Did the Commission err in finding that the M&E Division had not "become part of" the CFMMEU "as a result of" the 2018 Amalgamation?
101 The key to the Commission's answer to the second threshold question was its finding that, after the 2018 Amalgamation, the CFMEU was the "amalgamated organisation" for the purposes of s 94(1). In effect, the Commission construed the term "amalgamated organisation" in that subsection as referring to the registered organisation. The Commission found that the M&E Division did not become part of the CFMEU "as a result of" the 2018 Amalgamation because it was already part of the CFMEU (and therefore the organisation that became known as the CFMMEU) before the 2018 Amalgamation.
102 It was common ground that the organisation now known as the CFMMEU was first registered on 11 September 1962 and that in each of the amalgamations thereafter the amalgamating union or unions joined the original corporate entity following which the amalgamating union or unions were de-registered. Although in 2018 the name of the CFMEU was changed to the CFMMEU, that change had no substantive effect on the identity of the amalgamated organisation.
103 On this application Mr Kelly maintained that the "amalgamated organisation" under s 94(1) of the RO Act is "the organisation with its changed composition and governance structure following an amalgamation". He argued that the Commission wrongly determined that "amalgamated organisation" in s 94(1) is simply a reference to the existing legal entity that remains registered following an amalgamation, and failed to pay attention to the distinction between a "registered organisation" and an "amalgamated organisation". Mr Kelly submitted that the definition of "amalgamated organisation" in s 93(1) refers to the organisation that exists following a completed amalgamation, and the statutory scheme contemplates, indeed requires, that the amalgamated organisation has changed in composition and form. He argued that, as the CFMMEU in its present composition and form did not exist before the 2018 Amalgamation, it must follow that the M&E Division became part of the CFMMEU "as a result of" the 2018 Amalgamation.
104 The principal issue on the present application, then, is whether the expression "amalgamated organisation" in s 94(1) can be construed as a reference to an organisation registered under the RO Act or, as Mr Kelly contended, it is a more amorphous form of organisation.
105 It will be recalled that para 94(1)(a) relevantly provides that an application may be made for a secret ballot to decide whether "a constituent part of an amalgamated organisation should withdraw from the organisation, if … the constituent part became part of the organisation as a result of an amalgamation under Part 2 or a predecessor law".
106 It may be seen that the expression "an amalgamated organisation" is followed by two references to "the organisation". In context, "the organisation" is used as a contraction of, and substitute for, "the amalgamated organisation". As used in s 94(1)(a), the term is not intended to have any meaning different from "the amalgamated organisation".
107 It will also be recalled that, absent the contrary intention, s 93(1) defines "amalgamated organisation", in relation to an amalgamation, as:
the organisation of which members of a de-registered organisation became members under paragraph 73(3)(d) of Part 2, or an equivalent provision of a predecessor law, but does not include any such organisation that was subsequently de-registered under Part 2 or a predecessor law.
108 Paragraph 73(3)(d) appears in Pt 2 of Ch 3, which, as we have said, deals with amalgamation of organisations. It provides that on the amalgamation day:
the persons who, immediately before that day, were members of a proposed de-registering organisation become, by force of this section and without payment of entrance fee, members of the proposed amalgamated organisation.
109 Section 35 defines the expression "proposed amalgamated organisation", in relation to a proposed amalgamation, as:
the organisation or proposed organisation of which members of the proposed de-registering organisations are proposed to become members under this Part.
110 Section 35 defines "proposed de-registering organisation", in relation to a proposed amalgamation, to mean "an organisation that is to be de-registered under this Part".
111 Paragraph 40(2)(a) requires that the scheme for amalgamation indicate: (i) whether one of the existing organisations (and which one) is the proposed amalgamated organisation; or (ii) whether an association to be registered will be the proposed amalgamated organisation. Paragraph 40(2)(a)(iii) requires identification of the proposed de-registering organisations. Paragraph 40(2)(c) requires particulars to be given in the scheme for any proposed alterations to the eligibility rules of an existing organisation. It is apparent that the organisation nominated under the scheme as the "proposed amalgamated organisation" will be the "proposed amalgamated organisation" as defined by s 35 and mentioned in para 73(3)(d), and the "amalgamated organisation" for the purposes of ss 93 and 94(1).
