Van Efferen v CMA Corporation Limited
[2009] FCA 597
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2009-06-04
Before
Tracey J
Source
Original judgment source is linked above.
Judgment (10 paragraphs)
REASONS FOR JUDGMENT 1 Mr Van Efferen was employed in various capacities by the respondent ("CMA") and its predecessors between 2002 and 2006. In October 2006 his employment was terminated by CMA. His application to this Court alleges that CMA, in effecting his termination, breached a term of an Australian workplace agreement ("the AWA") and implied terms of a common law contract of employment. CMA denies that any such breaches occurred.
THE BACKGROUND FACTS 2 Most of the relevant facts are not in dispute. In January 2006 CMA entered into a contract with John Holland under which CMA was to demolish a wharf at Port Hedland in Western Australia. Demolition was to occur at the same time that another wharf was being built. The project was known as the "Dolphin Project". 3 CMA invited Mr Van Efferen to work on the project. He accepted. He moved to Port Hedland in June 2006 and was initially employed as a Barge Master. Shortly after he commenced work he entered into the AWA with CMA. It will be necessary to return to the details of some of the terms of this AWA. Mr Van Efferen also received and signed a letter of offer dated 27 July 2006. The letter of offer was to be read in conjunction with the AWA. It dealt with matters such as the protection of CMA's confidential information and intellectual property and the way in which Mr Van Efferen was to perform his duties. In signing the letter Mr Van Efferen acknowledged that he understood and agreed to be bound by these terms. 4 Mr Van Efferen had arranged for one of CMA's barges to be fitted with spud poles before it left CMA's Geelong base for Port Hedland. Spud poles were designed to stabilise the barge while demolition activities were in progress. In early August 2006 Mr Alphonse Michael, a CMA Manager, arrived in Port Hedland. He told Mr Van Efferen that the barge was to be refitted. The spud poles were to be removed and the barge stabilised by a set of anchors. Mr Van Efferen objected to this change and made his opposition plain to Mr Michael. When Mr Michael insisted that the changes be made Mr Van Efferen complied with the direction. After the refit had been completed Mr Van Efferen applied to take accrued annual leave until 9 October 2006. He did so because he feared that, if he remained, further disagreement with Mr Michael would occur. His leave application was approved and he left Port Hedland on 21 August 2006. He did not, as counsel for CMA suggested at trial, "walk off" the site. 5 While Mr Van Efferen was away Mr Jim Doyle a Project Director employed by John Holland complained to Mr Shaun Clarke, CMA's General Manager of its Contracting Division, about the performance of certain CMA staff members at Port Hedland. In late August John Holland advised CMA that it wanted Mr Michael removed from the work site. Early in September John Holland requested that Mr Lloyd Baxter, CMA's Marine Operations Supervisor on the Project, also leave the site. Under the contract between CMA and John Holland, John Holland had the right to require that CMA remove staff whom John Holland considered to be unsatisfactory. The contract provided for such a direction to be given in writing. CMA, however, was prepared to act on an oral complaint by John Holland in order to maintain cordial business relations with John Holland. 6 On 21 September 2006 Mr Doyle wrote to Mr Clarke. He recorded that "[f]or quite some time now we have been relaying to CMA our concerns regarding the competency of its staff engaged in marine works activities." He referred to an incident which had occurred the previous day in which a CMA barge had collided with another barge and advised that "in the interests of safety", CMA on-site managers had been instructed "to see to it that CMA take whatever action is necessary to ensure that the CMA floating plant in particular is under the care of competent personnel at all times." 7 Mr Clarke responded by letter dated 26 September 2006. In that letter Mr Clarke acknowledged that CMA staff had not performed to the required standard. He said: "In relation to the general comment on competency of our marine staff we accept that there have been incidents that we would prefer had not occurred and that, in part, these have been due to the team being unfamiliar with the equipment and each other and through working under considerable pressure to achieve the program." 8 Mr Clarke noted that an enquiry was under way to discover whether or not CMA was at fault in relation to the incident which had prompted Mr Doyle to write to him. He continued: "… Neverthless, we accept your concern and have taken some steps to improve the management and coordination of our marine assets. You will appreciate that your exclusion of our most experienced marine manager from site has left a significant gap in our technical expertise, and finding a replacement of similar skill and experience in the current environment will prove difficult, particularly in the short term. The resultant need to rely on less experienced staff to manage day to day operations has raised the potential for oversight. In the immediate term, we will have an experienced marine supervisor on site on Tuesday 26th. He is familiar with the conditions, equipment and the project and will take responsibility for the coordination of our marine movements." 9 This "experienced marine supervisor" was Mr Van Efferen. Mr Clarke had contacted him while he was on leave and requested that he curtail that leave and return to the site. Mr Van Efferen had agreed. Mr Clarke considered that Mr Van Efferen was the best qualified of CMA's employees to undertake the role of marine supervisor. 