting. It has been said that a notice of meeting is not to be given a benevolent construction. The test is whether it gives members fair warning of the matters to be dealt with by the meeting

(Ryan -v- Edna May Junction Gold Mining Company No Liability

(1916) 21 C.L.R. 487; Joske, The Law and Procedure at

Meetings, 6th Edition, p.129-131). Clearly such notice did not

give members a fair warning that rule amendments were to be

The organization through Mr Crawford in matter V 24 of 1979 has 'sought. validating orders pursuant to s.171C should the Court determine that the notice convening the meeting of the West Australian Branch on 24 May 1978 was invalid. I am Sf the view that as r.27(2) is mandatory, the failure to clearly indicate in the notice convening a meeting of members at which proposals for rule changes were to be considered the purpose of such meeting is an invalidity within the meaning of s-171C(i), but being an invalidity goina to the very basis of the meeting, is such that the Court should not, in the

exercise of its discretion, validate under the provisions of

s.171C(2) unless there is clear evidence that a validatirg

-71l- order would not do substantial injustice to the organization or to any member. No such evidence has been placed before the

Court and the said application in this regard is rejected.

Accordingly, in so far as the proposal to amend r.35(11) as set out in document R is dependent upon the proposal to amend old r.36 forwarded by the West Australian Branch following its meeting held 24 May 1978 then = such

Turning then to the amendment to r.35(10)(4) (av) giving power to the Executive to expel. Again, it was not claimed by the respondents that the proposal in document R in this regard had been forwarded during 1978 by any branch for consideration by the 1978 Council. Leaving aside the question of an express general power in the Council to amend rules, the proposal, it was claimed, was valid as being merely a re-drafting of a power to expel already given to the Executive

The only certified rule in-this regard was the then r.13(4). Tf xr.35(10)(d)(1v) was limited to appeals to the Executive pursuant to r.13(4) then the sub-rule could readily be said to be simply a repetition in r.35 of the power in r.13. Puc the sub-rule 1s not stated to be so limited. Tt has been pointed out earlier in these reasons that r.51(3)

providing for an appeal to the Executive from a decision of a

branch Committee of Management dealing with any branch officer or member of the Committee, assuming that there is no express general power in the Council to amend the rules, was invalidly adopted but in that case the reference in r.35(10)(a) to "rule

But is the power that was and still is given to the Executive to expel any member on the hearing of an appeal under r.13(4) the same power to expel given to the Executive under r.35(10)(d)(iv) on the hearing of 'a charge made against a member direct to the General Secretary and/or President under r.13(6). In the latter case the member charged of course is denied the chance to have his case heard by his branch Committee of Management with the right of appeal to the Executive. But does this mean that the power in the Executive to expel the member charged is a different power in each case. In my view, the answer is no. The procedure as to how the matter comes before the Executive may be different but the power to expel is the same in both cases. Accordingly, I am of the opinion that the proposal in document R to so amend r.35(10)(d)(av) could be supported if necessary as being

merely a redrafting of the power of the Executive to expel

The respondents further argued that the acts of proposing and adopting the relevant rule amendments in fact

adopted by the 1978 Council were valid in any event under the

provisions of s.171B of the Act. This argument is reyected for the reasons already expressed concerning that section in relation to the adoption of the rule amendment to r.27(5) by

Reference is also made to the points of defence filed by the respondents herein where reliance was placed on the provisions of s.171F of the Act to validate the adoption of rule amendments by the 1975 Federal Council, it being claimed that during the hearing of this matter a period of four years had lapsed from the date of that meeting, namely 10-14 November 1975. During the hearing the applicants did not challenge the 1975 Council or amendments to rules adopted thereat so this point of defence turned out to be unnecessary. Nevertheless it 1s pointed out that in any proceeding the date which determines whether a period of four years has elapsed from the date of the doing of an act referred to in s.171F is

the date when that proceeding commenced (see Egan & Anor. -v-

Harradine & Ors, (supra) @ p.543-4). The present proceeding

was commenced on 31 May 1979. Consequently the respondents could not have obtained any benefit from the provisions of

(BR) Applicants' claim that 1978 Federal Council uinvalidly

The arguments in support of this claim were based on

arguments by the applicants identical to those claiming that the 1977 Federal Council was invalidly constituted. I reject the claim that the 1978 Federal Council was invalidly constituted first, because there is no acceptable evidence before the Court of the number of members in the organization at the relevant time or the number of such members attached to the various branches of the organization, and secondly, even if the membership figures were within the range suggested by Mr Bignell in para.19 of his affidavit sworn 3 September 1979 then I am of the view that any ambalance in the voting strength of the delegates to the 1978 Federal Council was such that it fell within the spectrum referred to in McLeish -v-

Kane (supra) for the reasons earlier expressed in this regard

encerning the 1977 Council. Indeed at that Council the voting strength of the delegates from Victoria had been increased

(C) Applicants' Claim that r.13(6) and r.35(10)(d) as adopted

In his final submissions Counsel for the applicants did not press the claim that r.13(6) was contrary to s.140(1) of the Act. The only paragraph of r.35(10)(d) which was really challenged as being contrary to s.140(1) was r.35(190)(4a) (iv). This challeng2 was made on two grounds; first, that the paragraph imposes upon members conditions,

Obligations or restrictions which, having reaard to the

objects of the Act and the purposes of the registration of the organization under the Act, are oppressive unreasonable and unjust and consequently contravenes s.140(1)(c); and secondly, that the paragraph contravenes s.144 of the Act and accordingly is contrary to s.140(1)(a).

In support of the first argument the applicants claimed that as the paragraph fails to specify the grounds and reasons upon which expulsion is to be based and that as the paragraph is silent as to what conduct by a member could lead to expulsion the rule imposes on members conditions which are

unreasonable or oppressive (see Kenney ~v- Operative Painters

and Decorators Union of Australia (1955) 81 C.A.R. 166 and

cases therein cited, Lasarewitch -v- Australian Rallways Union

(1955) 82 C.A.R- 14, Cassidy -v- Amalgamated Postal Workers

Union (1967) 11 F.L.R. 124 and Wiseman -v- Professional Radio

and Electronics Institute of Australasia (1978) 20 A.L.R.

The respondents on the other hand submitted that the antroductory words to r.35(10)(d) which read "for the purposes of sub-r.(a) and (b)" clearly show that it was in the context of hearing and determinina appeals under r.13(4) or r.51(3) and hearing and determining charges laid direct to the General Secretary under r.13(6) that the power to expel was to be exercised. A member must have had charges laid against him

prior to the Federal Executive considering the question of

expulsion. Consequently, it was argued paragraph (iv) of r.35(10)(d) does not give a general discretionary power of expulsion to the Executive. Further, the rules do contain ascertainable and express conditions to be complied with by all members and which, in default of compliance by a member, could lead to charges being laid against him and the penalty of expulsion being imposed. Those conditions are as set out in r.13(1). In my view paragraph (iv) of r.35(10)(d) is to be read down accordingly and consequently the applicants' claim

The second argument of the applicants that paragraph (iv) of x4.35(10)(d) contravenes s.144 is based upon the decision of the Australian Industrial Court handed down on 20 August 1975 in Lorimer -v- Australian Workers Union Vol. 30

I.I.B. 842. That case was expressly not followed by Sweeney

J. in Kecoh and Federated Clerks Union of Australia, Re; Ex

parte Linehan (1979) 40 F.L.R. 445. ~ Counsel for the applicants submitted that the Court should decline to follow

Keooh's Case and should prefer the decision in Lorimer's Case.

I am of the view that the decision in Keogh's Case in this regard 1s to be preferred. Accordingly the applicants' claim

that 4r.35(10)(d)(iv) contravenes s.144 of the Act and

2. Applicants' Claim that the Executive Counc:] that dealt

with the chaerces on 1 and 2 "fav 1979 iurvalidlyv censtituted

The applicants' points of claim in this regard were (i) the members of the Executive had been elected by and from the 1977 Federal Council; (ii) that that Federal Council was itself invalidly constituted as being "grossly undemocratic and unreflective of the membership" of the organization at

The members of the Fxecutive who heard and determined the charges against each of the five applicants were elected as members of the Federal Executive of the organization by and from the 1977 Federal Council. The Court has already determined that that Council was validly constituted for the reasons expressed earlier herein. Counsel for the applicants in his final submissions did not make any claim that the method of electing the Executive members was invalid. At the time of such election the Act had been amended to allow

Nor was it suggested that the voting strength of members of the Federal Executive was not representative of the percentage of the number of members attached to any particular branch. Indeed no such challenge could have been made in view

of the decision of the Court in McLeish ~v- Kane (supra) @

pp-553-4. All branches were represented on the Federal Executive after the election of its members in 1977. In view of these circumstances it is unnecessary to consider the

provisions of s.141(6) of the Act ain this reaard. That

-78- sub-section provides that an order shall not be made under the section that would have the effect of treating as invalid an election to an office that was completed before the commencement of the proceedings under s.141 unless those procedings were instituted within a period of twelve months commencing on the date of the completion of the election or such further time that the Court may allow under the provisions referred to in that sub-section. Clearly the election of the Executive concerned was completed more than twelve months prior to 31 May 1979, the date of the

Applicants' Claim that the charges were purportedly laid

This part of the applicants' claim 1s to a large extent interwoven with certain particulars given by them in support of the claim that they were denied natural justice which are discussed later herein. I am satisfied that none of the applicants was in fact misled or in any way prejudiced by the omission in the charges of the figure 10 between r.35 and the letter (ad). It will be seen that in the charges reference 1s made to r.35(d). In fact there is no r.35(@) and such reference of course should have been to r.35(10)(@). The only paragraph (d) in r.35 was that in sub-r.(10). The error was carried over into the letter written by the General Secretary

= dated 10 April 1979 to each of the applicants giving them

notice of the meeting of the Executive which was to hear the charges. Further, the charges were not laid under r.35(d) but were in fact laid under r.13(6) and were stated in the charge

Indeed there is a general practice provided in the Commonwealth Crimes Act and the Crimes and Justices Acts in various States in Australia wherein the Court has been given the power to grant leave to the Crown or a prosecutor in criminal matters to amend indictments, informations or summonses if the Court is satisfied that the defendant has not been misled or that the amendment could be made without injustice and/or prejudice (see Commonwealth Crimes Act (1914) s.21A; N.S.W. (1900) Crimes Act s.365; Victoria, Crimes Act (1958) s.372; Queensland, Criminal Code Act (1899) 5.572; West Australia, Criminal Code Act Compilation Act (1913) s.591;

Criminal Code Act Tasmania, Criminal Code Act (1924) s.326.