112 The RO Act treats the "proposed amalgamated organisation" as becoming "the amalgamated organisation" from the day the amalgamation takes effect: see the definitions of "amalgamated organisation" and "completed amalgamation" in s 35. By ss 73(1) and (2), the amalgamation takes effect on the amalgamation day declared by the Commission. On that day, the persons who were members of a proposed de-registering organisation become members of the proposed amalgamated organisation and, accordingly, members of the amalgamated organisation (s 73(3)(d)).
113 The definition of "amalgamated organisation" in s 93 refers to the "organisation" of which members of a de-registered organisation became members. The term "organisation" is defined in s 6 to mean "an organisation registered under this Act". There is a presumption, which is not to be displaced without good reason, that defined words in a statute have their defined meanings: Qantas Airways Ltd v Chief Commissioner of State Revenue [2008] NSWSC 1049 at [38] (Handley AJ), citing Pearce & Geddes, Statutory Interpretation in Australia, 6th ed., paras 3.31, 4.3, 6.62.
114 Where the mechanism for amalgamation is for a newly registered organisation to become the amalgamated organisation (see para 40(2)(a)(ii)), particulars are required to be entered in the register (para 73(3)(a)). Upon registration, pursuant to s 27, the amalgamated organisation will be a body corporate.
115 On the other hand, where the mechanism for amalgamation is for one of the existing organisations to become the amalgamated organisation (see para 40(2)(a)(i)), the amalgamated organisation will already be a registered organisation. As para 73(3)(a) indicates, particulars of the amalgamated organisation will not be entered into the register since it is already registered. The establishment of the amalgamated organisation will not involve the creation of any new body corporate.
116 It follows that, subject to consideration of Mr Kelly's argument, under either mechanism for amalgamation, an "amalgamated organisation" will be a registered organisation and a body corporate.
117 Mr Kelly's argument focused on an amalgamation involving one of the existing organisations becoming the amalgamated organisation. As we have already mentioned, he contended that in such a case an "amalgamated organisation" for the purposes of s 94(1) is not an "organisation" of a kind defined in s 6, but "an organisation of changed composition and form". That appears to describe some amorphous body consisting of all the divisions, branches, and other parts of the de-registered organisations and any continuing organisation separately identifiable under the altered rules of the continuing organisation. Mr Kelly submitted that all such divisions, branches and parts "become part" of such a body as the result of such an amalgamation. Mr Kelly argued that, if "amalgamated organisation" in s 94 had the same meaning as "organisation" in s 6, there would be no need for a separate definition of "amalgamated organisation" in s 93.
118 Mr Kelly submitted that withdrawal would not be available to any division, branch or part under para (c) of the definition of "separately identifiable constituent part" because it could never be said to have become part of the amalgamated organisation "as a result of" an amalgamation.
119 Mr Kelly also submitted that if, contrary to the construction he urged upon the Court, "amalgamated organisation" has a meaning referable to a registered organisation, para (c) "would have no role whatsoever to play in the statutory scheme".
120 Mr Kelly contended that his construction is supported by the Explanatory Memorandum for the Bill introducing the 2020 Amendment Act, which added para (c) of the definition of "separately identifiable constituent part".
121 Part 2 of Ch 3 certainly proceeds on the basis that the amalgamated organisation will incorporate the membership of all the amalgamating organisations, including those organisations proposed to be de-registered. Part 2 contemplates that, where the amalgamated organisation is to be an existing organisation, the rules of the existing organisation will be altered to expand the membership and facilitate representation of the whole of the membership. That may occur, for example, though the creation of new branches and divisions under the rules of the amalgamated organisation, which will reflect and represent the membership of the de-registering organisations.
122 Part 3 of Ch 3 ("Withdrawal from amalgamations") recognises that an amalgamated organisation will generally be made up of "constituent parts", including divisions and branches provided for under the rules of the amalgamated organisation. The rules of organisations are dealt with under Ch 5. Section 140(1) provides that an organisation must have rules that make provision as required under the RO Act. Section 141 contemplates that there will be branches, committees and office holders that have powers and duties. A branch of an organisation may be a "reporting unit" that has accounting and reporting obligations (ss 242(3), 252-254, 265-268), but the RO Act does not suggest that a branch or a division is an entity in itself. Even where there is no amalgamation involved, the rules of an organisation may be altered, including rules concerning the organisation's name, organisational structure and eligibility (ss 156-160). Nothing in the RO Act suggests, however, that when the rules of an organisation are altered it somehow becomes a different entity or organisation.
