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[2010] FCA 399
Federal Court of Australia
2010-04-29
Commission J, Collier J
Original judgment source is linked above.
Zealand Banking Group Limited [2002] FCA 631 cited Fingleton v R (2005) 227 CLR 166 cited General Motors Holden Pty Ltd v Bowling (1976) 12 ALR 605 discussed Greater Dandenong Council v Australian Municipal, Administrative, Clerical and Services Union (2001) 112 FCR 232 cited Hely-Hutchinson v Brayhead Ltd [1968] 1 QB 549 applied Hudson Investment Group Limited v Australian Hardboards Limited [2005] NSWSC 716 cited Jones v Queensland Tertiary Admissions Centre Ltd [2009] FCA 1382 related Kimpton v Minister for Education of Victoria (1996) 65 IR 317 cited Kioa v West (1985) 159 CLR 550 cited McPherson v Dodd [2004] VSC 153 cited Neilson v JSM Trading Pty Limited t/a Workhire Pty Ltd [2003] AIRC 331 cited Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia (No 3) (1998) 195 CLR 1 applied Player v Isenberg [2002] NSWCA 186 cited Police Federation of Australia v Nixon (2008) 168 FCR 340 discussed Poliwka v Heven Holdings Pty Ltd (No 2) (1992) 8 ACSR 747 cited Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 cited Rankin v Marine Power International Pty Ltd (2001) 107 IR 117 cited Rojas v Esselte Australia Pty Ltd (No 2) [2008] 177 IR 306 cited State Bank of Victoria v Parry (1990) 2 ACSR 15 cited Swiss Screens (Australia) Pty Ltd v Burgess (1987) 11 ACLR 756 cited The State of South Australia v O'Shea (1987) 163 CLR 378 cited United Firefighters Union of Australia v Metropolitan Fire and Emergency Services Board (2003) 198 ALR 466 cited Victorian Employer's Federation v Federal Commissioner of Taxation (1957) 96 CLR 390 cited Halsbury's Laws of Australia (Butterworths 1999) Vol 1(2)
Date of hearing: 1-5, 8-10, 13, 24-25 February 2010
AND: QUEENSLAND TERTIARY ADMISSIONS CENTRE LTD (ACN 050 542 633)
Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. The text of entered orders can be located using Federal Law Search on the Court's website.
AND: QUEENSLAND TERTIARY ADMISSIONS CENTRE LTD (ACN 050 542 633)
REASONS FOR JUDGMENT 1 On 25 November 2009 I made interlocutory orders restraining QTAC from taking any action against Ms Jones until the hearing of the substantive application filed in these proceedings: Jones v Queensland Tertiary Admissions Centre Ltd [2009] FCA 1382. Background facts to these proceedings are outlined in Jones [2009] FCA 1382 at [13]-[14] and in the Agreed Chronology filed 1 February 2010. In summary, QTAC processes student applications in Queensland for admission to undergraduate and diploma courses offered by tertiary institutions in that State, as well as applications to some tertiary institutions interstate. It is not in contention that members of QTAC are tertiary institutions, the majority of which are located in Queensland. Ms Jones, who is the Chief Executive Officer of QTAC, has been the subject of serious bullying allegations by individual employees of QTAC and the Australian Services Union ("ASU"). The members of QTAC wish to hold a general meeting to consider an independent report, commissioned by the Chair of the QTAC Board of Directors, investigating those allegations (a report entitled "Report on Grievances against CEO, QTAC" dated 28 September 2009 produced by Ms Carol Watson, hereinafter referred to as "the Carol Watson Report"). My interlocutory orders of 25 November 2009 currently prevent the holding of this meeting or other action against Ms Jones by QTAC in reliance upon the Carol Watson Report or other documentation identified in those orders. 2 It is clear from both the pleadings and the affidavit material filed in these proceedings that Ms Jones believes QTAC's actions have been, and continue to be, motivated by pressure brought to bear upon QTAC by the ASU. More particularly, Ms Jones claims that the ASU has orchestrated a campaign against her relevant to her conduct in the 2009 enterprise bargaining negotiations as spokesperson for QTAC, and that in taking adverse action against her QTAC has yielded and continues to yield to this campaign in contravention of the Fair Work Act 2009 (Cth) ("the Act"). Ms Jones also claims that QTAC promised that it would engage in fair processes to investigate the claims against her, and that there has been either a variation to her contract of employment to that effect, or alternatively she has acted to her detriment in reliance on QTAC's representation to that effect. 3 I do not find Ms Jones' claims substantiated. In my view the application should be dismissed. My reasons for so finding follow.
MS JONES' CLAIM 4 By amended application filed 18 December 2009 Ms Jones seeks relief for adverse action taken against her, and/or proposed to be taken against her, by QTAC because of her role and/or participation in negotiations for an enterprise agreement, and for breach of her contract of employment. 5 To the extent that Ms Jones has a statutory cause of action based on the fair work legislation, Ms Jones relies on s 340 of the Act which provides as follows: (1) A person must not take adverse action against another person: (a) because the other person: (i) has a workplace right; or (ii) has, or has not, exercised a workplace right; or (iii) proposes or proposes not to, or has at any time proposed or proposed not to, exercise a workplace right; or (b) to prevent the exercise of a workplace right by the other person. Note: This subsection is a civil remedy provision (see Part 4 1). (2) A person must not take adverse action against another person (the second person) because a third person has exercised, or proposes or has at any time proposed to exercise, a workplace right for the second person's benefit, or for the benefit of a class of persons to which the second person belongs. Note: This subsection is a civil remedy provision (see Part 4 1). 6 As final relief, Ms Jones claims: 1. Pursuant to section 545(2)(a) of the Fair Work Act 2009 (Cth), an injunction restraining QTAC from taking any action against her in reliance upon: (a) any allegations against her made by the ASU in its letter to QTAC dated 7 August 2009; and/or (b) the complaint made against her by Nicola Bowes dated 7 August 2009; and/or (c) the anonymous complaint made against her dated 11 August 2009; and/or (d) the anonymous complaint made against her dated 12 August 2009; and/or (e) the complaint made against her by Danelle Bayley dated 13 August 2009; and/or (f) any allegations against her made by the ASU in its letter to QTAC dated 14 August 2009; and/or (g) the Carol Watson Report; and/or (h) Walter Williams' diary notes forwarded to Ms Jones by Professor Deborah Terry on about 30 October 2009. 2. Pursuant to section 545(2)(b) of the Act, QTAC pay Ms Jones compensation for loss suffered by her because of QTAC's contravention of the Act. 3. Pursuant to section 546 of the Act, QTAC pay Ms Jones a pecuniary penalty for QTAC's contravention of the Act. 4. A declaration that QTAC is in breach of the contract of employment between Ms Jones and QTAC by failing to accord Ms Jones natural justice in the purported investigation into the allegations and complaints against her. 5. A declaration that QTAC is estopped from denying that it is required to afford Ms Jones natural justice in any decisions affecting Ms Jones' employment. 6. A declaration that QTAC is estopped from relying on the Carol Watson Report. 7. A declaration that QTAC is estopped from relying on the Walter Williams diary notes referred to in paragraph 1(h). More specifically, in her Amended Statement of Claim filed 18 December 2009 Ms Jones pleads inter alia:
ISSUES FOR DECISION IN THIS CASE 7 Generally, Ms Jones' Amended Statement of Claim identifies three causes of action, which can be described as follows:
THE WORKPLACE RIGHT CAUSE OF ACTION 9 It was common ground between the parties that Ms Jones bears the onus of proving she has a workplace right under the Act. However once an employee has established that he or she has a workplace right, and has been the subject of adverse action by the employer, the onus of proof shifts to the employer in respect of the reason for the adverse action by the employer. At this point the onus is on the employer to demonstrate that the adverse action taken against the employee was not for a reason prohibited by the Act. 10 That the employee is required to first prove the existence of objective facts which are said to provide a basis for the alleged adverse action, before the onus shifts to the employer in respect of the prohibited reason, was explained by Branson J in Construction, Forestry, Mining and Energy Union v Coal and Allied Operations Pty Ltd (1999) 140 IR 131 at [161]-[162] and Moore J in Rojas v Esselte Australia Pty Ltd (No 2) [2008] 177 IR 306 at 321-322 [49]-[50]. To paraphrase observations of Moore J in Rojas [2008] 177 IR 306 at 322, it is not sufficient for Ms Jones to simply allege that she had a workplace right and that she was the subject of adverse action - rather on the assumption that Ms Jones is able to prove these allegations, the burden is then cast on to QTAC to prove that adverse action was not taken against Ms Jones because of her workplace right for the purposes of s 340 and s 361 of the act.
