The Bank's responses to the Union's submissions in chief and the Union's submissions in reply
26 The Bank advanced the prefatory contention, in response to the Union's submissions in chief, that although the revised S/C constituted a purported repleading of the prior S/C, yet particularly in the light of pars 13, 17, 18, 23, 25-27 and 30 of the revised S/C, the same went 'no further' than the prior S/C. It was emphasised by the Bank that I had already found, in the course of my reasons for judgment of 30 July 2004, that the prior S/C disclosed no cause of action, in particular in so far as it alleged breaches of clause 18 of the EBA by reason of the Bank's treatment of employees as redundant who were not in a redundancy situation. My conclusion commencing at [30] of those earlier reasons for judgment was in the following terms:
'In my opinion, the S/C as presently framed by the Union, does not plead, or plead adequately, contravention or breach of such material obligations or conditions on the Bank's part of the material elements of clause 18 of the EBA, such as are necessary to sustain a viable cause of action. What is required is an identification with precision of the elements of clause 18 sought to be relied upon by the Union, and of material facts and circumstances asserted to satisfy those requisite elements.'
The revised S/C has sought to address that observation. In any event, I made the following further observation:
'In reaching that conclusion, I have accepted as soundly conceived the Bank's interpretation of clause 18 of the EBA to the extent material to the Union's present complaint. In my opinion, clause 18 does not operate to prohibit the Bank from retrenching an employee whose position of employment has not been abolished.'
I referred in that regard to the operation of clause 18, and the fact that clause 18.4.2 speaks of current positions which have been declared redundant,rather than provides 'an expression or description importing the notion of an abolished or discontinued position of employment'.
27 The Bank contended therefore that the fundamental issue between the parties arising on the Union's present application was whether its reformulation of the prior S/C was viable, having regard to my earlier reasons for judgment, the Bank submitting that the terms of those reasons left no room to suggest that a different outcome would have resulted if the Union had merely altered its pleadings to better reflect the terms of the EBA, and clause 18 thereof headed Redundancy Redeployment and Retrenchment in particular. I was referred in particular to my reference to the expression 'whose position of employment has not been abolished' appearing in the context generally of [31] of my reasons for decision of 30 July 2004. The Bank asserted that its only obligation falling within the scope of clause 18 of the EBA was an obligation to make certain payments to those employees whose position was redundant within the terms of that clause, and that if, as the Union claimed, the three employees specifically the subject of the proceedings were not redundant, the Bank did not breach any obligation by treating them as redundant, and by retrenching them, and by making those payments to them. That was said by the Bank to be because it could not constitute a breach of the EBA for the Bank to have purported to act under that clause. Rather, so the Bank thereby seemingly implied, any redress in favour of those employees could only be for unfair dismissal, in relation to which any award of damages would need to allow credit in favour of the Bank in respect of any such payments of the Union's case sought to be made out by the revised S/C.
28 In its submissions in reply, the Union rejoined to the effect that clause 18 imposed many obligations upon the Bank, quite apart from making 'certain payments', and further that it was wrong to suggest that the only obligation of the Bank falling within clause 18 was to make certain payments to those employees whose position in terms of clause 18 was redundant. I was referred by the Union to the obligations of the Bank for instance to consult with and provide information to the Union (clause 18.3), to make reasonable efforts to deploy and 'where appropriate to train' (clause 18.4), and in any event to provide adequate notice of retrenchment (clause 18.7). The Union contended moreover that the Bank's submissions upon the meaning and operation of clause 18, if correct, 'would have an effect entirely contrary to the purpose of clause 18 - namely that whenever the [Bank] determines to reduce staff it can avoid the obligations of the [EBA], including the obligation to make redundancy payments, by selecting for redundancy only those employees whose positions are not redundant and filling their vacant positions with employees who occupied positions that were redundant'. The issue raised by that response of the Union would involve an apparent postulation of a contractual inhibition placed upon the Bank as to dismissal of non-redundant employees. That rejoinder of the Union would not appear to come to issue, or in any event to be here material, at least for the reasons of the Bank already recorded.
29 It was next submitted by the Bank that the Union, by its revised S/C, was now seeking to plead that each of Ms Cashion, Mr Tancred and Ms Burns had been '… affected by a redundancy situation', but that the Union did not assert thereby that their respective positions of employment were redundant, in the sense or meaning that the Union would attribute to redundancy, namely such positions were to be abolished. According to the Bank's submissions, what the Union was seeking to argue was that each of the three identified employees was not redundant, the Bank referring thereby to the following provisions of the revised S/C, namely subpars 30(d)(viii) in relation to Ms Cashion, 30(e)(vii) in relation to Mr Tancred, and 30(f)(vi) in relation to Ms Burns. Thus so the Bank's submissions continued, the Union was seeking in reality the re-determination of the same question that arose for decision by the Court on the Bank's previous strike-out application. Or as put another way by the Bank, the Union was 'trying to canvas the Court's decision', by virtue of 'an amendment which does not alter the substance of its claim, which claim has already been rejected'.
