[2016] FWC 7184 |
FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.424 - Application to suspend or terminate protected industrial action - endangering life etc.
Commonwealth of Australia represented by the Department of Immigration and Border Protection
v
CPSU, the Community and Public Sector Union
(B2016/1065)
COMMISSIONER WILSON |
MELBOURNE, 6 OCTOBER 2016 |
Application for an order to suspend or terminate protected industrial action pursuant to s.424.
[1] An application was made to the Fair Work Commission by the Commonwealth of Australia, as represented by the Department of Immigration and Border Protection (the DIBP), on Friday, 30 September 2016 seeking an order pursuant to s.424 of the Fair Work Act 2009 (the Act) that would suspend protected industrial action being taken by members of the Community and Public Sector Union (CPSU) employed within the DIBP until 24:00 hours on 21 November 2016.
[2] The application was the subject of an urgent hearing before me the same day, Friday, 30 September 2016, in which an interim order was issued by me suspending industrial action until further notice. 1 That order was issued upon application by the Commonwealth and with the CPSU advising that it neither consented to nor opposed the making of such an order.
[3] Section 424(3) requires that the FWC must, as far as practicable, determine such an application within 5 days after it is made, and s.424(4) provides that in the event the Commission is unable to determine the application within that period, it must, within the 5 day period, make an interim order suspending the protected industrial action to which the application relates until the application is determined. With the application having been made at 12:25 PM on 30 September 2016, reference to the Acts Interpretation Act 1901 (Cth) leads to the conclusion that the 5 day period referred to within s.424(3) expired, in this instance, at midnight on Wednesday, 5 October 2016. 2
[4] The matter was the subject of a hearing before me on Wednesday, 5 October 2016 for the purposes of determining the application.
[5] In the hearing, the DIBP argued for a suspension of protected industrial action until 21 November 2016, in order to allow time for the DIBP to conduct a further ballot of employees for its proposed enterprise agreement, which it considers has a real prospect of being agreed to by a majority of employees. 3 Although the DIBP sought the suspension of protected industrial action, it opposed its termination.
[6] While the CPSU acknowledged the jurisdictional pre-requisites for the making of an order under s.424(1) had been made out, it argued that the appropriate response for the Commission would be to terminate the protected industrial action, rather than suspending it.
[7] After the hearing, also on Wednesday, 5 October 2016, the parties were advised of my decision to terminate the protected industrial action and an Order to that effect was issued at the same time. They were also advised that my reasons for decision would be circulated to them as soon as possible. Accordingly, this matter has been determined by me within the time period allowed for in the Act.
[8] The Order issued by me on 5 October 2016 was in the following terms;
“[1] The Fair Work Commission orders under section 424(1) of the Fair Work Act 2009 that the Protected Industrial Action (PIA) for the proposed Department of Immigration and Border Protection Enterprise Agreement, being PIA that is authorised by the protected action ballot declared on 5 June 2015 and conducted in accordance with the Protected Action Ballot Order made by the Commission on 8 May 2015, is terminated.
[2] This order replaces the interim suspension order made on 30 September 2016 (PR586012) which is hereby revoked.” 4
[9] Section 424 of the Act provides as follows:
424 FWC must suspend or terminate protected industrial action—endangering life etc.
Suspension or termination of protected industrial action
(1) The FWC must make an order suspending or terminating protected industrial action for a proposed enterprise agreement that:
(a) is being engaged in; or
(b) is threatened, impending or probable;
if the FWC is satisfied that the protected industrial action has threatened, is threatening, or would threaten:
(c) to endanger the life, the personal safety or health, or the welfare, of the population or of part of it; or
(d) to cause significant damage to the Australian economy or an important part of it.
(2) The FWC may make the order:
(a) on its own initiative; or
(b) on application by any of the following:
(i) a bargaining representative for the agreement;
(ii) the Minister;
(iia) if the industrial action is being engaged in, or is threatened, impending or probable, in a State that is a referring State as defined in section 30B or 30L—the Minister of the State who has responsibility for workplace relations matters in the State;
(iib) if the industrial action is being engaged in, or is threatened, impending or probable, in a Territory—the Minister of the Territory who has responsibility for workplace relations matters in the Territory;
(iii) a person prescribed by the regulations.
Application must be determined within 5 days
(3) If an application for an order under this section is made, the FWC must, as far as practicable, determine the application within 5 days after it is made.
Interim orders
(4) If the FWC is unable to determine the application within that period, the FWC must, within that period, make an interim order suspending the protected industrial action to which the application relates until the application is determined.
(5) An interim order continues in operation until the application is determined.
[10] Whether an order should be made under s.424 will be a matter to be determined upon a consideration of all the circumstances and having regard to the evidence and submissions before the Commission.
[11] The parties involved in this matter, the DIBP and CPSU, have been bargaining, together with other employee bargaining representatives, for some time for an enterprise agreement to replace agreements applying to the Department’s predecessors. The CPSU notes that it first wrote to the DIBP seeking bargaining commence in December 2013, and that negotiations were commenced with the former Australian Customs and Border Protection Service in September 2014 (noting that the current form of the DIBP, now covering both agencies, only came into being on 1 July 2015). 5 While Notices of Employee Representational Rights were originally issued in the predecessor agencies in 2014 and bargaining has been continuing since, a replacement notice was provided by the Department more recently, in September 2016.6
[12] A protected action ballot order was issued by Commissioner McKenna in respect of the bargaining on 8 May 2015, with certain undertakings having been given by the CPSU as to the application of certain proposed questions to particular groups of employees and also as to the periods of notice to be given for the taking of protected industrial action, in both cases should the questions be carried upon the ballot.
