AG810160  PR947076

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AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

Workplace Relations Act 1996

s.45 appeal against decision

PR944269 issued by Commissioner Smith on 5 March 2004

and decision PR935091 and order PR935092 issued

by Commissioner Smith on 22 July 2003

CoINVEST Limited

(C2004/2243)

VISIONSTREAM CERTIFIED AGREEMENT 2001

(ODN AG2001/4525)

[AG810160  PR908413]

s.170MD variation of certified agreement

Visionstream Pty Ltd

(AG2003/6028)

Industries not otherwise assigned

   

VICE PRESIDENT ROSS

 

DEPUTY PRESIDENT IVES

 

COMMISSIONER BLAIR

MELBOURNE, 25 MAY 2004

Appeal - variation of agreement under s.170MD(6) - ambiguity or uncertainty - the identification of an ambiguity or uncertainty requires the determination of a jurisdictional fact - prima facie case insufficient - leave granted - appeal upheld - portion of order quashed - remitted to member at first instance.

DECISION

[1] This decision deals with two appeals by CoINVEST Limited (the appellant) pursuant to s.45 of the Workplace Relations Act 1996 (Cth) (the WR Act).

[2] The first appeal is against the ex tempore decision of Commissioner Smith of 18 July 2003, published on 22 July 2003,1 to vary the Visionstream Certified Agreement 2001 (the Agreement) in the terms set out in the Commissioner's order dated 22 July 2003.2 The second appeal is against the decision of Commissioner Smith of 25 February 2004, published on 5 March 2004,3 in which the Commissioner, among other things, refused to hear and determine the application of CoINVEST Limited for leave to intervene in the application to vary the Agreement.

[3] At the conclusion of the proceedings on 19 May 2004 we announced our decision in respect of the first appeal. We said that we were satisfied that the appellant was a "person aggrieved" within the meaning of s.45(3)(d) and granted the appellant's application to extend the time for lodging the appeal. We went on to grant leave to appeal and uphold the appeal in respect of the variation of clause 15(iii) of the Agreement. Visionstream's s.170MD(6) application was remitted to Commissioner Smith for further hearing. We also indicated that we would publish our reasons for decision in due course. We now do so.

[4] We propose to briefly set out the background to the decisions subject to appeal before turning to the arguments advanced on appeal.

[5] The Agreement was certified under Division 2 of Part VIB of the WR Act by Commissioner Blair on 3 September 2001 with a nominal expiry date of 2 January 2004.

[6] The parties to the Agreement are Visionstream Pty Ltd (Visionstream) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (the CEPU).

[7] On 10 July 2003 Visionstream applied to the Commission for an order to vary the Agreement pursuant to s.170MD(6) of the WR Act to remove ambiguity and uncertainty. The variation sought was in the following terms:

[8] We note here that at the time the application to vary was made clause 15(iii) was in the following terms:

[9] The application was first heard by Commissioner Smith on 18 July 2003. At the conclusion of the hearing the Commissioner made an ex tempore decision4 granting the application. The Commissioner's decision is brief and it is convenient to set it out in full:

[10] An order varying the Agreement in the terms sought by Visionstream was issued on 22 July 2003.5

[11] Co-INVEST were not represented at that hearing.

[12] The CEPU subsequently advised Commissioner Smith, by letter dated 8 August 2003, that it wished "to exercise the leave granted by the Commission on 18 July 2003 and seek the matter be re-opened to allow the CEPU and any other interested party to make submissions."6

[13] Co-INVEST then wrote to Commissioner Smith on 4 September 2003 seeking leave to intervene in the hearing.

[14] CoINVEST is a company limited by guarantee which administers the Construction Industry Long Service Leave Scheme ("the CILSL Scheme") and which is the trustee of the Construction Industry Long Service Leave Fund ("the CILSL Fund"), administered pursuant to the Construction Industry Long Service Leave Act 1997 (Vic).

[15] A portable long service leave scheme for Victorian construction industry workers has existed in one form or another since 1977. These portable industry schemes have been established in order to enable workers in the transient construction industry to access long service leave benefits.

[16] CoINVEST administers the CILSL Scheme in Victoria. The CILSL Scheme is comprised of the:

[17] The CILSL Fund is established by the Trust Deed. The Trust Deed authorises the making of the Rules to regulate the administration of the Fund.

