[2025] FCAFC 73
General information, not legal advice.
Federal Court of Australia (Full Court)
2025-06-02
Raper JJ
Original judgment source is linked above.
Section 217 of the Fair Work Act
(1) The FWC may vary an enterprise agreement to remove an ambiguity or uncertainty on application by any of the following:
(a) one or more of the employers covered by the agreement;
(b) an employee covered by the agreement;
(c) an employee organisation covered by the agreement.
(2) If the FWC varies the enterprise agreement, the variation operates from the day specified in the decision to vary the agreement.
4. Relationship to Parent Award and NES
4.1 This Agreement wholly incorporates the Rail Industry Award 2010 or as varied from time to time (the Award), except for the Award Flexibility and Facilitative Provisions clauses.
4.2 Upon incorporating Award terms into the Agreement, the incorporated Award terms are to be read as altered with the appropriate changes to make them provisions of the Agreement rather than provisions of the Award. So, for example, the loadings, penalties and allowances in the Award apply to the rates of pay due under the Agreement, rather than the Award rates.
4.3 Where there is any inconsistency between the Award and this Agreement, the terms of this Agreement shall prevail.
...
What is necessary to be shown is the actual intention of each of the parties. This has often been referred to by intermediate appellate courts as the subjective intention of the parties. A court, in determining whether the burden of proof is discharged, may be said to view the evidence of intention objectively, in the sense that it does not merely accept what a party says was in his or her mind, but instead considers and weighs admissible evidence probative of intention. It is in this sense that statements such as that of Hodgson J in Bush v National Australia Bank Ltd [(1992) 35 NSWLR 390, 406], that common continuing intention 'must be objectively apparent from the words or actions' of each party, may be understood.
The issue may be approached by asking - what was the actual or true common intention of the parties? There is no requirement for communication of that common intention by express statement, but it must at least be the parties' actual intentions, viewed objectively from their words or actions, and must be correspondingly held by each party.
(Citations omitted.)
'Common intention' - however approached - for the purposes of an enterprise agreement is not lightly found.
(1) Qube agreed to pay penalties on top of what were already loaded rates, giving some workers a pay rise in excess of 65%;
(2) Qube agreed to the further 20% plus pay rise associated with adding Award penalties and loadings without doing any modelling as to the financial impact of these benefits, instead modelling on the basis that the rates were loaded and producing costings inconsistent with Award penalties and loadings being added;
(3) Qube agreed to include Award penalties and loadings through an Award incorporation clause in so-called "Part A" of the 2015 Agreement (a) at the very first meeting (at which Qube's main negotiator was not present); (b) without seeing any index of Part A or Part B clauses; (c) without seeing the text of the clause; (d) before Qube was even provided with a log of claims; and (e) when the [Union] was only (subsequently) seeking weekend penalties (and not seeking other Award penalties or loadings);
(4) After supposedly agreeing to clause 4 sight unseen, Qube was provided with the index of Part A headings and responded stating that it will need to see specific wording for the proposed clauses before it could agree to them;
(5) After Qube agreed to pay all Award penalties and loadings through an Award incorporation clause, the [Union] presented to delegates for approval, and then provided to Qube, a log of claims containing a claim for weekend penalties, but not shift penalties or other Award penalties or loadings;
(6) Having agreed to incorporate all Award penalties and loadings, and then re-confirmed this agreement at a subsequent meeting, Qube responded to the [Union's] log of claims seeking Award weekend penalties by rejecting the claim;
(7) After Qube rejected the claim for weekend penalties, the [Union] did not push back or query this rejection (including on the basis that it had already been supposedly agreed), but rather agreed to remove the claim;
(8) Qube immediately agreed to the additional 20% plus pay rise associated with adding Award penalties and loadings at the very first meeting with the [Union], before Qube was even presented with the [Union's] log of claims, but then spent years negotiating far less significant terms, including fighting tooth and nail over small percentage increases to the South Spur Agreement rates;
(9) Having agreed to the additional 20% plus pay rise associated with the addition of Award penalties and loadings, Qube never once referred to it in its communications with the [Union] when trying to reach a deal with the union over the next two years of bargaining, nor did Qube ever refer to it in its communications with employees over that period, including communications seeking to persuade employees to vote in support of the 2015 Agreement, at three separate votes;
(10) Having secured the additional 20% plus pay increase associated with the incorporation of Award penalties and loadings, Qube's biggest concession increasing take-home pay for workers that put the 2015 Agreement ahead of the PN Bulk Agreement in terms of take-home pay, the [Union] never bothered to tell employees about it;
(11) Having secured the additional 20% plus pay increase associated with the incorporation of Award penalties and loadings, Qube's biggest concession increasing take-home pay for workers that put the 2015 Agreement ahead of the PN Bulk Agreement (the "benchmark for success") in terms of take-home pay, the [Union] spent years haggling over minor disagreements on small percentage increases to rates and still repeatedly encouraged employees to vote against the 2015 Agreement;
(12) Neither Mr Pryor nor Mr Barden told the Victorian branch of the [Union] that Qube had agreed to pay Award penalties and loadings in NSW, leading the Victorian branch to strike a subsequent Victorian agreement that had essentially the same rates as the 2015 Agreement, but expressly as loaded rates (i.e. without Award penalties or loadings). This is despite Mr Barden attending the 22 January 2014 meeting where Qube supposedly agreed to pay Award penalties and loadings in NSW and him being involved in the negotiation of the Victorian agreement;
(13) Having agreed to pay Award penalties and loadings, Qube then immediately failed to pay them throughout the life of the 2015 Agreement and then under the 2019 Agreement, whilst implementing all other agreed changes in those Agreements;
(14) After the 2015 Agreement was approved, Pryor took no steps to make sure that employees were paid Award penalties and loadings in circumstances where he must have known that Qube was not paying them; and
(15) Mr Pryor at all times believed that the 2015 and 2019 Agreements obliged Qube to pay Award penalties and loadings and knew since at least October 2022 that Qube was not in fact paying them. Yet until mid-2023 he was not "a hundred percent sure" there was an issue that needed to be raised with Qube.