30 The Union responded to those last submissions the effect that the issue presently raised did not (the Union's emphasis) involve the same question as that now arising for determination. The question said by the Union to have arisen for determination in my previous reasons for judgment was that raised by the Bank's notice of motion, namely, is it a breach of clause 18 'to treat the employees in question as if they were in a redundancy situation if in fact they were not?', whereas the question said to be raised by the revised S/C was 'is it a breach of clause 18 to dismiss employees for reason of redundancy in circumstances where they were affected by a redundancy situation, but their particular positions were not redundant?' The Union thus further contended that '[w]hile the Court upheld the [Bank's] Motion, it is not clear that the Court also finally determined that second question, which of course the Court did not need to consider in circumstances where the pleading did not actively plead the existence of such a redundancy situation'.
31 Put another way by the Bank in the course of argument, one of the principal amendments sought by the Union to its prior S/C was a claim to the effect that the relevant employees were 'affected by a redundancy situation' in alleged breach of clause 18 of the EBA, even though their particular positions had not been declared redundant. However as may be recalled from my earlier decision of 30 July 2004 (at [31]), clause 18 of the EBA was submitted by the Bank not to so operate as to prohibit the Bank from retrenching an employee whose position of employment had not been abolished. In short, so the Bank submitted, there was no prohibition on retrenchment contained in clause 18, nor was there any warrant to read therein any such prohibition, and any rights of redress of employees in those circumstances would therefore fall to be determined elsewhere (for instance at least at common law for any unfair dismissal which may have occurred). I observe in that regard that at least clauses 8.4.4(ii) and (iii), 18.4.10, 18.4.11, 18.5.1, 18.5.2, 18.5.3, 18.5.4, 18.7.1, 18.7.4, 18.8.1 and 18.8.2 address the subject of retrenchment, as do clauses 18.9 to 18.12 (inclusively).
32 Largely upon the footing of what I have above summarised, the Bank submitted that the Union was by its revised S/C attempting in reality to use two different concepts of redundancy in clause 18 of the EBA, in circumstances where clause 18.2.6 has defined a single concept of redundancy (ie 'position redundancy') in an exclusive as well as comprehensive manner. It is appropriate to set out below the precise language of the Bank's description of the Union's contentions in that regard, and its criticisms thereof:
'The first is a broad definition of the provision to be used when determining whether the clause is to apply to a particular situation. Once this broad test has been met, on the [Union's] approach a much narrower approach is utilised to determine whether the particular individual is redundant. However, in the [Bank's] submission, the words used within the clause are the same, are defined and therefore the interpretation of them should be the same. There is no basis for arbitrarily widening and narrowing the meaning of "redundancy" or "redundancy situation" to artificially create a situation which is clearly not within the meaning of the clause. The term "affected by a redundancy situation" (emphasis added) is not used in clause 18 or in any other part of the EBA. It is a meaningless concept foreign to that instrument and cannot be used to change the proper and ordinary meaning of it… the [Union] is still unable to point to any part of clause 18 preventing the Bank terminating an employee whose position has not been abolished.'
33 The Union rejected the contention that it had used two different concepts of 'redundancy' in the context of its purported resort to clause 18 of the EBA (in the context of the course of its submissions). The Union accepted that the word 'redundancy' has only one meaning, namely that given to it by clause 18.2.6, and contended that a 'redundancy' arose upon a position being 'abolished' (see Clause 18.3.2, which refers to the Bank's obligation to notify the Union with 'details of the positions to be abolished including position numbers where available…'). It was entirely consistent with that definition, so the Union further contended, that a 'redundancy situation' would arise in circumstances where the Bank decided to abolish one or more positions. That a 'redundancy situation' could affect more than one employee at the same time, and could affect more than just the employees in the positions that may have been made redundant, was said by the Union to be 'clear' from clause 18.5.2, the text whereof is repeated below for ease of reference:
'In a redundancy situation affecting a number of employees engaged in the same work at or about the same classification level and in the same work area, the Bank may call for applicants for retrenchment and determine which employees are to be retrenched.'