[13] The bargaining that is underway is in respect to all employees of the DIBP. While that is so, the protected industrial action that is the consideration of this decision has predominantly related to employees of the Australian Border Force, although industrial action has taken place in other parts of the DIBP.
[14] The evidence relied upon by the DIBP for its application pertains to the effects of protected industrial action within the Australian Border Force (the ABF). That Agency performs frontline operations for the DIBP, with its mission being to protect Australia’s border and manage the movement of people and goods across it. The ABF comprises more than 13,000 employees and operates on a large scale working across the international airports, sea and cargo ports.
[15] Protected industrial action being taken by members of the CPSU employed by the DIBP has previously been suspended by the Commission for a period of 90 days through an Order issued on 27 April 2016. That Order required the suspension of the protected industrial action for a period of 90 days from 3 April 2016. 7
[16] The industrial action which is the subject of this decision was notified to the DIBP on 14, 20 and 27 September 2016. The notifications made by the CPSU and received by the DIBP on those occasions provided notice that CPSU members employed by the Department intended to take protected industrial action in the form of stoppages of work in all states and territories as follows;
Monday 26 September, Tuesday 27 September, Wednesday 28 September, Thursday 29 September and Friday, 30 September 2016; Saturday 1 October and Sunday, 2 October 2016;
Monday 3 October, Tuesday 4 October, Wednesday 5 October, Thursday 6 October, Friday 7 October, Saturday 8 October and Sunday, 9 October 2016;
Monday 10 October; Tuesday 11 October, Wednesday 12 October, Thursday 13 October, Friday 14 October, Saturday 15 October and Sunday, 16 October 2016.
[17] The form of the notifications was to indicate that all CPSU members intended to take protected industrial action in all States and Territories across all 48 half-hour blocks in each of the days for which notification was given. In the case of each notification the CPSU advised that there were 11 groups of employees excluded from the notified protected industrial action, being discrete work groups or functions.
[18] Evidence was received in this matter on behalf of the DIBP from Clive Murray, the Australian Border Force’s Assistant Commissioner, Strategic Border Command, and Murali Venugopal, the Department’s First Assistant Secretary, People Division. Evidence was received on behalf of the CPSU from Richard Muffatti, CPSU Industrial Officer, and Rupert Evans, CPSU Deputy National President. The witnesses did not give oral evidence in these proceedings, with the exception of Mr Murray, who gave short evidence in support of the making of the interim suspension order on 30 September 2016, and who was not cross-examined on the evidence he gave.
[19] Mr Murray’s evidence included that the threat environment now existing is much as it stood in April 2016. 8 He also noted that in the event there was a high level of participation in the notified protected industrial action such would almost certainly pose a higher risk to life, personal safety, health and welfare than was the case at the time of the April 2016 hearing. He supported that contention with an analysis of several operational factors; firstly, that the nature and magnitude of current threats are similar; secondly, the movement of passengers and cargo volumes remain at high levels; thirdly, the notified protected industrial action represents a serious escalation from that in April 2016; and fourthly “while the DIBP has taken a range of steps to improve its capacity and preparedness to respond to the notified PIA, it would never be possible within the resources of the DIBP to make improvements on a scale which could ever provide such coverage.”9
[20] Mr Murray’s evidence reviewed the current threat environment and the implications and effects of the protected industrial action to the point it was suspended on 30 September 2016. He considered that the 30-minute rolling stoppage design, being different from the one hour rolling stoppages during the April 2016 period, meant that CPSU members were able to withdraw their labour in places and at times at which maximum disruption would be caused. He also held the view that the notified protected industrial action dramatically escalated the intensity, duration and unpredictability of the action, compared to the April 2016 protected industrial action. The fact that notifications were given for a 24-hour period, rather than specific blocks of time as was the case during April, meant that the problems experienced in April in covering disputation would be “compounded, and compounded more rapidly with the potential need to cover all shifts on every day”. 10 He also considered that the longer period of notifications and the fact they covered CPSU members in all States and Territories simultaneously would make it more difficult for the DIBP to respond to.
[21] Mr Murray’s evidence was also that there had been a high level of participation by staff in the protected industrial action in a number of locations. He was concerned about the risk which those circumstances brought about and gave illustrations to the Commission about actual instances of harm from the protected industrial action, as well as what he saw as emerging risks that would result from its continuation. His evidence also discussed the depleted ability of the Department to adequately respond to instances of protected industrial action. Because of the factors known to him, and identified to the Commission and the parties in this matter, he formed the view that the DIBP would be unable to effectively manage the risks flowing from the protected industrial action.
[22] Mr Venugopal has Department-wide responsibility for all human resource related matters and is the lead negotiator for the DIBP enterprise agreement on behalf of the Secretary, having commenced with the Department in January 2016. Mr Venugopal’s two witness statements record the efforts by the Department to negotiate an enterprise agreement. In this regard, his witness statements record the following;
Another ballot of employees was held in March 2016;
“In March 2016, a further proposed EA was voted on and 80.9% of employees to be covered by the agreement who voted did not approve the agreement. This offer included a 6% pay increase over three years for all employees but retained current departmental salary ranges; entrenching pay disparity between former departmental employees and former ACBPS employees at classifications where ACBPS rates were higher. This offer maintained the proposed ABF composite allowance proposed in the first offer. It also introduced extensive grand-parenting of a range of allowances to address concerns [per the previous offer] pertaining to take home pay; particularly for employees in receipt of former ACBPS allowances that had already been grand-parented by determinations.” 12
“Your bargaining representatives also sought clarification about the pay offer as circulated on 18 August. They suggested that supporting tables could be clarified by distinguishing between general pay increases and increases to salary ranges. We will look at a better way to clarify that the offer means that:
- all staff, without exception, will receive a 3 per cent general increase to their current salary
- top of the range salaries adjusted up for parity-current staff will then have access to new top of the range salaries through performance based salary advancements 12 months from commencement of the offer.