(a) the employees had previously been paid loaded rates under each of the four Transferred Agreements;
(b) no communication from the Union to the employees ever identified that there was to be an agreement to pay Award Penalties on top of loaded rates, in a context where the communications identified other claims to which Qube had agreed;
(c) in none of its communications with the employees did Qube refer to Award Penalties being payable on top of the hourly rates, in circumstances where Qube was seeking to persuade the employees to vote in support of the 2015 Agreement, which occurred only on the third occasion it was put to a vote;
(d) Mr Coulton prepared a comparison table that he presented to employees at the New South Wales depots that showed wage rates and the foreshadowed increases under the proposed 2015 Agreement, and this table made no mention of the additional payment of Award Penalties; and
(e) the employees continued to be paid what Qube characterised as loaded rates for a period of seven years following the making and commencement of the 2015 Agreement and then the 2019 Agreement without ever making any complaint or claiming the Award Penalties.
Those failures, however, had limited impact on the question of common intention of the parties.
It would not be expected that a union official such as Mr Pryor should take it upon himself to assess whether recently agreed agreement provisions are being paid, absent any complaint by member(s).
"MO. No Rosters in Place
Agree to leave clause 4 (Part A) to cover shift penalties & weekends Make sure above Award"
- I accept Mr Pryor's explanation that the above notation records Mr Owens rejecting the idea of including a clause similar to the Pacific National NSW Bulk Rail Enterprise Agreement as that clause required forecast master rosters to work out applicable penalties in advance, a style of rostering Qube could not accommodate. Instead, there was agreement to allow clause 4 of Part A, which incorporates the Award, to provide for shift penalties and penalties for weekends. Further, by the notation "Make sure above award", Mr Pryor was referring to the way shift penalties were calculated under the Rail Industry Award, which relied on a nominal classification and a formula to create an applicable hourly loading.
As previously explained to the RTBU, the relevant change to clause 4.2 was simply to replace the previous clause with a simplified inconsistency clause and to avoid unnecessary duplication. We do not understand your query "where else in the agreement does it say award loadings and penalties apply to EA rates?" given that loadings and penalties are dealt with in the Award which is wholly incorporated through the operation of clauses 4.1 and 4.2 in the proposed draft (with the agreement terms prevailing to the extent of any inconsistencies). Specifically, the current draft of the proposed agreement already provided to the RTBU provides as follows:
4.1 This Agreement wholly incorporates the Rail Industry Award 2020 as varied from time to time (Award), except for the Award Flexibility and Facilitative Provisions clauses.
4.2 Where there is any inconsistency between the Award and this Agreement, the terms of this Agreement shall prevail to the extent of such inconsistency.
As you would be aware, the Award provisions with respect to loadings and penalties are incorporated into the proposed agreement (as they are under the current agreement) in circumstances where the enterprise agreement is silent on loadings and penalties. In any event, as this was just to simplify the existing arrangements rather than change the substantive meaning, Qube is more than content to simply reinstate the previous clause 4.2 to address the concern.
(Emphasis in italics added.)
(a) the terms of the 2015 Agreement and provision to employees of the Award before voting on the Agreement during the access period; and
(b) the Transferred Agreements, each of which was a standalone agreement which did not incorporate the 2010 Award.
(a) The evidence regarding the 22 January 2014 meeting, in which I have accepted Mr Pryor's explanation that there was agreement to allow clause 4 of Part A of the proposed agreement, which incorporated the Award, to provide for shift penalties and penalties for weekends;
(b) From 24 March 2014, the parties each prepared and exchanged a number of versions of the Part A Core Conditions document. Each version contained versions of the clauses sought to be varied in the form finally made in the [2015 Agreement];
(c) The proposed agreement that was subsequently provided to all employees for a vote contained the contained versions of the clauses sought to be varied in the form finally made in the [2015 Agreement];
(d) There were in fact three votes, and on each occasion the clauses sought to be varied were in the form finally made in the [2015 Agreement]; and
(e) On 10 March 2016, the approval documents for the [2015 Agreement] were lodged with the Commission by Qube, and those documents gave no indication of loaded rates being applicable, no modelling of rates on the basis that the rates were loaded rates, and no disclosure that weekend rates were lower than Award rates.