Submissions of Ms Jones 11 Ms Jones' submissions as to whether she had a workplace right may be summarised as follows:
QTAC's submissions 12 QTAC's submissions as to whether Ms Jones had a workplace right may be summarised as follows:
Consideration 13 So far as is relevant in these proceedings, s 341(1) of the Act defines "workplace right" as follows: (1) A person has a workplace right if the person: (a) is entitled to the benefit of, or has a role or responsibility under, a workplace law, workplace instrument or order made by an industrial body; or (b) is able to initiate, or participate in, a process or proceedings under a workplace law or workplace instrument; or (c) … 14 "Process or proceedings under a workplace law or workplace instrument" is defined by s 341(2) to mean: (a) a conference conducted or hearing held by FWA; (b) court proceedings under a workplace law or workplace instrument; (c) protected industrial action; (d) a protected action ballot; (e) making, varying or terminating an enterprise agreement; (f) appointing, or terminating the appointment of, a bargaining representative; (g) making or terminating an individual flexibility arrangement under a modern award or enterprise agreement; (h) agreeing to cash out paid annual leave or paid personal/carer's leave; (i) making a request under Division 4 of Part 2 2 (which deals with requests for flexible working arrangements); (j) dispute settlement for which provision is made by, or under, a workplace law or workplace instrument; (k) any other process or proceedings under a workplace law or workplace instrument. 15 It is clear that the workplace right asserted by Ms Jones pursuant to s 341(1)(a) is that she was the bargaining representative of QTAC, which was her role or responsibility in respect of the making of an enterprise agreement within the meaning of s 341(2). It is also common ground that the enterprise agreement the subject of negotiations in 2009 was not a greenfields agreement within the meaning of s 12 of the Act. 16 It is appropriate to examine the issue whether Ms Jones had a workplace right in two parts - first whether Ms Jones was QTAC's bargaining representative within the meaning of s 341(1)(a), and second whether Ms Jones had participated in a process or proceedings under a workplace law or workplace instrument pursuant to s 341(1)(b).
Was Ms Jones QTAC's bargaining representative? 17 Extensive submissions were made by both parties in these proceedings as to whether Ms Jones was QTAC's bargaining representative. In considering this issue in light of the facts of this case, the following sub-issues require determination:
What are the statutory requirements for appointment as a bargaining representative of an employer? 18 The relevant provisions of the Act for the purposes of these proceedings came into effect on 1 July 2009. 19 Section 176(1) of the Act describes the persons who are bargaining representatives for a proposed enterprise agreement that is not a greenfields agreement: (a) an employer that will be covered by the agreement is a bargaining representative for the agreement; (b) an employee organisation is a bargaining representative of an employee who will be covered by the agreement if: (i) the employee is a member of the organisation; and (ii) in the case where the agreement is a multi enterprise agreement in relation to which a low paid authorisation is in operation--the organisation applied for the authorisation; unless the employee has appointed another person under paragraph (c) as his or her bargaining representative for the agreement, or has revoked the status of the organisation as his or her bargaining representative for the agreement under subsection 178A(2); or (c) a person is a bargaining representative of an employee who will be covered by the agreement if the employee appoints, in writing, the person as his or her bargaining representative for the agreement; (d) a person is a bargaining representative of an employer that will be covered by the agreement if the employer appoints, in writing, the person as his or her bargaining representative for the agreement. 20 Further, s 178 of the Act identifies other matters relevant to the appointment of a bargaining representative as follows: Appointment of bargaining representatives--other matters When appointment of a bargaining representative comes into force (1) An appointment of a bargaining representative comes into force on the day specified in the instrument of appointment. (2) A copy of an instrument of appointment of a bargaining representative for a proposed enterprise agreement must: (a) for an appointment made by an employee who will be covered by the agreement--be given to the employee's employer; and (b) for an appointment made by an employer that will be covered by a proposed enterprise agreement that is not a greenfields agreement--be given, on request, to a bargaining representative of an employee who will be covered by the agreement. Regulations may prescribe matters relating to qualifications and appointment (3) The regulations may prescribe matters relating to the qualifications or appointment of bargaining representative. 21 To date, the legislature has not by regulation prescribed matters relating to the appointment of bargaining representatives, including forms of appointment. 22 The following conclusions may be drawn from these provisions so far as concerns the appointment of a bargaining representative by an employer in relation to a proposed enterprise agreement that is not a greenfields agreement:
What is the appropriate approach to construction of these provisions? 23 The object of the Act is found in s 3. Section 3 provides as follows: The object of this Act is to provide a balanced framework for cooperative and productive workplace relations that promotes national economic prosperity and social inclusion for all Australians by: (a) providing workplace relations laws that are fair to working Australians, are flexible for businesses, promote productivity and economic growth for Australia's future economic prosperity and take into account Australia's international labour obligations; and (b) ensuring a guaranteed safety net of fair, relevant and enforceable minimum terms and conditions through the National Employment Standards, modern awards and national minimum wage orders; and (c) ensuring that the guaranteed safety net of fair, relevant and enforceable minimum wages and conditions can no longer be undermined by the making of statutory individual employment agreements of any kind given that such agreements can never be part of a fair workplace relations system; and (d) assisting employees to balance their work and family responsibilities by providing for flexible working arrangements; and (e) enabling fairness and representation at work and the prevention of discrimination by recognising the right to freedom of association and the right to be represented, protecting against unfair treatment and discrimination, providing accessible and effective procedures to resolve grievances and disputes and providing effective compliance mechanisms; and (f) achieving productivity and fairness through an emphasis on enterprise level collective bargaining underpinned by simple good faith bargaining obligations; and (g) acknowledging the special circumstances of small and medium sized businesses. 24 It is clear from s 3 that the objective of the legislature in enacting the Act was to promote fairness, flexibility, productivity, accessibility and effectiveness. This purpose is also clear from Parliamentary Debates introducing the Act, for example comments of the Minister to the effect that the legislation was based "on the enduring principle of fairness while meeting the needs of the modern age" (the Honourable Julia Gillard MP, Minister for Employment and Workplace Relations, Second Reading Speech 25 November 2008 Parliamentary Debates House of Representatives p 11189). 