Dec 852/00 M Print S8106

AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION

Workplace Relations Act 1996
s.45 appeal against decision Print S3119
issued by Commissioner Wilks on 10 February 2000

MM Cables
(A Division of Metal Manufacturers Limited)
(C No. 20811 of 2000)

s.170CE application for relief re termination of employment

Victor Zammit

and

MM Cables - A Division of Metal Manufactures Ltd
(U No. 20397 of 1999)

VICE PRESIDENT ROSS

 

SENIOR DEPUTY PRESIDENT DRAKE

 

COMMISSIONER LAWSON

SYDNEY, 17 JULY 2000

Alleged unlawful termination.

DECISION

Background

[1] This decision deals with an appeal by MM Cables - A Division of Metal Manufactures Limited (MM Cables) against the decision and order of Commissioner Wilks in Print S3119 made on 10 February 2000. Mr Victor Zammit was the applicant in the proceedings below and is the respondent in the matter before us. In the decision subject to appeal the Commissioner concluded that the termination of Mr Zammit's employment was "harsh, unjust and unreasonable". The Commissioner then considered the question of remedy and decided that it was appropriate to make an order of reinstatement (s.170CH(3)(b)) together with an order to maintain the continuity of Mr Zammit's employment (s.170CH(4)(a)). The order giving effect to the Commissioner's decision is in the following terms:

[2] Before we turn to examine the decision subject to appeal and the grounds advanced in support of the appeal we propose to briefly set out some of the background to the termination of Mr Zammit's employment.

[3] Mr Zammit commenced employment with the appellant on 2 June 1969. On 15 October 1997 Mr Zammit reported to his supervisor, Mr Gary Allen, that he had injured himself at work the previous day. Mr Zammit sustained an injury to his right shoulder while handling a 24 inch spool at work. As he was sliding the spool off a stack on a pallet it slipped, while he was holding it, and he felt a pinch and a shock to his right upper limb. Mr Zammit continued to perform his normal duties for some two months after his injury, thinking his symptoms would subside. After the Christmas break he reported on-going pain to his shoulder.

[4] On 5 January 1998 the appellant's occupational health and safety officer, Ms Myrna Cruz, sent Mr Zammit to see Dr Goyal at the Liverpool Medical Centre.1 After examining Mr Zammit Dr Goyal completed an alternative duties form in which he identified the following restrictions:

[5] On the basis of Dr Goyal's advice Ms Cruz prepared a rehabilitation program for Mr Zammit.3 The rehabilitation program describes the restrictions on Mr Zammit's duties as follows:

- no lifting of more than 5 kg using the right hand;
- avoid repetitive use of the right hand;
- avoid repetitive use of the right shoulder;
- no loading of drums or spools; and
- not to move baskets or sticky rubber.

[6] On 5 May 1998 Ms Cruz referred Mr Zammit to Industrial Rehabilitation Service Pty Ltd (`IRS') for further rehabilitation. On 28 May 1998 Ms Royo, an occupational therapist with IRS produced a return to work program for Mr Zammit.4 Ms Royo was subsequently replaced as Mr Zammit's occupational therapist by Mr Travis. At this time, July 1998, Mr Zammit was performing full time selected duties consisting of two hours per day of modified pre-injury machine operating and six hours per day operating the high speed vertical taping machine.

[7] A copy of the return to work program prepared by Mr Travis is set out as Annexure L to Ms Cruz's witness statement, Exhibit M4. This program involved a progressive return to Mr Zammit's pre-injury duties in three stages:

[8] Mr Zammit's pre-injury duties were subject to the following modifications:

[9] In a report dated 24 July 1998 Mr Travis stated that he anticipated that Mr Zammit "may be capable of resuming his full pre-injury duties from 10 August 1998".5 This opinion was consistent with that of Mr Zammit's treating doctor, Dr Goyal, who advised on 10 June 1998 that Mr Zammit should be able to resume his pre-injury machine operating duties within six weeks.6

[10] On 5 August 1998 Mr Zammit consulted an orthopaedic surgeon, Dr Bokor, in respect of his condition. Dr Bokor's report to Mr Zammit's doctor is in the following terms:

[11] On 13 September 1998 Mr Zammit's rehabilitation file with IRS was closed.

