[2012] FWA 7977

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FAIR WORK AUSTRALIA

DECISION

Fair Work Act 2009
s.394—Unfair dismissal

Timothy Graham
v
Bankstown District Sports Club Ltd
(U2012/560)

DEPUTY PRESIDENT BOOTH

SYDNEY, 21 SEPTEMBER 2012

Termination of employment - unfair dismissal.

[1] In this matter the applicant, Mr Timothy Graham, asks the tribunal to exercise its discretion under s.394 of the Fair Work Act 2009 (the Act) to grant a remedy for unfair dismissal. The remedy sought in this matter is reinstatement.

[2] The application was made on 19 March 2012 and a telephone conciliation was conducted on 17 April 2012. The matter was not resolved at conciliation and was listed for hearing for 3 - 4 September 2012 before me. At the request of the parties I chaired a conference on 3 September, however the matter was not resolved at the conference and I heard the application on 3 and 4 September 2012.

[3] Mr Graham was represented by Mr Acev from United Voice and permission was granted for the Bankstown District Sports Club Limited (the Club) to be represented by Ms Ryan, solicitor and Mr Ginters of counsel. Evidence was given for the applicant by Mr Maxworthy and Mr Graham and for the respondent by Ms Russo, Ms Higgins, Mr Puumalainen, Mr Lambert, Mr Sammour and Ms Coates.

Background

[4] The Club is comprised of 5 venues and employs 460 employees and 800 contractors. Mr Graham was employed by the Club on 24 June 2009 as a part-time Sommelier in the Cellar Wine Bar in the main venue in Bankstown. A sommelier is defined in the Macquarie Online Dictionary as “the head wine steward of a restaurant or dining room”. This definition is consistent with the general description of Mr Graham’s duties provided by the parties in this matter. He was dismissed on 9 March 2012 on the grounds of serious misconduct said to be conduct in contravention of the Club’s Code of Conduct. It was a term of Mr Graham’s Individual Transitional Employment Agreement (ITEA) with the Club that he comply with the Club’s policies and procedures, which include its Code of Conduct. Mr Graham had attended annual training in relation to the Code of Conduct on 26 August 2011. Notwithstanding that the dismissal was on the grounds of serious misconduct the Club provided Mr Graham with 3 weeks pay in lieu of notice. This corresponded to his entitlement to notice upon termination for other than serious misconduct pursuant to his ITEA.

[5] The dismissal followed an investigation undertaken by the Club into Mr Graham’s conduct. The allegations that were the subject of the investigation were based on complaints made by another employee, Mr George Sammour, about Mr Graham’s behaviour towards him.

[6] The allegations were: 1

Allegation 1

On 20 January 2012, you said to a new contract staff member being introduced to you, and in the presence of George Sammour (George), words to the following effect:

The Club found that this allegation was substantiated.

Allegation 2

On 10 February 2012, you were picking on George during his shift. In particular, it is alleged that you:

The Club found that this allegation was substantiated.

Allegation 3

On 10 February 2012, and in the presence of George and a contract staff member, you said words to the following effect:

You then turned to George and said words to the following effect:

The Club found that this allegation was not substantiated.

Allegation 4

On 24 February 2012, you approached George and you had a conversation with him for about 20 minutes. During this conversation, you said to George words to the following effect:

Although George told you that you both should not discuss the matter, you said to George words to the following effect:

The Club found that this allegation was substantiated.

Allegation 5

You have made George feel uncomfortable as a result of engaging in unwelcome conduct of a sexual nature (ie making statements of a sexual nature to George, and in his presence), and in doing so, you have breached the Club’s policies and procedures, including its Code of Conduct.

The Club found that this allegation was substantiated.

[7] The Club based its decision to dismiss Mr Graham on the findings of their investigation.

[8] The Human Resources Manager, Ms Paula Coates, who made the decision to dismiss Mr Graham, gave evidence as follows:

[9] Mr Graham contests some of the facts of the behaviour complained of and where there is no contest about the facts of his behaviour he denies that it constitutes conduct of the kind that would constitute conduct in contravention of the Club’s Code of Conduct.

