Sayed v Construction, Forestry, Mining and Energy Union
[2015] FCA 27
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2015-01-30
Before
Mortimer J
Source
Original judgment source is linked above.
Judgment (29 paragraphs)
INTRODUCTION 1 The applicant, Mr Sayed, was employed by the respondent, the Construction, Forestry, Mining and Energy Union, for a little over three months. Although both parties commenced their employment relationship with high hopes about Mr Sayed's role in a somewhat historic alliance between the respondent and the Australian Workers' Union (AWU), it was not to be. 2 Based on three causes of action, the applicant seeks relief from this Court in relation to his treatment during his employment with the respondent and in relation to the termination of his employment. 3 For the reasons I set out below, I have found that the respondent has contravened s 351 of the Fair Work Act 2009 (Cth) (Fair Work Act) in respect of three adverse actions taken against the applicant. The applicant is entitled to compensation for loss of income and for distress and humiliation. Compensation is limited because of a paucity of evidence about his loss, or the effect of the adverse action on him. Whether any penalties should be imposed pursuant to s 546(3) of the Fair Work Act will be the subject of separate determination, after submissions from the parties.
GENERAL FACTUAL FINDINGS 4 The parties filed an agreed statement of facts, which was tendered pursuant to s 191 of the Evidence Act 1995 (Cth). The matters in this section represent my findings on the chronology of events of the dispute, and are drawn from the agreed statement, and from the oral and documentary evidence. Factual findings which go to the core aspects of the applicant's claims are dealt with in the following section of these reasons. 5 The applicant is a law graduate from the University of Melbourne. He has worked in a number of positions in property management and hospitality while completing his studies to make enough to pay his tuition fees and living expenses. In early 2013, and after completing his law degree, he answered an advertisement for the position of "Trade Union Organiser" with the respondent. The advertisement stated: Fulltime position working within North Western Australia. You will participate in planning, implementing, and review of targeted organising campaigns. Duties will include probing targets, setting up campaigns, making initial contact, developing organising committees, systematic contact of members. You must be self-motivated and have a genuine desire to help workers within the mining industry. You will need to be enthusiastic, work with energy and creativity. A commitment to trade unionism, excellent listening, verbal communication and interpersonal skills are an essential requirement for this position. Good written communication and computer skills are required. Interstate travel maybe required. You will hold a current drivers licence. The CFMEU Mining and Energy Division is a principal union that covers mine workers in Australia. You will be part of a highly motivated and dedicated team of organisers and will be working at the forefront of industrial organising. 6 Mr Vickers, the principal witness for the respondent, described the proposed alliance between the AWU and the respondent in the Pilbara region as coming after 100 years of "difficult history" and of the unions "hating each other". The aim of the alliance, according to Mr Vickers' evidence, was to commence re-unionisation of the iron ore industry in Western Australia, beginning with the Rio Tinto operations in the Pilbara. 7 One aspect of the alliance was an arrangement that two organisers - one from the AWU and one from the respondent - would be sent to live and work at the Pilbara, to start the process of encouraging re-unionisation of the Rio Tinto workforce. The position the applicant applied for was the CFMEU organiser in that arrangement. 8 The applicant attended an interview on 27 February 2013 with Mr Michael Weise, who is the National Organising and Training Coordinator for the CFMEU Mining and Energy Division. 9 Subsequently, on approximately 28 March 2013 the applicant had a telephone discussion with Mr Weise during which Mr Weise advised the applicant that he would be offered fixed-term employment, on a six-month contract, in the position of CFMEU trainee organiser in Queensland. The contents of this conversation are important to findings about the nature of the employment relationship between the applicant and the respondent, as well as to the applicant's claim under Sch 2 of the Competition and Consumer Act 2010 (Cth) (the Australian Consumer Law). 10 That telephone conversation was followed up with a letter of offer to the applicant dated 1 April 2013, which he signed and dated on the same day and returned to the respondent. 11 The letter relevantly stated: I am pleased to confirm our offer of employment to you as a Trainee Organiser with the CFMEU Mining and Energy Union. You are required to commence employment with us on Thursday the 11th of April 2013.The position is based on "Fixed Term" employment from your date of engagement until October 11th 2013. Severance and retrenchment provisions do not apply for fixed term employment. The "Trainee Organiser" annual salary is $72,047 per annum. Your employment conditions are based on the UNITE Employment Agreement 2012. You will accrue leave on a Pro Rata basis. 