- all staff, without exception, receive a further 0.8 per cent general pay increase
- performance based salary advancement of up to 3 per cent until you reach the new top of the range salaries.
- all staff, without exception, receive a further 0.9 per cent general pay increase
- performance based salary advancement of up to 3 per cent until you reach the new top of the range salaries.
We will shortly update the EA intranet page and inform you when this is completed.” 13
“You may recall that, at the last meeting, we asked bargaining representatives to put to us threshold issues that could get us closer to a YES vote. Proposals put forward to us ranged from general statements of principle through to quite specific suggestions about where clauses in a draft EA could be improved.
Like you, we understand the importance of rights and conditions. Our key focus over the past two days was to invite bargaining representatives to engage in a constructive dialogue with us about ways to address core concerns. I am pleased that we were able to reach consensus on a number of points. The Department has agreed to include the following in a new EA:
There are a range of other proposals that we will be considering in the lead up to the next round of bargaining, scheduled for 27 and 28 September 2016.
You may have heard that rights that you currently have will no longer exist if they are not written into an EA. Many of your rights are enshrined in legislation and cannot be taken away through bargaining. I have asked that a list of relevant legislation, and the protections they offer, be compiled and provided to you so that you have full visibility of these. A link will be added to the ready reckoner tomorrow that will take you to that information.” 14
“… is exploring options to be able to hold a vote for the proposed agreement by the end of October 2016.
49. Consistent with the Department’s normal practice the voting period would run for 7 days.
50. Subject to successful completion of bargaining, compliance with the steps prescribed by the Fair Work Act and accounting for reasonable time needed to explain the EA to its staff, we assess the most optimistic timeframe for the completion of a ballot would be on 7 November 2016.” 15
[23] Mr Evans has been extensively involved in the bargaining for an enterprise agreement within DIBP. His evidence traverses the extensive history of bargaining. While he notes that there have been at least 24 bargaining meetings since a decision in March 2015 on the part of the Department that it wished to negotiate a single agreement, there have been relatively few in recent times. In particular he notes that since the Commission’s suspension of protected industrial action in April 2016 there have only been three bargaining meetings. 16
[24] Having been critical of the progress of bargaining between the parties, he connects the protected industrial action taken or contemplated by the CPSU members with progressions in bargaining;
“35. CPSU Members in the DIBP have taken protected industrial action in support of concluding an enterprise agreement with the Department. The action that has been taken thus far has been taken with a view to winning improvements in the bargaining policy and improvements in the offer being made by the Department. The continued aim of industrial action being organised in the Department is to help win changes that would result in a better agreement.
36. Following the granting of the PAB Order, and the successful balloting of CPSU members, the CPSU has notified actions in the DIBP on a number of occasions. At various points, CPSU members have engaged in all forms of protected industrial action authorised by the Protected Action Ballot.
37. The protected industrial action which has been taken by members has, in my view, led to improvements in the bargaining policy and subsequently marginal improvements in the offer being made by the Department. The CPSU has made numerous public statements and released member communications in a range of public service agencies making the link between when significant rounds of protected industrial action have occurred and subsequent changes in Government bargaining policy. These include changes to the policy as issued, but more often changes to the interpretation of the policy as determined by the Australian Public Service Commission.” 17
[25] Mr Evans believes the most recent proposal from the DIBP is inadequate and that there is no prospect of agreement between the parties;
“81. Overall, the proposed agreement released by the Department contains minimal positive changes from the proposed agreements which have been comprehensively rejected by staff when put to them for approval by way of a vote. In fact, the wages offer involves a lesser outcome for some members when compared to the Department's previous wages offers.
82. I have received feedback from union members and delegates to the effect that staff in the Department are deeply upset by the Department's continued failures to resolve bargaining and view this latest proposed agreement as being completely unacceptable.
83. I believe that there is no prospect of this agreement being settled by further negotiation. I have formed this belief based on the following factors:
a) The size of the no votes of staff.
The two no votes of DIBP staff referred to elsewhere in this statement are among the largest I have seen in 24 years of agency based bargaining in the APS. The first No vote, of 91.3% is the second highest I can recall. The highest was in the Department of Employment where staff in their first vote on an EA offered under this bargaining policy, voted 95% to reject. The second offer in DIBP, made six months later, resulted in an 80.9% No vote. The size of these No votes in this Department should not be underestimated. Prior to this round of bargaining, I would have considered a No vote of 70% to be extraordinary.
b) The limitations of the ABS Bargaining Policy.
The Department has applied the APS Bargaining Policy as though it is not permitted to retain a number of existing conditions in the agreement, which has led to the proposed reduction of many conditions important to members. An example of proposed reductions in workplace rights that the Department has indicated is required by the APS Bargaining Policy is the removal of protections and input employees have over hours of duty and when they work their working hours. Employees currently are able to apply to work Variable Working Hours (VWH). Currently they have input into when those hours are worked and the employer must when approving, take into account various employee circumstances. Currently the DIAC EA states that shift work rosters are negotiated and for VWH applications there is an assumption, or positive obligation, for the Department to approve unless it can demonstrate a reasonable business case. Also alterations to standard hours can be made by agreement between the Secretary and a group of employees. Under the proposed EA there is no negotiation on shift work rosters, VWH requests place equal consideration of operational requirements and standard hours can be changed by decision of the Secretary. These are all reductions in conditions of employment that are highly valued by employees.