Accordingly this claim of the applicants is rejected.

Applicants' Claim that they were denied natural justice

Particulars of allegations that the applicants were denied natural justice were (a) the failure to give sufficient particulars of the charges against them: (b) the faarlure by

the Fxecutive to grant each or any of them an adjournment of

the hearing of the charges; (c) that the Federal Fxecutive or

-80- some of its members were biased against one, some or all of the applicants or alternatively there were reasonable grounds of suspicion of bias against such member or members; (d) that there was no evidence placed before the Executive which any reasonable tribunal acting honestly could accept as proving the charges; (e) no reasonable tribunal acting honestly would have held that the charges ex facie or the evidence in support of the charges constituted gross misbehaviour or gross neglect of duty as would justify the dismissal from office within the

The question of the necessity that bodies within organizations registered under the Act when acting as a domestic tribunal hearing a charge against any member of the organization must act according to the requirements of natural Justice has been fully discussed in the judgment of Sweeney and Evatt JJ. in Egan & Anor. -v- Harradine & Ors(supra) @ 526-9. In that case after referring to the Amalgamated

Workers Union -v- Bowen (1948) 77 C.L.R. 601 the Court at

"However, it is clear from the majority judgments in Bowen's Case that while the court dealt with the question whether an opinion had peen fermed that there had been misconduct by ecnsiderinag the question whether the Executive could, as reasonable men, honestly reach the conclusion that the members had been guilty of miscernduct, in dealing with the auestions of natural justice, a different approach was taken ard ain looking at each of the two matters in respect of which 1t was alleged that natural justice had been denied, the

court examined the facts and reached its own conclusions. That, in our opinion, 1s the proper course for us to adopt here."

"The view we take is that in the rules conferring jurisdiction of a quasi-judicial nature upon a body there is to be implied (unless clear language to the contrary appears) a condition precedent to the exercise of the jurisdiction that the body exercising jurisdiction will act according to the requirements of natural justice (Carbines -v- Pittock(1908) V.L.R. 292; Ridge -v- Baldwin (1963) 2 All E.R. 66 @ 81, 102 and 116) and

that it is for this court to decide whether in a particular case those requirements were observed."

and again @ p.529 "We approach this part of the case having

regard to the decision of the High Court in R -v- Commonwealth Conciliation and Arbitration

Commission; Ex parte Angliss Group (1969) 122 C.L.R. 546 @ 552; (1969) A.L.R. 504 @ 506."

The principles referred to are, in my view, still valid

and apply to the present case (see also Cleworth -v- Barrow &

Ors. (1978) 20 A.L.R. 359). As in Egan's Case a statement of the

background to the hearing before the Executive is necessary.

It was stated by Mr Cook, one of the applicants herein that for some years the relationship between the Sydney Branch officials and the respondents herein had been one of "conflict". There certainly was abundant evidence of disagreement hetween those officials and the remaining officials and Councillors of the organization in relation to various subject mattecs

particularly Award policy, canitation fees, the 1ssue cf receirts

~82- for contributions and the visits in late 1978 and early 1979 by Sydney Branch officials to sites within the Newcastle Branch area. The following summary of portion only of the background history concerning those particular subject matters clearly demonstrates such "conflict". It will be seen that most of such

history prior to l May 1979 was of course known to the members of

With few exceptions employed plumbers in New South Wales have been covered by State Awards. For many years up until November 1977 Mr Masterson, who had been issued with "a right of entry card" by the New South Wales Registrar under s.129A of the New South Wales Industrial Arbitration Act, had serviced such awards for members attached to the Newcastle Branch of the organization. The evidence, which is accepted, is that rightly or wrongly from as early as 1954 up until November 1977 he had appeared before the State Industrial Commission at hearings in Newcastle on behalf of such members without objection from Sydney officials. In fact the Sydney Branch officials, who since at least 1975 onwards held themselves out as officials of the State Union, knew and approved of this action by Mr Masterson. This arrangement began (to use a neutral term at this stage), to break down at the end of 1977 and finally care to end in abeut March 1979 when the New South Wales Industrial Registrar was asked by

Sydney Officials to revoke "Mr Masterson's right of entry card.

For some years the policy of the organization had been to seek coverage for its members under a Federal Award or Industrial Agreement made pursuant to the Act. Such policy decisions were taken at Federal Council level. Prior to 1975 the organization had apparently opposed being roped in to certain Federal Awards (e.g. Metal Trades Award) in the belief that such

Awards were not as favourable as it was hoped to eventually

In 1975 certain employer groups made applications to rope in the organization to the National Building Trades Construction Award (NBTC Award)(C1102 and C1439 of 1975). At the 1975 Federal Council in November 1975 it was resolved that the organization would oppose any such roping in application and that pending the serving of logs of claims throughout the various States of Australia would pursue negotiations for agreements under the Act. That Council carried a lengthy formal resolution wherein the organization re-iterated its total opposition to coverage by the NBTC Award. Included in such resolution was a sentence reading: "This union will fight to remain under State Awards and Determinations and continue to strugcle for uniform

plumbers rates, allowances and conditions in all States".

In May 1976 the organization served logs of claim in respect of rorthern New South Wales and Queensland (C2747 of 1976) and on employers in Victoria, South Australis and Tasmania

(C2209 of 1976). On 3 June 1976 a finding of dispute was made in

C2809 of 1976 and the matter was joined to matters C1102 and C1439 of 1975. Thereafter the parties reached agreement entering into an Industrial Agreement known as the Plumbing Trade Construction Agreement (the "Plumbers'' Interstate Agreement" or the "Southern States Agreement") covering employee plumbers in Vactoria, South Australia and Tasmania. Such agreement was certified under the Act and became effective on and from 1 July

Matter C2747 of 1976 (re northern New South Wales and Queensland) came before an Arbitration Commissioner in late May 1976. Because of certain legal difficulties the matter was stood over at the request of the organization. On 26 June 1976 the Federal Executive passed the following resolution: "That this meeting of the Federal Executive commencing in Melbourne on the 25th. June, 1976, directs the General Secretary to request (the Arbitration Commissioner) to withhold or refrain from giving a decision in respect of the Union's Application, C No. 2747 of 1976, to have a dispute found in respect of Queensland and Newcastle Branch areas of this Union, as the Federal Fyecutive are of the firm view 1t would be more beneficial to broaden the scope of application and increase the number of employers to be served." Resolutions were then adopted instructing the General-Secretary to serve logs of claims in Queensland and Western Australia and to take all necessary stens for the purpose of having the terms of the "Plumbers' Interstate Agreement"

applied to plumbers in the Territories of the Commonwealth of

Such logs of claims having been refused notifications of disputes (C3885 and C3386 of 1976) were made to the Arbitration Commission. Hearing of these applications were before the

Commission in August 1976 and again on 13 September 1976.

Print No.D.1016 of 1976 which sets out the determination of the Commission handed down on 24 September 1976 show that Mr Shooter intervened in the proceeding on behalf of the New South Wales Branch of the Plumbers and Gasfitters Fmployees Union of Australia. On that date the Commission declined to make findings of dispute on the basis that the General Secretary of the organization had not been properly authorised to serve the logs in question for the reason that such were contrary to a resolution of the Federal Council referred to above adopted at its meeting in November 1975, the learned Commissioner being of the opinion that when read as a whole there was nothing to substantially qualify the impact of the sentence in such resolution quoted above and the resolution in his opinion declared a preference for staying within the respective State jurisdictions. Having had the advantage of reading the full minutes of the 1975 Council meeting and hearing evidence of other relevant matters 1t 1s clear in my view that that resolution 42d aun fact express the same intention of Councillors which was clearly expressed by the same Councillors in the 1976 Council

resolution set out later herein in regard to the policy of

Following such determination by the Arbitration Commissioner on 24 September 1976 a Special Meeting of the Federal Council was convened for 4 October 1976. Mr Tyler attended as one of the representatives of the Sydney Branch whilst Mr Shooter attended as an observer in accordance with the then rules as Mr Bignell, the other Sydney Branch representative to Council, could not attend. As the Sydney Branch was then not financial within the meaning of the rules it was moved that Mr Tyler be permitted to attend but that Mr Shooter be excluded therefrom. Such motion was carried. At the meeting the General-Secretary reported on the successful negotiation and certification of the "Plumbers' Interstate Agreement" covering plumbers in South Australia, Victoria and Tasmania and the applications and proceedings to flow those improvements into Queensland, New South Wales, Western Australia and the Northern

He further reported that one of the employers' representatives who appeared in matters C3885-6 of 1976 had been assisted by Mr Shooter who had made available to that representative a copy of the minutes of the 1975 Council Meetine which had enabled that representative to submit to the Commission the argument which became the basis for the finding of the Commissioner referred to above and that in fact Mr Shooter had

supported the employers' repres epee rve submissions. The me.