12 The second letter given to the applicant that day, and signed and acknowledged by him, relevantly stated: This letter is confirmation of our telephone discussion held on March 28, 2013. You applied for the position of organiser with the CFMEU Mining and Energy Union, to be based in Tom Price, Western Australia. This position is to be part of an alliance with the Australian Workers Union and therefore subject to such alliance being initiated. Due to unforeseen administration issue, the alliance is yet to be finalised and is currently unable to be initiated. As in interim measure you have been offered fixed term employment with the CFMEU Mining and Energy Union. In the event that the alliance can be initiated during your fixed term contract, it is expected that you will transfer to the alliance project and be relocated to Tom Price. Full time employment with the CFMEU Mining and Energy Union on the West Australian alliance will be subject to you accepting the employment contract for this position. In the event that the alliance is unable to be initiated your employment with the CFMEU Mining and Energy Union will cease on October 11th 2013. 13 It was common ground between the parties that the reason Mr Weise offered the applicant a fixed-term contract of the kind he did was because the arrangements between the AWU and the respondent for the alliance had not been formalised and finalised, and Mr Weise did not want to "lose" the applicant. 14 On 11 April 2013 the applicant commenced employment with the respondent in Queensland. He relocated from Victoria to Queensland to take up the position. He worked with Mr Ross Kumeroa, who was the CFMEU lead organiser in Queensland. He described, and I accept, that his work involved "doing membership, organising meetings, doing trainings and at one of the occasions appeared before management, BHP management, to resolve a dispute between workers and the management". 15 The applicant has in the past been a member of a political party called the Socialist Alliance. The Socialist Alliance is a registered political party at both state and federal levels in Australia. The applicant gave evidence that it is a socialist organisation, "heavy on … class politics", revolving around the idea that there are those who own the capital and those who work. Its members variously supported the ideas of Trotsky, Marx, Mao and what the applicant described as "social democrats". All these people, he said, came together in the Socialist Alliance as a "broad non-sectarian socialist political party". He became involved in around 2009, and became a member. Eventually he had personal doubts about the political strategy he thought the Socialist Alliance used. He disagreed with what he saw as too much focus on elections and not enough on youth work. He withdrew as a member at the end of 2011, although he retained links and involvement for some time after that. The precise details of when his involvement ceased are relevant to the issues in the proceeding and I return to those details below. 16 In about June 2013 Mr Weise gave the applicant a proposed contract relating to his employment as an alliance organiser in the Pilbara, entitled "CFMEU Mining & Energy Division 2013 West Australian Mining Alliance Employment Agreement" (the Pilbara contract). The applicant had a discussion with Mr Weise about the stipulated six-month probationary period in the agreement. The applicant said, and I accept, that after consulting Mr Vickers, Mr Weise informed him that the time he had worked under the six-month fixed-term contract would count towards the probationary period in the Pilbara contract. The applicant said, and I accept, that this conversation with Mr Weise occurred in the respondent's national office in New South Wales at the end of June 2013, at a training meeting for its organisers. 17 At this time Mr Michael Kerley, an organiser from the AWU, had been working with Mr Kumeroa and the applicant in Queensland. This was pursuant to an arrangement under the proposed alliance, whereby the nominated organiser from each of the CFMEU (the applicant) and the AWU (Mr Kerley) would spend time working in the partner union, to gain a better understanding of how that union operated, especially in the way it organised its members. Mr Kerley stayed with the applicant and travelled around with him. 18 The applicant tendered some evidence, in the form of an agenda and some documents of a meeting held on 26 June 2013 at the respondent's national offices in Sydney, which set out the proposed arrangements between the two unions. The four people at the meeting were the applicant and Mr Weise, and Mr Kerley and Mr Daniel Walton from the AWU. Mr Kerley was to report to Mr Walton, and the applicant was to report to Mr Weise. 19 The alliance was formally launched the same day. It was "formalised", to use Mr Vickers' term, by a memorandum of understanding (MOU) between the two unions. The terms of that memorandum are not material to the issues in this proceeding, however the fact that it was formalised on 26 June 2013 is of some significance to the applicant's arguments. 20 The formalisation of the alliance meant that the applicant would shortly thereafter move to Western Australia, to begin preparatory work on the alliance project. 