[18] The matter was relisted for hearing on 29 September 2003 on the application of the CEPU but adjourned until 14 October 2003. That hearing did not proceed and the matter was eventually heard on 25 February 2004.

[19] On 24 February 2004 the CEPU wrote to Commissioner Smith in the following terms:

[20] On 24 February 2004 Mr Butler, representing Visionstream, wrote to Commissioner Smith in the following terms:

[21] During the course of the proceedings on 25 February 2004 Visionstream contended that the Commissioner was functus officio in respect of the application to vary the Agreement as those proceedings had concluded once it became apparent that the CEPU did not wish to put any further submissions. CoINVEST argued to the contrary and submitted that the application to vary had not been dealt with to finality and that the Commission should determine its application for intervention.

[22] At the conclusion of the proceedings on that day the Commissioner issued an ex tempore decision7, in the following terms:

[23] We now turn to the submissions advanced on appeal.

The Appeals

[24] We propose to deal first with the appeal in respect of the Commissioner's decision and order of July 2003.

[25] Two threshold issues arise for determination in respect of this appeal. The first concerns the appellant's standing to constitute the appeal.

[26] The appeal is brought pursuant to s.45(1)(g) and the appellant contends that it is "a person aggrieved by the decision or act concerned" within the meaning of s.45(3)(d) of the WR Act. The essence of the appellant's contention is that CoINVEST is statutorily responsible for the administration of the CILSL scheme, the operation of which is directly affected by the variation to the Agreement because the variation removes CoINVEST's right to collect relevant information and contributions in respect of employees of Visionstream.

[27] The respondent contended that the appellant was not a person aggrieved. In this context the respondent submitted, at paragraph 7.2 of its written submissions8 that:

[28] The meaning of "a person aggrieved" within the context of s.45(3)(d) was considered by the Industrial Relations Court of Australia in Tweed Valley Fruit Processors Pty Ltd v Ross and others.9 In that case their Honours Wilcox CJ and Marshall JJ held:

[29] The variation to clause 15(iii) of the Agreement has had the effect of removing CoINVEST's right to collect relevant information and contributions in respect of employees of Visionstream. In that sense the variation of the Agreement has operated to restrain what would otherwise have been CoINVEST's legal rights. Further, given the statutory basis of the CILSL scheme and the role of CoINVEST in the administration of that scheme we are satisfied that CoINVEST has suffered a grievance, as a result of the decision complained of, beyond that of an ordinary member of the public.

[30] We are satisfied that CoINVEST is a person aggrieved by the decision and order subject to appeal and as such has the requisite standing to institute the appeal.

[31] The second threshold issue concerns the time within which an appeal must be lodged.

[32] Rule 11(2)(a) of the Commission's rules provides that an appeal must be instituted "before the end of 21 days after the date of the award, order, decision or opinion appealed against." Rule 11(2)(c) confers power on a Full Bench to extend the time within which an appeal is to be lodged.

[33] The appeal in respect of the decision and order of July 2003 was lodged on 17 March 2004, some seven months out of time.

[34] The appellant advanced four points in support of its application to extend the time period for the lodgment of the appeal:

[35] Mr Wood, counsel for Visionstream, submitted that in the event the Commission concluded that there was merit in the appeal, the respondent would not strenuously oppose the application to extend the time for lodgment.11

[36] The decided cases12 provide that following matters are relevant to the exercise of the Commission's discretion to extend time:

[37] We accept that there is a satisfactory reason for the delay. The appellant acted reasonably in exhausting its rights at first instance before instituting the appeal. We have also had regard to the nature of the grounds of appeal and the fact that one of those grounds would be upheld if time was extended. The respondent did not contend that it would suffer prejudice if time were extended because of developments after the time for lodgment had expired.

[38] In all the circumstances we think this is an appropriate case to extend time and we grant the application to extend the time for lodging the appeal.

[39] We now turn to the grounds advanced in support of the appeal.

[40] The appeal is against the Commissioner's decision, and subsequent order, to vary clause 15(iii) of the Agreement pursuant to s.170MD(6).

[41] Section 170MD(6) relevantly provides:

[42] Before the Commission exercises its discretion to vary an agreement pursuant to s.170MD(6)(a) it must first identify an ambiguity or uncertainty.13 It may then exercise the discretion to remove that ambiguity or uncertainty by varying the agreement.