In addition the Department has interpreted the APS Bargaining Policy as meaning that it cannot address the conditions that have been lost in the integration of the ACBPS into the DIBP - a critical issue in bargaining.
c) Additional proposals made by the Department that have no prospect of acceptance by significant groups of employees. Summarised these include:
i) Reducing the base pay rises on offer for all staff to 4.7% over three years, down from 6% over three years;
ii) Delaying increment based salary advancement for eligible employees for 12 months;
iii) Grand parenting working hours for ex Customs employees, leading to inequity in rates of pay with other workers; and
iv) Proposing a composite allowance for Border Force employees that will see significant numbers of Border Force employees receive cuts to their take home pay. This occurs when the composite allowance is less than the total of the separate allowances earned over the same period of time.
d) Failing to restore conditions lost by former Customs staff when Customs was integrated into the Department:
i) Nightshift penalty payment of 30% was cut to 15%;
ii) 2% top-of-range Performance Assessment Framework superannuable bonus was cut; and
iii) The formula for when overtime was paid was removed to the disadvantage of employees.
e) Feedback from CPSU members and delegates:
i) When surveyed by CPSU, 98.2% of CPSU delegates in the Department rejected accepting the current remuneration proposal.
ii) When speaking regularly to CPSU members in the Department, including at meetings, over the phone, via delegate conferences and via email, the overwhelming feedback given to me is that the current proposals from the Department are unacceptable.
f) Feedback from staff.
The recently released ASP Census confirmed that only 28% of DIBP staff feel valued for their contribution.
84. I believe that if the Enterprise Agreement proposed by the Department on 30 September is put to staff for approval, it will be rejected by a clear majority of those voting. I say this for the reasons I have described above.
85. The rejection of the Department's proposed enterprise agreement for a third time would in my view, given the time of year and based on previous experience, likely mean another offer not being put forward until March next year. The consequence of this would be a further 6 month pay freeze and no guarantee of an acceptable outcome being presented to staff.
86. Bargaining has been protracted, and in my view is at an impasse. I do not believe that continued negotiations will yield agreement between the parties, absent a major change to the bargaining environment.” 18
[26] Mr Muffatti largely echoes Mr Evans’ evidence. In relation to the progression of bargaining, he notes that while there have been 25 meetings between the parties, there have only been about seven meetings since October 2015. Further, only three of those were since April 2016. 19 Mr Muffatti is also pessimistic about the likely success of a further ballot, basing his view that staff will once again vote to reject the proposed enterprise agreement on feedback he has received, along with other members of the bargaining team, from the union’s members and delegates.20
[27] While the CPSU accepted the contention that the prerequisites for an Order under s.424 have been met, 21 it was careful to note that its acceptance in this regard came about because of its view that the DIBP had not been able to manage the effects of the protected industrial action, and in particular that it has been unable to manage the harms flowing from the action. I take this to be a submission that while the DIBP may have been able to manage the effects of the industrial action, the CPSU considers it chose not to do so.
The Interim Suspension Order
[28] On 30 September 2016, upon application by the DIBP, I made an interim suspension order, suspending the protected industrial action then taking place until further order or determination of the application (whichever first occurs).
[29] This order was made since I was satisfied that the Commission has the power to make such an interim order, with the legislative scheme of s.424, and subsections (3) and (4) in particular, not displacing the general scheme for the making of interim decisions allowed for within s.589 of the Act. In this regard, I rely upon the reasons set out in my earlier decision on the subject during the April 2016 DIBP protected industrial action hearings. 22
[30] In making the interim order on that occasion, as well as this, I took into account the matters that ordinarily would be considered by the Commission in making an interim decision;
“[24] The Commission’s consideration in relation to whether or not an interim order should be granted to the Commonwealth is to be determined in accordance with conventional principles for the issuing of interim relief. It was accepted by both parties that the ordinary approach taken by the Commission in these matters is to apply principles similar to those applied by the Courts in applications for interlocutory relief. In broad compass that requires the Commission to consider whether the Applicant has shown there is a serious matter to be tried “in the sense that if the evidence remains as it is there is a probability that at the trial of the action the plaintiff will be held entitled to relief”; whether, and the extent to which, there is irreparable prejudice to the Applicant, and I consider in the context of the matters requiring determination in this matter, the Respondent as well; and consideration of the balance of convenience.” 23 (references omitted)
[31] In relation to those criteria; I was satisfied that the material filed by the DIBP to that date and time showed there was a serious matter to be heard; that the same material and Mr Murray’s oral evidence (which was not the subject of cross-examination) disclosed that there may well be irreparable prejudice to the Applicant without an order and that, conversely, there would not be irreparable prejudice to the Respondent; and that the balance of convenience at that time favoured the DIBP.
[32] I also took into account that the CPSU advised that it would be in a position to file its material by noon on Tuesday, 4 October 2016and that both parties would be in a position to have the matter heard on Wednesday, 5 October 2016.
Determination of the Application
[33] The legislative tests within s.424 include that the industrial action “is threatened, impending or probable” coupled with the need for the Commission to be satisfied that the protected industrial action “has threatened, is threatening, or would threaten” the population or part of it, which is the test within s.424(1)(c). The test within s.424(1)(d), regarding the potential for the protected industrial action to cause significant damage to the Australian economy or an important part of it, is not relevant to these proceedings.