(a) the Deputy President erred in finding that during the meeting on 22 January 2014 attended by Mr Pryor and Mr Barden on behalf of the Union, and Mr Owens on behalf of Qube, Mr Owens agreed that Qube would pay Award shift and weekend penalties on top of the agreement rates to be negotiated, and that Qube would do so via clause 4 of Part A of the draft agreement, which clause Qube claimed did not exist at the time and, in any event, had not been provided to Qube until March 2014;
(b) the Deputy President erred in making an implicit finding that, at all material times, Mr Pryor believed that Award Penalties were payable under the 2015 and 2019 Agreements;
(c) the Deputy President erred in finding that Mr Pryor could not reasonably discern (and was not aware) that Qube was not paying Award Penalties just by looking at employee payslips without doing complicated modelling, despite Mr Pryor conceding in cross‑examination that it was "crystal clear" from the face of the payslips that no penalties were being paid;
(d) the Deputy President erred in finding that Mr Pryor's failure to publicise to members the Union's supposed achievement in getting Qube to agree to pay Award Penalties on top of pre-existing loaded rates was, in effect, a deliberate bargaining tactic to downplay achievements in bargaining, despite:
(i) there being no evidence - or submission put by any party - that Mr Pryor was motivated by that purpose in acting that way; and
(ii) Mr Pryor's own explanation being that it "[m]ight have slipped [his] mind at the time" and that he "had other things to worry about".
(a) Qube did not agree to pay Award Penalties during the 22 January 2014 meeting, or at any subsequent time during bargaining for the 2015 Agreement;
(b) in the alternative, insofar as there was an agreement to that effect on 22 January 2014, that such agreement was subsequently withdrawn or revoked during subsequent negotiations and before the 2015 Agreement was made;
(c) during bargaining for the 2015 Agreement, the Union never made a claim for Award Penalties, other than weekend penalties;
(d) Qube rejected the Union's weekend penalty claim and the Union agreed in writing to remove the claim;
(e) Qube and the Union had a mutual common intention at the time when the 2015 Agreement was made, that the rates of pay in the 2015 Agreement would be loaded rates and that no Award Penalties would be payable on top of these rates, whether through clause 4 of Part A of the 2015 Agreement or otherwise; and
(f) the above mutual intention subsisted at the time when the 2019 Agreement was made.
The Union's notice of contention before the Full Bench
(1) Qube submitted that the Deputy President accepted Mr Pryor's account of the meeting of 22 January 2014 without dealing with Qube's submissions as to the implausibility of that account, which was developed at proposition (3) of the Road Map and in oral submissions before the Deputy President, including by reference to the absence at that time of any text to the proposed clause 4 of the draft enterprise agreement, and the absence of any claim by the Union to Award Penalties at that point.
(2) Qube submitted that the Deputy President failed to deal with its argument referred to at (5) of the Road Map that on 25 February 2014 Mr Pryor took the Union's log of claims to a delegate meeting for approval, which included a claim for weekend penalties, but no claims for other Award Penalties. Qube submitted that the Union provided the log of claims to it the following day, and that this was implausible if Qube had already agreed on 22 January 2014 to pay all Award Penalties.
(3) Qube submitted that the Deputy President made no findings about a meeting on 14 March 2014 that was the subject of evidence where Mr Pryor claimed that Mr Coulton agreed to incorporate Award Penalties via clause 4 of the enterprise agreement, which Mr Coulton denied.
(4) Qube submitted that the Deputy President failed to address a submission that was made at (6) of the Road Map, and orally, which related to Qube's rejection of the claim to penalty rates, which was expressed as "No - should remain standard". Qube submitted that this response was inexplicable if there had already been an agreement to pay Award Penalties.
(5) Qube submitted that the Deputy President had referred to Mr Pryor's explanation for the Union's removal of the claim for weekend penalties without stating whether he accepted the explanation.
(6) Qube submitted that the Deputy President did not deal with an argument that it had made by reference to proposition (11) of the Road Map, which was that significant time was spent by the Union haggling over minor percentage increases to rates, and that the Union had encouraged employees to vote against the 2015 Agreement on the three occasions it was put to a vote. It was submitted that this conduct could not be reconciled, if it were the case that Award Penalties were to be incorporated, which would put the terms of the 2015 Agreement ahead of the Pacific National Bulk Rail Enterprise Agreement 2013, which Mr Pryor regarded as "the benchmark for success".
(7) Qube submitted that the Deputy President failed to deal with evidence that after the 22 January 2014 meeting Mr Pryor had authored several Newsflashes to members of the Union with updates on bargaining which identified claims to which Qube had agreed, but which did not mention Qube's supposed agreement to pay Award Penalties under the proposed 2015 Agreement. Qube submitted that this had occurred in circumstances where Mr Pryor had conceded in cross-examination that the supposed agreement to pay these items was "the biggest gain for employees out of that entire enterprise bargaining by a country mile" and "the biggest uplift in take-home pay out of any claim in the enterprise bargaining". Qube had relied on this evidence in support of an argument referred to at proposition (10) of the Road Map that it was implausible for Mr Pryor not to have included an agreement by Qube to pay Award Penalties in the Newsflashes if that is what in truth had occurred.