The relevant statutory framework

[10] The tribunal exercises its discretion in relation to an application for an unfair dismissal remedy pursuant to Part 3-2 Unfair Dismissal of the Act. In this matter there is no contest that Mr Graham is a person who is protected from unfair dismissal pursuant to s.382 of the Act and I must apply ss.385 - 387 of the Act, which read as follows:

[11] In short I must apply my mind to whether Mr Graham was unfairly dismissed. There is no dispute that Mr Graham was dismissed so s.385(a) of the Act is satisfied. The Club is not a small employer and therefore s.385(c) is not relevant. There is no contention that this is a case of genuine redundancy so s.385(d) does not apply. Therefore, in determining whether Mr Graham was unfairly dismissed, I must consider whether the dismissal was harsh, unjust or unreasonable and in so determining pay particular attention, amongst the other criteria contained in s.387, to whether there was a valid reason for the dismissal.

[12] If I find that Mr Graham was unfairly dismissed I then must apply the provisions of Division 4 of the Act in order to determine the appropriate remedy as between reinstatement or the payment of compensation.

[13] Mr Acev for Mr Graham submitted that I was required to make a finding relation to the assertion by the respondent of serious misconduct of the part of Mr Graham. 3 I disagree. I do not have to determine whether Mr Graham’s conduct constituted “serious misconduct”. I have to determine whether there was a valid reason for the dismissal.

[14] In Royal Melbourne Institute of Technology v Geoffrey Asher the Full Bench said: 4

[15] Section 652(3) of the Workplace Relations Act 1996 was in similar terms to the current provisions of the Act.

[16] Guidance as to the meaning of the term ‘valid reason” is provided by Selvachandran v Petron Plastics Pty Ltd 5. In that decision of the Industrial Relations Court of Australia Northrop J said:

[17] Section 170DE(1) of the Industrial Relations Act 1988 was in broadly similar terms to the corresponding provisions of the current Act.

[18] I note that the Tribunal is not confined to a consideration of the reason/s given by the employer in determining whether there was a valid reason for dismissal. In MM Cables (A Division of Metal Manufacturers) v Victor Zammit 6 the Full Bench said:

[19] Section 170CG(3) of the Workplace Relations Act 1996 was in similar terms to the current provisions of the Act.

[20] In relation to the expression “harsh, unjust and unreasonable”, contained in Clause 9 of the Manufacturing Grocers Award 1985 in Bostik (Australia) Pty Ltd v Dimitrja Gorgevski 7 Sheppard and Heery JJ said:

Consideration

[21] In considering whether Mr Graham’s dismissal was harsh unjust or unreasonable I will deal with each of the matters I am required to consider in turn:

[22] I will first of all consider whether Mr Graham behaved in the manner complained of.

[23] Having found, on the balance of probability, how Mr Graham conducted himself in the workplace in relation to Mr Sammour, I will then consider whether this conduct provided a valid reason for dismissal.

Mr Graham’s behaviour

[24] The evidence before me is that Mr Graham is respected as a wine expert by the Club and his co-workers. He was employed by the Club to open a wine bar called the Cellar Wine Bar and the evidence is that he established and grew the business of the wine bar over the period of his employment. At the outset there were no other employees assigned to the wine bar however as the business grew employees were dedicated to this area of the Club. Upon his commencement Mr Graham reported to the Beverage Manager Mr Bevilacqua and at a later stage Mr Todd Puumalainen was appointed as Team Leader of the Piano Bar and the Cellar Wine Bar. Mr Graham, along with the other employees, reported to him. Mr Graham did not have line management authority in relation to his co-workers in the wine bar but his knowledge and experience was respected by them and the evidence before me is that they took direction from him. Up until the point of the complaints underpinning his dismissal there is no evidence that Mr Graham had any disagreements or difficulties with his any of his co-workers. The evidence is that that he regularly congratulated his co-workers on their performance at the conclusion of the shift.

[25] On 30 June 2011 Mr Sammour was employed by the Club on a part-time basis. Mr Sammour is also studying a bachelor’s degree in Medical Radiation Sciences (Diagnostic Radiography) and works 4 -5 shifts per week rostered between the Piano Bar, the Cellar Wine Bar and the Gaming Floor. When working in the Piano Bar or the Cellar Wine Bar he reports to Mr Puumalainen.