[43] The first part of the process - identifying an ambiguity or uncertainty - involves an objective assessment of the words used in the provision under examination.14 Once an ambiguity or uncertainty has been identified it is a matter of discretion as to whether or not the agreement should be varied to remove the ambiguity or uncertainty. In exercising such a discretion the Commission is to have regard to the mutual intention of the parties at the time the agreement was made.15

[44] The first step in dealing with a s.170MD(6)(a) application - the identification of an ambiguity or uncertainty - requires the determination of a "jurisdictional fact". In Corporation of the City of Enfield v Developmental Assessment Commission the joint judgment of Gleeson CJ, Gaudron, Gummow, Kirby and Hayne JJ described the term "jurisdictional fact" in these terms:

[45] Similarly in Re CFMEU - Termination of Bargaining Periods, Lee and Madgwick JJ said:

[46] In the context of s.170MD(6)(a) the Commission must first identify the existence of an ambiguity or uncertainty before exercising its discretion to vary the agreement. We agree with the Full Bench in Re CFMEU Appeal which described the existence of an ambiguity or uncertainty as "a necessary statutory prerequisite to any variation being made."18

[47] In dealing with an appeal from the determination of a jurisdictional fact a Full Bench of the Commission is concerned with whether the member at first instance reached the right conclusion. It is not concerned simply with whether the decision of the single member was reasonably open to him or her.19 As Gummow J pointed out in Minister for Immigration and Multicultural Affairs v Eshetu,20 a court or tribunal cannot give itself jurisdiction by erroneously deciding that a jurisdictional fact exists.

[48] The appellant contends that the Commissioner had no jurisdiction to vary the Agreement pursuant to s.170MD(6) upon the basis that a prima facie case of uncertainty had been established. It is argued that the Commission's power to vary an agreement pursuant to s.170MD(6) requires a positive finding that the agreement is uncertain or ambiguous. On that basis it is submitted that the Commissioner erred in adopting the approach that it was sufficient that he be satisfied on a prima facie basis that the Agreement was uncertain and that he had the requisite jurisdiction to vary the Agreement.

[49] The appellant's contention turns on the terms of the Commissioner's decision of 22 July 2003 and in particular that part of his decision where he deals with the question of whether or not the clauses sought to be varied are uncertain. The Commissioner said:

[50] It is relevant to note that in this part of his decision the Commissioner draws a clear distinction between clause 5 and 13 on the one hand and clauses 15(iii) on the other. In respect of the former clauses he says that he is "satisfied" that they are uncertain. No challenge is made to that finding on appeal. In respect of clause 15(iii) he is satisfied that a prima facie case has been established for the application to be granted.

[51] Mr Wood submitted that the decision ought not be gone through "with a fine appellate toothcomb"21 and on a fair reading it is apparent that the Commissioner was satisfied that clause 15(iii) was uncertain.

[52] Mr Wood put it in these terms:

[53] We agree, of course, with the proposition that the Commissioner's reasons must be read as a whole and should be approached fairly. They should not be considered in a manner which would regard every lapse of expression or phrasing as constituting an error warranting correction on appeal.23 As his Honour Kirby J said in Minister for Immigration and Ethnic Affairs v Wu Shan Liang:

[54] But it seems to us that the use of the expression prima facie in the decision subject to appeal was not simply a lapse of expression or phrasing. Rather the Commissioner deliberately distinguished the position with respect to clauses 5 and 13, to that which pertained in relation to clause 15(iii). In respect of the latter the extent of his finding was that the applicant had established a prima facie case for relief.

[55] The meaning of the expression prima facie was considered by the High Court in North Ganalanja Aboriginal Corporation v The State of Queensland. In that matter their Honours Brennan CJ, Dawson, Toohey, Gaudron and Gummow JJ said:

[56] Sometimes the expression prima facie case has been equated to the existence of an arguable case, that is one which has some prospect of success.26

[57] In our view the Commission's power to vary an agreement pursuant to s.170MD(6) requires a positive finding that the agreement is uncertain or ambiguous. The Commissioner erred in deciding that it was sufficient that he be satisfied on a prima facie basis that the Agreement was uncertain and that he therefore had the requisite jurisdiction to vary the Agreement.