(8) As to the Deputy President's finding at D [114] that there were clear reasons why a party might seek to downplay achievements in bargaining, which Qube characterised as a finding that there was a deliberate strategy to that effect, Qube submitted that there was no evidence for this finding, and nor did any party advance that explanation in submissions.
(9) Qube submitted that the Deputy President did not deal with its submission, to which it had referred at proposition (2) of the Road Map, that its own internal modelling of the financial impact of the 2015 Agreement was based upon loaded rates of pay.
(10) Qube submitted that the Deputy President failed to deal with a submission referred to at proposition (1) of the Road Map that the rates that were incorporated in the 2015 Agreement were increases on the loaded rates that were payable under the most beneficial of the four Transferred Agreements, being the South Spur Rail Services Pty Ltd Employee Collective Agreement 2009 (the South Spur Agreement), and that it was implausible in this circumstance that Qube had agreed to pay the Award Penalties on top of the increased loaded rates.
(11) Qube submitted that the Deputy President had failed to deal with a submission referred to at proposition (13) of the Road Map that from the commencement of the 2015 Agreement Qube paid its employees the loaded rates for which the agreement provided, and did not pay Award Penalties, and that this was inexplicable if Qube had actually agreed to pay Award Penalties.
(12) Qube submitted that the Deputy President failed to deal with its submission referred to at proposition (10) of the Road Map that neither the Union nor any of the employees, including any delegate who had been involved in negotiating the 2015 Agreement, had ever complained about Qube's failure to pay Award Penalties, loadings and allowances, which showed that the Union had never told employees about such an agreement.
(13) Qube submitted that the Deputy President had failed to deal with a submission to which Qube had referred at proposition (12) of the Road Map, which was that it was implausible that after the 2015 Agreement had been approved the Union had agreed to expressly loaded rates for the Victorian enterprise agreement that were essentially the same. Qube submitted that this was of especial significance because Mr Barden, who had been involved in negotiating the 2015 Agreement on behalf of the Union, was also involved in negotiating the Victorian agreement.
(1) Qube submitted that if the rates provided for in the 2015 Agreement were unloaded rates, this would represent an implausible industrial bargain. That was because the Transferred Agreements which the 2015 Agreement replaced provided for loaded rates, and Qube had used the most beneficial of the Transferred Agreements as a base on which percentage increases were applied. Qube submitted that if the rates under the 2015 Agreement were not loaded, this would represent a more than 20% increase in pay.
(2) Qube submitted that it was inherently unlikely that it would have agreed to pay Award Penalties through a sidewind, being an Award incorporation clause, without having seen the text of the clause and at the first high-level meeting without its lead negotiator being present.
(3) Qube submitted that all the subsequent conduct of the parties during bargaining would be implausible if Qube had, from the outset, agreed to pay the Award Penalties.
(4) Qube submitted that the post-approval conduct of the parties would also be implausible if there had been actual agreement to pay Award Penalties.
(5) Qube submitted that the Deputy President's finding of an agreement to pay Award Penalties rested on the evidence of Mr Pryor, whom Qube described as a hopeless witness who had lied and obfuscated throughout his evidence. For all the reasons it had advanced, Qube submitted that the Deputy President's acceptance of Mr Pryor's evidence was unsustainable, and that once his account was rejected, the objective facts pointed overwhelmingly to there being no agreement to pay Award Penalties, and to their being a common mutual intention that the rates agreed to were loaded rates.
... we consider that it is at least relevant to have regard to the terms of the agreement upon which the employees voted and any explanation given to them as to those terms prior to the vote, whether by the employer pursuant to s 180(5) of the FW Act or otherwise. Further, it will usually be appropriate to take into account the words and conduct of bargaining representatives of employees during the bargaining process for the agreement - particularly where, as here, there is only one bargaining representative which represents the large majority of employees covered by the agreement.
... To persuade the Commission to exercise its discretion to make such a variation, it would be necessary to establish the existence of a common intention on the part of Qube, the [Union] and the relevant employees, demonstrated by their words and actions, that clause 4.2 was to have an effect directly contrary to its plainly-expressed terms. That would obviously be a difficult task absent very clear evidence of such a common intention. ...
We will turn to Qube's specific grounds of appeal shortly. However, it is necessary to observe at the outset that the evidence of the contemporaneous documents and the evidence otherwise not in dispute concerning the words and actions of Qube, the [Union] and the employees in relation to the bargaining for and the making of the 2015 Agreement provide no identifiable positive support for the proposition that there was a common intention that the Award penalties were not to apply to the hourly rates in the agreements. Indeed, the evidence favours the contrary proposition. ...
(1) The first point was that the Full Bench stated at FB [54] that the terms of the 2015 Agreement represented a clear departure from the four Transferred Agreements, which provided for loaded rates of pay, and which did not incorporate the terms of any applicable Award.
(2) Secondly, the Full Bench referred at FB [55] to the Union's log of claims of 30 August 2013, which was endorsed by the Union's members in October 2013, and the claim for the payment of weekend shift penalties. The Full Bench stated that this represented a clear intention on the part of the Union to depart from the position prevailing under the Transferred Agreements.