[12] In December 1998 Mr Zammit was examined by Dr Burns. The appellant retained Dr Burns as a consultant occupational physician to manage rehabilitation cases and to liaise with medical specialists in long term rehabilitation cases. Mr Zammit had been seeing Dr Burns every four weeks. On this occasion Mr Zammit experienced what he described as "rough treatment" during the course of Dr Burns' examination. Mr Zammit described what occurred in the following terms:

[13] Mr Zammit experienced considerable pain for three to four days after Dr Burns' examination and was unable to sleep as a result. Before the examination his shoulder condition had been improving9 and it returned to it's normal state some three to four weeks after the examination. Mr Zammit informed Ms Cruz that he did not want to see Dr Burns again. He was informed that he would have to see Dr Burns. In January 1999 Mr Zammit saw Dr Burns for his scheduled examination and at Mr Zammit's request he was accompanied by the union delegate. Mr Zammit described the examination in the following terms:

[14] Dr Burns subsequently forwarded a report to the appellant in respect of Mr Zammit's condition. As this report formed the basis of the appellant's decision to terminate Mr Zammit's employment we have decided to set it out in full:

[15] On 4 February 1999 Mr Zammit was told to go to the office for a meeting the following day. He was not told the purpose of the meeting.12 Mr Zammit's recollection of what took place at the meeting on 5 February 1999 is set out in his evidence in the following terms:

[16] At the relevant time Mr Hamavand Shroff was the Factory Manager of Factory 1 for MM Cables. In his witness statement he sets out his recollection of the meeting:

[17] The letter terminating Mr Zammit's employment is in the following terms:

[18] The letter was signed by Ms Michelle Butterworth, the Human Resources Administrator. Ms Butterworth did not give evidence during the proceedings. During the course of his cross-examination Mr Shroff had difficulty recalling what was said during the meeting.16 It also appears that he was mistaken as to Ms Cruz's attendance at the meeting. In his statement Mr Shroff said that Ms Cruz was in attendance and he confirmed this during his oral evidence.17 But Ms Cruz says she did not attend18 and that was also Mr Zammit's recollection.19 In any event Mr Shroff did not contradict Mr Zammit's recollection of the interview, rather he was simply unable to recall what was said by Mr Zammit.

[19] At the conclusion of the meeting on 5 February 1999 Mr Zammit was escorted off the premises by Mr Renton, the Assistant Factory Manager, at Mr Shroff's direction. Mr Renton apparently accompanied Mr Zammit to his place of work to pick up his belongings, to the change room to change and then to his car so he could leave the premises.20

[20] Two further matters should be mentioned. First, the appellant operated a voluntary redundancy scheme in 1998. Mr Zammit had applied for voluntary redundancy in September 1998 but was not accepted. At that stage the appellant had determined that it wished to retain Mr Zammit's skills.21 Some other grade 3 operators had been accepted for voluntary redundancy.22 If Mr Zammit's application for voluntary redundancy had been accepted it is reasonable to assume that given his lengthy service he would have been entitled to a substantial redundancy payment.

[21] The second matter concerns the ownership of MM Cables. In December 1998 negotiations took place between Metal Manufacturers and Pirelli concerning the sale of the MM Energy Products Division - of which MM Cables was a part - to Pirelli. The sale was completed on 1 April 1999. Mr Zammit was never an employee of Pirelli. As a consequence it is common ground that the Commission could not make an order reappointing Mr Zammit to the position in which he was employed immediately before the termination.

[22] On 10 May 1999 Mr Zammit lodged an application for relief in respect of the termination of his employment under s.170CE of the Workplace Relations Act 1996 (Cth) (the WR Act). The matter was not settled by conciliation and proceeded to arbitration before Commissioner Wilks.