10 As foreshadowed, Mr Van Efferen returned to the site on 26 September 2006. He commenced performing the duties of marine supervisor. By the time he had returned Mr Simon Pick had become CMA's Project Manager on the Dolphin Project. Mr Pick lacked marine experience. 11 Soon after Mr Van Efferen's return he had a number of disagreements with Mr Pick. The two most significant related to matters of health and safety. They involved the same barge. The first disagreement arose from a collision between a barge and a wharf which led to the barge being holed. This had occurred because tyres which Mr Van Efferen had directed should be placed around the outside of the barge to protect it in the event of a collision had been removed. The Barge Master told Mr Van Efferen that the tyres had been removed from the barge at the direction of Mr Pick. Mr Van Efferen rang Mr Pick and asked him who had ordered the tyres to be removed from the barge. Mr Pick responded with words to the effect that Mr Van Efferen knew "fucking well" that he (Mr Pick) had ordered that the tyres be removed. Mr Pick said that he had directed the removal of the tyres and accused Mr Van Efferen of "having a go" at him. 12 The second incident occurred when a power pack that supplied power to the winches on the barge broke down. The winches were used to operate the anchors. As a result, the anchors could not be used and the barge could not properly be stabilised. New parts had been ordered to repair the winches. Before they arrived Mr Pick ordered the Barge Master to use the barge to perform demolition works at the wharf. The Barge Master remonstrated with Mr Pick. While he was doing so Mr Van Efferen arrived on the scene. Mr Pick told Mr Van Efferen that he wanted to use the barge to perform demolition works. Mr Van Efferen asked Mr Pick what he would do about the winches. Mr Pick replied that he would bring the barge down to the wharf and secure it to a structure with rope so that it would remain stable. Mr Van Efferen told Mr Pick that this plan would not work and that, once the demolition started the barge would start moving because the ropes would not be strong enough to hold the barge. Mr Pick angrily disagreed and insisted that the barge be used as he had directed. The Barge Master and Mr Van Efferen agreed to act as directed by Mr Pick despite their misgivings. Mr Van Efferen directed the Barge Master to put out a static anchor which would secure the barge in the event that the ropes broke. Within 10 minutes of them being secured the ropes did, in fact, break. The barge started to drift out from the wharf. Had it not been for the static anchor the barge would have collided with a John Holland barge which was located nearby. The movement of the barge caused an excavator machine on it to swing and smash into a pre-cut concrete block on piles. As a result of these events the job was stopped for the day. 13 During this period Mr Van Efferen attended project meetings which were conducted by John Holland managers. In the course of those "toolbox" meetings Mr Van Efferen, from time to time, raised concerns about the proposed timing of certain work which he felt did not allow CMA sufficient time to conduct its barge movements. He drew attention to what he saw as safety issues relating to the barge movements. There was no evidence that John Holland objected to Mr Van Efferen expressing these opinions or as to the manner in which he spoke. 14 In early to mid October 2006 Mr Pick approached Mr Van Efferen in the car park at the Port Hedland site. Mr Pick said words to the effect that he did not think that it was working out well between him and Mr Van Efferen and that he would get Mr Van Efferen a ticket home. Mr Van Efferen correctly understood this to be a statement that Mr Pick wanted him to leave the Project. Mr Van Efferen said that, while it was Mr Pick's right to do this, he did not understand why Mr Pick would wish to have him removed. Mr Pick did not respond. At no stage then or subsequently did Mr Pick give any specific details to Mr Van Efferen as to why it was he wished Mr Van Efferen to leave the site. No one else from CMA advised Mr Van Efferen of the reason why Mr Pick considered that he and Mr Van Efferen could not work together. 15 Mr Van Efferen returned to CMA's Geelong site. Once there he was directed to perform general maintenance duties on a barge. He was contacted by Mr Clarke by telephone. Mr Clarke asked him what had happened at the Dolphin Project. He told Mr Clarke that Mr Pick had no marine experience and had been giving instructions to employees to do things that, on occasion, were dangerous. Mr Van Efferen told Mr Clarke that he had informed Mr Pick of this. Mr Clarke then said that he would see what he could do about it. Mr Van Efferen suggested to Mr Clarke that Mr Clarke investigate what had happened by speaking to other employees at the site. Although Mr Clarke agreed to do this he never advised Mr Van Efferen that he had done so. 16 Towards the end of October 2006 Mr Michael telephoned Mr Van Efferen at Geelong and told him that he (Mr Michael) was coming to Geelong and wanted to meet him. They met on 27 October 2006. Mr Michael advised Mr Van Efferen that it was necessary for CMA to cut costs and then said that "you're the first and probably not the last". Mr Van Efferen understood this to mean that he had been dismissed. This was confirmed by a letter dated 31 October 2006 from Mr Bruce Nix, the Employment Relations Manager of CMA to Mr Van Efferen in which he advised that Mr Van Efferen's employment had been terminated because of "lack of available work your specialised field of work" (sic).