(3) Thirdly, the Full Bench referred at FB [56]-[57] to an email from Mr Coulton to the Union dated 29 October 2013, which referred to the proposal to separate state-based enterprise agreements, which would have national conditions in Part A, and state-based conditions in Part B. In cataloguing the type of conditions that would be in Part A Mr Coulton referred to "penalty rates" which the Full Bench stated disclosed that Qube intended that the common conditions in Part A would deal with penalty rates, and that clause 4 of the 2015 Agreement in its final form was developed as part of the Part A conditions.
(4) Fourthly, at or by the time of the commencement of bargaining, the National Office of the Union had developed a "National Model Enterprise Agreement 2013" that included a provision which incorporated a relevant Award. The Full Bench at FB [59] inferred that this model provision formed the basis on which clauses 4.1 to 4.3 of the 2015 Agreement was drafted.
(5) Fifthly, the Full Bench referred at FB [60]-[61] to Mr Pryor's note of the meeting on 22 January 2014 with Mr Owens of Qube. We set out the text of the note at [48] above within the extract of D [53] of the Deputy President's reasons. The Full Bench stated that, notwithstanding Qube's general attack on Mr Pryor's credibility, there was no challenge of substance to the authenticity of the note. However, the Full Bench stated in footnote number 45:
It was put to Mr Pryor in cross-examination that '...you've made up a reason to explain a note that you've added after the event'. He denied this. The matter was not pursued beyond this: transcript, 7 December 2023, PNs 1940-1952.
As to the contents of the note, the Full Bench stated that the words, "Agree to leave clause 4 (Part A) to cover shift penalties & weekends", were to be understood as meaning that it was agreed that clause 4 would deal with the subject matter of shift and weekend penalty rates, which was consistent with the fact that the Union had advanced claims about these subject matters, and consistent with the terms of clause 4.2 of the 2015 Agreement. The Full Bench further stated that the note also recorded Mr Owens rejecting the inclusion of a clause requiring forecast master rosters to work out applicable penalties in advance, which was a style of rostering which Qube could not accommodate, and that this further supported the proposition that the note correctly recorded an agreement reached at the 22 January 2014 meeting.
(6) Sixthly, the Full Bench at FB [62]-[65] referred to correspondence passing between the Union and Qube following the 22 January 2014 meeting, which included the exchanges of drafts of what became the 2015 Agreement in respect of which Qube expressed no concerns in relation to the text of clauses 4.1 to 4.3. The Full Bench considered that the Union's claim to weekend shift penalties and loadings had been resolved by Qube's agreement to deal with them in clause 4 of the Part A conditions.
(7) Seventhly, the Full Bench at FB [66] referred to Mr Coulton's evidence that at the bargaining meetings he attended clause 4 was never discussed, or raised by either party, and did not change. The Full Bench referred to Mr Coulton's evidence that "No-one ever said or stated what the clauses were supposed to do, nor how they were supposed to operate (if at all)", and stated that this evidence was, "by itself, destructive of the proposition that there was a common intention that clause 4.2 would not operate in accordance with its terms".
(8) Eighthly, the Full Bench at FB [67] referred to the fact that the employees voted on the proposed 2015 Agreement three times before it was voted up. The Full Bench referred to Qube's obligation under s 180(5) of the Fair Work Act to take all reasonable steps to ensure that the terms of the Agreement, and the effect of those terms, were explained to the employees prior to each vote. The Full Bench referred to the terms of clause 4.2 of the proposed agreements, and to its express provision for the payment of Award Penalties, and stated that it might reasonably have been understood by the employees as intended to have effect according to its terms. The Full Bench stated that there was no evidence that any explanation to the contrary was ever provided to the employees. And apart from the quantum of increases in hourly rates, there was no written explanation of the effect of the terms of the proposed agreements in evidence. The Full Bench referred to evidence of Mr Coulton about his meetings with the employees at the depots, but he did not give any evidence that he explained the effect of clause 4.2, or that the rates were loaded rates. The Full Bench stated that Mr Coulton's evidence was merely in the negative, that is, that he did not at any stage say that Award Penalties would be payable in addition to hourly rates. The Full Bench concluded the eighth element as follows:
There is therefore no basis to conclude that the employees, when they voted to make the 2015 Agreement, had any clear basis for understanding that clause 4.2 would not have effect according to its terms because the 'Hour Rates' in the agreement were loaded rates.
(9) Ninthly, the Full Bench at FB [68] referred to Mr Coulton's Form F17 declaration that accompanied the application for approval of the 2015 Agreement upon which the Commission had relied in its decision of 29 March 2016 for the purpose of its consideration of the Better Off Overall Test (the "BOOT") in approving the Agreement. The declaration identified the 2010 Award as the reference instrument, and Mr Coulton declared, amongst other things, that the Agreement did not contain any terms that were less beneficial and were not conferred by the reference instrument. The Full Bench stated that the declaration was not consistent with the position that, despite the plain wording of clauses 4.1 and 4.2, the effect of the 2015 Agreement was that it excluded the Award Penalties.