25 References to the role of "bargaining representative" are repeated throughout the Act. The term is not defined in the Act and is a newly-created role, replacing the role of "bargaining agent" under the previous Workplace Relations Act 1996 (Cth). Paragraph 697 of the Explanatory Memorandum to the Fair Work Bill 2008 (Cth) provided: Bargaining representatives have a more significant formal role in the bargaining process compared to bargaining agents under the WR Act. Bargaining representatives are entitled to: bargain for enterprise agreements and depending on the type of agreement will usually be entitled to apply for (among other things) protected action ballot orders, bargaining orders, majority support determinations, scope orders and serious breach declarations. Bargaining representatives are also entitled to represent a person in matters before FWA (see clause 596). As part of their responsibilities, bargaining representatives for a single-enterprise agreement and a multi-enterprise agreement to which a low paid authorisation is in operation are required to meet the good faith bargaining requirements set out in subclause 228(1). Non-compliance with the requirements exposes a bargaining representative to bargaining orders. Division 3 also makes clear that an employer must not refuse to recognise or bargain with a bargaining representative. 26 In my view the legislation referable to the appointment of a bargaining representative in these circumstances should be interpreted liberally. The Act is intended to be accessible to employers large and small, as well as to employees both in their own capacity and through union membership. It is intended to assist relevant parties and facilitate the processes contemplated by the Act, including negotiation of enterprise agreements. The role of bargaining representative is clearly significant, however I consider that, in relation to the circumstances relevant to such appointments, the key factor is that there be attendant certainty upon the creation of the role rather than a requirement of overt formality. So, it must be clear on the face of the relevant document that the position has been created, and a copy of that document must be capable of being given to a bargaining representative of the employee (s 178(2)). Accordingly, for example, I do not consider that reference to "instrument of appointment" in s 178(1) requires that a document purporting to record the appointment of a bargaining representative of an employer be a document of the formality of a deed under seal. Provided the appointment is made in writing, as required by s 176(1)(d), and provided it clearly evidences the creation of the role, the appointment is effective. 27 Both parties in the course of the proceedings made submissions as to whether, to be effective, the instrument of appointment must specify the date on which it comes into force. In particular, s 178(1) of the Act states: An appointment of a bargaining representative comes into force on the day specified in the instrument of appointment. 28 In my view the formal specification of the date of commencement of the role in the instrument of appointment is not a condition precedent to the effectiveness of the appointment itself. I form this view because: 1. The language of s 178(1) does not mandate the effectiveness of the instrument of appointment as dependent on the formal specification of a date of commencement in the instrument itself. The appointment commences on the day specified in the instrument. 2. It is not surprising that the appointment comes into force on the day specified in the instrument of appointment - indeed given the formal role, responsibilities and potential liabilities of the bargaining representative it is important that there be certainty in the date on which the bargaining representative takes up the position. However I consider that the terms of the legislation are met if, as a matter of construction of the instrument of appointment, the date on which the appointment comes into force is evident on the face of the instrument of appointment. 3. It is informative to compare s 178(1) with s 178(2)(b), which requires that a copy of the instrument of appointment must be given, on request, to a bargaining representative of an employee who will be covered by the agreement. It follows from this provision that the appointment must be in a form capable of being given to other parties to the negotiations, and supports the necessity of the appointment being made in writing. By contrast s 178(1) simply provides that the appointment of the bargaining representative comes into operation on the date specified. 4. As a matter of legislative construction I do not think that s 176(1)(d) and s 178(1) should be read together with the result that an instrument of appointment of a bargaining representative is not valid unless, for example, there is a specific statement in the instrument explicitly stating the date of the commencement of appointment of the bargaining representative. While such a statement may be valuable, I do not consider such formality to be required by the legislation. I note in particular the objects of the legislation to which I have earlier referred (cf Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 at 390-391), including the intention of the legislature that the Act provide accessible and effective procedures for use by employers and employees. A finding that an instrument of appointment is not effective in the absence of such specific statements would, in my view, run contrary to such legislative intention.
What was the process whereby Ms Jones claimed she was appointed QTAC's bargaining representative? 29 The documents upon which Ms Jones relies in respect of her claim that she was appointed the bargaining representative of QTAC are:
Was the process whereby Ms Jones claims she was appointed QTAC's bargaining representative effective to appoint her to that role? 31 In my view the process whereby Ms Jones claims she was appointed QTAC's bargaining representative was effective to appoint her to that role, as of 18 August 2009. 32 Notwithstanding the powerful arguments submitted by the respondent to the contrary, I form this view for the following reasons. 33 First and foremost, Mr Colin McAndrew as Chair of the Board of QTAC said, in his letter of 18 August 2009 to Ms Julie Bignell, Branch Secretary of the ASU, that Ms Jones was QTAC's bargaining representative. So did Professor Deborah Terry in para 7.4 of her letter of 29 October 2009 to Ms Jones and Ms Jones' solicitors Cooper Grace Ward, which letter was written apparently at a time when the QTAC Board was receiving legal advice specifically in relation to issues raised by Ms Jones. In my view the obvious inference to be drawn from this correspondence is that Ms Jones did indeed occupy this role. 34 Second, I accept the submission by Mr Spry on behalf of Ms Jones that the letter of 18 August 2009 from Mr McAndrew to Ms Julie Bignell was effective as an instrument of appointment of Ms Jones as bargaining representative, and that the appointment was effective as of 18 August 2009. The text of the letter was as follows: Dear Ms Bignell I refer to your letter of 7 and 14 August regarding the QTAC Enterprise Agreement negotiations and your expressed concern about the QTAC CEO. The QTAC Board received copies of your correspondence at its meeting today and was also notified of the complaint made by Dr Nicola Bowes. The Board and the CEO are conscious of their respective responsibilities under the Fair Work Act and in regard to health and safety and will certainly fulfil their obligations in both areas. The Board has confirmed that the CEO should continue to be QTAC's bargaining representative. In respect of Dr Bowes' complaint, the CEO has provided with (sic) a copy of the complaint and requested to provide me with a written response. Once I have received this response I will consider what, if any, action should be taken. Yours sincerely A.C. McAndrew Chair, QTAC Board 35 This letter followed the Board meeting of QTAC, where it appears from the minutes - albeit unconfirmed to date - that the Board gave consideration to the role of Ms Jones in the negotiations. The appointment of Ms Jones as bargaining representative, as appeared in the letter of 18 August 2009, was the clear result of a considered decision by the QTAC Board. 36 Third, although that letter did not specifically state that Ms Jones' appointment took effect from 18 August 2009, in fact the letter was dated 18 August 2009. For reasons I outlined earlier in this judgment in relation to formal requirements of appointment, I do not consider the letter needed to specifically state that the appointment was effective from 18 August 2009. I consider that the date of the letter was "the date specified in the instrument of appointment" for the purposes of s 178(1). 