[26] The effect of Mr Sammour’s evidence is that Mr Graham singled him out for attention, that the attention was unwanted and unwelcomed, he found the comments offensive and very rude and the experience gave rise to feelings of discomfort, embarrassment and anger. The effect of Mr Graham’s evidence is that he did not single out Mr Sammour and that he and Mr Sammour engaged in light hearted banter that Mr Sammour did not resist or complain about to him.

[27] It is necessary to review the evidence to establish, on balance, which account is more likely to be correct.

Night out conversation

[28] Mr Sammour gives evidence that in November 2011 a conversation took place in the Cellar Wine Bar between himself, Todd, Elise and Daniel about an outing to Kings Cross. Mr Graham gives evidence that this conversation took place on 20 January 2012, during which time he is alleged to have made two remarks about Mr Sammour’s virginity. Ms Russo gives evidence that she heard no reference to an outing to Kings Cross on 20 January 2012 during the conversation containing the two remarks about Mr Sammour’s virginity. On the basis of the evidence of Mr Sammour and Ms Russo I am satisfied that the conversation about a night out to Kings Cross did not take place on 20 January 2012.

Virginity comments

[29] Mr Sammour gives evidence that on 20 January while being introduced to Ms Russo by Leila Mr Graham made unsolicited remarks about his virginity in the terms contained in the allegations set out above. Ms Russo gives evidence that she heard those remarks. Mr Graham denies these remarks. His evidence is that in the context of a conversation about an outing to Kings Cross he jokingly said words to the effect of “watch out George you might lose your virginity”. I have stated above that I am satisfied that the conversation about a night out to Kings Cross did not take place on 20 January 2012. On the basis of the evidence of Mr Sammour and Ms Russo I am satisfied that the comments ascribed to Mr Graham were made on 20 January.

Australian men and Asian women comments

[30] The Club did not rely on the allegation in relation to these comments in their decision to dismiss Mr Graham because the conversation was not corroborated by a third party who was present. However evidence was given on these comments in the hearing and since the occasion allegedly gave rise to another remark about Mr Sammour’s virginity I intend to deal with them. In doing so I rely on MM Cables (A Division of Metal Manufacturers) v Victor Zammit 8 referred to above.

[31] Mr Sammour gives evidence that before Christmas 2011 Mr Graham asked him a question about the motivation of Australian men to form relationships with Asian women. Mr Sammour gives evidence that he was reluctant to express an opinion but when pressed he gave an opinion. He did not state that opinion in the witness box nor in his witness statement. Mr Graham gives evidence that he did not initiate this conversation and that rather it was Mr Sammour who did so by asking him about Australian men’s motivation. Mr Graham’s evidence is that Mr Sammour said words to the effect, “it was because they had small tight pussys”. Mr Sammour’s evidence is that on 10 February in the presence of customers Mr Graham repeated the question about Australian men and Asian women, repeated Mr Sammour’s opinion and made the remark, “he wouldn’t know. He’s still a virgin”.

[32] I prefer the evidence of Mr Sammour in relation to these two occasions over that of Mr Graham. I found Mr Sammour to be a willing witness whose demeanour was consistent with his counsel’s submission that he’s a young man who holds fairly deep beliefs, and is conservative. When asked by me to repeat the sequence of events his recollection appeared very clear. Mr Graham on the other hand was inconsistent in the clarity of his recollections. I conclude that initiating a conversation about Australian men and Asian women in this manner is more consistent with Mr Graham’s conduct than Mr Sammour’s.

Singling Mr Sammour out for work performance comment

[33] Mr Sammour gave evidence that Mr Graham “picked on him” on 10 February in relation to work performance in relation to the taking of restaurant orders, putting an empty bottle in the bin and cleaning tables. Mr Graham disputes singling out Mr Sammour and says he was giving reasonable direction to staff. On face value these remarks could not be described as singling out a particular employee. The evidence of Ms Higgins and Mr Sammour is that the tone, demeanour and eye contact of Mr Graham was consistent with this conclusion. However this is evidence of their perception without objective corroboration.

[34] I make no finding in this regard as on balance both parties’ accounts are plausible.