123 There are a number of other problems with Mr Kelly's argument.
124 First, the effect of the argument that the amalgamated organisation is "the organisation with its changed composition and governance structure following amalgamation" is to conflate the branches, divisions and parts provided for under the rules of the amalgamated organisation with the amalgamated organisation itself. It may be seen from ss 92 and 94 and the definitions of "amalgamated organisation" and "separately identifiable constituent part" that the RO Act distinguishes between an "amalgamated organisation" and the "constituent parts" of such an organisation identifiable under its rules. An "organisation" under the RO Act is a body corporate. The body corporate is not the sum of its branches, divisions and parts. Mr Kelly's argument that an "amalgamated organisation" refers to an amorphous organisation not corresponding to an "organisation" as defined in s 6 cannot be accepted.
125 Second, contrary to Mr Kelly's argument that there would be no need for a separate definition of "amalgamated organisation" if an "amalgamated organisation" is a "registered organisation", the definition of "amalgamated organisation" serves a distinct and separate purpose. It allows a distinction to be made between the registered organisation that was the vehicle for the amalgamation and the same registered organisation which, after the amalgamation, has an expanded membership base that includes the membership of the de-registered organisations.
126 Third, if Mr Kelly's construction were correct, whenever an amalgamation takes place each division, branch or part of each amalgamating organisation would "become part of the [amalgamated] organisation as a result of an amalgamation" and become eligible to withdraw after two years. That would be so no matter how long a branch, division or part had been a part of a continuously registered organisation. One consequence of that construction is that any amalgamation, however great or small, could subject to a withdrawal ballot any part of any of the amalgamating organisations separately identifiable under the rules. The period of up to five years in which to apply for a ballot would be re-set for every constituent part after each amalgamation.
127 However, if each division, branch or part of each amalgamating organisation becomes part of the "amalgamated organisation" as a result of any amalgamation, there would be no need for para 94(1)(a) at all. That result would be achieved by virtue of the "amalgamated organisation" being a body composed of every division, branch or part. A construction that allows a provision to have a function is generally to be preferred: cf. Project Blue Sky at 382 [71]. That tells against Mr Kelly's construction.
128 Fourth, Mr Kelly's construction would produce uncertainty and instability in the operation and constitution of organisations involved in amalgamations. It is true that s 94(1) is, of itself, capable of producing uncertainty and instability, since it allows an application for a ballot for withdrawal to be made after a period of two years following an amalgamation. But the purpose of limiting the time for an application to a period of five years after an amalgamation is to limit the length of any period of uncertainty and instability. It would be inconsistent with that purpose if s 94(1) were construed so as to allow the period to be re-set each time there is a new amalgamation.
129 Fifth, if s 94(1) were construed such that the period would be re-set after each amalgamation, it could operate as a disincentive for organisations to participate in amalgamations. That would be inconsistent with the purpose of the legislative scheme providing for amalgamations under Pt 2 of Ch 3. That purpose, revealed through the continuous history of broadly similar legislative schemes for union amalgamations over the last sixty years, is to encourage and facilitate amalgamations of unions: see also, Australian Mines and Metals Association Inc v Construction, Forestry, Maritime, Mining and Energy Union (2018) 268 FCR 128 at 162 [135] (Allsop CJ, Griffiths and O'Callaghan JJ).
130 Section 15AA of the Acts Interpretation Act 1901 (Cth) provides that in interpreting a provision of an Act, the interpretation that would best achieve the purpose or object of the Act (whether or not that purpose or object is expressly stated in the Act) is to be preferred to each other interpretation. Where there is more than a single legislative purpose, it may be difficult to identify which, if any, of the overarching legislative purposes is apposite to an individual provision: see Carr v Western Australia (2007) 232 CLR 138 at 143 [5] (Gleeson CJ). In this case, however, the purpose of Pt 2 of Ch 3 of encouraging and facilitating amalgamations is consistent with the limitation of the period under para 94(1)(c) for bringing an application. Mr Kelly's construction is inconsistent with the purpose of those provisions.