37 I note that the letter states that Ms Jones would "continue to be QTAC's bargaining representative". The Act had substantially commenced operation only the month prior to the date of the letter. Because all events relevant to these proceedings took place after 18 August 2009 it is not necessary for me to decide whether this letter had - or was capable of having - retrospective operation, so as to vest Ms Jones with the role of bargaining agent prior to 18 August 2009. One possible interpretation which could be given to the circumstances between 1 July 2009 and 18 August 2009 was that the default position recognised in s 176(1)(a) applied, and that during that period QTAC was "its own" bargaining representative, albeit with Ms Jones performing as the "human face" of QTAC in negotiations. Indeed, as para 716 of the Explanatory Memorandum to the Fair Work Bill 2008 (Cth) makes clear, there is no restriction on when a person may appoint a bargaining representative. 38 Fourth, it could reasonably be interpreted from the letter of 18 August 2009 that the Board was cognisant of the statutory role of bargaining representative and had deliberately chosen to vest Ms Jones with that role. The expression "bargaining representative", while possibly interchangeable in casual parlance with such terms as "bargaining agent" or "bargaining spokesman", nonetheless at the time of the letter was a role newly created by the Act. It would be strange to find that Ms Jones was not the bargaining representative when she was specifically identified as such in the letter of 18 August 2009, particularly in light of the statement in Mr McAndrew's letter that "The Board and the CEO are conscious of their respective responsibilities under the Fair Work Act". The obvious inference to be drawn from that statement was that QTAC was, indeed, aware of its responsibilities under the Fair Work Act, including its responsibilities in relation to enterprise bargaining negotiations. 39 Fifth, Mr McAndrew's letter of 18 August 2009 was in response to, inter alia, a previous letter of 7 August 2009 from Ms Bignell of the ASU, in which Ms Bignell several times referred to Ms Jones as "the appointed Bargaining Representative of QTAC". It is not disputed in these proceedings that the ASU was a bargaining representative of employees of QTAC for the purpose of the enterprise agreement negotiations. While this description by the ASU in Ms Bignell's letter could not vest Ms Jones with a role she did not actually hold, nonetheless in my view an inference may be drawn from Mr McAndrew's letter of 18 August 2009, responding to the ASU's letter and terminology, that Ms Jones was indeed "the appointed Bargaining Representative of QTAC" for the purposes of the Act. 40 Sixth, s 178(2) requires that a copy of the instrument of appointment be capable of being given to a bargaining representative of the employee on request by that person. In my view this contemplates that copies (or indeed the original) of the instrument of appointment will also be retained by the employer, including potentially to provide a copy to the bargaining representative of the employer himself or herself. Indeed, while the ASU as bargaining representative of the QTAC employees did not appear to make a request within the meaning of s 178(2), nonetheless it appears that a copy of the letter of 18 August 2009 confirming her appointment was provided to Ms Jones on 18 August 2009. Ms Jones could reasonably assume that the letter meant what it said - namely that she was the bargaining representative of QTAC for the purposes of the Act. 41 Further, the letter of 18 August 2009 was addressed to the ASU, in its capacity as the bargaining representative of QTAC employees. While not apparently produced strictly in compliance with s 178(2), nonetheless the letter of 18 August 2009 by Mr McAndrew was in response to a request by the ASU for clarification of the position in relation to Ms Jones as "the appointed Bargaining Representative of QTAC". 42 Seventh, QTAC contended that the reference by Mr McAndrew in his letter of 18 August 2009 to Ms Jones being QTAC's bargaining representative was actually "ordinary language", and that in reality:
Conclusion 45 The circumstances surrounding the appointment of Ms Jones as QTAC's bargaining representative are not unattended by ambiguity. However on balance, in my view it follows that Ms Jones was QTAC's bargaining representative as from 18 August 2009.
Was Ms Jones able to participate in a process or proceedings under a workplace law or workplace instrument pursuant to section 341(1)(b) 46 Ms Jones contends that, in the alternative, she has a workplace right pursuant to s 341(1)(b) of the Act, namely that she: is able to initiate, or participate in, a process or proceedings under a workplace law or workplace instrument. 47 It is common ground that, for Ms Jones to have a workplace right pursuant to s 341(1)(b), it would be on the basis that her circumstances satisfied s 341(1)(b) and s 341(2)(e). Specifically, if Ms Jones' workplace right exists it arises from her ability to participate in the process of making an enterprise agreement, namely the 2009 enterprise agreement the subject of a vote by QTAC employees. 48 QTAC has submitted that the "ability" referred to in s 341(1)(b) qualifies both "initiate" and "participate in". I agree that this is the natural meaning of the language of the section. 49 Further, however, QTAC submits that:
Item Column 1 Column 2
Adverse action is taken by… If…
1 An employer against an employee The employer:
(a) dismisses the employee; or
(b) injures the employee in his or her employment; or
(c) alters the position of the employee to the employee's prejudice; or
(d) discriminates between the employee and other employees of the employer
62 Although the genesis of legislative provisions prohibiting adverse action against a person because of his or her workplace right may have been in protection of freedom of association and the right of employees to join industrial organisations (cf consideration by the Full Court in Greater Dandenong Council v Australian Municipal, Administrative, Clerical and Services Union (2001) 112 FCR 232 at 244-248 per Wilcox J and Finkelstein J at 282-287, and comments of Marshall J in Elliott v Kodak Australasia Pty Ltd (2001) 108 IR 23), it is clear that s 340 of the Act extends protection much more broadly. Indeed this was recognised in para 1386 of the Explanatory Memorandum to the Fair Work Bill 2008 (Cth) which stated: The consolidation of the existing specific WR Act provisions into generally applicable prohibitions means that the new provisions protect persons against a broader range of adverse action. 63 In these proceedings it is not in dispute that Ms Jones' claim of adverse action relates to item 1 para (b) and para (c) in the table in s 342, namely that QTAC's actions had injured her in her employment or altered her position to her prejudice, or had threatened to achieve these results.
What is meant by "injures the employee in his or her employment" and "alters the position of the employee to the employee's prejudice"? 64 In the High Court decision Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia (No 3) (1998) 195 CLR 1 the majority at 18 observed that "injures the employee in his or her employment" covers injury of any compensable kind, and "alters the position of the employee to the employee's prejudice" is a broad additional category which covers not only legal injury but any adverse affection of, or deterioration in, the advantages enjoyed by the employee before the conduct in question. 65 The term "alters the position of the employee to the employee's prejudice" appears to refer to an intentional act directed to an individual employee or prospective employees: BHP Iron Ore Pty Ltd v Australian Workers' Union (2000) 97 IR 266 at 275. Further, in Community and Public Sector Union v Telstra Corporation Ltd [2001] 107 FCR 93, where an email was sent within the employer organisation by management proposing alterations to the basis upon which redundancies would be offered to employees, the Full Court held that the employer had altered the position of the relevant employees to their prejudice even where there was no evidence that the email had been the subject of action. In that case the Full Court considered that circumstances which result in the employment of employees becoming less secure, in a real and substantial manner, than it had been previously, constitutes an alteration in their position to their prejudice: at 101.