34 Moreover that clause was said by the Union to be predicated on the assumption that the number of employees who would be affected by a redundancy situation would be greater than the number of positions that would have been made redundant, since all of the Bank's employees 'affected' in that work area and at that classification level would be able to volunteer for retrenchment, and the Bank would then select from those volunteers the number it required to be retrenched. Thus it was contended by the Union that it was the Bank's approach to the operation of the expression 'redundancy' which was unreal, and that in circumstances where, for instance, the Bank might determine to abolish one of two teller positions at a Branch, only the teller holding the position that had been abolished would be in a 'redundancy situation'. The effect of that submission was said by the Union to be that if the Bank was to implement the reduction required by terminating the employment of the other teller (ie the teller that happened to be in the position that had not been abolished), it could do so without having to abide by the obligations of clause 18 of the EBA.
35 Moreover the Union contended that the expression 'affected by a redundancy situation' was indeed used in clause 18. I was again referred to clause 18.5.2, which referred to 'a redundancy situation affecting a number of employees, and to clause 18.4, which dealt with obligations inter alia to redeploy, commencing with clause 18.4.1, which was said to use a phraseology with similar effect, namely '[w]here redundancy situations occur, the Bank will make reasonable efforts to redeploy the employees concerned'. The whole of clause 18 was said to clearly intend to provide benefits and impose obligations in respect of employees affected by or concerned by a redundancy situation.
36 It seems to me however that the use relevantly of the plural of 'redundancy' in the particular contexts cited in the Union's submissions is not supported by the context of the EBA, once read consistently and as a whole. The definition of 'redundancy' is contained in clause 18.2.6, which adopts the singular notion, namely of course that of 'position redundancy', significantly, the singular is reflected in particular in clauses 18.2.7, 18.4.3 and 18.4.4 to 18.4.11. True it is that in following provisions of the EBA, plurality appears, but not so as to vary or dislodge the preceding operation of the singular number. It is I think unintended by the contexts involving plurality to which I have referred to afford the significance asserted by the Union.
37 By way of illustration of the point of interpretation here in issue, the Bank argued that if par 23 of the revised S/C (extracted in [9] above) was to be allowed to remain, then its practical application would mean that every individual employed anywhere in Australia by the Bank, 'from the Chief Executive down', would be 'affected by a redundancy situation' each time the Bank made a decision to abolish a position anywhere within its retail operations in the context of a quota review. That may be somewhat of an extreme example, but less extreme examples may obviously come to mind. The approach of the Union was thus described by the Bank as unsustainable, being an approach which would 'also have the absurd result of the abolition of a position held by an employee who is not covered by the agreement creating a redundancy situation'.
38 In summary therefore the Bank concluded its written submissions as follows:
(i) the words used in clause 18 of the EBA should be given their ordinary meaning, and no assistance was to be gained from extrinsic material; there was nothing in the words of clause 18 that prohibited the Bank from retrenching an employee whose position had not been abolished;
(ii) the extrinsic materials upon which the Union sought to rely did not establish that the parties had a common intention to include in their reference to the EBA to anything other than their presumed intention;
(iii) none of the extrinsic material sought to be relied upon by the Union established that the terms used in the EBA meant anything other than that which is apparent from a proper reading thereof, or served to make good the Union's submission that 'the parties had a common understanding, until around 2001 and 2002, that employees in a redundancy position would only be made redundant in circumstances where his/her position was redundant and not otherwise'; and
(iv) to the extent that employees, who have had their employment terminated with the Bank, might believe that they have been treated unfairly, any such persons would have other avenues of recourse open to them, in particular common law claims for unfair or wrongful dismissal, which some former employees had already undertaken.
39 I should to add that in purported clarification of its contentions above addressed, the Union accepted that '… it is the case that following the successful application to strike out the Claim on the basis that it failed to plead that the employees were in a redundancy situation, the Union had now pleaded (in the revised S/C) that the employees were in a redundancy situation, but were in positions that were not themselves redundant'. The Bank contended, but the Union denied, that it was essentially or substantially the same question again arising at the instance of the Union for determination. The Union however asserted that it was only the following question which arose for determination in the previous strike-out application, namely:
'is it a breach of clause 18 to treat the employees in question as if they were in a redundancy situation if in fact they were not?'
and that the question now raised by the revised S/C was framed as follows:
'is it a breach of clause 18 to dismiss employees for reason of redundancy in circumstances where they were affected by a redundancy situation but their particular positions were not redundant?'
The Union contended that it was not clear whether I had also finally determined, in the course of my reasons for judgment of 30 July 2004, the latter question now said to be raised for determination, in relation to which the Union acknowledged 'the Court did not need to consider in circumstances where the pleading did not actively plead the existence of such a redundancy situation'.
40 Nevertheless in the context of the revised S/C, the Union seeks thereby to pursue par 13 thereof in its presently updated form (see again [4] above) and the provisions of the revised S/C consequential thereon, including in particular pars 22 to 27 and 30 thereof (which have also been reproduced earlier in these reasons (see again [9]-[10] hereof)).