21 After the 26 June 2013 launch in Sydney, the applicant returned to Queensland. On about 1 July 2013 there was an incident at a motel, which the respondent sought to highlight in the applicant's cross-examination. The applicant objected to the line of questioning. The incident involved an accident whereby the applicant had driven a rental car into the side of a motel at which he was staying with Mr Kerley. Allegations were made by the motel staff about rude behaviour, which the respondent sought to attribute to the applicant. These allegations were made first through Mr Weise at the time, in a telephone conversation with the applicant on 3 July 2013, and then again in cross-examination in this proceeding. The applicant denied the allegations, both at the time to Mr Weise and in evidence. In evidence the applicant stated eventually Mr Weise accepted it was Mr Kerley who had interacted with the particular motel staff member who had made the complaint, not him. In his evidence Mr Weise did confirm the applicant denied engaging in the behaviour at the time. 22 The respondent submits the motel incident was principally relevant to the applicant's credit, as well as being relevant to his damages claim, on the basis that it was the kind of incident which demonstrated that, even if the termination of the applicant's employment was unlawful, his employment would not in any event have lasted very long because of his behaviour. 23 I reject both submissions. I see nothing in the way the applicant dealt with this topic in his evidence which reflects poorly on his credit. In my opinion it is clear the applicant maintained at the time (as confirmed by Mr Weise) that it was not he who had engaged in this behaviour, and he continued to maintain that in his evidence. I also do not accept that there is anything in this evidence which could support an inference that the applicant would have subsequently engaged in conduct such as that alleged against him on this occasion so as to bring his employment to an early conclusion in any event. 24 Mr Weise then spoke to the applicant again on 5 July 2013. This meeting was in person, in Brisbane, at Mr Weise's initiative. It lasted about half an hour. The purpose of the meeting, on Mr Weise's evidence (which I accept) was to raise some issues with the applicant about his demeanour and approach before he headed over to Western Australia. Mr Weise's evidence, which I accept, was I said to Ali, you know, that I considered him a very bright person, passionate, but, you know, over the top in some respects and we had had discussions previously about - and they were general discussions, and we were talking about social issues and, you know, refugee rights and, you know, Ali was quite happy to talk about things that he had done previously and said, you know, that unions ought to be doing more in that regard, you know, and I said, "Well, you know, we need to just keep things simple. Back off; you're making people uncomfortable with the way that you present yourself." 25 In cross-examination, the applicant accepted that Mr Weise did give him some advice to this effect at the 5 July meeting, although the applicant denied any specific complaints were put to him. In my opinion, Mr Weise may have placed a gloss on the amount of detail he put to the applicant on that occasion and, in contrast, the applicant underplayed the matters Mr Weise raised with him. For the purposes of the issues in this proceeding, and especially the respondent's submissions about the way the applicant did not "fit" with the alliance arrangement, I find that Mr Weise was, by 5 July 2013, raising aspects of the applicant's behaviour and attitude because Mr Weise believed the applicant was having trouble adjusting to the milieu in which he found himself, and believed there were some interpersonal difficulties between the applicant and the AWU officials he was working with, especially Mr Kerley. 26 The applicant also gave evidence that he asked Mr Weise if he could be paid under the Pilbara contract when he moved to Western Australia. His evidence was that Mr Weise responded "Your pay will go up on the date of the contract". Mr Weise did not contradict this version in his evidence and I accept this was the substance of what was said about the Pilbara contract on 5 July 2013. 27 On 8 July 2013 the applicant commenced work in Western Australia. He commenced work in Bunbury at the AWU office, working with five or six AWU organisers and officials, just as Mr Kerley had worked with CFMEU organisers in Queensland. 28 There was little or no direct evidence about the performance by the applicant of his work in Western Australia between 8 and 16 July 2013. As the applicant contended in final submissions, the respondent did not defend this proceeding by seeking to prove misbehaviour, misconduct or poor performance on the part of the applicant. Rather, as I set out below, the respondent relied on the existence of complaints from the AWU, and Mr Vickers' and Mr Weise's opinions about those complaints. I return to those issues in more detail below. 29 On or about 16 July 2013 Mr Weise called the applicant to tell him the respondent had received complaints from the AWU about the applicant. There had been a complaint made by Mr Paul Howes, the Secretary of the AWU, to Mr Tony Maher, the National President of the respondent, that the applicant was "a Trot" and was "bagging" AWU officials and delegates. The evidence appears to be that this conversation occurred on or prior to 16 July 2013. 