Decision at First Instance

[23] Mr Zammit's application for relief was heard on 25 January 2000. On 10 February 2000 the Commissioner issued a decision in respect of that application. In relation to the matters in s.170CG(3) the Commissioner found that:

- the reason given for the termination of Mr Zammit's employment was not a valid reason;

- the applicant was informed of the reason for his termination;

- the applicant was not given an opportunity to respond to the reason for his termination;

- s.170CG(3)(d) has no application in this case.

[24] In relation to s.170CG(3)(e) the Commissioner considered that two matters were relevant:

[25] On the basis of these findings the Commissioner concluded that the termination of Mr Zammit's employment was "harsh, unjust or unreasonable". The Commissioner went on to make orders under s.170CH(3)(b) and s.170CH(4)(a).

Consideration of the Submissions on Appeal

[26] There are three broad limbs to the appeal against the order made by Commissioner Wilks.

[27] First, it is contended that the Commissioner failed to properly identify the status of Mr Zammit's employment prior to his termination. In this regard it was contended that Mr Zammit was not performing the full range of his pre-injury duties. In the written submissions filed on behalf of the appellant Mr Moore says:

[28] The extent to which Mr Zammit's injury restricted his capacity to perform his pre-injury duties was a central issue in the proceedings at first instance and on appeal. Prior to his injury Mr Zammit's principal area of work was as an operator of the light rewind/repair machine (P14-51-B) (the "winding machine").25 In simple terms this machine rewound a large spool of cable onto a number of smaller spools. Mr Zammit operated the machine to ensure that assigned tasks were carried out according to the specifications set out in a job card. He also monitored the quality of the cable as it ran through the machine.26 According to a workplace assessment carried out by IRS, Mr Zammit's work on the winding machine involved:

[29] Mr Zammit confirmed that this was an accurate description of the work he did.28

[30] Mr Zammit's evidence was that after his injury the time he spent working on the winding machine was progressively increased, consistent with the terms of his return to work program (see paragraph 7 of this decision). At the end of that process he was working on the winding machine for a full shift of eight hours.29 Mr Zammit received some limited assistance to enable him to perform his duties on the winding machine. In particular he received assistance from the team leader or leading hand to perform two aspects of his work on the winding machine:

- empty spools would be taken off the pallet so that they were only stacked one spool high (this task would only take about 3-5 minutes and depending on the number of operators using the empty spools it may have to be done a number of times a day);

- loading the full spool onto the machine (this task takes about 4-5 minutes and has to be done once a day, on average).

[31] During the time that Mr Zammit was operating the winding machine - either before or after his injury - no complaint was made to him about the work he was doing.30 Nor did his team leader or leading hand say to him, at any stage, that it was inconvenient or a problem to load the winding machine for him or to unload the empty spools from the pallet. Indeed Mr Zammit's evidence was that his team leader provided similar assistance to a number of other employees who were not suffering from an injury.31

[32] Towards the end of his rehabilitation program Mr Zammit worked full-time on the winding machine for about a week and a half.32 At that time he was directed by his team leader to move to the mica taper machine due to production demands in that area. He remained on that machine until his termination some three to four months later.33 Mr Zammit needed some limited assistance in operating the mica taper machine - namely in loading the full spools onto the machines. This machine also uses tape cartridges and Mr Zammit's evidence was that he loaded these cartridges himself, without assistance.34 We note here that Mr Shroff's evidence was that "Mr Zammit was unable to load the cartridges without assistance while he was on restricted duties".35 But during cross-examination he said that he had been told that Mr Zammit was unable to load the cartridges "by one of the employees working in that section". Mr Shroff does not suggest that he relied on his own observation of Mr Zammit and the employee who provided him with the information was not identified. Nor did Mr Shroff ask Mr Zammit if he could perform this task.36 In these circumstances we find that Mr Zammit was able to load the cartridges in the mica taper machine.