Claims of Ms Jones 66 Paragraphs 4, 5 and 6 of the Amended Statement of Claim contain Ms Jones' pleading relevant to QTAC's alleged contravention of s 340(1) of the Act. Those paragraphs are as follows: 4. In contravention of section 340(1) of the FW Act, the Respondent has taken adverse action against the Applicant in that the Respondent has injured the Applicant in her employment. PARTICULARS (a) The Respondent commenced a disciplinary investigation against the Applicant without reasonable or adequate cause; (b) The Respondent commenced an investigation into the complaints against the Applicant in circumstances where the Respondent knew or ought to have known that the complaints against the Applicant were not bona fide but where (sic) made in the context of her role or responsibility and/or participation in the EA negotiations; (c) The Respondent's unreasonable reliance on Walter Williams' diary notes, as forwarded to the Applicant by letter from Professor Deborah Terry dated 30 October 2009, as supporting the investigator's finding that there is an established pattern of unreasonable treatment by the Applicant of other staff over an extended period of time; … … (f) In purporting to investigate the complaints against the Applicant, the Respondent failed or refused to provide the Applicant with natural justice; (g) The Respondent has failed or refused to fulfil its representation made to the Applicant on about 29 October 2009 that any decision with respect to the Applicant's employment would not be made without a fair process, including the provision of natural justice; (h) The Respondent in its letter of 29 October 2009 to the Applicant required the Applicant to 'show cause' why she should not be subject to disciplinary action, including the termination of her employment before properly and/or adequately identifying the allegations against her and/or giving the Applicant an opportunity to respond to the allegations relied on by the Respondent; (i) the Respondent's refusal or failure to set aside Carol Watson's Report dated 28 September 2009. 5. Further, or alternatively, in contravention of section 340 (1) of the FW Act, the Respondent has taken adverse action against the Applicant in that the Respondent has altered the position of the Applicant to the Applicant's prejudice. PARTICULARS (a) The Applicant repeats and relies on the particulars pleaded in paragraph [4] herein. 6. Further, or alternatively, the Respondent has threatened to take adverse action, namely the termination of the Applicant's employment, and is organising such action, against the Applicant. PARTICULARS (a) Letter to the Applicant from Professor Deborah Terry on behalf of the Respondent dated 29 October 2009. 67 The adverse action pleaded by Ms Jones may be summarised as follows:
Commencement of the investigation 70 Extensive submissions have been made by Ms Jones in respect of the question whether the commencement of the investigation by QTAC constituted adverse action. It is common ground that the relevant investigation was that undertaken by Ms Carol Watson following a discussion between Ms Watson and Mr McAndrew on 4 September 2009, and culminating in production of the Carol Watson Report. 71 In my view the resolution of this issue depends on determination of the following issues raised by Ms Jones: 1. Whether commencement of an investigation can in any event constitute adverse action. 2. Whether the investigation occurred without reasonable or adequate cause, and/or in circumstances where QTAC knew or ought to have known that the complaints against Ms Jones were not bona fide but were made in the context of her role or responsibility and/or participation in the enterprise agreement negotiations.
Can commencement of an investigation constitute adverse action? 72 The question whether the commencement of an investigation constitutes adverse action was specifically considered by Goldberg J in United Firefighters Union of Australia v Metropolitan Fire and Emergency Services Board (2003) 198 ALR 466, North J in Kimpton v Minister for Education of Victoria (1996) 65 IR 317 and Ryan J in Police Federation of Australia v Nixon (2008) 168 FCR 340. 73 In United Firefighters Union (2003) 198 ALR 466 charges were laid and heard against employees relating to activities including:
Did the appointment of Ms Watson as external investigator in the circumstances of this case constitute adverse action in respect of Ms Jones? 81 As a general proposition I consider that the commencement of an investigation into bullying allegations could be adverse action against someone in Ms Jones' position within the meaning of s 342 of the Act. I form this view because:
The show cause letter 96 The "show cause" letter to which Ms Jones refers in para 4(h) of the Amended Statement of Claim is a letter from Professor Deborah Terry, Chair of the QTAC Board, to the solicitors for Ms Jones dated 29 October 2009, enclosing a further letter to Ms Jones (also dated 29 October 2009) describing "how QTAC intend(ed) to proceed in relation to the matter". The letter is eight pages in length and concludes: Summary of QTAC's Response to Your Objection to the Report Having given careful consideration to your criticisms of the investigator's process, I do not believe QTAC should set aside the report. However QTAC has not decided to accept as established any of the allegations in the report at this stage. It will not do so until the following steps have been completed: a) QTAC has received and considered any further responses you have to the allegations, b) If you nominate further staff members to be interviews (sic), those interviews have been completed and QTAC has considered the outcome of those interviews. You should also feel free to make any other comments you wish to make in relation to the investigator's process in light of the additional context recorded above. Allegations Having considered the investigator's report and your response to that report, QTAC believes there is evidence that you have acted in a way which amounts to bullying or harassment of employees. If established, QTAC believes the conduct may amount to serious misconduct or misconduct for the purposes of your employment contract, such that QTAC is in a position to terminate your employment either summarily or on notice. The allegations are set out conveniently in the findings in the investigator's report as clarified in this correspondence and supplemented by the matters recorded in Mr Williams' diary entries. The diary entries (maintained by Mr Williams) contain a number of specific examples of conduct. If the events occurred in the manner recorded by Mr Williams, QTAC would consider many of them to be unacceptable. Accordingly, please respond specifically to the allegations recorded in these diary entries. Future Steps Would you please provide any further response to the specific allegations in the investigator's report as well as any other information you would like QTAC to consider in making its decision by Wednesday, 4 November 2009. At the same time, please nominate any further staff members who you believe should be interviewed in order to assist QTAC in making a sound decision. QTAC will make a decision in relation to your employment as soon as possible after receiving your response and completing the steps set out above. … 97 In summary QTAC submits that:
Unreasonable reliance on Walter Williams' diary notes 102 At all relevant times, Mr Walter Williams has been the Company Secretary of QTAC. In the organisational hierarchy of QTAC, he reports to Ms Jones. 103 The relevant extracts of Mr Williams' diary notes are annexed to his affidavit sworn 24 December 2009. This material is, inter alia, a record of Mr Williams' views and perception of his experiences of Ms Jones in the QTAC workplace over a period of time. In general, Mr Williams' comments in relation to Ms Jones are unfavourable. An illustration is a diary entry marked 26 February 2008 which included the following: Alison took the BAS statement and cheque for Elizabeth to sign the cheque and when Alison pointed out that the question asked by Elizabeth the answer was right in front of her Elizabeth became agitated and proceeded to pull the whole payment request apart. Alison on returning to her room needed to be consoled. 104 In para 4(c) of the Amended Statement of Claim Ms Jones pleads that QTAC unreasonably relied on the diary notes of Mr Williams, as supporting the finding of Carol Watson that there is an established pattern of unreasonable treatment by Ms Jones of other staff over an extended period of time. Ms Jones' submissions in respect of reliance by QTAC on Mr Williams' diary notes may be summarised as follows:
Failure to provide natural justice and/or fair process in carrying out the investigation 116 In para 4(f) and para (g) of the Amended Statement of Claim Ms Jones pleaded that she has been the subject of adverse action because, inter alia:
Refusal or failure to set aside the Carol Watson Report 124 It is difficult to see how a refusal or failure by QTAC to set aside the Carol Watson Report constitutes adverse action within the meaning of s 342 of the Act as pleaded in para 4(i) of the Amended Statement of Claim. I am not persuaded that the mere existence of the Carol Watson Report injures or alters the position of Ms Jones to her detriment. On the other hand, the unequivocal acceptance of the Report and action by QTAC in reliance on it could constitute adverse action. Professor Terry gave evidence at the hearing that, as at the date of the hearing, QTAC had "provisionally" accepted the Carol Watson Report, in the sense that QTAC's legal advice was that the report was sound and there was no basis at this stage for setting it aside (TS p 350 ll 40-46, p 351 ll 1-7). The issue of the show cause letter appears to have been an act of QTAC, on the basis that QTAC considered there was substance in the Carol Watson Report. Other than this, however, at this stage it appears that QTAC has continued to seek responses from Ms Jones in relation to information and conclusions drawn in that report. In my view, seeking information from Ms Jones is not "adverse action" within the meaning of s 342.
Conclusion 125 QTAC took adverse action against Ms Jones in the form of the "show cause" letter from Professor Terry to Ms Jones and her solicitors dated 29 October 2009. Otherwise, I do not consider that QTAC has taken adverse action against Ms Jones within the meaning of s 342 of the Act.
