the allegedly misleading statements
10 UB commenced offering AWAs to staff members by way of an email sent by the Vice Chancellor of UB to all staff members on 14 December 2005. The email attached a link by means of which a copy of the proposed general staff AWA could be viewed by staff members.
11 On 14 December 2005, shortly after the dispatch of the Vice Chancellor's email, Mr Wesley Walker on behalf of UB sent an email to all staff concerning the AWAs ("the December 2005 email"). Mr Walker was a consultant to UB in relation to workplace relations. He was heavily engaged in the unsuccessful efforts to introduce a new agreement governing staff terms and conditions in the period between 2003 and late 2005. The December 2005 email was headed 'AWA Questions', and provided as follows:
"The University has commenced offering AWAs to staff, as notified in an email earlier today.
The NTEU has also started its campaign against AWAs by placing posters around the campus that ask you to consider four questions. Well, I'm happy to answer those questions.
Q1. Will you be giving away key employment conditions?
A. No you won't. All the important employment conditions including hours of work, span of hours, overtime, shift penalties, HDAs, superannuation, incremental progression, meal breaks, and all leave entitlements remain unchanged in the AWA.
Q2. Will an AWA now guarantee you future pay increases?
A. Yes it will. Three pay increases are guaranteed. An increase of 4.5%, back-paid to July 2004 is guaranteed for those employees signing AWAs prior to 31 March 2006. An increase of 4.5% in January 2006 is guaranteed. An increase of 4.5% in January 2007 is guaranteed. A fourth increase of 4.5% in January 2008 is contingent as before, but is very likely to be paid in full.
Q3. Will you be diminishing your job security?
A. No you won't. The AWA has nothing to do with your job security. The AWA is concerned with your terms and conditions of employment, just like the proposed collective enterprise agreement. There is no connection between the AWA and your contract of employment. If you have a continuing appointment now, you will still have your continuing appointment after you sign the AWA.
Q4. Will you have the right to return to the collective agreement when the AWA expires?
A. Yes you will. After the AWA reaches its expiry date it can be replaced by another AWA with further benefits, or it can roll on in its present form, or you can terminate it and return to the collective agreement that is in place at the time.
In addition the question and response below should be of special interest to staff.
Q5. What happens if a new enterprise agreement (LK to LJ) is settled next year and has conditions better than those contained in the AWA?
The University Council at its meeting on 13 December 2005 passed the following resolution 'That any new HEWRR * Compliant EB Agreement (LK to LJ) be settled with conditions of employment and salary levels that are overall not greater than those specified in the collective AWAs available to general staff and academic staff.'
Agreements settled after 31 March 2006 will have the requirement that any payment of back-pay, at the very best, be limited to 1 January 2006.
Also an AWA may be varied during its operation if the employee and University agree.
I'll be happy to answer any other questions you may have about AWAs, but please be a little patient because of the workload this activity has now generated."
The applicant founds his case of misleading statements on this email.
12 The applicant alleges that the statements which appear under Question 1 and Question 3 are false and misleading, and contravene s 170WG(2). The essence of the complaint is that, in respect of important employment issues, namely redundancy, probationary employment, termination and discipline and dispute settling procedures, there are significant differences between the terms and conditions in the proposed AWA when compared with the prevailing terms and conditions in the EBA. I shall not attempt to detail the material differences between the two sets of terms and conditions. They are helpfully summarised in the applicant's outline of written submissions. It is unnecessary to set out the detailed differences because UB concedes that there are differences and that the differences are not insignificant.
13 The applicant contends that the statement which appears in the December 2005 email under Question 1 is false and misleading because the significant differences that do exist make it clear that staff members will in fact lose 'key employment conditions' under the AWA which they would otherwise be entitled to under the EBA. Further, he contends that the significant differences that exist between the two sets of conditions also make it clear that 'important employment conditions' in the EBA have been changed by the proposed AWA. UB acknowledges that changes have been made, but disputes the proposition that the changes involve the loss of key employment conditions or a change in important employment conditions.
14 In relation to what appears under Question 3, the applicant submits that the December 2005 email conveys to academic and general staff that the terms of the AWAs being offered by UB have no impact or bearing on the security of employment of staff members who sign the AWA. The applicant submits that this representation is false and misleading, as the proposed AWAs will substantially diminish a number of EBA protections for employees in respect of how termination of employment or discipline may be affected. In short, the allegation is that the AWAs will make it easier for UB to terminate or discipline academic and general staff, thereby adversely affecting their security of employment. It is put that provisions in an industrial instrument which go to the method of termination of employment directly concern security of employment: see Re Federated Storemen and Packers Union of Australia; Ex parte Wooldumpers (Victoria) Limited (1989) 166 CLR 311 at 336 per Gaudron J.
15 Section 170WG(2) is concerned with 'knowingly' false or misleading statements. The applicant submits that this element of the alleged contraventions will be made out because Mr Walker was directly responsible for the negotiation of the EBA, and also had the conduct of the later unsuccessful attempts to introduce a replacement agreement on behalf of UB. As a result, Mr Walker had very detailed knowledge of the terms of the EBA, and the respects in which they differed from the proposed AWAs. In these circumstances, the applicant submits that there is a serious question to be tried that Mr Walker knew all of the essential matters which would go to make up the alleged contravention of s 170WG(2), whether or not Mr Walker perceived that the statements in the December 2005 email were false or misleading: see Yorke v Lucas (1985) 159 CLR 661 at 669 per Gibbs CJ; and King v GIO Australia Holdings Ltd (2001) 184 ALR 98 at 104-106.
16 The applicant contends that the December 2005 statements amounted to continuing representations, which may influence staff members who are contemplating the making of an AWA with UB. Without conceding that there was anything false, misleading or inaccurate about the December 2005 statements, UB disputed the ongoing influence of those statements. UB relies upon an affidavit sworn by Mr Walker on 22 February 2006 which points out that a significant amount of additional information has been provided to staff members since 14 December 2005.
17 On 27 January 2006, UB modified the information on its web page concerning the AWAs. In particular, the section headed 'AWAs: Frequently Asked Questions' was amended to include, inter alia, the following statements:
"5. Does the AWA change my employment status?
The AWA is concerned with your terms and conditions of employment (just like a collective agreement). Your contract of employment determines whether you are employed on a full-time, part-time, continuing or fixed-term basis. Entering into an AWA does not affect this. So, for example, if your current employment status is as a continuing employee, that status will not change.
6. Will I be giving away key employment conditions if I sign an AWA?
Important employment conditions in the current enterprise agreement remain in the general staff AWA. These include hours of work, span of hours, overtime, shift penalties, HDAs, superannuation, incremental progression, meal breaks, all leave entitlements, flexible work arrangements, 48/52 employment, public holidays, annual closedown, broadbanding, make-up pay, and salary packaging. Some of these conditions, for example, overtime, shift penalties and HDAs do not apply for academic staff and have not been included in the academic staff AWA.
The current enterprise agreement was drafted 6 years ago and, obviously, provisions in that agreement and the AWAs are not identical.
For example:
· the dispute resolution procedure in the AWA is the model procedure prescribed by the Employment Advocate;
· the AWA does not include appeals or review committees that review decisions made in cases of redundancy, unsatisfactory performance, misconduct and academic probation. The AWA does include a process for appeals in the case of termination of employment.
If you have a concern about a particular entitlement that is important to you, you should raise that concern with Human Resources, who will explain any difference between the AWA and the enterprise agreement.
…
8. Will I have the right to return to the collective agreement when the AWA expires?
After the AWA reaches its nominal expiry date it can be replaced by another AWA, or it can roll on in its present form until it is replaced, or it can be terminated according to the provisions in the AWA and/or the legislation.
If you and the University agree, your AWA can be terminated at any time.
What happens after an AWA is terminated depends on whether it is a pre-reform AWA, or an AWA made after the amendments to the Workplace Relations Act come into force (expected to be in March 2006).
A pre-reform AWA is one that is made before the amended legislation comes into force. If you have a pre-reform AWA and it is terminated at any time, you will revert to the collective agreement that is in place at that time.
An AWA that is made after the amended legislation comes into force (ie a post-reform AWA) can be terminated on 90 days notice by you, your bargaining agent (which might be the union), or the University after the AWA reaches its nominal expiry date. Until the terminated AWA is replaced - by another AWA or a collective agreement made after the date of termination - you will revert to the Fair Pay and Conditions Standards set by the Australian Fair Pay Commission, and to protected award conditions. In addition, the University may give an undertaking as to the terms and conditions of employment that will cover you if the University terminates the AWA after it expires."
18 The applicant submitted that this information did not correct all of the misstatements in the December 2005 email, and it was simply posted on UB's web page. In contrast, the December 2005 statements were sent by email to all staff members.
19 Mr Walker deposes that information sessions concerning the proposed AWAs were held with academic and general staff in late December 2005 and in January and February 2006. At these sessions, Mr Walker says that he explained the workplace disputes clause and the differences between the procedure put in place by the AWA when compared with the EBA. In addition, Mr Walker deposes that if any staff member was misled by the December 2005 email, then the information sessions conducted by UB and the changes to the 'AWAs: Frequently Asked Questions' web page would have made clear to them that a number of conditions of employment, including those relating to managing under-performance, discipline for misconduct and serious misconduct, redundancy and the resolution of workplace disputes would be altered by the AWA.
20 UB also relied upon an affidavit by Ms Penelope Faith Irish, a manager employed by UB in the area of accommodation services. She deposes that she signed an AWA after attending an information session with Mr Walker. She refers to differences between the EBA and the AWA in the area of redundancy entitlements, redundancy review processes, dispute resolution processes and the process to manage unsatisfactory performance and allegations of misconduct, but considered those issues to be peripheral and not important to her personally compared with other matters covered by the AWA.
21 UB also relies upon the fact that since 14 December 2005, the NTEU has provided extensive information to staff members drawing their attention to differences between the proposed AWAs and the EBA. In his submissions, Dr Jessup QC, senior counsel for UB, recognised that information published by the NTEU may not have the same authority or significance as correcting information that is published by UB.