The decision of the Commission
18 The applicant's application to the Commission was referred to a Full Bench, of which the President was a member: RO Act, s 108A.
19 The applicant's case before the Commission was that the Manufacturing Division had become a constituent part of the Union in 2018 as a result of the amalgamation of the Textile Clothing and Footwear Union of Australia (TCFUA). It was on this basis that the applicant sought to satisfy the Commission that s 94(1)(a) and (c) of the RO Act were engaged.
20 The Commission traced the history of amalgamations to which the Union was a party. Relevantly, in March 1993 the Federated Furnishing Trade Society of Australia amalgamated with the Construction Forestry Mining and Energy Union, the Operative Painters and Decorators Union of Australia, and the Victorian State Building Trades Union. At that point, the Union was organised into union-based Divisions, and there was established a new division known as the "FFTS Union Division".
21 Some years later, in July 2002, rule 42D was inserted into the Union's rules, which provided a timeline for the restructuring of the FFTS Union Division into the Forestry and Forest, Building Products Manufacturing Division, which became known as the FFPD. On 26 March 2005, pursuant to rule 42D, the FFTS Union Division was removed from the Union's rules, leaving three Divisions: (1) the Mining and Energy Division; (2) the Construction and General Division; and (3) the FFPD. Until the 2018 amalgamation involving the TCFUA, the FFPD was comprised of members eligible to join the Union under eligibility rules 2(C) and (F).
22 The Commission referred to the scheme of amalgamation that was submitted with the application made under s 44 of the RO Act for a ballot to approve the 2018 amalgamation, and at [13]-[14] the Commission described the following features of the scheme -
(1) the Union was the proposed amalgamated organisation;
(2) the Maritime Union of Australia (MUA) and the TCFUA were to be merged with the Union;
(3) upon amalgamation, the MUA and the TCFUA would be deregistered;
(4) the Maritime Union of Australia Division (MUA Division) of the Union would be created;
(5) there would be a merger of the TCFUA with the FFPD of the CFMEU, which would be renamed as the Manufacturing Division of the Union;
(6) upon becoming members of the Union, former TCFUA members would be attached to the Manufacturing Division and the eligibility rules of the Manufacturing Division would incorporate the eligibility rules of the TCFUA;
(7) current TCFUA branches would be integrated into the Manufacturing Division structures;
(8) there would be created a textile, clothing and footwear sector (TCF Sector) within the Manufacturing Division constituted on the amalgamation day by members of the TCFUA and then by all TCF Sector members;
(9) there would be established a TCF Sector Council with specific roles and responsibilities in respect of policy and industrial issues relating to the TCF industry; and
(10) specific TCF positions and offices in the Union and the Manufacturing Division would be established.
23 The scheme of amalgamation annexed a marked-up version of the proposed rules of the Manufacturing Division. At [22], the Commission summarised the alterations that were proposed to the Manufacturing Division rules. Upon the hearing of this application, senior counsel for the applicant did not dispute the accuracy of the Commission's summary, but submitted to the Court an aide-mémoire with a more detailed account of the amendments to the national rules of the Union and the Manufacturing Division rules.
24 The Commission accepted that the Manufacturing Division was a separately identifiable constituent part of the Union for the purposes of the definition in s 93(1) of the RO Act. This was not in dispute. However, the Commission was not satisfied that the Manufacturing Division became part of the Union as a result of the 2018 amalgamation. In summary, the Commission's reasons at [32]-[36] were as follows -
(1) the Commission stated at [32] that the requirement in s 94(1) of the RO Act that the "constituent part became part of the [amalgamated] organisation" suggested that what was required was that the whole of the constituent part became part of the organisation as a result of the amalgamation, and not merely some element of the constituent part;
(2) immediately before the 2018 amalgamation a significant portion of what was now the Manufacturing Division was the FFPD, with which the membership of the TCFUA was structurally merged;
(3) the scheme for amalgamation made clear that a new division was not being created, but rather that there was a merger of the TCFUA with the FFPD, which was then renamed as the Manufacturing Division;
(4) the situation with the Manufacturing Division could be contrasted with the merger of the MUA in 2018, where an entirely new MUA Division was created;
(5) in substance, what had occurred "as a result of" the 2018 amalgamation was not that the Manufacturing Division "became part of" the Union, but rather TCFUA members were allocated to the FFPD, which was then renamed and some new offices for former TCFUA officials and a TCF Sector Council were created;
(6) there were many features of the Manufacturing Division that remained unchanged, which the Commission at [35] identified as follows -
• organisational management structures of the Division such as the Divisional Conference and the Divisional Executive remained, subject to the addition of new officers from the TCFUA;
• districts of the Division remained unchanged, except to include additional TCFUA members;
• governance of the districts remained relevantly unchanged subject to the inclusion of a TCF Assistant Secretary and TCF Full Time Officer for the Victorian District;
• officers of the FFPD continued in their positions, unaffected by the amalgamation;
• duties of the Divisional President and Secretary remained relevantly unchanged;
• election provisions, except for the provisional rules relating to the new TCFUA officers, remained unchanged; and
• members allocated to the FFPD remained allocated to the division - there is no separate rule allocating or transitioning members of the FFPD to the Manufacturing Division.
(Footnotes omitted.);
(7) the Commission at [36] found further support for its conclusion in the fact that there were no transitional provisions for the transfer of any funds of the FFPD to the Manufacturing Division, and in the fact that a new rule 44(xiii) provided that all offices of the FFPD continued.
25 At [37], the Commission considered and rejected a submission made by the applicant in reliance on the Full Court's decision in Kelly v CFMMEU. The applicant had submitted to the Commission that the Full Court had distinguished the position of the Mining and Energy Division, where there had been no change to it as a constituent part, from the position of the Manufacturing Division, where it was submitted that the Full Court held that the Manufacturing Division was newly created as a result of the 2018 amalgamation. That submission is renewed on this application, and we will address it below.
26 The Commission stated at [38] that while changes to the Union rules were made to accommodate the new TCFUA members and officers, those changes proceeded on the basis that the existence of the FFPD was to continue unaffected, subject to the addition of new members, officers, and specific TCF industry arrangements. The Commission concluded -
… the route chosen was to expand the membership of an existing division of the organisation and to change its name and some of its rules to facilitate the incorporation of the TCFUA membership. And so, while the FFPD was modified and renamed as a result of the 2018 amalgamation, it did not become part of the amalgamated organisation as a result of the 2018 amalgamation because it was already a constituent part of that organisation.