30 Mr Weise told the applicant he was directed to attend a meeting in Sydney to address those complaints. It was common ground that this direction was given by Mr Vickers, was triggered by the conversation between Mr Howes and Mr Maher, and was conveyed to the applicant through Mr Weise. It appeared to be common ground there was in fact more than one telephone conversation between Mr Weise and the applicant on 16 July 2013 about the need for him to travel to Sydney. The various accounts of these conversations are contentious and relevant to the issues in the proceeding and I deal with these in more detail below. 31 The applicant flew to Sydney as directed, having packed up all his personal belongings from where he was staying in Perth. 32 An email was sent by Mr Walton of the AWU dated 18 July 2013, which set out a series of complaints the AWU had about the applicant and his behaviour, although this was after the direction had been given to the applicant to return to Sydney for the meeting on 18 July 2013. However, the "bagging" allegation appears to have been made by Mr Howes prior to the 16 July 2013 conversations between Mr Weise and the applicant. The details of the complaints, and how they relate to the direction to come to Sydney, are contentious and I deal with them below. 33 On 18 July 2013 the applicant met with Mr Weise, Mr Vickers, and Mr Maher at the respondent's offices in Sydney. He had asked for Mr Kumeroa to be flown down from Queensland to act as his support person at the meeting, and the respondent had agreed to this. Mr Weise took contemporaneous notes of what was said at the meeting, which were tendered in evidence. His evidence, which I accept, was that he did not get everything down in his notes, but "tried to capture as much as … I possibly could" of what was said. Again, what was said at the meeting is contentious to some extent, and I return to my findings on this issue at [99] below. 34 As a result of that meeting, the applicant did not return to Western Australia. Instead, on 22 July 2013 he returned to Queensland and continued working as an organiser at the Queensland branch. 35 That same day, another employee of the respondent drew some matters about the applicant to Mr Vickers' attention. This person was one Mr Andrew Dallas, a legal industrial officer employed in the national office of the Mining and Energy Division of the respondent, but who was working out of the Queensland office. This included informing Mr Vickers about material appearing on the applicant's Facebook page. This material, according to Mr Vickers, indicated two things - first, that the applicant was active with the Socialist Alliance at times after those he had given to Mr Vickers during the 18 July 2013 meeting and, second, that the applicant had posted some comments on Facebook on the day of the 18 July 2013 meeting. There was no dispute about the text of the comments, an extract from the applicant's Facebook page being tendered in evidence in the proceeding. The comments were: Oh how the world changes. When you think you know smone [sic] find out got buncha rats around you! No worries stay true to yourself and keep soldering on. 36 The meaning and context of the applicant's comments was the subject of some debate and I deal with this below. 37 This information caused Mr Vickers to write to the applicant, in a letter dated 23 July 2013. In this letter Mr Vickers advised the respondent had suspended the applicant from his position on full pay with immediate effect. The letter required the applicant to show cause why his employment should not be terminated, and required him to attend a meeting at the respondent's national office in Sydney on 26 July 2013. Mr Vickers also advised the applicant to provide a response to the allegation made against him in the letter as soon as possible but no later than the commencement of the meeting on 26 July 2013. In its terms, the letter disclosed Mr Vickers' concerns were twofold. First that the applicant had lied to Mr Vickers about his involvement in the Socialist Alliance since 2010. Second that the Facebook posting to which I have referred at [35] above was directed at Mr Vickers, and/or other officials of the respondent, and the use of the term "rats" in the context of the labour movement was "offensive and derogatory". 38 The applicant provided a response the following day, 24 July 2013. In that response, he stated that he now "realize[d] that I made a mistake in dates of my resignation from Socialist Alliance" and stated he actually left "end 2011 start of 2012". He also stated that he made the Facebook posting "well before" he met with Mr Vickers and that it was "clearly directed to someone I have known on a personal level" rather than Mr Vickers or CFMEU officials. He did not name the person in his response. In his oral evidence, the applicant developed these two explanations somewhat and I deal with these developments below. 39 The meeting occurred on 26 July 2013 as foreshadowed. It was not a long meeting. As I set out below, I find Mr Vickers had already made up his mind about the applicant's fate before the meeting started. He was absolutely firm in his opinions. He did not accept the applicant's explanations. He considered he had been lied to. He told the applicant he considered he was not fit to work as a trainee organiser with the respondent and that, although he could be summarily dismissed for what Mr Vickers believed he had done, the respondent would instead pay out his fixed-term contract subject to the applicant leaving immediately and returning all property belonging to the respondent. 40 That is what occurred. It was common ground the applicant was paid out all his entitlements under his fixed-term contract up to 11 October 2013.