Causation 126 I have already noted that QTAC bears the burden of proof pursuant to s 361 of the Act once Ms Jones has established that she has a workplace right and that she has been the subject of adverse action for the purposes of s 340 of the Act. Section 361 provides: Reason for action to be presumed unless proved otherwise (1) If: (a) in an application in relation to a contravention of this Part, it is alleged that a person took, or is taking, action for a particular reason or with a particular intent; and (b) taking that action for that reason or with that intent would constitute a contravention of this Part; it is presumed, in proceedings arising from the application, that the action was, or is being, taken for that reason or with that intent, unless the person proves otherwise. (2) Subsection (1) does not apply in relation to orders for an interim injunction. 127 In other words, QTAC is required to prove, on the balance of probabilities, that the reason for the adverse action was not one which would constitute a contravention of the Act. The prohibited reason need only be one of multiple reasons for the adverse action taken by the employer against the employee. This is clear from s 360 which provides: Multiple reasons for action For the purposes of this Part, a person takes action for a particular reason if the reasons for the action include that reason. 128 Recently in Barclay v Board of Bendigo Regional Institute of Technical and Further Education [2010] FCA 284 Tracey J considered the meaning of "because" in s 340 of the Act and the reference to actions "for a particular reason or with a particular intent" in s 360. In Barclay [2010] FCA 284 the applicant had contended that the inclusion of the word "because" in s 340 meant that the actor's subjective reason for taking the prejudicial action was wholly irrelevant and not to be taken into account, and that the test was purely objective. His Honour rejected that contention on the grounds that it was inconsistent with the legislative history, relevant principles of statutory construction, and authority (at [24]). As his Honour observed, in cases decided under predecessor legislation the court proceeded on the basis that evidence of the employer's subjective reasons for taking the impugned action was relevant in deciding whether the employer had taken the action because of the existence of one or more of the circumstances in which such action was impermissible (at [28]). This remains the position under the Act. In particular, s 360 deals with the extent to which a person's action must be motivated by a particular reason to establish a contravention of the Act: Barclay [2010] FCA 284 at [31], para 1457 of the Explanatory Memorandum to the Fair Work Bill 2008 (Cth). I respectfully adopt the views expressed by his Honour in relation to causation within the meaning of s 340 and s 360 of the Act.
Whose reasons? 129 In this case the employer of Ms Jones, and the person whom Ms Jones claims has taken adverse action against her contrary to the Act, is QTAC. However QTAC is a corporation. In circumstances where the employer is a corporation, the reason or reasons motivating the persons in the corporation who effectively made the decision to take the adverse action are relevant. To that extent, it is important to identify the effective decision-makers in the employer corporation, and their motivations: General Motors Holden Pty Ltd v Bowling (1976) 12 ALR 605. 130 In her submissions Ms Jones has asked the Court to draw an inference unfavourable to QTAC in light of the failure of QTAC to call all members of the QTAC Board as witnesses in these proceedings. In summary, Ms Jones submits:
Decision to appoint an external investigator in these proceedings 135 I have already touched upon the background circumstances to the decision to appoint Ms Watson as the external investigator in respect of the bullying allegations. More specifically, those circumstances were as follows:
Decisions of 8 October 2009 150 The background to events of 8 October 2009 was as follows:
Decisions of 23 October 2009 concerning the issue of the "show cause" letter and requesting Ms Jones to respond to allegations in Mr Walter Williams' diary 157 As I noted earlier in this judgment, the "show cause" letter to Ms Jones, which included a request of Ms Jones to respond to allegations in Mr Williams' diary, was a letter dated 29 October 2009 from Professor Terry to Ms Jones' solicitors, enclosing a further letter to Ms Jones (also dated 29 October 2009) describing "how QTAC intend(ed) to proceed in relation to the matter". In that letter Professor Terry asked Ms Jones to respond to allegations of Mr Walter Williams, as found in extracts in his diary. 158 Professor Terry deposed that she received a response by Ms Jones (through Ms Jones' solicitors) to the Carol Watson Report on 20 October 2009, and that she then advised QTAC Board members that there would be a teleconference on 23 October 2009 to discuss the response and next steps (second affidavit of Deborah Terry para 40 and para 43). Professor Terry also gave evidence that she received advice from QTAC's lawyers on or about 23 October 2009 to provide Mr Walter Williams' diary notes to Ms Jones (TS p 391 ll 23-24). In evidence during the hearing Professor Terry referred to the teleconference of 23 October 2009 as a "Board meeting". 159 In her affidavit at para 44 Professor Terry also deposed as follows: At this teleconference, Mr McAndrew and I were authorised to proceed as follows: (a) The first step was for me to gain some feedback from Ms Watson in response to Ms Jones' particular concerns with the way Ms Watson had carried out her investigative process. We needed to know whether it was inappropriate, as Ms Jones had suggested, for QTAC to take the report into account in our management of the staff complaints. (b) Having considered that feedback, if we were of the view that it was still appropriate for QTAC to receive Ms Watson's report and proceed on the basis of the information in it, we were to formally ask Ms Jones to respond to the allegations in the report. 160 Further evidence was given by Professor Terry as to her discussions with her legal advisors and their role in receiving feedback from Ms Watson after delivery of the Carol Watson Report to QTAC. Professor Terry deposed that, having received further feedback from Ms Watson, she had formed a number of views including that QTAC was not in a position to discard the Carol Watson Report on the basis suggested by Ms Jones (second affidavit of Deborah Terry paras 46-48). 161 Finally, Professor Terry gave evidence at the hearing that, other than her solicitor and Mr McAndrew, she did not tell anyone that she was sending the show cause letter to Ms Jones (TS p 431 ll 15-18). There is no evidence before the Court that Professor Terry discussed sending the show cause letter with any QTAC director other than Mr McAndrew. 162 Mr McAndrew gave evidence under cross-examination that he had seen a draft of the show cause letter before it was sent to Ms Jones (TS p 481 l 45, p 483 l 45). 163 In my view the appropriate inferences to draw from this evidence are as follows:
Decision to hold a general meeting of the members of QTAC scheduled for 17 November 2009 165 The allegation that the decision to hold a general meeting of the members of QTAC was adverse to Ms Jones is not specifically pleaded by Ms Jones. There is evidence - both from Professor Terry and in the form of the letter from Professor Paul Greenfield dated 6 November 2009 annexed to Professor Terry's second affidavit - that the purpose of the general meeting was to discuss the investigation and to make any decision in relation to the investigation considered appropriate by the meeting, including the discussion of the Carol Watson Report and deciding about how to proceed further (annexure DT-27 to the second affidavit of Deborah Terry para 71). It is not obvious that the action in calling a general meeting of the company for this reason was adverse to Ms Jones, in the sense of injuring her or altering her position to her prejudice. The implication which Ms Jones seeks me to draw is that, because pursuant to cl 17A(3) of the QTAC Articles of Association it is only the company in general meeting which has power to terminate her employment prior to the expiration of her contract, there was a very real threat that her employment would be terminated at that meeting. However while either dismissal or a threat of dismissal would clearly be adverse to Ms Jones within the meaning of s 342(1) of the Act there is no evidence before me that this would occur or that such a threat existed, or that there was a predetermined outcome of the meeting. 166 Even were the decision to hold the general meeting on 17 November 2009 adverse to Ms Jones, I am not persuaded that the principles articulated in Bowling (1976) 12 ALR 605 are relevant in respect of the evidence before the Court. This is because:
Has QTAC discharged its onus of proof under section 361(1) of the Act? 167 Summary, I consider that QTAC has discharged the onus of proof it bears under s 361(1) of the Act. I do not consider that any adverse action taken by QTAC against Ms Jones was because of a reason prohibited by the Act. 168 As I have already noted, the evidence of Mr McAndrew and Professor Terry is sufficient to explain the reasons motivating QTAC in respect of relevant decisions in this case. From their evidence, it is clear that the only reasons motivating Mr McAndrew and Professor Terry, and through them, QTAC, in taking adverse action against Ms Jones were a concern for the organisation that Ms Jones had been mistreating staff members, a belief that it was essential that action be taken by QTAC to investigate such allegations, and a wish to ensure that any investigation of Ms Jones be conducted with proper process including Ms Jones being given a reasonable opportunity to present her side of the story. 169 I form these views for the following reasons.