[58] The error identified is jurisdictional in character and we are satisfied that leave to appeal ought be granted and the appeal upheld. In the circumstances we need not consider the other arguments advanced in support of the appeal. However, we note that in circumstances where the Commissioner had not heard submissions from the other party to the Agreement, the CEPU (which had indicated that it had difficulties with the proposed amendment to clause 15(iii) and had sought an adjournment to prepare its response), it was not appropriate to vary the Agreement merely on the basis of bar table statements by Visionstream's representative regarding the mutual intention of the parties.27

[59] We have decided to quash that part of the order subject to appeal which varies clause 15(iii) of the Agreement. We remit Visionstream's s.170MD(6) application to Commissioner Smith for further hearing. The question of Co-INVEST's application for leave to intervene will be a matter for the Commissioner. In determining that question the Commissioner will no doubt have regard to our conclusion in respect of the appellant's standing to institute the appeal.

[60] During the course of the oral argument Mr Bell QC, counsel for the appellant, indicated that in the event the first appeal was successful then the second appeal was not pressed. Accordingly we need not determine the second appeal.

Appearances:

K. Bell, Queen's Counsel, with R. Doyle, of Counsel, and H. Roberts for CoINVEST Limited.

S. Wood, of Counsel, with M. Butler for Visionstream Pty Ltd.

Hearing details:

2004.

Melbourne:

May 19

Printed by authority of the Commonwealth Government Printer

<Price code E>

1 PR935091.

2 PR935092.

3 PR944269.

4 PR935091.

5 PR935092.

6 Appeal Book, Tab 10.

7 PR944269.

8 Exhibit R2.

9 (1996) 137 ALR 70.

10 Ibid at 90-91.

11 Transcript 19 May 2004 at paragraph 131.

12 Re Metro Meat Ltd Orange Interim Award 1987, Print J1669, 1 March 1990 per Munro J, MacBean SDP and Grimshaw C; Bremmer v Lababidi, Print S7292, 21 June 2000 per Polites SDP, Williams SDP and Lewin C; Fox v Kangan Batman TAFE, Print S0253, 25 October 1999 per Giudice J, McIntyre VP and Redmond C; Stevenson-Helmer v Epworth Hospital, Print T2277, 19 October 2000 per Ross VP, Acton SDP and Simmonds C; and Tracey Christie v London Transport Bus Tours Pty Ltd, PR912670, 19 December 2001 per Ross VP, Lacy SDP and Holmes C.

13 Re Victorian Public Transport Enterprise Agreement 1994, Print M2454, 7 June 1995 per Ross VP, Polites SDP and Grimshaw C at p.3; and Re CFMEU Appeal, Print R2431, 25 February 1999 per Harrison SDP, Drake DP and Larkin C at paragraph 8.

14 Re Victorian Public Transport Enterprise Agreement 1994, Print M2454, 7 June 1995 per Ross VP, Polites SDP and Grimshaw C at p.3.

15 Re Victorian Public Transport Enterprise Agreement 1994, Print M2454, 7 June 1995 per Ross VP, Polites SDP and Grimshaw C at pp.3-4.

16 (2000) 199 CLR 135 at 148.

17 (2002) 113 IR 241 at paragraph 53.

18 Print R2431, 25 February 1999 per Harrison SDP, Drake DP and Larkin C at paragraph 6.

19 Pawel v Australian Industrial Relations Commission (1999) 97 IR 392 per Branson and Marshall JJ at paragraph 16.

20 (1999) 162 ALR 577 at paragraph 127. Also see R v Judges of the Federal Court of Australia; Ex parte WA National Football League (Inc) (1979) 143 CLR 190 at 214.

21 Transcript at paragraph 152.

22 Transcript at paragraphs 152 and 154.

23 See Drake Personnel Ltd t/as Drake Industrial v WorkCover Authority of New South Wales (1999) 90 IR 432 at 457; ALH Group Pty Ltd t/as the Royal Exchange Hotel v Mulhall, (2002) 117 IR 357.

24 (1996) 185 CLR 259 at 291.

25 (1996) 185 CLR 595 at 615-616.

26 Hunter v Commissioner of Police [2003] WASC 10 at [18] and [19] per Pullin J.

27 R v Commonwealth Conciliation and Arbitration Commission; Ex parte The Melbourne and Metropolitan Tramways Board (1965) 113 CLR 228 at 243 per Barwick CJ and at 252 per Menzies J.