Conversation about HR investigation

[35] Mr Sammour’s evidence is that on 24 February Mr Graham approached him to inquire about the investigation by the Club. Mr Graham disputes the duration of the conversation and the exact words used. However his evidence is that he did approach Mr Sammour, he did inquire about HR asking questions, he did acknowledge that Mr Sammour would be required to refrain from speaking about the matter and he did continue to ask questions notwithstanding Mr Sammour's monosyllabic responses including affirmation that he was not supposed to speak about it. I find that this was inappropriate and an abuse of his position of power in relation to Mr Sammour.

Other conduct

[36] Ms Higgins gives evidence that she heard Mr Graham say “Well, has he taken a test?’ and “Well he might be pregnant or something” in response to Ms Higgins informing him that Mr Sammour had gone to the bathroom. Ms Russo gives evidence that she had heard Mr Graham refer to Mr Sammour as “gay”. In spite of Mr Graham’s evidence to the contrary I find that it is more likely than not that these words were spoken.

Conclusion in relation to conduct

[37] In relation to how Mr Graham conducted himself in the workplace towards Mr Sammour I find that Mr Graham made the personal and offensive remarks he is alleged to have made. I do not conclude that Mr Graham intended harm to Mr Sammour in the making of these remarks. However, harm was the effect of these remarks. I have no reason to disbelieve his evidence that he liked Mr Sammour and found him to be “a very garrulous little fella and he’s a very enjoyable guy to work with” 9. Mr Graham’s evidence is that he thought he was engaging in light hearted banter and I accept that. Mr Graham may hold a different view of this behaviour than is now accepted in contemporary and diverse workplaces. However, he was aware of the Club’s Code of Conduct and he had participated in annual training in relation to the Code of Conduct and policies and procedures. If he did not perceive the behaviour he admits to as unacceptable, he should have.

Valid reason for dismissal

[38] In determining whether Mr Graham’s conduct constituted a valid reason for dismissal I have considered the definition of sexual harrassment given by the Australian Human Rights Commission 10:

[39] I regard Mr Graham’s conduct consistent with this definition.

[40] In Graincorp Operations Limited and another re S Markham 11 a Full Bench of the Australian Industrial Relations Commission quashing a decision of a single commissioner said:

[41] This is authority for the proposition that it is the impact of Mr Graham’s behaviour, whether intended or not, that is relevant to take into account in coming to a conclusion.

[42] Relevantly, the Club’s policies, procedures and Code of Conduct contained in its Employee Handbook describe the kind of behaviour that constitutes bullying and harassment.

[43] The Workplace Bullying Prevention Policy says:

[44] The Workplace Harassment Prevention Policy says:

[45] Both these policies describe behaviour consistent with that displayed by Mr Graham towards Mr Sammour. It is clear to me that his conduct breached these policies and he knew, or ought to have known, this.

[46] Mr Acev for Mr Graham submits that the failure of Mr Sammour to immediately report the first instance of Mr Graham’s conduct towards him, or press his Team Leader for a report back on his action after he did report it, undermines Mr Sammour’s claim to have been shocked by the behaviour. He also claims this undermines the characterisation of the behaviour as harassment or bullying. 14 Mr Ginters for the Club says:

[47] I agree with that submission.

[48] I find that the impact of Mr Graham’s conduct on Mr Sammour was damaging and as such Mr Graham’s conduct had a negative effect on the safety and welfare of Mr Sammour.

[49] Taking all of this into account I find that this behaviour constituted a valid reason for the dismissal of Mr Graham.

[50] The evidence is that the Club commenced the investigation into the complaints made by Mr Sammour on or around 14 February. While the investigation was still underway, Mr Graham became aware of it and questioned Mr Sammour about it. Ms Coates decided to inform Mr Graham of the investigation on 24 February. Her evidence is that she would have preferred to have concluded it before advising Mr Graham but since Mr Graham had become aware of it, she thought it prudent to advise him. She asked the Duty Manager, Mr Lambert, to ask Mr Graham to meet with her indicating that it was not a disciplinary meeting but he could have a support person accompany him if he wished. She told Mr Lambert that if he declined to come to meet with her he was to be suspended on full pay. Mr Graham declined to attend and was suspended on full pay on 24 February. It is uncontested that Mr Graham was invited to attend a meeting on 28 February which was rescheduled by agreement to 2 March. The allegations the subject of the investigation were emailed to Mr Graham on 28 February. Mr Graham attended the meeting on 2 March with a support person, Mr Adrian Harrison, and the allegations were jointly reviewed. It is uncontested that Mr Graham attended a further meeting with Ms Coates on 9 March and the allegations and her findings in relation to them were jointly reviewed. Mr Graham was supported by Mr Maxworthy of United Voice on that occasion.