Staff complaints 170 It is clear that the ASU made written claims of inappropriate conduct by Ms Jones in her conduct of the QTAC enterprise agreement negotiations, and inappropriate conduct in the workplace towards QTAC staff by Ms Jones. I refer in particular to:
Workplace Health and Safety 181 It is not in dispute that a failure by an organisation to deal with workplace bullying may lead to breaches of workplace health and safety laws and potential prosecution of the organisation by Workplace Health and Safety authorities. Such an outcome was, for example, adverted to in Nixon (2008) 168 FCR 340. 182 It is clear from evidence given by both Mr McAndrew and Professor Terry that they were aware of QTAC's obligations under workplace health and safety laws, and that the prospect of QTAC breaching such provisions caused them concern (for example TS p 455 ll 38-42, p 330 ll 4-8, p 395 ll 44-45, and first affidavit of Deborah Terry sworn 18 November 2009 para 31). In my view this evidence of Mr McAndrew and Professor Terry is consistent with a finding that the commencement of the investigation of the bullying allegations concerning Ms Jones was motivated by concern for QTAC and its staff, and not at all related to any workplace rights of Ms Jones.
Role of the ASU 183 In this case it is clear that the ASU was pressuring the Chair of QTAC to both remove Ms Jones as QTAC's bargaining representative and also to deal with claimed bullying by Ms Jones. Indeed as Mr McAndrew deposed in his affidavit, the correspondence from the ASU "mixed" the issue of Ms Jones' role as QTAC's bargaining representative and the issue of her treatment of the staff (affidavit of Colin McAndrew para 77). However Mr McAndrew also deposed: My position, and the Board's position, was that these were separate issues which needed to be dealt with separately. (para 77) 184 Overall, in relation to the adverse action taken by QTAC against Ms Jones, I find that the view of the ASU taken by Mr McAndrew and Professor Terry, and through them QTAC, can be summarised as follows:
Appointment of Ms Carol Watson as external investigator 192 Mr Spry on behalf of Ms Jones directed the attention of the Court to the email from Mr Aaron McLachlan to Mr McAndrew, dated 19 August 2009, attaching the complaint from Ms Danelle Bayley and the two anonymous complaints. In that email, Mr McLachlan wrote, inter alia: Please find attached three more formal complaints which our members have asked us to forward to you, as they are afraid to raise these issues locally. Our advice was for these complaints to go through appropriate channels at QTAC, but due to Ms Jones reaction to Nicola Bowes complaint, staff are too scared to do this. 193 Mr Spry submitted that, in summary, the haste with which Mr McAndrew appointed Ms Watson as external investigator after receipt of Mr McLachlan's email, without requiring the ASU to state specifically what it meant by "Ms Jones' reaction" to Dr Bowes' complaint, suggests that the conduct of Mr McAndrew and the QTAC Board was due to pressure from the ASU because of Ms Jones' status as the QTAC bargaining representative and/or her participation in the enterprise agreement negotiations. 194 In my view no such inference can be drawn. Rather, the evidence before me suggests that:
"Show cause" letter 196 As I observed earlier in this judgment Professor Terry wrote to the solicitors for Ms Jones on 29 October 2009 enclosing a further letter to Ms Jones. In the letter to the solicitors, Professor Terry wrote "The letter to your client describes how QTAC intends to proceed in relation to the matter". The letter followed a detailed letter from Ms Jones' solicitors to Professor Terry of 26 October 2009 which included a very detailed and lengthy response on behalf of Ms Jones to the Carol Watson Report in which, inter alia, Ms Jones:
Conclusion 199 I do not believe that, in taking action in response to allegations of bullying by Ms Jones, QTAC was bowing to pressure from the ASU in relation to Ms Jones' role in the enterprise agreement negotiations. 200 Further, I consider that QTAC's actions were in no way related to any workplace rights of Ms Jones. I consider that Ms Jones' role as bargaining representative, and her participation in enterprise agreement negotiations, were completely irrelevant to QTAC's reasons for the actions it took. 201 It follows from this consideration that Ms Jones has not substantiated her claims against QTAC pursuant to s 340 of the Act.
THE BREACH OF CONTRACT CAUSE OF ACTION 202 Ms Jones' breach of contract cause of action is found in para 12A and para 12B of the Amended Statement of Claim, which read as follows: 12A. The employment contract pleaded in paragraph 2(c) herein was varied on or about 29 October 2009 to include an express term that any decision with respect to the Applicant's employment would not be made without a fair process, including the provision of natural justice. PARTICULARS Letter to the Applicant from Professor Terry on behalf of the Respondent dated 29 October 2009. 12B. In breach of the term pleaded in paragraph 12A herein, the Respondent has failed or refused to provide the Applicant with a fair process and/or to accord the Applicant natural justice. PARTICULARS (a) The Respondent's reliance on Walter Williams' diary notes; (b) The Respondent's reliance on Walter Williams' diary notes from about September 2009 notwithstanding that the Respondent knew or had constructive knowledge of the allegations contained therein by virtue of Walter Williams' position as the Respondent's Company Secretary; (c) The Respondent's failure or refusal to set aside Carol Watson's report dated 28 September 2009.
External investigation 217 First, as I have stated already numerous times in this judgment, the Chair of QTAC was confronted with four formal staff complaints concerning bullying allegations by Ms Jones on top of broad allegations by the ASU, and statements (indeed, threats) by the ASU to report QTAC to the workplace health and safety authorities if nothing was done by QTAC to investigate. For reasons I have already given, it was reasonable in those circumstances that QTAC appoint an external investigator to investigate the allegations.