~87- General-Secretary then pointed out to the Council that the end result was that vast amounts of members' money which had been

expended supporting the logs of claim had been lost.

The 1976 Council then adopted a nine point resolution in

"}. Council notes the report of the General Secretary and the decision of (the Commission) in matters C. No. 3385 of 1976 and C. No. 3386 of 1976.

2. This Union has resisted attempts by various employer organizations to rope this Union into a number of sub-standard Federal Awards which would have had the effect of reducing Plumbers' wage rates, allowances and conditions of employment.

3. The Federal Council Meeting of the Plumbers and Gasfitters Fmployees' Union of Australia held in Brisbane on Tuesday, llth. November, 1975, condemned the Master Builders' and Master Plumbers' Associations for their failure to genuinely negotiate a satisfactory inter-State agreement for plumbers.

4. The Employers had caused the break down in negotiations by putting forward proposals that would worsen conditions of employment for plumbers in some States and by refusing to agree to uniform Plumbers' allowances.

The Federal Council was not opposed to entering into an inter-State agreement under the Conciliation and Arbitration Act, provided its terms were satisfactory and Council did not intend that its decision should be read as prohibiting or as failing to authorise such a settlement of the dispute. It regrets that it has been so misinterpreted.

Council hereby annuls any decisions whatsoever and whenever they may have been taken which are contrary to or inconsistent with the decisions 1t now records.

Council declares that the wages and conditions of employment for plumbers in all States and Territories shall be fixed by and contained in agreements and/or awards under the Australian Conciliation and Arbitration Act.

successful campaign which resulted in substantial increases to members as a result of the Plumbing Trade Construction Agreement in the States of South Australia, Tasmania and Victoria. It endorses and approves all action that has been taken which has led to the certification of the Agreement by the Commissioner under the Conciliation and Arbitration Act.

9. Council directs the General Secretary and officials of the Union in all Branches to acquaint all members with all the information and to take all necessary action to extend as a minimum the Plumbing Trade Construction Agreement throughout all States and the Northern Territory and the Australian Capital

The 1976 Council then adopted a Letter of Demand and a Log of Claims and directed the General Secretary to serve them upon employers in Western Australia, Queensland, Newcastle Branch area and the Northern Territory. Thereafter logs of claims against employers in Queensland, northern New South Wales, Western Australia and the Northern Territory were again served. After such claims were refused fresh notifications of disputes were lodged with the Arbitration Commission (C3907 and C3908 of 1976). In late October 1976 the Commission found disputes existed and a programme for hearing such disputes was arranged. The following was the order of hearing of the claims: Queensland, Western Australia,

northern New South Wales and finally the Territories.

• After several days of hearing both in Queensland ard Western Australia, all proceedings were stood over pendina the

hearing in the Australian Industrial Court of a rule to shew

cause (B No.75 of 1976) which had been taken out by Mr Bignell on 8 November 1976 pursuant to s.141 of the Act wherein Mr Crawford and Ors. were named as respondents. Mr Bignell's claim was that the Executive which met on 25-26 June 1976 and which purported to instruct Mr Crawford to serve the logs of claims leading up to applications C3885 and C3886 of 1976 was invalidly constituted as its members had been elected in 1975 by a Federal Council from which Sydney Branch delegates had been excluded. On 8 December 1976 the Australian Industrial Court (Nimmo, Franki and St. John J.J.) discharged the rule

Thereafter the proceedings in C.3907-8 of 1976 continued before the Commission. In mid-April 1977 an interim Award was made to apply in the State of Queensland effective from April 1977. In May 1977 the parties agreed in relation

to Western Australia and subsequently an interim Award was

The hearing of the claim in respect of employers in the northern New South Wales area (Newcastle Pranch area) then commenced. Mr Buchanan of Counsel had intervened on behalf of the New South Wales Branch of the Plumbers and CGasfitters Fmployees Union of Australia. After several days hearing spread over some weeks Mr Buchanan raised arguments under s.41(1)(d} of the Act including the argument that if the

Commisston made an award in the matter there would be two

awards operating in New South Wales, one a Federal Award and one a State Award, side by side. This argument was accepted by the learned Commissioner and the claim in regard to

northern New South Wales was formerly refused in January 1978.

Certain matters re Federal Award coverage occuring after 1-2

Evidence of certain matters which occurred on and after 2 May 1979 (the date of the findings of guilt of the applicants made by the Federal Executive) was accepted into evidence over objection on the basis (inter alia) that such matters may be relevant to the exercise by the Court of its discretion (1f any) in refusing to make an order in favour of the applicants under s.141 or in making validating orders under Part IX A of the Act and further, in view of the points of defence filed by the respondents herein, particularly the defence that at the date of the commencement of this proceeding the five charged applicants were not then members of the organization as each of them had by their conduct impliedly resigned from the organization or had repudiated the contracts between themselves and the organization in which event an election by the organization to treat such contracts as at an end may subsequently be justified by reference to facts of which the organization was unaware at the time when

zt accepted such repudiations. (cf.Shepherd -~v- Felt and

Textiles of Australia Limited (1931) 45 C.L.R. 359 @ 370-1 and

Elder's Trustee & Executor Co. Limited -v- Commonwealth Homes

and Investment Co. Limited (1941) 65 C.L.R. 605 @ 616.).

Such evidence in regard to the question of Federal Award coverage demonstrates that it was determined by the Federal Executive in May 1979 that fresh logs of claims be made against employers in the whole of New South Wales and certain employers in Victoria in the border area of New South Wales at Albury/Wodonga and certain employers in the border area of Queensland. Such claims having again been refused notification of dispute was made once again to the Arbitration Commission (C1140 of 1979). Mr Buchanan of Counsel intervened in those proceedings on behalf of what was termed by Mr Crawford in his evidence before this Court, "the State Union". On 6 September 1979 Deputy President Alley found a dispute existed. On 14 November 1979 Mr Buchanan indicated that his client, the State Union, would be raising s.41{1)(d) points when the matter was next listed for hearing. In March 1980 Denuty President Alley made certain orders during which he confirmed his finding of a dispute in the matter. What then happened is a matter of record but it 1s noted by the Court that an application by the State Union against the decision of Deputy President Alley made in Marcn 1980 (which decision was upheld by the Full Bench of the Arbitration Commission) 1s

It will be seen that at present the organization has

successfully obtained, either by way of settlement or by way of interim Awards pending negotiations, Federal Award coverage in Queensland, Western Australia, Victoria, South Australia and Tasmania. There is no evidence before the Court as to the Northern Territory. In addition there are throughout New South Wales some Federal Awards such as the Fire Sprinkler Fitters Award. It is clear that for almost five years the Sydney officials first as what is described in the official Print as the New South Wales Branch of the Plumbers and Gasfitters Employees Union of Australia and more recently as the State Union have successfully blocked or have assisted in blocking the making of a Federal Award in New South Wales. The Court expresses no view as to the advantages or disadvantages to those members of the federal organization in New South Wales as a result of such actions by the Sydney officials. But it is clear that from late 1976 the undoubted policy of the organization has been for federal coverage for its members. Federal Council has so determined and the rules of the organization at all relevant times have provided that decisions of Federal Council and of the Executive shall be, subject to the plebiscite rule (r.26), binding on all members, including Federal officials. It is not overlooked that the applicants herein have claimed that their actions in this regard follow decisions of themselves and otrers as State Union officials. If this claim be true it is clear that the

question of both the possibility of a conflict of irterests as

trustees in the sense referyged to by Evatt and Morthrop JJ. in

Allen -v- Townsend and Ors. (1977) 16 A.L.R. 301 @ 348-352 and

the doctrine of incompatible offices in the sense referred to

by the Court in Egan -v- Maher(No.2) (1978) 35 F.L.R. 252 @

262-4, should be seriously considered by the applicants.