[33] During his rehabilitation period Mr Zammit also undertook fork lift driving duties37 and was trained, and performed work, in what is known as the "Defence QAR testing" process.38

[34] These issues are important because Mr Zammit's alleged inability to perform his pre-injury duties formed the basis of the decision to terminate his employment. Mr Shroff is questioned about this during cross-examination and re-examination:

[35] The following exchange took place during the course of Mr Shroff's re-examination:

[36] In our view the evidence supports the following findings in respect of Mr Zammit's capacity to perform his pre-injury duties:

[37] The issue in relation to the operation of the "Horngear graders" is a little more complicated. Mr Shroff's evidence was that Mr Zammit could not operate these machines because of his post injury restrictions. During the course of his cross-examination Mr Zammit agreed with the proposition that as a result of his injury he would not be able to change the gears on these machines.41 But there is no evidence about the extent to which gear changing is an integral part of the operation of this machine or indeed how much time was taken in performing this task each week. Further Mr Zammit's evidence is that he last operated these machines about 12 months before the injury to his shoulder. On that occasion, after operating the machine for about seven months, he started to experience some back pain. He told his team leader of this who replied: "no problem just pack everything and I'll take you back to your own job".42

[38] We also note that the evidence discloses that prior to his termination there was no discussion with Mr Zammit about the extent to which his injury restricted his capacity to perform his pre-injury duties. Nor is there any evidence of any consultation with Mr Zammit's team leader/leading hand about this issue. The team leader/leading hand was responsible for supervising Mr Zammit on a day to day basis. He was not called by MM Cables to give evidence about the impact of Mr Zammit's injury on his ability to perform his duties and no explanation was provided for the failure to call him.

[39] In our view there is no substance to the appellant's contention that Mr Zammit was "essentially restricted to one machine requiring assistance as part of a rehabilitation programme at the time of his termination and was not working his usual machine." The matters set out in paragraphs 28-38 above are relevant to the determination of whether there was a valid reason for Mr Zammit's termination and that brings us to the appellant's next point.

[40] The second limb to the appeal was the contention that in determining whether there was "a valid reason for the termination related to the capacity or conduct of the employee or to the operational requirements of the employer's undertaking, establishment or service" pursuant to s.170CG(3)(a) the Commissioner utilised an "inappropriate or improper test". In the alternative it was argued that the test applied by the Commissioner effectively denied the appellant natural justice as it was never put on notice that it had to defend the "inherent requirements of the position".

[41] The relevant part of the Commissioner's decision is in the following terms:

[42] We think that there are two difficulties in the approach adopted by the Commissioner to the question of whether there was a valid reason for Mr Zammit's termination of employment. First, the Commissioner seems to have confined himself to determining whether the reason given for Mr Zammit's termination was a valid reason. The question in s.170CG(3)(a) is not so limited. Rather the Commission is obliged to consider whether there was a valid reason for the termination - that inquiry is not limited to the reason given by the employer for the termination.

[43] The second difficulty is in the Commissioner's conclusion "that the reason given was not a valid reason" because he was "unable to conclude that the applicant's incapacity was such that it affected his capacity to perform the inherent requirements of the particular position". The Commissioner seems to have approached his task on the premise that if there was a breach of s.170CK(2)(f) then there could be no valid reason for the termination of Mr Zammit's employment. Section 170CK(2) provides that subject to the exceptions in ss.170CK(3) and (4) an employer must not terminate an employee's employment for any one or more of a number of specified reasons. We readily accept that if a termination was in breach of s.170CK then it could not be said that there was a valid reason for termination. But the converse does not necessarily apply. The absence of a breach of s.170CK does not render a termination "valid" within the meaning of s.170CG(3)(a).

[44] We think that this aspect of the Commissioner's decision is attended by sufficient doubt as to warrant the granting of leave to appeal.

[45] We have considered for ourselves whether there was a "valid reason" for the termination of Mr Zammit's employment. In that context we note that in the proceedings below Mr Rothman SC, counsel for the applicant, characterised the circumstances surrounding Mr Zammit's termination in the following terms:

[46] In our view the evidence supports Mr Rothman's summation. We have considered the appellant's contentions - both on appeal and in the proceedings below. The appellant relies on Ms Heine's evidence to support the proposition that "Zammit's injuries were affecting his ability to be used in a flexible rotation". It is clear from her evidence that Ms Heine was relying on Mr Shroff's opinion in this regard. For his part Mr Shroff was unaware of the fact that Mr Zammit had been working on the winding machine for a full shift of eight hours during his rehabilitation. Further, neither Ms Heine nor Mr Shroff had any discussion with Mr Zammit about the extent to which his injury restricted his capacity to perform his pre-injury duties.