Bias by investigator 218 Second, as a general proposition I am not persuaded that Ms Carol Watson was biased against Ms Jones as Ms Jones has claimed:
Culture of fear/climate of fear allegations 219 Third, the issue whether Ms Watson specifically told Ms Jones that she was investigating an allegation that Ms Jones had created a "culture of fear" in the QTAC workplace was the subject of considerable dispute. Mr McAndrew gave evidence that he had coined the expression "culture of fear" in a conversation with Ms Watson, as a short-hand description of the allegations of the ASU in its correspondence with him (TS p 458 ll 40-45). Ms Watson gave evidence that Mr McLachlan had used the phrase "climate of fear" in his conversation with her (TS p 589 ll 35-36), and did not mention Mr McAndrew's use of the expression to her. 220 Ms Jones claimed that Ms Watson had never put to her the allegation that there was a "culture of fear" in the QTAC workplace. In summary, Ms Jones' evidence was that:
Failure to interview witnesses 231 Fourth, I am not satisfied that the apparent failure of Ms Watson to interview four of the witnesses nominated by Ms Jones (namely Ms Tineka Suto, Ms Katharine Martyn, Ms Susan Dielemans and Ms Dianne Keene), constituted a denial of natural justice or procedural fairness to Ms Jones. This is because:
Diary notes of Mr Walter Williams 234 Fifth, Ms Jones claimed that Ms Watson relied too heavily on the views of Mr Walter Williams notwithstanding that three of the four managers told Ms Watson that their relationship with Ms Jones was positive. However this claim is not accurate. Ms Watson gave evidence that she gave an "enormous amount of weight" to information supplied by Mr Richard Armstrong, one of the four QTAC managers. According to Ms Watson, Mr Armstrong told her that in recent times he had had a good relationship with Ms Jones, but he had also said: Whatever is being said about Elizabeth and her behaviour, I can believe it because I experienced it. I went into almost breakdown territory. I paid for my own quite in-depth psychological counselling. It cost a lot of money. I'm really pleased that I've made the transition. I now let things run over me. But whatever people are saying, I assure you she is capable of it. (TS p 698 ll 25-29) 235 I accept Ms Watson's evidence that she relied to a significant degree on information provided by Mr Armstrong, and accordingly not "too heavily" on Mr Williams' views. 236 Further, in relation to Mr Walter Williams' diary notes, I consider that the interview of Mr Walter Williams by Ms Watson and her reference to his diary notes did not preclude QTAC from subsequently asking Ms Jones to respond to the claims in those notes. As I have already observed, Mr Williams is the company secretary of QTAC. This is a senior position in that organisation. To that extent his views must invariably be of interest to the Board. In any event QTAC has asked Ms Jones to comment on those diary notes. The obvious inference for me to draw from that course of action is that, notwithstanding Mr Williams' seniority in QTAC, QTAC has not unreservedly accepted Mr Williams' version of events, and seeks Ms Jones' views. 237 I do not consider that QTAC has "relied" on those diary notes as claimed by Ms Jones - indeed no decision has been made by QTAC, in reliance on those notes or otherwise. QTAC has properly asked Ms Jones to comment on the diary notes. The fact that Ms Jones may consider such diary notes objectionable or unreliable does not mean that, in asking her to comment on them, QTAC has acted without according Ms Jones natural justice.
Nicola Bowes' apology 238 Sixth, much hearing time was spent on the question whether, in light of what appears to have been Dr Bowes' deliberate disobedience of a direction by Ms Jones not to attend the meeting of 4 August 2009, Dr Bowes had or had not personally apologised to Ms Jones at that meeting for attending the meeting (as distinct from making a general apology to the meeting room or Dr Bowes' manager). 239 It is common ground that Ms Jones reprimanded Dr Bowes for her actions on the day following that meeting. However in her report, Ms Watson considered that Dr Bowes' allegation of inappropriate behaviour by Ms Jones, in the form of aggressive and intimidating behaviour by Ms Jones to Dr Bowes on 5 August 2009 during the course of that reprimand, was substantiated. 240 Ms Jones claims that the minutes of that meeting do not support such a conclusion, and that Ms Watson's conclusions demonstrate bias against Ms Jones. In my view however, an inference of bias in Ms Watson against Ms Jones for that reason cannot be drawn. This is because:
The QTAC Board and the Carol Watson Report 242 Seventh, I can identify no unfair treatment of Ms Jones in respect of the Board considering the Carol Watson Report, asking Ms Watson questions as to its contents, deciding to vary the process of the investigation such that Professor Terry and Mr McAndrew would speak personally with Ms Jones, and deciding to continue the investigation process at a time when Ms Jones had not seen the report. 243 I have already stated that it is clear on the evidence that, after receipt of the Carol Watson Report, as soon as possible Professor Terry wanted the view of the Board as to steps she and Mr McAndrew should take in respect of the investigation. The Board teleconference of 8 October 2009 was, in my view, a proper opportunity for the other members of the QTAC Board to discuss the report and ask Ms Watson questions before the process continued. 244 The Board decided that Professor Terry and Mr McAndrew would speak personally with Ms Jones, taking the investigation out of Ms Watson's hands. I see no inherent unfairness or absence of natural justice in such an approach. Indeed it is difficult to identify Ms Jones' objection to this development in light of her strenuous objections to Ms Watson's findings and alleged attitude towards Ms Jones. 245 Further, on 12 October 2009, Professor Terry and Mr McAndrew provided Ms Jones with a copy of the Carol Watson Report without Ms Watson's recommendations. I see no inherent unfairness or absence of natural justice in that action, given that:
Ongoing dialogue 246 Eighth, there has been ongoing dialogue between QTAC and Ms Jones, with QTAC making, in my view, every opportunity for Ms Jones to present her response to serious allegations. I note, for example that when Ms Jones' solicitors wrote to Professor Terry on 30 October 2009 referring to the extensive materials forwarded by QTAC to Ms Jones, the fact that QTAC had sought a response from Ms Jones within a short time frame, and the fact that Ms Jones was in the course of preparing substantial Board papers for the QTAC Board meeting, Professor Terry responded on the same day:
Conclusion 248 In summary, I consider that QTAC has followed a comprehensive, independent and fair process to investigate the complaints against Ms Jones. Ms Jones has had multiple opportunities to respond to the formal complaints of staff, the allegations made by the ASU in respect of Ms Jones' alleged mistreatment of QTAC staff, and the findings of the independent investigator. No decision has yet been made by QTAC as to disciplinary action - if any - which will result from the investigation. On the evidence before the Court all issues which could form the basis for a decision by QTAC have been put to Ms Jones for her response. 249 To the extent that there may have been flaws in the process adopted by QTAC, I note comments of the majority of the High Court in Ainsworth v Criminal Justice Commission (1992) 175 CLR 564 at 578 where their Honours said: It is not in doubt that, where a decision-making process involves different steps or stages before a final decision is made, the requirements of natural justice are satisfied if "the decision-making process, viewed in its entirety, entails procedural fairness". (cf Mason CJ in The State of South Australia v O'Shea (1987) 163 CLR 378 at 389) 250 I consider that, viewed in its entirety, the decision-making process applied by QTAC in these circumstances entailed procedural fairness.
THE ESTOPPEL CAUSE OF ACTION 251 Ms Jones' estoppel cause of action is found in paras 12C-12F of her Amended Statement of Claim. These paragraphs provide: 12C. Further, or alternatively, on about 29 October 2009, the Respondent represented to the Applicant and induced the Applicant to assume, and the Applicant did assume, that any decision with respect to the Applicant's employment would not be made without a fair process, including the provision of natural justice. PARTICULARS Letter to the Applicant from Professor Deborah Terry on behalf of the Respondent dated 29 October 2009. 12D. The Applicant acted in reliance on the Respondent's representation. PARTICULARS Letter to Professor Terry from the Applicant dated 11 November 2009. 12E. The Respondent knew the Applicant would act, or intended the Applicant to act, on the representation and/or assumption pleaded in paragraph 12C herein. 12F. The Applicant has and/or will suffer detriment if the representation and/or assumption is not fulfilled. PARTICULARS (a) Disciplinary action including termination of employment; (b) Damage to reputation.
CONCLUSION 263 In my view the proper order is that the application be dismissed.
Jones
Queensland Tertiary Admissions Centre Ltd
[2004] VSC 153
[2003] AIRC 331
(1975) 12 ALR 605
(1992) 175 CLR 564
(2009) 185 IR 371
(2000) 97 IR 266
(1990) 170 CLR 394
(1999) 140 IR 131
(2001) 108 IR 23
(2005) 227 CLR 166
(1976) 12 ALR 605
(2001) 112 FCR 232
(1996) 65 IR 317
(1985) 159 CLR 550
(1998) 195 CLR 1
(2008) 168 FCR 340
(1998) 194 CLR 355
(2001) 107 IR 117
(1987) 163 CLR 378
(2003) 198 ALR 466
(1957) 96 CLR 390