[34] In assessing applications for suspension or termination of industrial action, the Commission must be satisfied of an appropriate evidential basis for the making of an order. 24
[35] In doing so the Commission has previously considered matters such as the adverse effects to the quality and timeliness of treatment to patients in a health system, as well as what the likely cumulative future effect would be to decrease, over time, the capacity of the system, including its aggravated effects. Endangerment may not be confined to physical harm, or its probability, but to the future impact of the industrial action on an effected group’s welfare. 25
[36] In deciding matters under s.424, the Commission has also had regard to the efforts taken by an employer to mitigate the impact of protected industrial action, or the steps they might take to mitigate. The availability of sufficient mitigating avenues may be a reason for the Commission not to be satisfied of the legislative criteria needed to make an order, and the efforts to mitigate will be weighed by the Commission. 26 The Commission has previously been unpersuaded by “generalised predictions” about the consequences of protected industrial action or the other “many things” that could have been done in mitigation by either the applicant employer or those affected by the action.27 The Commission may also take account of whether there is an extended time period for the giving of notice of protected industrial action above the minimum period of three working days prescribed in s.414(2) of the Act.28
[37] The powers to make an order under s.424 may be used in exceptional circumstances and where significant harm is being caused by the action. 29 However, the use of such terms does not establish criteria or tests in substitution for or in addition to those found in the language of s.424(1) itself.30
[38] The evidence leads compellingly to a finding, which I make, that the prerequisites of s.424(1) have been met.
[39] While I base that finding upon the evidence brought principally by the Applicant, and in particular on the evidence of Mr Murray, I also note the concession on the part of the CPSU to the effect that it accepts the contention that the prerequisites have been met, although tempered by the further submission to the effect that the DIBP has either been unable to or has insufficiently managed the effects of the protected industrial action. While that is an important concession on the part of the CPSU, the findings I make stand independently of that concession. The factors I take into account in this regard include the evidence of Mr Murray that the Department endured an escalated involvement in protected industrial action right across its operations, at least in respect of the Australian Border Force, and that in order to deal with the consequences of the protected industrial action it would in effect need a full shadow workforce which is simply unavailable to the DIBP. I have also taken into account his evidence about the state of the threats he and his agency are endeavouring to manage and the impact which the protected industrial action has on the risks flowing from that threat profile.
[40] I note that Mr Murray’s analysis of the protected industrial action at the point of 23 September 2016, when his first witness statement was prepared, being a week prior to the commencement of these proceedings, was that the notified protected industrial action;
“… is characterised by features which are worse, in some ways very considerably worse, than those which led to the April PIA quickly reaching a point of unacceptable risk to the life, personal safety, health and welfare of the Australian community.” 31
[41] Relevant to the timing of the foregoing analysis, he further noted;
“48. The only variable remaining is the level of participation in the PIA. If the participation levels are lower than was the case in April, it is possible that the PIA may not give rise to the serious risks I have outlined. At present I think low levels of participation are unlikely.
49. In the event that participation rates in the notified PIA are significant, I anticipate that unacceptable risks to life, health and safety will emerge quickly and will rapidly escalate. …” 32
[42] I have also taken into account the evidence on the part of the CPSU regarding the importance of protected industrial action in its bargaining campaign. That evidence leads to the conclusion that, in all likelihood, the protected industrial action in the current, or even an escalated form, would be likely to continue for the reason that its gains in bargaining in the past had come from action such as this. In turn, this leads to the view that the protected industrial action, as presently designed by the CPSU, is hardly about to be backed away from. This is not a case in which industrial action is used to make a point made about the union’s relative strength in the workplace, perhaps leading to an early concession on the part of the employer. To the contrary, the history of bargaining in this matter would indicate that the parties’ respective positions appear unlikely to be affected by cues such as a union showing that it has strong support in the workplace.
[43] While struck by the relative incongruence of a union putting forward the submission to the Commission that protected industrial action it designed and delivered is actually endangering the life, the personal safety or health, or the welfare, of the population or part of it, coupled with the somewhat unconvincing argument that the endangerment was only coming about because the target of the action was not managing it properly, such is not a reason to make a finding that the jurisdictional prerequisites of s.424 have not been met.
[44] I have also taken into account confidential evidence given by Mr Murray regarding participation rates in the protected industrial action in the days between 26 and 30 September 2016, and note his evidence about this being a high level of participation, together with his view that it may not necessarily be the total number of employees withdrawing their labour that creates the harm but rather the location of the people involved and the tasks that they would otherwise be required to perform. I have also taken into account efforts by the DIBP to mitigate the effects of the protected industrial action and the evidence given by Mr Murray regarding the deployment of replacement staff, the effects of which are likely to decline over time due to factors including availability and fatigue. I am satisfied from the evidence given by Mr Murray that the DIBP has taken sufficient efforts to mitigate the effects of the protected industrial action notified and actually taken.
[45] Once satisfied that the protected industrial action being engaged in meets the jurisdictional prerequisites within s.424(1), which I am, the section requires the Commission to make an order suspending or terminating the protected industrial action. The choice of the alternative within the section is a matter of discretion on the part of the Commission, taking into account all the circumstances of the matter.
[46] The contest between the parties in this matter on this occasion is whether or not the Commission should suspend the protected industrial action, as advocated for by the DIBP, or terminate it, as advocated for by the CPSU.
[47] Necessarily, an exercise of discretion on the part of the Commission to suspend the protected industrial action is a non-permanent conclusion to the disputation, with employees, as in this case, entitled to resume employee claim action at the end of the suspension. With the Commission having suspended protected industrial action for a period of 90 days commencing on 3 April 2016, the CPSU and employees were entitled to and did notify further protected industrial action after the expiry of the suspension.
[48] Consideration of termination of protected industrial action brings with it the processes set out in Division 3 of Part 2 – 5 of the Act. In particular, the provisions of s.266 require that the Commission must make a workplace determination if, after termination of the protected industrial action, the parties have failed to settle all the matters that were at issue during bargaining during a post-industrial action negotiating period. The section, and others in the same Part, are in the following terms;
266 When the FWC must make an industrial action related workplace determination
Industrial action related workplace determination
(1) If:
(a) a termination of industrial action instrument has been made in relation to a proposed enterprise agreement; and
(b) the post-industrial action negotiating period ends; and
(c) the bargaining representatives for the agreement have not settled all of the matters that were at issue during bargaining for the agreement;
the FWC must make a determination (an industrial action related workplace determination) as quickly as possible after the end of that period.
Note: The FWC must be constituted by a Full Bench to make an industrial action related workplace determination (see subsection 616(4)).
Termination of industrial action instrument
(2) A termination of industrial action instrument in relation to a proposed enterprise agreement is:
(a) an order under section 423 or 424 terminating protected industrial action for the agreement; or
(b) a declaration under section 431 terminating protected industrial action for the agreement.
Post-industrial action negotiating period
(3) The post-industrial action negotiating period is the period that:
(a) starts on the day on which the termination of industrial action instrument is made; and
(b) ends:
(i) 21 days after that day; or
(ii) if the FWC extends that period under subsection (4)—42 days after that day.
(4) The FWC must extend the period referred to in subparagraph (3)(b)(i) if:
(a) all of the bargaining representatives for the agreement jointly apply to the FWC for the extension within 21 days after the termination of industrial action instrument was made; and
(b) those bargaining representatives have not settled all of the matters that were at issue during bargaining for the agreement.
267 Terms etc. of an industrial action related workplace determination
Basic rule
(1) An industrial action related workplace determination must comply with subsection (4) and include:
(a) the terms set out in subsections (2) and (3); and
(b) the core terms set out in section 272; and
(c) the mandatory terms set out in section 273.
Note: For the factors that the FWC must take into account in deciding the terms of the determination, see section 275.
Agreed terms
(2) The determination must include the agreed terms (see subsection 274(2)) for the determination.
Terms dealing with the matters at issue
(3) The determination must include the terms that the FWC considers deal with the matters that were still at issue at the end of the post-industrial action negotiating period.
Coverage
(4) The determination must be expressed to cover:
(a) each employer that would have been covered by the proposed enterprise agreement concerned; and
(b) the employees who would have been covered by that agreement; and
(c) each employee organisation (if any) that was a bargaining representative of those employees.
268 No other terms
An industrial action related workplace determination must not include any terms other than those required by subsection 267(1).
[49] In VHIA v ANF protected industrial action was suspended by the Full Bench for a period of 90 days. 33 The action suspended included bans that were stated to “remain in place until a new agreement is reached”, but with specified exemptions and regard to matters of safety.34 In that matter the Full Bench specifically avoided terminating the protected industrial action because it considered negotiations were still at a relatively early stage and because suspension would allow the discussions and negotiations between the parties to proceed. The Full Bench’s decision on the subject determined the matter in this way;
“[59] The VHIA and the Victorian Government sought an order terminating the protected industrial action. The ANF and the HSU submitted that an order for the suspension of the industrial action would be more appropriate in the circumstances. Either order would bring to an end the right to take protected industrial action. A termination order may lead to FWA making a workplace determination under Division 3 of Part 2-5 of the Act. A suspension order may allow protected industrial action to be resumed after the period of suspension, subject to relevant notice requirements being observed (see ss.429-430).
[60] In considering whether a termination order or a suspension order should be made we have had particular regard to the stage reached in the negotiations between the parties and to the recently commenced conciliation processes. We note that the negotiations between the parties for the new agreement only commenced in mid-September 2011 and that the s.240 dispute resolution processes before a member of FWA began on 8 November. Although there will undoubtedly be a range of difficult issues to be addressed by the parties, we consider that the negotiations are still at a relatively early stage. We have therefore sought to provide a basis for the parties to continue with the negotiations in a way which is consistent with the bargaining scheme of the Act but without the continued damaging effects of the industrial action. An order suspending the protected industrial action for a period of 90 days will bring to an end the protected industrial action and will allow the discussions and negotiations between the parties to proceed, with the assistance of FWA. It will also allow the parties to focus their efforts on seeking to resolve the differences between them as to the new agreement rather than dealing with the problems associated with the bans and other industrial action. Further, it will provide an opportunity for the ANF to consider ways of giving effect to its stated intention of ensuring that any protected industrial action taken in the course of bargaining does not endanger anyone’s safety, health or welfare. The VHIA also sought that any suspension of the protected industrial action be for at least three months.
[61] For all the above reasons we decided to make the order under s.424 of the Act suspending for a period of 90 days the protected industrial action being taken by the ANF and its members.” 35
[50] In other matters in which termination of protected industrial action has been considered by the Commission;
“The employers’ submissions, as they were developed, did not press for termination, but rather a suspension. On the facts in these applications, this was an appropriate concession. If I was to terminate the protected industrial action then no further protected industrial action could be taken and the terms of Division 3 of Part 2-5 of the Act would come into operation. These provisions relate to the making of a workplace determination. No persuasive case was established for me to do so. The protected industrial action, as notified, was the first to be taken of those which had been authorised by the protected action ballot. I am aware the parties have been, and still are, negotiating the new enterprise agreements that will cover them. No case was made out warranting the interruption of that process and a requirement for the parties to participate in another process that may see the imposition on them of an arbitrated outcome.” 36
“… that it was probable that protected industrial action would have increased the response times of ambulances, not only in the areas affected by the strikes, but also more generally where assets might be deployed to cover the banned branches.” 38
“[37] These decisions indicate that the following factors are relevant:
[38] These are the factors upon which I have based my decision. Taken together, they support a decision to terminate, rather than suspend, the protected industrial action. I have also had regard to the management initiated ballot. Whether the decision is to suspend or terminate the industrial action, this would not prevent the ballot going ahead.