(10) Finally, at FB [69] the Full Bench addressed Qube's argument that the Victorian enterprise agreement, which contained loaded hourly rates that were essentially the same as those under the 2015 Agreement, supported its claim that there was a common intention that the rates under the 2015 Agreement would likewise be loaded rates. The Full Bench rejected this argument, stating that the Victorian agreement expressly provided that the rates were loaded rates, and that this indicated that where Qube and the Union had a common intention that hourly rates be loaded rates which displaced Award entitlements, this was expressly and unambiguously stated in the agreement.
The Full Bench rejected Qube's Road Map submission as "fundamentally misconceived and not relevant"
It is plain that the Deputy President considered this case by reference to the evidence concerning the history of the bargaining for and the making and approval of the 2015 Agreement and, at [109], rejected it. His reasons for doing so are made apparent in [109]-[117]. In this way, we consider that the Deputy President properly discharged his duty to consider and address Qube's case.
We do not consider that any appealable error arises from the fact that the Deputy President did not, in his decision, make express findings in respect of each of the 15 propositions contained in Qube's Road Map submission. That submission was, in our view, fundamentally misconceived and not relevant to the central question of whether the common intention contended for by Qube was demonstrable. The premise of the submission was that each proposition would have to be accepted in order to accept the RTBU's case that Qube had agreed to pay the Award penalties and loadings. However:
(1) Qube was the applicant in the matter and bore the burden of persuading the Commission that the contended-for common intention existed. It was not entitled to succeed on the mere basis of a non-acceptance of the RTBU's case.
(2) The issue for determination was not what Qube had agreed, or not agreed, to do in the 2015 Agreement. Objectively, what Qube had agreed to was what was expressed in the terms of the 2015 Agreement. What subjective intention might be imputed to Qube as to what it thought it was agreeing to was irrelevant to the search for common intention. Common intention, as earlier discussed, is to be ascertained from what is objectively apparent from the words or actions of each party, not from what one party says was in their mind. It may be accepted that Mr Coulton at least did not consciously intend that the Award penalties would be payable upon the rates contained in the 2015 Agreement (or the 2019 Agreement). However, that is not evidence of common intention, and the outcome which prevailed is better explained by inadvertence and a lack of diligence on the part of Qube.
In any event, it is apparent that the Deputy President was alive to Qube's Road Map submission, since he set it out in full in the decision at [82]. That submission, as explained, sought to frame the case in a particular and, in our view, impermissible way, but the Deputy President was not obliged to adopt that framing of the case in the structure and reasoning of his decision. The factual matters adverted to in the submission were generally dealt with by the Deputy President in his findings of fact at [40]-[81] and then considered through the prism of a correct understanding of the principles applicable to the ascertainment of common intention at [105]-[117]. In doing so, we consider that Deputy President properly discharged his duty to consider Qube's case.
(Emphasis in italics added.)
(3) It is contended that the Deputy President erred in finding that 'Qube agreed to pay Award Penalties'. The Deputy President did not make any finding in such terms nor, for the reasons earlier explained, was this the relevant issue. The critical finding that the Deputy President did make was that Qube had not established its case of common intention.
(4) Further to (3), Qube contends that it was implausible for various reasons that it agreed to pay the Award penalties. The question of implausibility is one which arises only from Qube's subjective perspective. An objective analysis of the words and actions of the parties during the bargaining and approval process render it entirely plausible that there was, objectively assessed, a common intention for the Award penalties to be paid - particularly in circumstances where the [Union] made a claim for weekend penalties to be paid and Qube agreed to a provision which in express terms provided for Award penalties to be paid on the agreement rates.
The Full Bench rejected the claimed errors raised by Ground 4
(1) The first point that the Full Bench addressed at FB [77] was Qube's claim at 4(d) of its notice of appeal that the Deputy President had erred in finding at D [114] that Mr Pryor's failure to publicise obtaining Qube's agreement to pay Award Penalties on top of loaded rates was, in effect, a deliberate tactic to downplay achievements in bargaining. The Full Bench stated that the Deputy President had not made this finding, and had simply said that there were clear reasons why it may be perceived that, during and after the course of a negotiation, a party may seek to downplay achievements in bargaining. The Full Bench held that this statement was made in support of the Deputy President's primary conclusion that the issue was irrelevant, with which conclusion the Full Bench agreed. The Full Bench stated that the issue was irrelevant because:
As we have discussed earlier, the position is that there was no evidence that the employees were told anything by Qube, or the [Union], about the meaning of clauses 4.1 or 4.2, nor is there any evidence that they were told by anyone that the rates in the 2015 Agreement were loaded rates. In the face of the text of the agreement upon which they voted, there is no basis to conclude therefore that the employees held the common intention which Qube seeks to ascribe to them.
(2) The second point that was addressed at FB [77] was Qube's claim at 4(c) of the notice of appeal to the Full Bench that the Deputy President had erred in finding that Mr Pryor could not reasonably discern (and was not aware) that Qube was not paying Award Penalties just by looking at employee payslips without doing complicated modelling, despite Mr Pryor conceding in cross-examination that it was "crystal clear" from the face of the payslips that no penalties were being paid. The Full Bench held that the Deputy President had made no such finding, and had referred to the unchallenged evidence of Mr Matthews about the difficulty in identifying Qube's non-payment of the penalties and allowances.