Matter ascertained pursuant to discovery and probably not

Pursuant to the consent order for discovery made herein the minutes of the meetings of the Sydney Branch of the organization and what were headed New South Wales Branch of the Plumbers and Gasfitters Employees Union of Australia were

Up until 8 February 1977 the headings of such minutes varied. The overall evidence from such minutes together with evidence disclosed in the balance sheets prepared by the Auditors at the request of the Sydney officials show that such Meetings were of the Sydney Branch of the organization only. The question whether a viable, active State Trade Union existed in New South Wales before February 1977 is considered later in these reasons. Thereafter, separate minutes were generally kept which clearly show that in or about February 1977 a decision had been taken that separate meetings of the Branch and of the State Union were to take place in the future and that separate minutes of such meetings kept. Such decision

would, on the probabilities, have been taken by perscns

It is noted that some 18 months before such decision to hold separate meetings and keep separate minutes was taken, the minutes of the New South Wales Branch of the Plumbers and Gasfitters Employees' Union of Australia for 29 July 1975 show Mr Shooter as having reported to that meeting that "the Federal Executive has resolved that in lieu of a Federal Award

steps should be taken to bring about an Interstate Agreement

for plumbers ... and ... that this is only the first step towards the inroads of a Federal Award". He recommended the following resolution: "this meeting views with grave concern

any attempt either by an Award or agreement which could lead to the implementation of a Federal Award. We re-confirm our previous resolution that quite unequivocally states that this union remains completely under the present State Award now or in the future". It was resolved that the report be received

There was evidence (which 1s accepted) that from as early as 1971 capitation fees due from the Sydney Branch of the organization to Head Office had more often than not been paid late. Since at least 1975 the rules of the organization have provided that capitation fees from branches were to be

paid within eight weeks from the end of the financial year

The minutes of the 1975 Council Meeting indicate, when the question of the credentials of the Sydney Branch delegates was raised, that several letters between Head Office and the Sydney Branch were read which referred to the unsatisfactory financial situation in respect of the Sydney Branch that had existed over the years since 1971. The minutes of the Council Meetings for the years 1975, 1976, 1977 and 1978 each show that the question of overdue capitation fees from Sydney Branch had been discussed at those meetings. The minutes of Executive Meetings which were tendered show

that the same situation prevailed at those meetings.

Under the rules of the organization, delegates to Council or representatives on the Executive from unfinancial branches could either be excluded from such meetings, or ampliedly allowed by Council or the Executive to attend as observers or permitted to attend unconditionally. Over the years the Council and the Executive have permitted the Sydney Branch delegates or representatives to attend such meetinas, some times conditionally and at other times unconditionally

particularly if rule amendments were being considered.

Payment of both the 1976 and the 1977 capitation fees were not made until 19 May 1977. As at 1 May 1979 the Sydney

Branch had not paid capitaticn fees for the years ending 31

-96- March 1978 and 31 March 1979. The total sum owing for those years amounted to approximately $75,000 being $32,500 for 1978 and $42,500 for 1979, the 1979 fees havina to be paid before

the end of May of that year. These facts were of course known

The rules prior to 1976 provided that the Newcastle

Branch, even though a full branch, pay capitation fees on

behalf of members attached to that branch to the Sydney Branch

as the "Central Branch" for the State of New South Wales. The

rules were amended by the 1975 Council Meeting to provide that ¥ a «

capitation fees due from the Newcastle Branch were to be paid

direct to Head Office (amendment certified 16 February 1976).

(3) Change of membership cards and receipts issued by Sydney

Sometime prior-to 1966 a question of the validity of application forms for membership to the organization and the State Union issued by Branches arose following the decision of the New South Wales Arbitration Commission in Benson -v-

Electrical Trades Union (1962) A.R.(N.S.W.) 516. On 4 March

1966 the Federal Executive adopted a new dcubled-sided application card which provided for membership to the organization and to the State registered Union in the various States. The report of that Federal Executive decision in

relation to such cards was adopted by the Federal Council of

-~97- the organization on 13 April 1967. Thereafter such application cards were printed in Melbourne through Head Office and were distributed to the various Branches as required. Sometime in the early 1970's it was ascertained

that double-sided cards were being used in New South Wales which had on the side on which reference to the New South Wales Industrial Arbitration Act was printed words that had not been approved by Federal Council. The evidence shows that these cards were printed by a firm in Sydney at the reguest of Mr Bignell. Likewise it was discovered that receipts issued on and after October 1971 by the Sydney Branch of the organization to members joining the Federal organization through that Branch were not in the form of the official Federal receipt. Books of receipts had been printed in Sydney

at the request of Mr Bignell. At no time did Mr Bignell ask

Head Office for approval for the printing of such cards or

(4) Visits by Sydney Branch officials to sites within the

I am of the view that for many years before February 1977, when clearly separate meetings of the Sydney Branch of the organization and the State Union commenced to be held, there was no evidence of a viable and operating Stete Plumbers Union in New South Wales. In fact the acceptable evidence

including documentary evidence 1s to the contrary and supports

-ag- the continual existence over many years of an active branch of the organization in Sydney. New State Union rules were filed in 1969 (Ex 1) but apart from the occasional filing of financial returns referred to later herein there is no evidence on any activity occuring thereafter which would

Prior to August 1978 the rules of the State Union filed in the New South Wales Industrial Commission under the relevant State Acts were those lodged in 1917 and 1928 (Ex 4) which were but copies of the then Federal rules altered in a minimal way to conform with specific conditions then laid down by the New South Wales Acts and the 1969 rules referred to above. None of these rules when in force were incompatible

Prior to February 1977 no separate meetings of the State Union had been held, or if held no separate minutes of such meetings had been taken. Up intial 1977, there was but the one election of officers and other officials, persons elected to positions and offices in the Branch being deemed also to be elected to identical positions in the State registered Union. Up until October 1978 there was no separate bank account which was clearly an account of the State Union. Pefore October 1978 all money received by the Sydney Branch of the

organization had been paid into the "one bank account". The

subject matters referred to and the accounts passed for

-99- payment as shown in the minutes of meetings of Committees of Management held for many years before February 1977 clearly indicate in my view that, on the probabilities, such meetings were meetings of the Sydney Branch of the Federal organization and that contributions paid by members were collected on behalf of the organization. Mr Richards of the firm of A.J. Williams & Co., who had personally audited the books of account etc. for the "union" in Sydney for many years up until 1979 gave evidence that when it was necessary to consider the rules of the "union" for such auditing purposes he was given the Federal rules only by Sydney officials. He was of the opinion that he had never audited any State union funds and that the "one bank account" in which there were several funds such as the general fund, the incidental fund, defence fund etc. was an account of the Sydney Branch of the federal organization. Further the forms printed on behalf of the Registry of the New South Wales Industrial Commission in which certain particulars of the financial position of Trade Unions were required to be filed by the New South Wales Industrial] Registrar were simply completed from balance sheets in the

Sydney Branch Statement of Accounts prepared by him.

After August 1978, when the new rules of the Stste Union which are referred to later herein were registered, the farm of A.J. Williams & Co., were first asked by the Sydney officials to be the auditors for the State Union referred to

On 20 September 1977 the "New South Wales Branch" Committee of Management approved payment of the sum of $13,000.00 out of the incidental fund in the "one bank account" referred to above for the stated purpose of setting up a State Union incidental fund. This was done without any reference to Head Office. The Sydney Branch officials received certain written legal advice on 30 August 1977, which on the probabilities, had been sought by them as officers of the Sydney Branch of the organization. It would appear that the payment out of such sum of $13,000.00 was not in accord with such advice, which clearly did not support the view that

the funds in the incidental fund of the "one bank account"

The minutes of that Committee of Management meeting also show that Mr Bignell reported concerning the need to organize the State Union, particularly in the Newcastle area.

The decisions of the Federal Council Meeting held on 19 September 1977 (Ex K.45) show that visits of Sydney Branch officials to the Newcastle Branch area of which notice had not been given to the Secretary of the Newcastle Rranch was discussed and the question of possible conflict of anterests that such officials may have in so doing was raised. Copies of those decisions were forwarded to all Branches. Scme little time thereafter a dispute at NAN Channel 3 was listed in

Newcastle before Liddy J. of the New South Wales State

-101- Industrial Commission. Mr Masterson attended in the usual way on behalf of the members of the organization attached to the Newcastle Branch. Mr Tyler was also present at that hearing and objected to Mr Masterson's appearance on the basis that the matter was purely a matter arising under a State Award.

Liddy J. upheld Mr Tyler's submission and refused to hear Mr

The minutes of the Committee of Management Meeting headed "New South Wales Branch of the Plumbers and Gasiftters Employees' Union of Australia" held on 14 February 1978 disclose that Mr Bignell reported to the Committee on proposals to form branches of the State Union throughout New South Wales, including a branch in Newcastle. The other four

applicants herein who were charged were present at that

The minutes of a Special General Meeting of the Sydney Branch of the organization held on 11 April 1978 (Fx K2), at which all applicants other than Mr Shooter were present, show that the meeting had considered decisions of the Federal Council taken at its meeting in November 1977, including the decision referred to earlier herein re visits by Sydney Branch officials to Newcastle. That decision appears in the Sydney Branch minutes with other Council] decisions which the Branch recorded disagreeing with. Two of such

decisions are recorded as follows: (1) "Arising from the

-102- debate on (a certain agenda item) Sydney Branch delegate Bignell has clearly shown that there is a conflict of interest to the detriment of this union: Council therefore directs delegate Bignell to cease acting in an official position with any other organization of plumbers in New South Wales" and (ii) "Council notice with concern the conflict of interests by the delegates from the Sydney Branch to this Council in their dual role as officers of both the Sydney Branch of the

Promeens and the State Union". Obviously all applicants herein

Further, during 1978 a new set of State Union rules were drawn up and adopted by the Committee of Management of the State Union. These rules (Ex 12), together with a change of name of that State Union to "The New South Wales Plumbers and Gasfitters Employees' Union" were registered in accordance

with the New South Wales Industrial Acts on 31 August 1978.

Two rules, rr.7 and 15(a), of such new rules of the

State Union read: 7.MEMBERS TO BE IN ONLY ONE UNION

A member of this Union shall not be a member of, or be in any way connected with any other organization of Plumbers and Gasfitters Employees within the State of New South Wales without the sanction of the Union. Any member contravening this Rule shal] be liable to such fine or penalty as the Union may decide on provided that any member of the Plumbers and Gasfitters Employees Union of Australia may continue to be a member of the organization unless the union has otherwise determined.

(a) (1) Any member who is also a member of the Plumbers and Gasfitters Employees Union of Australia shall be exempted from making all payments due to the union to the extent that he has made a payment to the aforesaid organization in respect of the same period of time for which he would be liable to make a Payment to the union.

(2) The aforesaid exemption shall not apply to any member who the union has directed to cease to be a member of the Plumbers and Gasfitters Employees' Union of Australia.

compatible with the certified rules of the organization.

The new State Union rules provided for separate and distinct application ecards for admission to the State Union. A new O.K. card and letterheads were approved by the Committee of Management of the State Union in early February 1979. That meeting also decided to set up a branch of the State Union at

Further, on 30 January 1979 the Committee of Management of the Sydney Pranch of the organization dealt with a request by two members of the organization to fresiaqn therefrom. Such requests were granted. All applicants were present at this meeting. At the Fxecutive Meeting of the

State Union held on 13 February 1979 those two former members

-104- of the organization were admitted as members of the new State Union. The applicants, other than Mr Tyler, were present at that meeting. In his evidence Mr Bignell stated that he did not know why those two members had so resigned from the

At this point it is convenient to refer to certain events occurring after 2 May 1979, evidence of which was admitted on the same basis as earlier referred to. Such evidence was contained in the balance sheets and the minutes of meetings of the Committee of Management of the Sydney Branch and the Executive of the State Union held after that date. The minutes of the Sydney Branch Meetings show that between May 1979 and August 1979, 264 members attached to the Sydney Branch resigned from the Federal organization. The bulk of these members were then admitted to membership of the State Union, some through its Newcastle Branch.

Further, the balance sheet for the Sydney Branch of the organization for the six months period ending 30 September 1979 shows a deficit of $25,382. The balance in the general "fend of the Sydney Branch of the organization as at 31 March 1979 was approximately $65,000 whereas the balance in the State Union account at that time was in excess of $61,000. It will be remembered that this State Union account was opened

-105- Further on 24 April 1979, some fourteen days after the General-Secretary''s letters to the applicants who were charged were posted, a Committee of Management Meeting of "The

New South Wales Plumbers and Gasfitters Fmployees Union,

Sydney Branch" was held. All five applicants attended this

"The Secretary reported that the Audit has been finalised and the printed copy of the Balance Sheet will be available for members at the next meeting of the Committee of Management.

The Secretary reported that the General Fund has a balance of approximately $65,000.00 and the Incidental Fund has $4,297.00 cash in bank together with $25,000.00 invested in Bonds, and as a result of the Audit it would be necessary to transfer $10,430.00 from the General Bank Account to the Incidental Fund, as its proportion of the residue of the Financial year.

that we transfer from the General Fund to the Incidental Fund $10,434.00 - Carried

Moved N. Connolly seconded Brian PajJmer - that the General Fund purchase from the Incidental Fund the Bonds held in the Incidental Fund to the extent of $25,000.00 - Carried

Moved D. Hickey that because of the fact that the major portion of the work carried out in New South Wales is carried out by the New South Wales Plumbers and Gasfitters Employees Union, that we grant te that Union the amcunt of $39,731.00, seconded J. Arday - Carried

The Secretary read correspondence from G. Crawford regarding the charge laid against him to be dealt with on Tuesday lst May, 1979. Moved P. Moody seconded C. Hastwell - that the cerrespondence be received and the contents noted - Carried"

Rule 42(6) provided that after payment of capitation

fees to Head Office the balance remaining in the Branch

-106- General Fund shall be divided into three equal parts to be allocated, one part to the Incidental Fund and two parts to the General Fund. The $39,731.00 referred to in the penultimate motion cited was made up of $4,297.00, the $25,000.00 and the $10,434.00. The purported grant by the officials of the Sydney Branch to the State Union then meant that the balance in the incidental fund in the "one bank account" was nil. No approval from Head Office had been sought in this regard by the Sydney Branch officials before or

It is pointed out that the above summary is but a part of the whole of the evidence that was led in this proceeding. It 1s clear in my view that the facts set out above show that over a considerable period of time there was a definite move by the Sydney officials to separate the State Union away from the Sydney Branch of the organization. It may be that the earliest moves of which evidence has been led such as the printing in Sydney of application cards and receipts which did not conform with directions from Head Office were

the result of the decisions in Benson ~v- Flectrical Trades

Union (supra) and Moore -v- Doyle (1968) 15 F.L.R. 59. But later steps appear to coincide remarkably with the preceedings in the Commonwealth Arbitration Commission seeking Federal Award coverage and the amendment to the rutes whereby capitation fees due from Newcastle Rranch were no longer to be

paid to the Sydney Branch but remitted @Qirect to Head Office.

It is clear in my view that the evidence shows a tendency by the Sydney officials at or about this time to favour the State Union as against the Federal organization. The evidence supporting this view is the failure to pay capitation fees, the transfering of a large amount of money ($13,000) from the incidental fund in the "one bank account" to a so-called State Union incidental fund account in late 1977 only a few months before an active move to draft new State Union rules commenced, the assertions that the money in the "one bank account" was the property of the State Union only together with claims by the Sydney officials that it was their belief that only employees working under Federal Awards

I am strongly of the view that during 1977 and 1978 this tendency developed into a concerted plan by Sydney officials, particularly the five applicants who were charged, to promote the State Union at the expense of the Sydney Branch of the organization and to destroy or at the least so weaken the Newcastle Branch of the organization that 1t would not be a viable branch. Further, in my view, it was this concerted plan which led to what can only be described as a raid on the membership of the Newcastle Branch in early 1979 If such membership could be significantly reduced then 1t was only a

matter of time before that Branch would not be viable.

I am satisfied that all five applicants were narties

-108- to the plan and that with the exception of Mr Bignell they all in fact visited the sites in Newcastle during the times set out in the charges and there and then did request members of the Newcastle Branch of the organization to resign and Join the State Union. This opinion is not only based on the background history leading up to the events that occurred early in 1979 in the Newcastle area but on the evidence of those members who gave evidence that they were so requested to resign from the organization and to join the State Union by the particular Sydney officials as alleged in the charges. The evidence of such witnesses is accepted. Fach of those four applicants admitted being at the various sites during the times as claimed. Each of them has admitted that Mr Bignell knew they were in Newcastle at that time. I have no doubt that Mr Bignell knew the purpose of the visit of those four Sydney officials to the Newcastle area before they left Sydney and not only approved of their actions within that area but ordered and directed those officials to do what they did. There is no doubt that he knew of, and indeed was probably the author of, the roneod forms of resignation addressed to Mr Masterson that had been prepared in the Sydney office of the organization and distributed to Newcastle members by the four Sydney officials who visited Newcastle during the relevant

I hereby tender my resignation as a member of the Newcastle Branch of the Plumbers & Gasfitters Employees' Union of Australia.

It is obvious in my view that the forms were prepared for the use of the four applicants on their visits to sites within the Newcastle Branch area to obtain as many signatures as possible from members to resign from the organization. Further, I accept the evidence of the Newcastle members who have stated that they were informed by the particular applicant who spoke to them that first, 1£ they were working under a State Award they should be members of the State Union only and secondly, when questions were raised by those members whether it would be necessary to pay contributions both to the Federal organization and to the State Union, that particular applicant would inform the member that they should resign from the organization to avoid double payment of contributions. The evidence of the applicants denying these facts 1s not accepted. I have had the advantage of seeing each of them when giving their evidence in chief and in cross-examination

and it is clear in my view that each of them was less than

~110- the oral evidence of several members attached to the Newcastle Branch the Fxecutive on 1 and 2 May 1979 had before it numerous letters from other members alleging similer conduct

Turning then to the applicants' claim that they were

(i) Applicants' allegations that _adeouate particulers of the

Each of the charges forwarded to the particular applicant concerned gave the names of the members alleged to have been persuaded or encouraged or aided to resign from the organization, their place of employment, the pericd over which it was alleged that such persuasion etc. occurred tocether with the penalties sought.

I am satisfied that all the applicants other than Mr Shooter were aware of the charges against them on 10 April 1979. As regards Mr Shooter I am satisfied that he received his notice and charges on either 20 or 21 April 1979, but that he Fad before then spoken to Mr RPignell about the charges

No further particulars were reouestec by any of the

charced applicants until 1 May 1979, the cGate when the

-11ll- Executive met to consider the charges. That request was included in a letter dated 1 May 1979 which is fully set out

On 11 June 1979 the Court directed that further particulars be given by Mr Cook, the then sole applicant in this proceeding of the allegation set out in his affidavit of 31 May 1979 that the five charged Sydney officials had not been given adequate particulars of the charges laid against them. The only particulars filed thereafter by Mr Cook or by any of the five charged applicants are set out in the points of claim filed by the applicant following the making of the said direction by the Court (see para.5(b) of such points of claim) which simply refers to the said letter dated 1 May

which each of the charged applicants handed to the Executive

None of the applicants has given evidence that he was hampered in the preparation of his defence before the Executive by the absence of the so-called particulars. Further, each admitted in cross-examination that he fully

I am satisfied that what the complaint about the lack of particulars was, was really a complaint that the applicants had not been supplied with the evidence that was to be

produced to the Fxecutive in relation to the said charges. It

-112+ has been said that the rules of natural justice do not

necessarily require that full particulars of charges need be

given (cf. Canterbury Building Society -v- Baker (1979) 2 N.S.W.L.R. 265 @ 279.

I am satisfied that the applicants were aiven adequate particulars of the charges laid against them and this

In my view a Court when exercising what could he called a supervisory jurisdiction such as this Court is doing in this regard should only set aside a decision of a domestic tribunal such as the Executive herein to refuse the granting of an adjournment if the person charged has, as a result of Such refusal, been deprived of a reasonable opportunity of answering the charge that is to be or is being put against him

(cf. Burnbrae Farm Limited -v- Canadian Eqq Marketing Agency

(1976) 65 D.L.R. 3(d). 705 @ 713-4). If the person charced does not avail himself of an adequate opportunity of preparing his defence before the date set for hearing, then generally in my view, he can not rely on his failure to do so as a ground for an adjournment. There may be cases where this qeneral rule should be relayed but such cases would require evicence

-113- All the five members charged attended at the time and place set out in the respective charges and all produced a separate copy of a letter dated 1 May 1979 which on the evidence had been typed out earlier that morning in their

In all cases other than Mr Bignell's the letter read:

Plumbers' & Gasfitters' Employees Union of Australia,

I refer to your letter of the 10th April and the enclosed charge made against me by R. Masterson. I wish to object to the layina of this charge and to apply for an adjournment of the hearing of it upon the following grounds:-

I am an elected officer of the Sydney branch of the union and I have not been charged under any other rule of the union which complies with the Act.

I deny that I am guilty of misconduct and that I actively persuaded, encouraged or aided members to resign from the membership of the union.

I deny thé validity of all alterations to the rules purported to have been made since and including the 1975 conference and and/or council of the union.

I request all particulars as to the manner in which I am alleged to have carried out the actions referred to in the charge laid against me.

I reguire an adjourment in order to consider the particulars referred to above and to prepare my defence.

I have been given insufficient time to adequately prepare my defence. @. I antend to challenge the validity of the

rules referred to in your letter of the 10th April and the charge of the 30th

March and I request an adjournment of the hearing of this charge until the validity of such rules has been decided by the

court. 9. An up to date copy of the rules of the union incorporating the alleged

amendments made since and including the 1975 conference= - has not been made available to me."

In the case of Mr Rignell's letter paras. 1. - 9. were identical to those set out above and in addition two

"10. In so far as I have failed to comply with any purported direction of the Federal Council, conference or executive I have done so in obedience and under directions given by the Sydney branch and/or its Committee of Management.

11. I further request an adjournment until my legal obligations in relation to my Guties as an elected officer of the Sydney branch of the Union as compared with my obligations to comply with directions of the Federal Council or conference are clearly determined."

After being served with such notice and cherges on the dates earlier referred to all the applicants other than Mr Bignell sovght no real legal advice until 1 May 1977 when they all atten@ed as a group at their solicitor's office scme little time before the appointed time set for the hearing of the charges. Mr Shooter had at some stage made a statement to his solicitor but had done nothing more. On one cccasion Mr Tyler attended with Mr Bianell at the solicitor's office but the evicGence does not satisfactorily disclose the purpose of

such visit. Apparently all Mr Bignell did during any visit to

the solicitor's office during the period between 10 April and

-115- 1 May 1979 was "simply to mention the charges" to the

None of the five charged applicants attempted to secure witnesses or prepare a case. Mr Cummins stated that he relied entirely on Mr Bignell whilst Mr Waters said that he

left it in the hands of Mr Bignell and his solicitor.

In their respective affidavit of 3 September 1979 each of the charged applicants, except Mr Tyler, claimed that on 1 May 1979 he did not have a copy of the rules of the organization including the amendments made by the 1978 Federal Council and that at that date he was unaware of the terms of

Mr Tyler had attended an Executive Meeting of the organization held at Brisbane on 13 February 1979. He was there given by Mr-Crawford a re-print of the whole of the rules as certified on 18 Janwery- 1979 incorporating the amendments to the rules adepted at the 1978 Federal Council]. Mr Tyler gave evidence before the Court that he had had discussions with Mr Bignell and his solicitors and others of those charged about those rules and particularly about their being no r.35(d). Further, the minutes of the Executive Meeting of 1 May 1979 discloses that he, not like the others who had been charged, did not complain about not having rules

beforehand and it is noted that Mr Tyler struck out para.9. of

; > i + his letter of 1 May 1979 when he signed it.

: +: # . . t hin tecistiea 'that Mr Tyler still had a copy of the

rule book handed to him in Brisbane on 13 February 1979 when

• eae he became aware on 10 April 1979 of the charges laid against ia Ps him. I Rave no doubt that be discussed the rules referred to RE mite in the charges with the other persons charged (other than Mr * Shooter) on l0April 1979 and that they all (including Mr oe : wo. *.? _ :

Shooter) were aware of all certified relevant rules well

before 1 May 1979. A perusal of the minutes of the Committee of Management Meeting of 7 and 20 February 1979 and the » aed . i lum ¥ . ee al .} , ; % General Meeting held on that latter date, show that all five

charged officials, perhaps with the exception of Mr Cummins, _,

discussed at those meetings the rule changes which had been

adopted at the 1978 Council Meeting. Mr Cummins admitted that 4

prior to 1 May 1979 he had been told by Mr Tyler that there ~- was no r.35(d) and simply left the matter to his solicitor

I am satisfied from the totality of the evidence in this regard that all the charged officials were aware of the

particular rules in question well before 1 May 1979.

Looking at the five charged applicants' letters of 1 May 1979 it will be seen that they contained an objection te the laying of the charge.and an application for an adjournment

of the hearing on the grounds set out which, were the same.

-117- Obviously the grounds referreé to in para. 1. - 9. could not be relevant to both the objection to the laying of the charge and the application for ad-curnment. But taking each paragraph seriatim; (1) and (2), I am satisfied that none of the officials charged were risled by the reference to r.35(d). Reference has been made to this ground earlier herein; (3) and (4), these clearly are not crcunds for an adjournment; (5) and (6) these grounds are interwoven and have been dealt with earlier herein; (7), as stated above I am satisfied that all applicants charced other then Mr Shooter knew of the chardes on 10 April 1979 whilst Mr Sheoter had been verbally told of such charge shortly thereafter and in fact had received his notice together with the written charges no later than 21 April 1979;~ (8), the rule undéer which the five applicants had

been charged namely r.13(6) end the reference to r.35(d) (a

"mistake for r.25(10)(@)) were a reference to certified rules

of the organization which were then prima facie valid rules (see s.157 of the Act). In ry view the applicants and any of them had had ample time pricr <=c 1 May 1979, if they seriously wisred to challerce the valic:zyv of the rules, to approach the Court seeking rules to shew ci:se under either s.140 or s.1+<l of the Act; (9) this aquesticn bas been dealt with earlier in

In recard to Mr Bicnsll's letter of 1 "tay 1979 para. 10. thereof is rot a relevar= sround for an adjournment. T

take ait that cera ll. was 2 back~hanéed sort of way of

. "-118- indicating that he, Mr Bignell, intended to challenge those matters in the Court. Here again I am also of the opinion that he had had ample time in which to seek a rule to show

After reading and re-reading the evidence relative to the question of the applications for adjourment by each of the applicants charged, I have concluded that such requests adjournments were really 'contrived and were not genuine requests. Factors leading to this conclusion are that none of the officials charged made any real attempt to prepare a defence; none sought further and better particulars before 1 May 1979; the admitted or obvious agreement between them of the course which was to be taken before the Executive namely, the requesting of a rule book, the requesting of time to read the rule book, the drawing attention to the fact that no r.35(d) could be found in the rule book and requesting an adjourment by handing in his letter of 1 May 1979 and the

walking out of the meeting if an adjournment was not granted.

Mr Cummins in his evidence admitted that he did tell the Executive after his application for adjournment was refused that he would remain if the other officials were allowed to be present. Both Mr Crawford and Mr Masterson gave evidence which 1s accepted that the other four officials charged had also made the same statement. In my view this

admission by Mr Cummins and such evidence of Mr Crawford and

-119- Mr Masterson make it clear that the reguest for an adjournment

for the reasons stated in the letter of 1 May 1979 was not a

Further in my view in considering the question whether a refusal to grant an adjournment in certain circumstances is reasonable, it is valid for the Court to consider the expense, which in this case obviously would have been considerable, and the inconvenience of gathering the Executive in Sydney from all over Australia (cf. Ostreicher

-v- Secretary of the State for the Environment (1978) 1 W.L.R.

In all the circumstances I am satisfied that the refusal by the Executive to grant an adjournment to any or all

of the officials charged was not a denial of natural justice.

(iii) Applicants' claim that member(s) of the Executive biased

The test to be applied when determining any decision of a domestic tribunal of a Trade Union should be set aside on the ground of bias is, in my opinion, now established to ke the test of the real likelihood of bias rather than the test of suspicion thereof (cf. Cains -v- Jenkins & Ors. (1979) 28 A.I--R. 219 and cases therein referred to, and Dale -v~- Mew

South Wales Trotting Club and Ors. (1978) 1 N.S8.W.L.R. 551).

What has to be shown is "invincible" bias; that is "a bias

~120- that is incapable of being remedied by reason or araqument during the period up to the making of the tribunal's decision"

The bias alleged in the points of claim are (i) the relationship between the Sydney Branch officials and the respondents had been one of hostility and conflict. I am satisfied that the evidence in this regard goes no further than showing that there was a divergence of opinion between the Sydney officials and other Federal officials from other branches on industrial matters and that perhaps at times debates had become heated; (11) the avcthorisation by certain members of the Executive and Mr Crawford of a report distributed within the Sydney Branch area supporting a candidate in the Sydney Branch elections. Such report which was included in a how to vote card which was clearly a "ticket" distributed some little time before the particular election, was critical of certain Sydney Branch officials. Such authorisation was freely admitted in evidence by those who supported the candidate in questicn. Clearly such allegation could not in my view surprert a conclusion of

The charged applicants in their affidavit, all sworn 3 September 1979, expanded the allegaticns of bias to include the fact that "r Crawford and certain members of the Fxecutive

had visited Newcastle during the pericd referred to in the

~-121- charges and had in fact addressed meetings in the area of the Newcastle Branch at which one or other of the persons charged was in attendance and further that Mr Masterson had had discussions with Mr Crawford and/or other members of the Executive concerning the charges between the date of the

In evidence Mr Crawford stated that he had had about three telephone calls from Mr Masterson during the relevant period when Mr Masterson had indicated that he needed assistance and that he, Mr Crawford had personally gone to Newcastle members to assist Mr Masterson in addressing members of the organization in an endeavour to counteract what he, Mr Crawford, called false propaganda about industrial Award matters that the Sydney Branch officials were spreading. Mr Crawford in fact arranageaG fer as many members of the Executive as possible to go to Newcastle to assist in the same way as it had become apparent to him that there was a ccencerted drive by the Sydney officials to get about within the area of the Newcastle branch addressing as many members of the organization as possible and discussing with them the question of these matters. Where such Sydney officials would be the next day was not known to the Newcastle Branch the day before. Throughout a particular day calls would ccre to the Federal Pranch office in Newcastle from rerbers see™%ing information eencerning the visits of cne or more of the Sydrey officials.

2s such calls were received the Federal officials who were in

-122- Newcastle to assist would go cut to reassure members that the Federal organization coulé and would look after their interests and inform those rembers that resignation from the Federal organization was not necessary even though they were

Mr Masterson gave evidence, which is accepted, that after laying the charges against the Sydney officials he had telephoned Mr Crawford in Melbourne to ascertain the result of the Executive plebiscite on the question whether a meeting to hear the charges would be held but otherwise had not discussed

In the "prosecutor's brief" referred to earlier herein were copies of letters written by certain members of the Executive to the Deputy Premier of Mew South Wales and the Minister for Public Works in that State complaining about a proposed appointment of Mr Bicnell to the Registration Board for Plumbers, which Board was being set up (or consideration was then being given to it bez:ng set up) by New South Wales legislation. The evidence was that such representations were made by certain members cf the Fxecutive against Mr Bignell being so appointed as he was not himself qualified as a plumber. It was then and still was at the date of the hearing of this proceeding the belie of Mr Masterson and those members of the Fxecutive who cave eviCence that plumbers

should have a representative cn such Boards but that such

-123- representative should be a qualified plumber. This evidence

again does not support any allegation of bias in my view.

Not all members of the Executive who heard and determined the charges against the five applicants herein gave evidence before the Court. In my view the present case is not a case where prima facie bias has been shown against any of the five applicants by any member of the Executive who did not give evidence. In this regard Cleworth -v- Barrow & Ors (supra) is distinguishable. Nor is the present case one where it could be suggested that all merbers of the Executive who heard and determined the charges should have necessarily teen

There was evidence that following the Court's decision an Rceots -v- Mutton (supra) Mr Crawford and other Federal Executive members had obtained lecal advice concerning the conduct of meetings where charges were to be heard. Such legal advice was obtained as a result of comments made during the hearing of that case. Mr Crawford, Mr Bourke and "r Fairweather gave evidence which clearly showed a prefound uneerstanding of the principles of natural justice concerning

a hearing before a Gomestic tribunal within a Trade Union.

In all the circumstances I am satisfied that none cf the applicants were denied natural Justice. The minutes of

the Executive "Meeting show that even thouch the matter

-124- proceeded in the absence of the Sydney officials charged there was obvious care by the prosecutor, Mr Masterson to avoid any suggestion that he took part in any deliberation concerning

the guilt or otherwise of the applicants or in the drawing up

of each of -the resolutions setting out the findings and

~ *"Senalty imposed in respect of each official charged. Such

Minutes show that the Executive dealt with each case individually not only as to evidence concernirg the guilt or otherwise of the person charged but also after finding a particular member guilty the avestion of the appropriate penalty in respect of that person.

During the hearing of th2s matter several witnesses were called to give evidence of events supporting the charges. Lengthy cross-examination of those witnesses took place. Further each of the five charged applicants was cross-examined at lenath concering the events referred to in the summary of the history set out earlier herein together with other incidents far too-numerous to detail in these regsors. "At times the Court had the impression that an attempt was being made by the applicants during the proceedirgs to have the charges reheard by the Court. As was pointed out by the Court

an Cleworth -v- Barrow & Ors (1978) 20 A.L.R. 359 8 369 "on

any hearing by the Court of proceedings such as the present

the Court considers whether reasonable men acting honestly

could have come to the decision that the demestic tribunal did

(Bowen's Case (supra) @ 615). If the Gomestic tribunal cculd

have so found, then the Court will not interfere with the

finding of that tribunal unless there has been a denial of

If the relevant test was that the charges had to be proved by Mr Masterson to the satisfaction of the Court then I

would have been so satisfied. But as was stated by Dixon J.

"It is important to keep steadily in mind that we are dealing with a domestic forum acting under rules resting upon a consensual basis. It is a tribunal that has no rules of evidence and can inform itself in any way it chooses. Members may act upon their own knowledge and upon hearsay if they are satisfied of the truth of what they so learn -and if they give the member with whom they are dealing a proper epportunity of answering the charge and defending himself. The tests applied to juries' verdicts, namely, whether there was +- evidence enabling a reasonable man to fi gates affirmative or whether upon the evi finding was unreasonable, have 'no place i alias; examination of the validity of such a domestic tribunal's decisions. But the tribunal is . bound to act honestly, that is "to gay it must

have an honest opinion that what the member before it did amounted to misconduct and its decision must be given in the interests, real

In interpreting the charges the Federal Fxecutive was in my opinion not bound to take the view that 1t had to be proved that any particular member had actually resigned in conseauence of what was said by any of the charged officials. It was open to the Executive to take the view that a request

to rébagn accompanied by the making available of the ronoed

~126- form referred to was persuading, encouraging or aiding for 'the purposes of 'the charge. There was ample evidencé against the four applicants who visited Newcastle which satisfied the charges so. interpreted and likewise in regard to the first charge laid against Mr Bignell.

10 Rite In my view in all the circumstances it was oper to

the Executive to Be the charges as proved consti all

organization and constituted gross misbehaviour within Mie meaning of s.133(1)(f). Further in ry cpinion it was open to

the Executive in all the circumstances to impose the penalties

"hat in fact were imposed in each case. The concept of gross

misbehaviour connotes a marked Gepartutre from the standards by

which" responsible; and competent uricn officials habitually

more "8 engl caiesd ecu 'ive themselves. On the other hand if the-

test was merely an objective test it is difficult to imagine a more serious offence within an organization registered under the Act than a 'concerted raid on its wembership "in £ favour of some competing body sa far (as funds derived by way of

contributions is concerned by perscors who held themselves out

Conseouently it becomes unnecessary for tha Court to

consider two further submissions race by the respondents

-127- herein that the five charged applicants could only succeed in their claim under s.141 of the Act if they were members of the organization at the date of the commencement of this proceeding. If they had ceased to be such merbers before that date for reasons other _than the said charges then they in

First, it was submitted that the evidence clearly . showed an incompatibility that would attract the doctrine of "incompatible offices". Reliance in' this regard was placed on

. the views expressed by the Court in Ecan -'~ Maher (No.2)

4 (supra) @ 242-4 and cases therein referred to; Halsbury, 4th ,

Fdition, Vol.9 para. 1273, and R.-v- Tizzard (1229) 9 B.& Cc.

Secondly, 1t was further argued that the conduct of

• pe oe each of the five charce@ officials was such that a reasonable inference should be drawn that each of them had impliedly resigned from the orcanization or repudiated the compacts

between them and the organization (see cenerelly In re Sick

ang Funeral Society cS~€teggohn's Sunday Scroc2, Golcar (1973)

For tHe above reasons the rule to show cause herein

. -128- Turning then to the rule. granted on 27 June 1979 to Mr Crawford calling upon ten-named respondents to show cause why certain orders should not be made against them. Those ten respondents and the five charged applicants in matter N.S.W. 19 of 1979 constituted the members of the Committee of Management of the Sydney Branch of the organization , immediately before 2 May'1979.

Orders herein were sought for the payment by the Sydney Branch of outstanding cavitation fees for the financial

~\ years ending 31 March 1978 and 31 March 1979. An amount

said to be the total of such fees assessed at the rate of 15% Me of the total receipts from branch, contributions for those two financial' years was paid by the Sydney Branch to Head Office

• On. 17. July 1979 some three weeks after the rule to, show cause

ae aygerein Mas. granted. Immediately before the 1978 Federal tia af

flee wmCouncitarr.42(4) and (6) of..the organization read:

"4.At the close of each financial period a sum not exceeding twenty (20) per cent as decided oe " by Council ef the teal receipts, from Branch

Contributions shall Fe paid into Head Office ,prescribed. funds, the balance remaining in the Branch General Funé to be divided into three (3) equal parts, which shall be allocated as follows:

6. Fach Branch secretary shall within eight , . (8) weeks of the cicse of each financial " period forward Fead Clfice a Quly audited and signed statement for such financial period; together with the amount prescribed in Clause 4." : Such rate of 15% had teen determined by the 1975 Pederal

-129- council. It is clear that immediately before 17 July 1979 Mr Bignell as Secretary of the Sydney Branch of the organization had failed to comply with such rules.

Sub-rules 42(4) and (6) were renumbered sub-rr.42(6) and

At its meeting on 10 August 1978 the Federal Council of

the organization adopted a resolution increasing such rate from

aot 15% to 17 1/2%. There was no dispute that capitation fees from

', branches become due and owing eight weeks after the close of the 4 financial year ending 31 March.

¢ ~The respondents claimed first that the 1978 resolution

increasing such rate was invalid as the 1978 Council was

. invalidly constituted for the reasons as argued in matter N.S.W. 19 of 1979. For reasons therein expressed I am of the opinion

that such Council was validly constituted and that such

resolution which -simply read, "that per capita payments to Head Office be lifted to 17 1/28" was on its true construction prospective in effect so that it would operate only in regard to

the total receipts from Branch contributions collected during the

ft . prospéctive and it:was directed to the method of calculation of an amount in the future, namely at the end of the then current

financial year. That date was 31 March 1979. The decision in Allen -v- Laragy (1975) 7 A.L.R. 261 is distinguishable. In that case the amendment to the rules of that organization -increased contributions be paid by members not only for a period in the

future but also in respect of a period that had passed before

Accordingly an amount of capitation fees for the year ending 31 March 1979, being the difference between the eum, calculated at the rate of 17 1/2% and that calculated at the rate of 15%, is still due and owing by the Sydney Branch to Head Office, and the applicant herein 'is entitled to an order

As regards orders seeking the forwarding of duly audited | and signed statements in respect of the Sydney Brranch for the period ending 31 March 1978 and 31 March 1979 these statements were in fact discovered to Mr Crawford and the other respondents in matter N.S.W. 19 of 1979 sa that no specific order in gps

seregard 1s required. But it is clear once more that Mr Bicnell as Sydney Branch Secretary had failed to comply with the rules of the organization.

This then leaves for consideration the first and last

orders sought by the applicant herein in this matter.

In view of the Court's determination in matter N.S.W. 19 of 1979 there are vacancies in the respective offices held in the Sydney Branch by the five charged Sydney officials, namely, the offices of Secretary, Assistant Secretary/Orcaniser and three positions of , Organiser.., The occupiers of those offices or positions were elected in 1977 for a period of six veats so that there is still an unexvired portion of the texms of each respective office in excess of twelve months (cf. r.=1(1)) before scheduled elections for the filling of those ocfitces and.

The respondents herein claim that there 1s no rule of

t the organization which reguires the respondent to 'f1l1l any vacancy in the 'Sydney Branch and that r.51 is entirely,

Turning first to the vacancy in the off:ce c= Secretary a in the Svdney Branch. Rule 54 sets out numerous ixrcrzent duties

of a Pranch Secretary, many of which are of a ccntinuing nature. '

I am of tke opinion that the respondents, being these -e~bers of

the Committee, of Management of the Sydney Pranch still :n office

have rot only the power urder r.51 to f1ll that 'acarcy but also

have a Guty to do so. (see Pvan -v- Pochford (1965) & F.L.P. 283 @° 291; Beeson -v- Blayney' (1966) 8 F.L.R. 292 32 226 2-a Jones

~132- ; In regard to orders sought in ground (e) of the rule to show cause that the respondents make available all the books and accounts etc. to a nominated Chartered Accountant for the purpose of enabling the same tq be audited in accordance with the resolution of the Federal Executive, reference is made to r.35{13) of the rules as certified on 18 January 1979 which it was agreed was to be read providing that the Executive shall have the power "to demand or cause to be made an audit' of the books and accounts of the Union or any of the Branches thereof". . # The respondents claimed that r.35(13) is not a valid rule as it was adopted py the 1978 Federal Council which was then invalidly "constituted or alternatively the amendment to adopt such' sub-rule was not Validly before that Council as the mandatory procedural steps set out in r.27(2), (3) and (4) had not been complied with. " These claims are rejected for the reasons in this regard set out in the judgment of the Court in

Further the respondents claimed that r.35(13) does not empower the Executive to specify any particular auditor or firm of auditors to conduct an audit of the books and accounts but 1s merely a power to demand or otherwise ensure that such an audit is conducted.' In my view to construe the power given to the Fxecutive under the rule in such a limited way would be to deny

the purpose of having a federal power as claimed by the applicant

herein. When r.35(13) was adopted by the Federal Counca] there

-133- was already a requirement that a Branch of the organization have an audit of its books and accounts. That: requirement was set out in r.42 which rule insofar as is relevant to this discussion is

still provided for in that rule. It' is clear in my view that on

its proper construction r.35(13), when read with the other rules

The evidence given in all the matters presently before the Court leads the Court to the conclusion that a full audit of the Sydney Branch of the organization for the findncial years ending 31 March 1978 and 31 March 1979 should be made by auditors other than A.J. Williams and Co. This conclusion is not to be taken that the members of that firm of Accountants who in fact prepared the returns for those two years referred to in r.42(8) (formerly r.42(6)) (the preparation of which did not require the full audit as sought in the rule to show cause) were not then or presently are not completely independent or that they did not carry out their duties with complete honesty and competency. The Court is confident that Mr Williams, the senior member of the firm would be only too happy to lend any assistance he could to any other Chartered Accountant that might be directed by the

Accoréingly in this matter the following orders and

(1) that the respondents within fourteen days from the date

-134- hereof constitute a Committee of Management of the Sydney Branch

of the organization and appoint a member of such Sydney Branch "

eligible to nominate for the office of Brarich Secretary in Cd

accordance with the rules to carry out the functions of the office of Branch Secretary pending the filling of such office

(2) that the person so appointed carry out all duties of the Branch Secretary as provided for in the rules of the organization pending the election of a Branch Secretary in accordance with these directions or further order of the Court.

(3) that the respondents Bruce J. Palmer and C.L.H. Hastwell each sign' a cheque within seven days from the date hereof for the outstanding Sydney Branch capitation fees for the year ending 31 March 1979 being the difference between an amount calculated at the rate of 17'°1/2% of the total receipts from branch contributions for that financial year and the amount already paid to Head Office of the organization in respect of that financial

(4) the respondents or the person appointed in accordance with (1) above cause to be ,forwarded to Head Office of the organization the cheque referred to in (3) above withir fourteen

(5) the person appointed in accordance with (1) above cause an

-135- ° election to be held pursuant to r.51(1) and r.48 (with the necessary changes) for the filling of the offices of Secretary, Assistant Secretary/Organiser and three Organisers of the Sydney Branch of the organization within such time as the Court directs

after hearing submissions by the parties in this regard.

(6) that the respondents and the person appointed in accordance with (1) above within fourteen days of the daté hereof make _available to Messrs J. Masselos & Co., Chartered Accountants, all books, vouchers, papers, documents, application cards, receipts and any other relevant material for the purpose of enabling the same to be audited in respect of the financial years ending 31 March 1978 and 31 March 1979 or such further period as the Court

may 'direct after hearing submissions from any of the parties

applying pursuant to the order granting liberty to apply.

(7) Liberty is reserved to any party to apply on forty-eight

hours notice to the other parties and to the Court.

In view of the Court's determination in matter N.S.W. 19 of 1979 no orders are made in this matter. Reference has been made in the reasons for judgment in matter N.S.W. 19 of 1979 to

It is proposed to adjourn this application for a period

-136~ - of some six weeks _to enable the applicants herein to make any further submissions'in this matter as they might be advised after

perusal of the reasons for judgment in these matters. Liberty to

_apply is granted to all parties on fourteen days notice.

I certify that this and theo-w Aaarterdlrat Monty lo preceding pages are a true copy of the . Reasons for Judgment herein of his Honour