[39] While both parties would, I am satisfied, prefer a negotiated outcome, it must also be recognised that negotiations have been going on for nearly a year, including a week of intensive conciliation by the Commission. Based on the evidence the parties are still far apart on some key issues – indeed Mr Humphreys expressed in his letter to Mr Butler on 10 May 2016 that the parties appeared to be moving further apart. There have already been several rounds of industrial action. There is no agreement between the parties on whether termination or suspension should be ordered. If industrial action were only to be suspended on a temporary basis it is likely that there would be further industrial action once the suspension was lifted, that could once again threaten the welfare of the broader population.” 39
[51] I concur with Hamberger SDP’s analysis in Essential Energy v CEPU of the factors that require being taken into account in deciding whether it is appropriate to terminate protected industrial action, or to suspend it.
[52] In this matter bargaining between the parties has been continuing for a considerable period. Officially that period has been since 1 July 2015, following the Machinery of Government changes that lead to the formation of the DIBP in its current state. However notification was given to all concerned in March 2015 that the predecessor agencies, the DIBP as then formed and the Australian Customs and Border Protection Service desired to negotiate a single agreement to cover both agencies. Bargaining with the predecessor agencies had been underway since June 2014 in the case of the predecessor DIBP and September 2014 in the case of the former Australian Customs and Border Protection Service. Counsel for the CPSU put forward in the hearing that employees had had no wage increase since July 2013.
[53] On any analysis, and from any of the available dates, negotiations between the parties for an enterprise agreement have been going for a considerable period of time.
[54] It is also the case that the bargaining between the parties has essentially been unproductive. While appearing to be featured by hard bargaining on both sides, the negotiations appear stuck around the respective wages positions of the main actors. On the one hand, the DIBP relentlessly argues that it is unable to improve the Department’s wages offer because it is bound by the Australian Government’s Workplace Bargaining Policy. On the other hand the CPSU either does not accept that the policy constrains the Department in the way that the DIBP argues, or appears to put forward that, even if it does, the DIBP should improve its offer. In relation to its own proposals, the CPSU appears to put forward so many baseline conditions that an improved offer on the part of the DIBP could only ever succeed with a greater overall cost to Government, with little or no prospect of there being cost offsets through changes to other conditions within the proposed enterprise agreement.
[55] While the CPSU is critical, perhaps with some justification, about there only being 7 bargaining meetings held since October 2015, of which only 3 were after the Commission’s suspension of protected industrial action in April 2016, it can also be reflected that within the construct of bargaining referred to above, with each of the parties putting forward super-constrained positions for bargaining, there may not have been much to talk about within the bargaining meetings that were convened.
[56] The record of protected industrial action in the DIBP workplaces, and especially the Australian Border Force, has been extensive, having been canvassed significantly both within this decision and my earlier decisions relating to the April 2016 protected industrial action. In both periods of protected industrial action I have found that the community has either been endangered by the protected industrial action or may well be endangered if it continued.
[57] The bargaining posture of both parties would lead reasonably to the view that in the event the Commission suspended this round of protected industrial action, further action would likely take place after a suspension ended.
[58] This is not a circumstance in which prior industrial action has either been inconsequential or restricted. I take into account that the April 2016 protected industrial action period coincided with school holidays and high travel periods in most states and that the current round of protected industrial action similarly coincided with school holidays in most States. From this, I conclude that if the current protected industrial action was suspended until near to the end of November 2016, as argued for by the DIBP, a further round of protected industrial action, with the potential for similar harm to the community, would almost certainly be targeted for the end of year holiday periods.
[59] The CPSU maintains that industrial action by its members has been the principle way in which concessions by the DIBP, albeit small ones, have been made in the course of bargaining. It accepts that its current protected industrial action, as responded to by the DIBP, whether deficiently or not, has harmed, or is likely to harm the community. Faced with that stance, the proposition unavoidably emerges that, following suspension of the current round of protected industrial action, further high-level industrial action would almost certainly take place towards the end of 2016 and into the start of 2017. There is little doubt that such industrial action would be on a broad scale, and clinically targeted to the areas of the DIBP where it had most effect. There is also little doubt that, as with the present case, the intention of such likely future protected industrial action would be to maximise the impact on the DIBP. The evidence I have heard now on two occasions shows an ability on the part of the DIBP to withstand those effects for a period, but not to be able to do it beyond a week or two, short of taking more a significant response, such as an employer response action locking out employees taking protected industrial action.
[60] The DIBP argues that the protected industrial action should only be suspended, and in this case to 21 November 2016. The DIBP’s argument in that respect is that suspension for that period will enable its proposed enterprise agreement to be put to employees for a further ballot and that all concerned should not be burdened during that period by the need to deal with the consequences of the termination of protected industrial action.
[61] While the democratic process is, of course, to be applauded, I consider that real questions emerge in this case about the prospects of success for the ballot about to be undertaken by the DIBP. The evidence discloses that two previous ballots undertaken of employees were defeated by very significant margins of those voting. 91% voted against a proposed agreement put to staff in September 2015 and 81% voted against a further proposal in March 2016. The proposal about to be put to employees is different from its predecessors but is still considered by the CPSU to be an insufficient offer, with its witnesses putting forward the basis upon which they have formed that view.
[62] The proposal now put by the DIBP is improved in the sense that some of the problems identified in the course of bargaining in respect of the earlier versions have been remedied, especially through a restructuring of the wages proposal such that, with the latest proposal, the DIBP is able to say with confidence that all staff will get a general pay increase of 3% upon commencement of the agreement and that overall, through the life of the proposed agreement, employees will receive wage increases of between 4.7% and 10.7%. The higher amount comes about because some, but not all, staff will have access to new top-of-the-range salaries through performance-based salary advancements. 40 It is unclear from the evidence before me either of the criteria related to the performance-based element of the offer or how many, or how few, staff will have access to the performance-based salary advancement.