(3) The third point that the Full Bench addressed at FB [77] was a claim by Qube that the Deputy President had erred in finding that "Qube agreed to pay Award Penalties". Qube had submitted to the Full Bench that this finding was "glaringly improbable", and "contrary to compelling inferences". The Full Bench held that the Deputy President did not make any finding in such terms, and nor was it the relevant issue, stating:
The Deputy President did not make any finding in such terms nor, for the reasons earlier explained, was this the relevant issue. The critical finding that the Deputy President did make was that Qube had not established its case of common intention.
(4) The fourth point involved Qube's claim that it was implausible that it had agreed to pay Award Penalties. The Full Bench rejected this claim, stating:
The question of implausibility is one which arises only from Qube's subjective perspective. An objective analysis of the words and actions of the parties during the bargaining and approval process render it entirely plausible that there was, objectively assessed, a common intention for the Award penalties to be paid - particularly in circumstances where the [Union] made a claim for weekend penalties to be paid and Qube agreed to a provision which in express terms provided for Award penalties to be paid on the agreement rates.
(5) The fifth point was Qube's submission that the Deputy President had found that Qube had agreed to pay Award Penalties based upon the evidence of Mr Pryor who was "a hopeless witness who lied and obfuscated throughout his evidence". The Full Bench did not accept this submission, stating:
For the reasons already explained, the actual outcome determined by the Deputy President was not dependent on the evidence of Mr Pryor except where corroborated by the documents or other evidence. In respect of the Deputy President's findings concerning the 22 January 2014 meeting, he relied upon Mr Pryor's evidence on the basis that it was corroborated by a contemporaneous note of the meeting made by Mr Pryor [...]. Qube has not advanced any submission as to why the Deputy President was not entitled to do so.
This contention of error is rejected. The analysis of the objective evidence concerning the parties' words and actions during the bargaining, making and approval of the 2015 Agreement which we have earlier set out makes it clear that the Deputy President did not err in his non-acceptance of Qube's case as to common intention. We do not consider that any contrary finding was available on the evidence.
The Full Bench rejected the claimed error in relation to standing raised by Ground 5
First Instance Error 1:
[The Deputy President] denied Qube procedural fairness and constructively failed to exercise jurisdiction by failing to consider significant, clearly articulated and centrally relevant submissions made by Qube - being the Qube Roadmap and attendant oral submissions that explained and expanded on the Qube Roadmap.
First Instance Error 2:
At [95]-[97] and [119] of the First Instance Decision, [the Deputy President] erred in finding that, on proper construction of s 217, Qube did not have standing to apply to vary the 2015 Agreement.
Full Bench Error 1:
At [66], [72], [72](2), [74], [77](1), [77](3) and [77](4) of the Appeal Decision, the Full Bench proceeded on the basis that:
(a) in exercising the discretion under s 217 of the FW Act whether to vary an enterprise agreement to remove ambiguity or uncertainty, the subjective intentions of the bargaining representatives for that enterprise agreement (here, being Qube and [the Union]) as to its meaning and effect were irrelevant; and
(b) rather, it was only the objective common intention that was relevant.
In proceeding on this basis, the Full Bench misconstrued s 217 and fell into jurisdictional error by:
(c) misunderstanding the jurisdiction exercised by [the Deputy President] under s 217 of the FW Act, which was to be reviewed on appeal;
(d) misunderstanding or misconstruing the nature of an opinion which the Full Bench had to form in discharging its appellate function; and
(e) asking itself the wrong question in a way which affected its purported exercise of its appellate function.
Full Bench Error 2:
The Full Bench made the following findings that were irrational, illogical, not based on findings or inferences supported by logical grounds and could not be reached logically or rationally on the available material:
(a) that the Qube Roadmap, and the propositions in it, were irrelevant to the question of common intention for the purposes of s 217 (at [72], [74], [77](1) and, implicitly, [61]);
(b) that [the Deputy President] did not fail to consider the Qube Roadmap and did not fail to give adequate reasons (at [71]-[73]).
Full Bench Error 3:
At [81] of the Appeal Decision, the Full Bench erred in finding that, on proper construction of s 217, Qube did not have standing to apply to vary the 2015 Agreement.
Qube's submissions - Full Bench Error 1 - misconstruction of s 217
Qube's submissions - Full Bench Error 2 - legal unreasonableness
Qube's submissions - First Instance Error 2 and Full Bench Error 3 - standing
The Union's submissions - Full Bench Error 1 - misconstruction of s 217
The Union's submissions - Full Bench Error 2 - legal unreasonableness
The Union's submissions - First Instance Error 1
The Union's submissions - Full Bench Error 3 and First Instance Error 2 - standing
In making factual findings of a term or terms of such a contract, the evidence of witnesses as to words written or spoken by the parties (and their knowledge of relevant matters at the time of the contract) must be weighed alongside the objective surrounding facts (which are undisputed or which are established by other objective evidence) and also with the apparent logic of events.