[47] In all the circumstances we are satisfied that there was not a "valid reason" for the termination of Mr Zammit's employment.

[48] As there was no valid reason for the termination of Mr Zammit's employment paragraphs 170CG(3)(b) and (c) have no application.45

[49] In relation to s.170CG(3)(d) the Commissioner found that this provision had no application because the termination was not related to unsatisfactory performance. He said:

[50] We doubt that there is a relevant distinction between performance and capacity to perform. But it is unnecessary for us to determine whether the Commissioner erred in his application of s.170CG(3)(d). Even if the Commissioner did err such a conclusion would not assist the appellant because to the extent that s.170CG(3)(d) is relevant it is clear that Mr Zammit was never warned about unsatisfactory performance.

[51] Having regard to the matters referred to in s.170CG(3) the Commissioner concluded, among other things, that the termination of Mr Zammit's employment was harsh. In our view such a finding was reasonably open. Indeed on the material before us we would reach the same conclusion. The harshness of the appellant's treatment of Mr Zammit - an employee with over 29 years satisfactory service - is manifest.

[52] The third limb of the appellant's case relates to remedy. The Commissioner's decision in respect of remedy is as follows:

[53] In the written submission filed in support of the appeal the appellant said:

[54] During the course of oral argument counsel for the appellant, Mr Moore, advanced the proposition that the Commissioner had decided to reinstate Mr Zammit on the basis of the submissions advanced on his behalf. Implicit in the Commissioner's decision was said to be an acceptance of the submission summarised at paragraph 56 of the decision. In other words the decision to reinstate was predicated on the finding that "Metal Manufactures Ltd, operates a plant at Port Kembla which employs persons in classifications which the applicant could fulfil despite his injury, such as fork-lift driving and machine operation".

[55] The appellant challenged the finding that the applicant could fulfil the requirements of classifications employed by Metal Manufactures. It was submitted that the decision to reinstate must be made on a sound evidentiary basis, in particular the existence of a position to which the applicant is to be reinstated must be supported by some evidence. In this case the evidence as to the availability of an alternate position was limited. It was said that the evidence went no higher than establishing a class of persons employed at the Port Kembla site, not actual positions then available. Nor was it established that Mr Zammit could have performed the work required of such classifications or positions. It was conceded, properly in our view, that the applicant did not need to go so far as to identify a vacancy in a position that he would be capable of fulfilling.49

[56] The appellant also challenged the generality of the order subject to appeal. It was submitted that the Commissioner should have clearly identified the position to which he was reinstating Mr Zammit.

[57] The Commissioner ordered that Mr Zammit be reinstated with continuity of employment but made no order in respect of lost remuneration. The Appellant contends that reinstatement should not have been ordered because it was inappropriate to do so.

[58] Section 170CH(3) provides that if the Commission considers it "appropriate" it may make an order requiring the employer to reinstate the employee by:

[59] It was common ground that no order could be made under s.170CH(3)(a) because of the sale of MM Cables to Pirelli.

[60] Section 170CH(4) provides that if a reinstatement order is made then the Commission may also make orders to maintain the continuity of the employee's employment and to require the employer to pay the employee an amount in respect of the remuneration lost, or likely to have been lost, by the employee because of the termination.

[61] The current statutory framework requires the Commission to consider whether reinstatement is "appropriate". Under the former s.170EE(2) the Commission was required to consider whether reinstatement was "impracticable". A consideration of the appropriateness of reinstatement involves the assessment of a broader range of factors than impracticability.50

[62] Such a determination requires a judgement to be made by the member at first instance based on the evidence and material before the Commission.51 In the event that the Commission thinks that the reinstatement of the employee is inappropriate it may make an order requiring the employer to pay the employee an amount in lieu of reinstatement (s.170CH(6)).