[63] In contrast, the offer that was the subject of the 2015 ballot allowed, on the DIBP’s evidence, for an average wage increase of 4.5%, made up of a 3.4% general increase for all employees, with other increases coming through adjustments to deal with disparities between the pay rates applying to the staff coming from the different predecessor agencies. 41 Amongst other things, the March 2016 proposal included a 6% pay increase over three years for all employees.42
[64] I take from this analysis the point merely that while the DIBP has been endeavouring to address certain and specific concerns on the part of bargaining representatives about its wages offer, it appears to be working wholly within the constraint imposed by the Workplace Bargaining Policy, which requires that remuneration increases may be negotiated up to an average of 2% per annum. Seemingly then, the DIBP’s most recent offer remains within that constraint but endeavours to make more attractive what it can offer, perhaps to as many people as possible. Notwithstanding that objective on the part of the DIBP, the gulf between a 19% favourable vote on the occasion of the March 2016 ballot and the 50% plus one that is required for the making of its proposed November 2016 enterprise agreement is considerable. On the strength of the evidence presently before me in relation to the components of the offer to be put to employees; their disposition as reported by the CPSU; and the other matters remaining not agreed between the parties, I consider the most likely result from the forthcoming ballot would be a continuation of the impasse presently between the parties, with the inevitable consequence of further protected industrial action.
[65] If this analysis of the DIBP’s current enterprise agreement proposal overlooks more favourable aspects of the offer that would lead to its acceptance, then plainly the Department can make those the subject of a concerted campaign to staff to vote in its favour. A consideration on my part of the termination of protected industrial action does not prevent the conduct of the proposed ballot, or indeed the conclusion of bargaining between the parties.
[66] For all these reasons, I am unable on this occasion to favour the prospect of a further suspension of protected industrial action. Suspension of the protected industrial action is unlikely to do more than put a further hiatus in the bargaining between the parties. The likely consequence of that in turn is for employees to continue to agitate for an improved offer on the part of the DIBP, with the form of the agitation being further protected industrial action if that is available. There appears little chance the DIBP would respond favourably in its bargaining position to further agitation or protected industrial action, and that more likely in such event the DIBP’s response would be to yet again seek an order pursuant to s.424.
[67] As a consequence my discretion on this occasion was exercised with an order terminating the protected industrial action.
[68] Having communicated the Commission’s decision to terminate the protected industrial action, and having now provided its reasons for decision, I am mindful of the work that is now required to be undertaken by the parties during the post-industrial action negotiating period which has now commenced, the details of which are specified in s.266 of the Act. The Commission as presently constituted is available to assist the parties in that task upon request, including through the convening of one or more conciliation conferences.
COMMISSIONER
Appearances:
Mr P O’Grady QC (instructed by the Australian Government Solicitor) for the Commonwealth of Australia.
Mr A M Slevin (instructed by Slater and Gordon) for the CPSU.
Hearing details:
2016.
Melbourne:
October 5.
1 PR586012.
2 Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union v Abigroup Contractors Pty Ltd [2013] FCAFC 148; [11]–[12], per Buchanan J: [128], per Katzmann and Rangiah JJ.
3 Exhibit A8, Commonwealth’s Outline of Submissions, [25].
5 Exhibit R2, Witness Statement of Rupert Evans, [14], [19], [20].
6 Exhibit A4, First Witness Statement of Murali Venugopal, Attachment MV–8.
8 Exhibit A1, First Witness Statement of Clive Murray, [18].
9 Ibid [9]–[14].
10 Ibid [32(b)].
11 Exhibit A4 [7].
12 Ibid [8].
13 Ibid Attachment MV-5.
14 Ibid Attachment MV-8.
15 Ibid [48]-[49].
16 Exhibit R2 [22], [76].
17 Ibid [35]-[37].
18 Ibid [81]-[86].
19 Exhibit R1, Witness Statement of Richard Muffatti, [27].
20 Ibid [79].
21 Exhibit R3, Outline of Submissions on behalf of the CPSU, [20].
22 [2016] FWC 2090 [12], noting that the last appearing legislative reference in the second paragraph of the ex tempore decision in [12] should be a reference to s.589(2) and not s.598(2), as printed.
23 Ibid [24].
24 Victorian Hospitals' Industrial Association v Australian Nursing Federation [2011] FWAFB 8165 [49].
25 Monash University v NTEU [2013] FWCFB 5982 [40]-[41], [47].
26 Re KDR Victoria Pty Ltd T/A Yarra Trams [2015] FWC 6282 [37].
27 Re Metro Trains Melbourne Pty Ltd [2015] FWC 6037 [28]–[30].
28 Ibid.
29 NTEU v University of South Australia (2010) 194 IR 30 [8].
30 Monash University v NTEU [2013] FWCFB 5982 [20]–[21].
31 Exhibit A1 [47].
32 Ibid [48]-[49].
33 [2011] FWAFB 8165 [61].
34 Ibid [6]–[8].
35 Ibid [59]–[61].
36 [2015] FWC 1600 [59].
37 Monash University v NTEU [2013] FWCFB 5982 [55].
38 Ambulance Victoria v Liquor, Hospitality and Miscellaneous Union [2009] FWA 44, (2009) 187 IR 119 [35].
39 [2016] FWC 3338 [37]-[39].
40 Exhibit A4 Attachment MV-5.
41 Ibid [7].
42 Ibid [8].
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