... Determining the terms of an oral contract is a question of fact. Establishing the facts will usually, as here, depend upon the recollections of the parties and other witnesses. The accuracy of those recollections may be tested and elucidated by things said and done by the parties or witnesses after the agreement has been concluded. Receiving evidence of such words or actions does not mean that the judge is losing sight of his task of deciding what the parties agreed at the time of the contract. It is simply helping him to decide whose recollection is right. It is not surprising to me that the editor of Lewison should observe that there is nothing in the authorities to prevent the court from looking at post contract actions of the parties. As a matter of principle, I can see every reason why such evidence should be received.
A true picture is to be derived from an accumulation of detail. The overall effect of the detailed picture can sometimes be best appreciated by standing back and viewing it from a distance, making an informed, considered, qualitative appreciation of the whole. The overall effect of the detail is not necessarily the same as the sum total of the individual details: cf. Hall (Inspector of Taxes) v Lorimer [1992] 1 WLR 939 at 944; Shepherd v R [1990] HCA 56; (1990) 170 CLR 573 at 579-80.
To "consider" is a word having a definite meaning in the judicial context. The intellectual process preceding the decision of which s 10(1)(c) speaks is not different. It requires that the Minister have regard to what is said in the representations, to bring his mind to bear upon the facts stated in them and the arguments or opinions put forward and to appreciate who is making them... A mere summary of them cannot suffice for this purpose...
An objective analysis of the words and actions of the parties during the bargaining and approval process render it entirely plausible that there was, objectively assessed, a common intention for the Award penalties to be paid - particularly in circumstances where the [Union] made a claim for weekend penalties to be paid and Qube agreed to a provision which in express terms provided for Award penalties to be paid on the agreement rates.
The decisions of the Full Bench and the Deputy President should be quashed
I certify that the preceding one hundred and ninety-seven (197) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justices Katzmann, Wheelahan and Raper.
Qube Logistics (Rail) Pty Ltd
Australian Rail, Tram and Bus Industry Union [2025] FCAFC 73
Application by Monash [2023] FWC 1148
AZC20 v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2023] HCA 26; 278 CLR 512
Bianco Walling Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union [2020] FCAFC 50; 275 FCR 385
Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission [2000] HCA 47; 203 CLR 194
Dranichnikov v Minister for Immigration & Multicultural Affairs [2003] HCA 26; (2003) 197 ALR 389
Fox v Percy [2003] HCA 22; 214 CLR 118
Gestmin SGPS SA v Credit Suisse (UK) Limited [2013] EWHC 3560
LPDT v Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs [2024] HCA 12; 418 ALR 152
Maggs (t/a BM Builders) v Marsh [2006] EWCA Civ 1058; [2006] BLR 395
Minister for Immigration and Border Protection v SZVFW [2018] HCA 30; 264 CLR 451
Minister for Immigration and Citizenship v Li [2012] HCA 61; (2013) 249 CLR 332
Minister for Immigration and Multicultural Affairs v Bhardwaj [2002] HCA 11; 209 CLR 597
Minister for Immigration and Multicultural Affairs v Eshetu [1999] HCA 21; 197 CLR 611
Minister for Immigration and Border Protection v SZMTA [2019] HCA 3; (2019) 264 CLR 421
Monash University v National Tertiary Education Industry Union [2023] FWCFB 181
Nathanson v Minister for Home Affairs [2022] HCA 26; 276 CLR 80
Plaintiff M1 2021 v Minister for Home Affairs [2022] HCA 17; 275 CLR 582
Qube Ports Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union [2023] FWCFB 102
Qube Ports Pty Ltd v Construction, Forestry and Maritime Employees Union [2024] FCAFC 132; 305 FCR 554
Realestate.com.au Pty Ltd v Hardingham [2022] HCA 39; 277 CLR 115
Re Australian and International Pilots Association [2007] AIRC 303; 162 IR 121
Re Minister for Immigration & Multicultural Affairs; ex parte Applicant S20/2002 [2003] HCA 30; 198 ALR 59
Ryledar Pty Ltd v Euphoric Pty Ltd [2007] NSWCA 65; 69 NSWLR 603
Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (In Liq) [2019] NSWCA 11; 99 NSWLR 317
Shepherd v The Queen [1990] HCA 56; (1990) 170 CLR 573
Simic v New South Wales Land and Housing Corporation [2016] HCA 47; 260 CLR 85
Tickner v Chapman [1995] FCAFC 1726; (1995) 57 FCR 451
Toyota Motor Corporation Australia Ltd v Marmara [2014] FCAFC 84; (2014) 222 FCR 152
Transport Workers' Union v Qantas Airways Limited [2021] FCA 873; 308 IR 244
WAEE v Minister for Immigration and Multicultural and Indigenous Affairs [2003] FCAFC 184; 236 FCR 593
(1936) 55 CLR 499
(2013) 249 CLR 332
(2019) 264 CLR 421
(2014) 222 FCR 152
(1995) 57 FCR 451
(1992) 35 NSWLR 390
(2003) 197 ALR 389
(1990) 170 CLR 573