131 Sixth, contrary to Mr Kelly's submission that the Commission's construction would leave para (c) of the definition of "separately identifiable constituent part" with "no role whatsoever to play in the statutory scheme", there would be work for para (c).
132 Take the following example. Union A amalgamates with Union B and Union C. Under the scheme for the amalgamation, Union A is the amalgamated organisation, and is renamed Union ABC, while Unions B and C are de-registered. Union ABC has two divisions under its rules, Division A and Division BC. In these circumstances, Division BC would not answer the description in para (a) or para (b) of the definition of "separately identifiable constituent part", as it is not an organisation or State or Territory branch separately identifiable under the rules of Union ABC. However, Division BC would come within para (c). There would be no difficulty in concluding that Division BC "became a part of" the amalgamated organisation, being Union ABC, as a result of the amalgamation. In this kind of situation, para (c) of the definition would have work to do in para 94(1)(a).
133 Furthermore, para (c) would also have work to do in respect of s 94A of the RO Act.
134 Like para (c), s 94A was added to the RO Act by the 2020 Amendment Act. That provision allows the Commission to accept an application for a withdrawal ballot more than five years after an amalgamation, having regard to certain considerations. A purpose of para (c) is to permit a branch, division or part of an amalgamated organisation to make an application unrestricted by the time limit in para 94(1)(c) in reliance upon s 94A. Where a series of amalgamations has occurred over time, a division, branch or part may be able to trace its joinder into the amalgamated association to a particular older amalgamation.
135 The following example illustrates the point. In 2010 Union A and Union B amalgamated to form Union AB, which, under its rules, has Division A and Division B. In 2020, Union AB amalgamates with Union C. Union AB is the amalgamated organisation. Union AB's rules now have Division A, Division B and Division C. Division A could not rely upon the 2020 amalgamation as a basis for withdrawal since it did not "become part of" Union AB "as a result of" the 2020 amalgamation. However if Division A's application for withdrawal were based upon s 94A, it could rely upon the 2010 amalgamation. Division A could properly be described as having "become part of the [amalgamated] organisation" (Union AB) "as a result of" the 2010 amalgamation.
136 Mr Kelly's submission that the Commission's construction of s 94(1) leaves para (c) with "no role whatsoever to play in the statutory scheme" cannot be accepted. Moreover, the latter example also indicates that the Explanatory Memorandum is not inconsistent with the Commission's construction.
137 In sum, the "amalgamated organisation" under s 94(1) of the RO Act can refer to a registered organisation. Where the mechanism adopted for an amalgamation is that one of the amalgamating organisations will remain registered and absorb the membership of the de-registering organisations, the organisation that remains registered will be the "amalgamated organisation".
138 The scheme for the 2018 Amalgamation stated that the registered organisations proposing to amalgamate were the CFMEU, the MUA and the TCFUA. The CFMEU was to remain registered and to be the amalgamated organisation. The MUA and the TCFUA were to be de-registered. The name of the CFMEU was to be changed to the CFMMEU. The rules were to be altered, including by creating a new MUA Division and creating a new Manufacturing Division by merging the TCFUA with the Forestry Division. The rules for the M&E Division were not altered. The 2018 Amalgamation took effect in accordance with the scheme.
139 The 2018 Amalgamation did not involve the creation of any new entity. While it may have been open to the amalgamating unions to adopt the alternative mechanism contemplated by s 40(2)(a)(ii) of registering a new organisation to be the amalgamated organisation, that course was not taken. Although the name of the amalgamated organisation was changed to the CFMMEU, that change did not create a new organisation. On the amalgamation day, the members of the de-registering organisations - the MUA and the TCFUA - became members of the CFMEU under para 73(3)(d). Accordingly, the CFMEU was the "amalgamated organisation" at and following the 2018 Amalgamation. As the M&E Division was already a part of the CFMEU and the rules applying to it remained unchanged, it did not "become part of" the CFMEU "as a result of" the 2018 Amalgamation.
140 For these reasons the Commission was correct to find that the application did not come within para 94(1)(a).