[63] In Australia Meat Holdings Pty Ltd v McLauchlan a Full Bench of the Commission said:

[64] The reasons given by the Commissioner for his decision to order reinstatement are brief. In this regard we accept the proposition advanced by the appellant that implicit in the Commissioner's decision was an acceptance of the submission put on behalf of the applicant and summarised at paragraph 56 of the decision. The Commissioner says that he gave careful consideration to all of the circumstances of the case including those referred to in s.170CH(2). He does not detail his consideration of the matters in s.170CH(2). In certain circumstances the failure to deal with the specific matters set out in s.170CH(2)(a) to (d) constitutes an error warranting correction on appeal. As Moore J observed in Edwards v Giudice:

[65] But the circumstances here are very different. There is no contest between the parties with respect to the matters in s.170CH(2)(a) to (d). It was not suggested that an order of the type made by the Commissioner would affect the viability of the appellant's undertaking or that the applicant had failed to mitigate his loss.54

[66] In relation to other relevant matters (s.170CH(2)(e)) the appellant relied on the fact that Mr Zammit was an "injured employee" under the meaning of s.91 of the Industrial Relations Act 1996 (the NSW Act). Mr Moore put the appellant's submission on that point in these terms:

[67] As an "injured employee" Mr Zammit may apply to the NSW Commission for a reinstatement order pursuant to s.93 of the NSW Act. It is not suggested that Mr Zammit was prevented from making an application for relief under s.170CE by the operation of s.170HB of the WR Act. Section 170HB states:

[68] It is clear from the terms of s.170HB that it is not merely the existence of an alternative remedy which is necessary to prevent an application for relief under s.170CE being made. The applicant must also be taking steps to access the alternative remedy. In this regard s.170HB can be contrasted with ss.170FG and 170GC which provide, among other things, that the Commission must refrain from considering certain applications if an alternative remedy is available under a law of a State. In our view the availability of an alternative remedy is not a relevant matter within the context of s.170CH(2)(e). If it was intended that the mere availability of an alternative remedy was sufficient to prevent an applicant from obtaining relief then the Parliament would have so provided - as it did in ss.170FC and 170GC. It would be odd if the mere availability of an alternative remedy did not prevent Mr Zammit from bringing an application for relief but did prevent him from obtaining a remedy.

[69] As the matters in s.170CH favour the granting of a remedy in this case the key issue is whether the finding that the applicant could fulfil the requirements of classifications employed by Metal Manufacturers was reasonably open. In this regard the appellant contends: "It would be a perverse finding faced with clear medical evidence of unfitness to order reinstatement in a location in which Zammit had never worked and in which no detailed identification of functions and duties required to be performed was addressed."56 We now turn to consider the relevant evidence.

[70] Mr Zammit was an employee of Metal Manufacturers Limited (the MM Group). He worked at MM Cables which was part of the MM Energy Products Division within the MM Group. Since the termination of his employment the MM Energy Products Division has been sold to Pirelli. The MM Group now consists of the following Divisions:

[71] In his evidence Mr Robert Christian, the Group Human Resource Manager of Metal Manufacturers Limited, said:

[72] During the course of his oral evidence Mr Christian agreed with the proposition that the MM Group has positions in which people perform duties as fork lift drivers, process workers and machine operators.58

[73] It is apparent from his witness statement and oral evidence that Mr Christian:

- does not become involved in day to day operational issues;

- has no personal knowledge of nor any involvement in the circumstances of Mr Zammit's employment or termination; and

- did not know that the limitations as to the amount Mr Zammit could lift only applied to his right hand.

[74] Significantly, Mr Christian says that he is "not aware" of any positions that are currently available within the MM Group which would suit Mr Zammit's skills, abilities and current work restrictions. There is no suggestion that Mr Christian, or indeed anyone else within the MM Group, has investigated the availability of a suitable position for Mr Zammit.