[51] I find that Mr Graham was notified of the reason for the dismissal. I find that there is no contribution to a finding of unfair dismissal from consideration of this factor.

[52] Based on the review of the evidence in (b) above, I find that Mr Graham was given an opportunity to respond to any reason related to the capacity or conduct of the person.

[53] I find that there is no contribution to a finding of unfair dismissal from consideration of this factor.

[54] Based on the review of the evidence in (b) above, I find that there was no unreasonable refusal by the employer to allow the person to have a support person present to assist at any discussions relating to dismissal.

[55] I find that there is no contribution to a finding of unfair dismissal from consideration of this factor.

[56] Mr Graham was dismissed on the grounds of serious misconduct said to be conduct in contravention of the Club’s Code of Conduct.

[57] Mr Graham’s employment history was said to have been considered by Ms Coates in her decision-making, however, was not put as reason for the dismissal. 16

[58] The evidence before me was of three warnings that had been given. No final warning had been given. On each occasion Mr Graham had been given an opportunity to comment on the conduct that gave rise to the warning. His evidence went to explanations and mitigation.

[59] However since Mr Graham’s dismissal was largely unrelated to unsatisfactory performance I find that there is no contribution to a finding of unfair dismissal from consideration of this factor.

[60] The Club is a large employer. I find that this is not a relevant consideration in my determination in this matter.

[61] The Club has a dedicated Human Resource Department. I find that this is not a relevant consideration in my determination in this matter.

[62] Weighing in favour of a finding that the dismissal was harsh is Mr Graham’s age (62) and his inability so far to secure a new job. He has a specialised skill and is very proud of his knowledge and expertise. Unfortunately the opportunity to deploy that knowledge and expertise appears limited in today’s labour market.

[63] Weighing against this however, is the evidence that disclosed a mismatch between Mr Graham’s values and contemporary norms about what is acceptable in the workplace. Although he attended training he did not seem to comprehend this training. He displayed no contrition, no remorse, nor any indication that the “penny had dropped”. Indeed, he continued to deny the conduct and where he acknowledged it he passed it off as a joke. The Club’s concern that he presented a risk of reoffending is reasonable and for this reason a warning, even a final warning, would have been insufficient to discharge their obligations to other employees, and indeed patrons, to provide a safe place of work and entertainment.

[64] The Club demonstrated that it is aware of its responsibility in that it has adopted policies and conducted regular training concerning them. However the evidence disclosed inconsistency in the interpretation and application of the policies and procedures by leaders in the workplace and a review of the content and form of delivery of training is recommended. Until policy and procedure are embedded in the culture of an organisation, leaders will apply their own values and norms and mistakes will happen.

Conclusion

[65] Taking all of the above into account I find that the dismissal was not harsh, unjust or unreasonable and therefore not unfair. Therefore I am not required to consider the question of a remedy. The application is dismissed and an order reflecting this decision will issue.

DEPUTY PRESIDENT

Appearances:

C Acev, United Voice, New South Wales Branch, Liquor and Hospitality Division, for Mr Timothy Graham

P Ginters, of Counsel, with S Ryan, HWL Ebsworth Lawyers, for Bankstown District Sports Club Ltd

Hearing details:

2012.

Sydney:

3 and 4 September.

 1   Form F2 - Application by Mr Timothy Peter Graham, Attachment B

 2   Exhibit R8 - Witness Statement of Paula Coates, PN94-95

 3   Transcript PN2133-2134

 4   [2010] FWAFB 1200 at [12]-[14]

 5   [1995] IRCA 333

 6   S8106 at [42]

 7   [1992] FCA 209

 8   Op.cit.

 9   Transcript PN1016

 10   www.hreoc.gov.au/sexualharassment/index

 11   PR924103

 12   Exhibit R5, p.116

 13   Ibid., p.122

 14   Transcript PN2138-2140

 15   Ibid., PN2158, 2166-2167

 16   Ibid., PN2193

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