[75] What is clear is that there are positions within the MM Group in which people perform duties as fork lift drivers, process workers and machine operators. According to the "Transferable Skills Analysis" conducted by IRS Mr Zammit has the skills to undertake such duties subject to the restriction in his capacity to lift over 7.5 kg with his right hand.59

[76] In relation to fork lift driving Mr Zammit had performed such duties - after his injury - at the direction of his team leader, the supervisor and Mr Shroff.60 Mr Zammit's performance of these duties was consistent with the medical advice about the range of duties he could perform.61 Since the termination of his employment Mr Zammit has completed refresher training in forklift driving and holds a forklift licence.62 He has applied, unsuccessfully, for work as a forklift driver, process worker and labourer.63

[77] In the course of his evidence Mr Zammit also said that he was prepared to travel to the appellant's Port Kembla site to work.64

[78] We are satisfied that both the Commissioner's decision to reinstate Mr Zammit and the finding upon which that decision was based were reasonably open. In this regard we note that:

[79] In relation to the generality of the order subject to appeal we do not think the form of the Commissioner's order constitutes a basis for upholding the appeal. The order is necessarily expressed in general terms given the state of the evidence. There was no evidence which would clearly identify a particular position to which Mr Zammit could be appointed. Such information is peculiarly in the knowledge of the appellant but it chose not to lead any evidence in this regard. To require the specification of a particular position in such circumstances would unfairly deny the applicant access to the remedy of reinstatement. An employer could limit an applicant's remedies to compensation - which is subject to a statutory limit - by the simple expedient of not adducing any evidence (or as in this case only adducing limited evidence) as to the availability of particular positions. In our view such an outcome would not be consistent with the objects of Division 3 of Part VIA of the WR Act.

Conclusion

[80] The appellate jurisdiction conferred on us by s.45 in relation to an appeal concerning an order arising from the arbitration of an application under s.170CE is conditioned by s.170JF(1) which limits the grounds of an appeal. The only ground is that the member of the Commission who conducted the arbitration was in error in deciding to make an order. That can be an error of fact or an error of law.65 As the order subject to appeal is a discretionary one, the appeal is to be determined in accordance with the principles stated in House v The King.66 In House v The King, Dixon, Evatt and McTiernan JJ stated these principles as follows:

[81] In order to warrant the grant of leave to appeal the appellant must establish an arguable case of either legal error or that the discretion has been miscarried. This means that the appellant must show that the case has a reasonable prospect of success. In this case we have decided to grant leave to appeal only in respect of the Commissioner's consideration of s.170CG(3)(a). In all other respects leave to appeal is refused. In that regard we note that in order to warrant a decision granting leave to appeal more is usually required than simply establishing a case that might have persuaded the Full Bench to exercise the discretion in another way as if the matter was being considered at first instance. In the absence of an arguable case of either legal error or that the discretion was miscarried the Commission would not grant leave to appeal merely to substitute its decision for the decision under appeal.68

[82] In relation to s.170CG(3)(a) we considered for ourselves whether there was a valid reason for the termination of Mr Zammit's employment and concluded that there was not (see paragraphs 44 to 47 of this decision). Accordingly we dismiss the appeal in relation to that ground.

BY THE COMMISSION:

VICE PRESIDENT

Appearances:

R. Moore, Counsel with J. Bonner for the appellant.

S. Rothman, Senior Counsel for the respondent.

Hearing details:

2000.
Sydney:
June 23.

Printed by authority of the Commonwealth Government Printer

<Price code F>

1 See Annexure C to Exhibit M4.

2 See Annexure D to Exhibit M4.

3 See Annexure E to Exhibit M4.

4 See Annexure J to Exhibit M4.

5 See Annexure M to Exhibit M4; Appeal Book at p.308.

6 See Appeal Book at p.307.

7 See Annexure N of Exhibit M4; Appeal Book at p.311.

8 Transcript p.25 at lines 20-30.

9 Transcript p.25 at lines 6-8.

10 Transcript p.27 at lines 4-7.

11 See Annexure O to Exhibit M4; Appeal Book at p.312.

12 Transcript p.27 at lines 13-25.

13 Transcript p.28 at lines 19-33.

14 Exhibit M5 at paragraph 23; Appeal Book p.317.

15 See Annexure G to Exhibit M5.

16 Transcript pp105-106.

17 Transcript p.104 at lines 9-10.

18 Transcript p.92 at lines 18-19.

19 Transcript p.28 at lines 7-12.

20 Transcript p.106 at lines 23-30.

21 Transcript p.71 at lines 19-30; p.109 at lines 1-9.

22 Transcript p.30 at lines 12-19 (Mr Zammit); p.69 lines 4-11 (Ms Heine) and p.103 lines 1-3 (Mr Shroff).

23 Print S3119 at paragraphs 47 and 48.

24 Exhibit A1 at paragraphs 2-3.

25 Transcript p.14 at lines 9-12.

26 Transcript at pp14-15.

27 See p.2 of Annexure K to Exhibit M4; Appeal Book at p.301.

28 Transcript p.44 at lines 1-4.

29 Transcript p.20 at lines 20-23.

30 Transcript p.22 at line 20.

31 Transcript p.23 at lines 3-7 and p.31 at lines 1-5.

32 Transcript p.20 at lines 20-25.

33 Transcript, p.22 at lines 8-16.

34 Transcript p.20 at lines 3-11, p.46 at lines 5-10.

35 Exhibit M5 at p.2; Appeal Book at p.314.

36 Transcript p.102 at lines 4-9.

37 Transcript p.23 at lines 13-14; p.24 at lines 22-26 and p.49 at lines 19-25.

38 Transcript p.17 at lines 30-34.

39 Transcript p.100 at lines 1-12.

40 Transcript p.108 at lines 10-17.

41 Transcript p.48 at lines 29-31; also see photograph 12 annexed to Exhibit M5 at Appeal Book p.325.

42 Transcript p.61 at lines 3-9.

43 Print S3119 at paragraphs 30-41.

44 Transcript p.113, lines 3-8.

45 Steggles Limited v West, Print S5876, 11 May 2000 per Watson SDP, Williams SDP and Smith C; Fearnley v Tenix Defence Systems Pty Ltd, Print S6238, 22 May 2000 per Ross VP, Polites SDP and Smith C.

46 Print S3119 at paragraph 45.

47 Print S3119.

48 Exhibit A1.

49 See Printing and Kindred Industries Union v Vista Paper Products (1991) 12 CAR 167.

50 Australian Meat Holdings Pty Ltd v McLauchlan (1998) 84 IR 1.

51 See Wark v Melbourne City Toyota, Print R4864, 20 May 1999.

52 (1998) 84 IR 1 at 19.

53 (1999-2000) 169 ALR 89 at 93. Also see Ellawalla v Australian Postal Commission, Print S5109, 17 April 2000 per Ross VP, Williams SDP and Gay C.

54 Transcript, 25 January 2000, p.135 at lines 25-36 and p.136 at lines 1-5; Mr Zammit's evidence at p.30 lines 20-24; p.40 lines 17-27 and p.59 lines 28-32.

55 Transcript 23 June 2000, p.9 at lines 17-27.

56 Appellant's written submission at paragraph 7.

57 Exhibit M2, paragraphs 8 and 9; Appeal Book at p.163.

58 Transcript pp74-75.

59 See Annexure B to Exhibit M2; Appeal Book at p.208.

60 Transcript p.23 at lines 13-14; p.24 at lines 15-26; p.49 at lines 4-22.

61 Transcript p.43 at lines 6-10; Annexure D to Exhibit M4.

62 Transcript p.30 at lines 20-24; p.40 at lines 29-31.

63 Transcript p.59 at lines 28-32.

64 Transcript p.56 at lines 14-25; p.57 at lines 1-12.

65 Edwards v Giudice [1999] FCA 1836 per Moore J.

66 (1936) 55 CLR 499 at 504-5; see Construction, Forestry, Mining and Energy Union v Giudice at pp 28-29.

67 (1936) 55 CLR 499 at pp 504-505.

68 Corporation of the Catholic Archdiocese of Brisbane v. A.S.U., Print K7698, 19 May 1993 per Moore VP, Keogh SDP and Bacon C: