Qantas Airways Limited v Transport Workers Union of Australia [2023] HCA 27 (13 September 2023)
Last Updated: 13 September 2023
HIGH COURT OF AUSTRALIA
KIEFEL CJ,
GAGELER,
GORDON, EDELMAN, STEWARD, GLEESON AND JAGOT JJ
QANTAS AIRWAYS LIMITED &
ANOR APPELLANTS
AND
TRANSPORT WORKERS UNION OF
AUSTRALIA RESPONDENT
Qantas Airways Limited v Transport Workers Union of
Australia
[2023] HCA 27
Date of Hearing: 9 & 10 May
2023
Date of Judgment: 13 September
2023
S153/2022
ORDER
Appeal dismissed.
On appeal from the Federal Court of
Australia
Representation
J T Gleeson SC with T O
Prince, N D Oreb and M F Caristo for the appellants (instructed by Herbert Smith
Freehills)
N C Hutley SC with M Gibian SC, C J Tran and P A Boncardo for
the respondent (instructed by Maurice Blackburn Lawyers)
T M Begbie KC
with I M Sekler and N A Wootton for the Minister for Employment and Workplace
Relations, intervening (instructed by
Australian Government Solicitor)
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
Qantas Airways Limited v Transport Workers Union
of Australia
Industrial law (Cth) – Prohibition of taking
adverse action against person to prevent exercise of workplace right –
Workplace
right – Where s 340(1)(b) of Fair Work Act 2009
(Cth) provided that person must not take adverse action against another person
to prevent exercise of workplace right – Where
Qantas Airways Ltd made
decision to outsource ground handling operations – Where outsourcing
decision was adverse action in
respect of affected employees – Where at
time of outsourcing decision affected employees had no presently existing
workplace
right to organise and engage in protected industrial action and to
participate in enterprise bargaining – Whether prohibition
in s 340(1)(b)
of Fair Work Act only prohibited adverse action taken to prevent exercise
of presently existing workplace right.
Words and phrases – "adverse
action", "contingent right", "enterprise bargaining", "presently existing
right", "prevent", "protected
industrial action", "rebuttable presumption",
"substantial and operative reasons", "workplace law or workplace instrument",
"workplace
right".
Fair Work Act 2009 (Cth), ss 340, 341, 361.
- KIEFEL CJ,
GAGELER, GLEESON AND JAGOT JJ. On 30 November 2020, while its
operations were severely affected by the COVID-19 pandemic,
Qantas Airways Ltd
("Qantas") announced a decision to outsource its ground handling operations at
ten Australian airports ("the outsourcing
decision"). The effect of the
outsourcing decision was that ground handling services then being performed by
employees of Qantas
and employees of Qantas Ground Services Pty Ltd ("QGS"),
many of whom were members of the Transport Workers Union of Australia ("TWU"),
would instead be performed by staff of third-party suppliers contracted to
provide those services.
- The
outsourcing decision was "adverse action" within the meaning of the Fair Work
Act 2009 (Cth) ("the Act") because it altered the position of the
affected employees of Qantas[1]
and QGS[2] to their prejudice.
- Qantas
had sound commercial reasons for the outsourcing decision. Qantas also had
additional reasons which were "substantial and
operative"[3]. Those additional
reasons, as found by a judge of the Federal Court of Australia (Lee J),
were to prevent the affected employees
from exercising workplace rights to
organise and engage in protected industrial action and to participate in
bargaining. The affected
employees could not exercise those workplace rights at
the time of the outsourcing decision. Nevertheless, it was expected at the
time
of the outsourcing decision that, in the absence of the outsourcing decision,
the affected employees would be able to exercise
and would in fact exercise
those workplace rights in
2021[4].
- The
issue on this appeal is whether the primary judge and a Full Court of the
Federal Court (Bromberg, Rangiah and Bromwich JJ) on
appeal[5] were correct to
conclude that, by making the outsourcing decision for reasons that included
those additional reasons, Qantas contravened
s 340(1)(b) of the Act, which
provides that a person must not take adverse action against another person "to
prevent the exercise of a workplace right by
the other person".
- To
support its argument that the conclusion was wrong, Qantas advanced two
contentions of statutory construction on the hearing of
the appeal. The broader
contention was that s 340(1)(b) bites only where a workplace right is
presently in existence at the time adverse action is taken. The narrower
contention, advanced
in the alternative, was that an employer does not "prevent"
the exercise of a workplace right by an employee within the meaning of
s 340(1)(b) merely by taking advantage of a "window of opportunity" to take
adverse action against the employee at a time when "architectural
feature[s]" of
the Act operate to prevent the employee from exercising a workplace right
including by taking industrial action in response. Neither contention
can be
accepted.
- For
the reasons given below, the appeal must be dismissed. In short, a person who
takes adverse action against another person for
a substantial and operative
reason of preventing the exercise of a workplace right by the other person
contravenes s 340(1)(b), regardless of whether that other person has the
relevant workplace right at the time the adverse action is taken. Qantas did not
avoid the operation of s 340(1)(b) in relation to its adverse action by
taking the action prior to the existence of the workplace rights the exercise of
which Qantas
sought to thwart.
Background to the outsourcing
decision
- At
the relevant times, Qantas' ground handling operations consisted of ramp,
baggage and fleet presentation work, such as baggage
handling and aircraft
cleaning. At all but ten Australian airports, this work was performed for Qantas
by third-party contractors.
At the remaining ten airports, the work was
performed in-house by Qantas and QGS employees.
- The
affected employees were covered by two enterprise agreements. The agreement
covering the affected Qantas employees commenced
operation on 27 December
2018 and had a nominal expiry date of 31 December 2020. The agreement
covering the affected QGS employees
commenced operation on 17 February 2017
and had a nominal expiry date of 1 September 2019.
- From
January 2020, the COVID-19 pandemic severely affected Qantas' operations and
revenues. Qantas experienced an almost total reduction
in travelling passengers
and thus passenger flights on its international networks, and a very significant
reduction on its domestic
networks. From February 2020, Australian governments
implemented progressive restrictions first on international travel, and then
on
domestic travel. By May 2020, Qantas' management identified the outsourcing of
Qantas' remaining ground handling operations as
one option to keep the airline
financially viable.
- In
the period from 29 June to 11 August 2020, Qantas took steps in
contemplation of a decision about outsourcing being made by the
end of 2020.
Those steps included a request for information process with potential
third-party suppliers of ground handling services,
including in relation to the
potential industrial benefits of outsourcing when compared with existing
arrangements.
- On
20 August 2020, the Qantas Group released its results for the 2020
financial year. Those results included a 91 per cent profit
reduction on the
previous financial year and a $2.7 billion statutory before-tax loss, as
well as significant anticipated underlying
losses for the 2021 financial year.
As the primary judge noted, Qantas was facing a "business
calamity"[6]. At the hearing in
this Court, senior counsel for Qantas described the business as "bleeding
cash".
- On
24 or 25 August 2020, Mr Andrew David, the Chief Executive Officer of
Qantas Domestic and International, commenced a review of
ground handling
operations. On 25 August, Qantas notified the affected employees of the
review, including details of an in-house
bid ("IHB") process and an external
request for proposal ("RFP") process. The IHB process, which provided Qantas
employees with an
opportunity to bid competitively to continue to provide the
ground handling services, was required by the relevant enterprise agreement.
On
the same day, Qantas made a public announcement about the review. The primary
judge found that, by this time, Mr David and other
senior officers of
Qantas were of the view that a final outsourcing decision would be made, subject
to the completion of the IHB
and RFP processes.
- On
19 November 2020, the TWU presented an IHB which was less competitive than
outsourcing: the bid only offered indicative savings
of approximately
$100 million over five years with the possibility of additional savings.
The primary judge found that there was
never any real prospect that the IHB
would deliver the perceived commercial benefits that were thought likely to be
obtained by the
proposed outsourcing (and that were confirmed following the RFP
process). Even so, his Honour did not find that the IHB process was
an artifice
or conducted otherwise than in good faith. Rather, the process occurred because
Qantas was properly advised that it was
necessary under the relevant enterprise
agreement.
- The
primary judge found that, although the outsourcing decision was highly likely to
be made from at least August 2020, it was Mr
David who was ultimately
responsible for the decision, which was made on 27 November 2020. On
30 November 2020, Qantas announced
the outsourcing decision, as well as the
accompanying decision to reject the TWU's IHB.
- At
the time of the making and announcement of the outsourcing decision, the
affected Qantas employees were prohibited by s 417 of the Act from
organising or engaging in protected industrial action under s 415 of the
Act because their enterprise agreement had not passed its nominal expiry date.
The affected QGS employees were practically unable to
take protected industrial
action of any significance because the complex steps necessary to engage in
protected industrial action
under the Act had not been
taken[7].
- In
this Court, Qantas emphasised its sound lawful and commercial reasons for the
outsourcing decision. The primary judge found that,
by the time the review was
instigated in August 2020, the rewards and benefits of outsourcing for Qantas
were already
"manifest"[8].
- In
that context, Qantas highlighted three "commercial imperatives" that the primary
judge found to be substantial and operative in
making the outsourcing decision:
(1) costs savings for the ground handling operations of around
$100 million per year when things
"returned to normal"; (2) provision
of ground handling operations on a "cost per turn" basis (such that Qantas would
only pay when
an aircraft needed to be "turned" at one of the affected
airports), which would increase variability in Qantas' cost base; and
(3)
obviation of the need for capital expenditure of $80 million over
the following five years in updated equipment to perform the services
in-house.
The proscribed reasons for the outsourcing
decision
- Despite
Qantas' sound reasons for the outsourcing decision, the primary judge was not
satisfied that Mr David was "not subjectively
conscious of other
considerations"[9], and
concluded that Qantas had not discharged its onus under s 361 of the Act of
disproving that substantial and operative reasons for the decision were to
prevent the affected employees from organising and
engaging in protected
industrial action and from participating in enterprise bargaining the following
year. Specifically, the primary
judge was not positively satisfied that the
additional reasons were not substantial and operative reasons for Mr David
outsourcing
the ground handling operations.
The legislative
scheme for protection of workplace rights
- Chapter 3
of the Act, entitled "Rights and responsibilities of employees, employers,
organisations etc", sets out rights and responsibilities of "national
system
employees, national system employers, organisations and others (such as
independent contractors and industrial
associations)"[10].
Chapter 3 is particularly directed to the Act's object
of[11]:
"enabling fairness and representation at work and the prevention of
discrimination by recognising the right to freedom of association
and the right
to be represented, protecting against unfair treatment and discrimination,
providing accessible and effective procedures
to resolve grievances and disputes
and providing effective compliance mechanisms".
- Part 3-1
is entitled "General protections". It has three broad concerns:
(1) protecting workplace rights; (2) protecting freedom of association
and involvement in lawful industrial activities; and (3) providing other
protections, including protection from
discrimination[12]. There is
a long and complex history of provisions in Commonwealth industrial legislation
that protect workplace participants against
unfair
treatment[13]. At a high
level of generality, the historical arc of the protections against adverse
action has generally tended to expand the scope
of workplace rights, the classes
of persons who are covered by the general workplace protections, and the limits
upon adverse action.
For example, the current Act is not limited by an
equivalent of s 792(4) and (8) of the former Workplace Relations Act
1996 (Cth)[14]
which required that, for conduct to contravene the predecessors to the
adverse action
provisions[15], the
entitlement to the benefit of an industrial instrument must have been the "sole
or dominant reason" for the conduct. The Explanatory Memorandum to the
Fair Work Bill 2008 (Cth) notes that the provisions in Pt 3-1 were
"intended to rationalise, but not diminish, existing protections", and that,
"[i]n some cases, providing general, more rationalised
protections has expanded
their scope"[16]. It went on
to explain that "the new provisions protect persons against a broader range of
adverse action"[17]. The
complex legislative history does not support any narrower reading of
s 340(1)(b) than is otherwise suggested by the text, context
and purpose of
the provision.
- The
objects of Pt 3-1 relevantly include the protection of workplace
rights[18], and the guide to
Pt 3-1 states that Div 3 "protects workplace rights, and the exercise
of those rights"[19]. The
expression "workplace right" is used only in three provisions of Pt 3-1,
being ss 340, 343 and 345, and was not used in earlier Commonwealth
industrial legislation. Section 341 provides:
"341 Meaning of workplace right
Meaning of workplace right
(1) A person has a workplace right if the person:
(a) is entitled to the benefit of, or has a role or responsibility under, a
workplace law, workplace instrument or order made by
an industrial body; or
(b) is able to initiate, or participate in, a process or proceedings under a
workplace law or workplace instrument; or
(c) is able to make a complaint or inquiry:
(i) to a person or body having the capacity under a workplace law to seek
compliance with that law or a workplace instrument; or
(ii) if the person is an employee – in relation to his or her employment.
Meaning of process or proceedings under a workplace law or workplace
instrument
(2) Each of the following is a process or proceedings under a workplace
law or workplace instrument:
...
(c) protected industrial action;
(d) a protected action ballot;
...
(k) any other process or proceedings under a workplace law or workplace
instrument.
Prospective employees taken to have workplace rights
(3) A prospective employee is taken to have the workplace rights he or she would
have if he or she were employed in the prospective
employment by the prospective
employer.
Note: Among other things, the effect of this subsection would be to prevent a
prospective employer making an offer of employment
conditional on entering an
individual flexibility arrangement.
..."
Relevantly, "workplace law" is defined to include the
Act[20].
- Division 3
of Pt 3-1, entitled "Workplace rights", contains prohibitions against
adverse action[21],
coercion[22], undue influence
or pressure (although without reference to workplace
rights)[23], and
misrepresentations[24]. The
protections afforded in Pt 3-1 are provided to a person, whether an
employee, an employer or
otherwise[25], in contrast
with Pt 3-2 of the Act, which concerns unfair dismissal and explicitly
establishes a framework that "balances" the needs of business and the needs of
employees[26]. The
protections in Pt 3-1 are secured through civil regulatory remedies
enforceable by the Fair Work Ombudsman and affected parties.
- Section 340
establishes the prohibition against adverse action. It provides:
"340 Protection
(1) A person must not take adverse action against another person:
(a) because the other person:
(i) has a workplace right; or
(ii) has, or has not, exercised a workplace right; or
(iii) proposes or proposes not to, or has at any time proposed or proposed not
to, exercise a workplace right; or
(b) to prevent the exercise of a workplace right by the other person.
Note: This subsection is a civil remedy provision (see Part 4-1).
(2) A person must not take adverse action against another person (the
second person) because a third person has exercised, or proposes
or has at any time proposed to exercise, a workplace right for the second
person's
benefit, or for the benefit of a class of persons to which the second
person belongs.
Note: This subsection is a civil remedy provision (see Part 4-1)."
- Section 343
provides:
"343 Coercion
(1) A person must not organise or take, or threaten to organise or take, any
action against another person with intent to coerce
the other person, or a third
person, to:
(a) exercise or not exercise, or propose to exercise or not exercise, a
workplace right; or
(b) exercise, or propose to exercise, a workplace right in a particular way.
Note: This subsection is a civil remedy provision (see Part 4‑1).
(2) Subsection (1) does not apply to protected industrial action."
- Section 345
provides:
"345 Misrepresentations
(1) A person must not knowingly or recklessly make a false or misleading
representation about:
(a) the workplace rights of another person; or
(b) the exercise, or the effect of the exercise, of a workplace right by another
person.
Note: This subsection is a civil remedy provision (see Part 4‑1).
(2) Subsection (1) does not apply if the person to whom the representation is
made would not be expected to rely on it."
- The
operation of Pt 3-1 is supported by ancillary rules in Div 7 of that
Part. For the purposes of the Part, a person "takes action for a particular
reason
if the reasons for the action include that
reason"[27]. Section 361
provides:
"361 Reason for action to be presumed unless proved otherwise
(1) If:
(a) in an application in relation to a contravention of this Part, it is alleged
that a person took, or is taking, action for a particular
reason or with a
particular intent; and
(b) taking that action for that reason or with that intent would constitute a
contravention of this Part;
it is presumed that the action was, or is being, taken for that reason or with
that intent, unless the person proves otherwise.
(2) Subsection (1) does not apply in relation to orders for an interim
injunction."
Qantas' case
- As
has been noted, Qantas presented its argument on this appeal by reference to two
contentions: one broader and the other narrower.
- Qantas'
broader contention was that s 340(1)(b) applies only where there is a
workplace right "presently in existence", that is, where a person has a
workplace right within the
meaning of s 341(1) at the time of the adverse
action. According to Qantas, where the "entire existence" of the right is
"time-bound" in that it depends
upon circumstances, such as the phase of the
employment relationship or whether particular events occur, then the right is
not protected
by s 340(1)(b) before it comes into existence.
- Qantas'
narrower contention was that an employer does not contravene s 340(1)(b)
merely because a reason for the timing of adverse action is "to take advantage
of an architectural feature of the Act which positively denies to the TWU and
employees the right to oppose the decision by industrial action, a denial which
delay might
reverse". According to Qantas, such a reason does not involve
"prevention" of the exercise of a workplace right for the purposes
of
s 340(1)(b).
- Amalgamating
the two contentions, Qantas framed the issue on the appeal as whether
s 340(1)(b) can apply to a decision to terminate an employee at a time when
the employee does not have a workplace right as defined in s 341, but with
an appreciation that to defer the decision may mean that, at a future time, the
employee may have a workplace right which
might be used to resist termination.
- This
framing is flawed in two ways. First, it mistakenly implies that a mere
"appreciation" of the possible future exercise of a
workplace right at the time
of taking adverse action would amount to a substantial and operative reason for
taking adverse action.
Second, it denies the additional reasons for the
outsourcing decision the subject of the appeal, which go beyond both an
appreciation
of a possible effect of the outsourcing decision and a belief as to
the possible existence of workplace rights in the future. These
flaws
demonstrate the importance for the correct application of s 340 of a
careful identification of the true reasons for adverse action that is alleged to
contravene
s 340[28].
"Workplace
rights"
- The
concept of a workplace right is central to the operation of Div 3 of
Pt 3‑1 and, within Div 3, to the operation of s 340(1)(b).
Section 341(1) is not a definition of "workplace right" in the sense that it
cannot be said that s 341 merely "shortens, but is part of, the text of the
substantive enactment to which it
applies"[29]. Quite apart
from the awkwardness of attempting to read s 341(1) into the text of
s 340, ss 343 and 345 would both be deprived of meaningful operation were
s 341(1) to be read in that way. Rather, s 341 identifies as a matter
of substance that a person has a workplace right in specified circumstances.
- Section 341(1)
uses the present tense to describe when a person "has" a workplace right.
Whether a person has a "workplace right" under s 341 is determined by their
present entitlements or role or responsibilities (under s 341(1)(a)) or
abilities (under s 341(1)(b) and (c)).
- The
reference in s 341(1)(a) to a person having a workplace right if the person
is entitled to the benefit of a workplace law or workplace instrument is
sufficiently
broad to encompass a present entitlement under a workplace law or
workplace instrument to receive a benefit at some future stage
of the employment
relationship on the occurrence of an expected event or on the occurrence of a
contingency. In this way, s 341(1)(a) has a forward-looking dimension. For
example, s 108 provides that an employee who engages in an eligible
community service activity, such as jury service or volunteer bushfire
fighting[30], "is entitled to
be absent from his or her employment" in certain circumstances. An employee
"has" a workplace right in the nature
of an entitlement to the benefit of
s 108, although the circumstances for asserting that entitlement have not
arisen and may never arise.
- Thus,
a person can have a workplace right, comprising an entitlement to the benefit of
a workplace law or workplace instrument, within
s 341(1)(a), even though
the person's capacity to exercise the workplace right may depend on accrual over
time or on the occurrence of a future
event or
contingency[31]. The broad
scope of s 341(1)(a) is confirmed by the Explanatory Memorandum, which
states that "[a] benefit under a workplace law or workplace instrument is also
intended to include benefits that are contingent or accruing (eg, long service
leave)"[32].
- The
words "is able to" in s 341(1)(b) and (c), while not words of
limitation[33], necessarily
indicate that circumstances have come into existence in which the person has a
present capacity to exercise a relevant
power or freedom. These powers and
freedoms are specifically identified in s 341(1)(b) (read with
s 341(2)) and in s 341(1)(c).
- There
is no reason in principle why a workplace right that a person has under
s 341(1)(a) cannot overlap with a workplace right that the person has or
might have in the future under s 341(1)(b) or (c). In particular, there is
no reason in principle why the benefit of the statutory immunity in relation to
protected industrial
action that a person contingently has under s 415 is
not a workplace right that the person has under s 341(1)(a) even before
circumstances have come into existence in which the person has a present power
or freedom to engage in protected industrial
action so as to give that person an
additional right under s 341(1)(b).
- This
said, there is a difference between a case where the capacity of a person to
exercise the workplace right depends on temporal
and circumstantial
contingencies and a case where the exercise of the purported workplace right is
prohibited or would expose the
person to legal process to prevent the exercise
of that purported right. In the former case, it may be said that the person
"has"
the workplace right, albeit that the right is not presently exercisable.
In the latter case, it cannot be said that the person "has"
the workplace right
at all. Notwithstanding that s 341(1)(a) covers benefits that are
contingent or accruing, it would unduly strain the meaning of s 341(1)(a)
to posit that a person "has" a workplace right comprising an entitlement to the
benefit of the statutory immunity in relation to
protected industrial action in
s 415 of the Act in the face of the statutory prohibition in s 417
against organising or engaging in industrial action when the nominal expiry date
of a relevant enterprise agreement has not passed.
- Accordingly,
it is appropriate to proceed upon the basis that the affected employees did not
have relevant workplace rights at the
time of the outsourcing decision in
respect of the actions that Qantas sought to prevent by that decision, because
they were not
"entitled to the benefit of ... a workplace law" within
s 341(1)(a) and they did not have an ability to initiate or participate in
protected industrial action or a protected action ballot for the purpose
of
supporting or advancing claims in relation to a proposed enterprise agreement,
or to initiate or participate in enterprise bargaining,
within the meaning of
s 341(1)(b).
Proscribed adverse action –
s 340(1)
- Section 340(1)
employs the sanctions of civil contravention and penalty for certain types of
conduct taken for reasons that are antithetical to
the full enjoyment of
workplace rights. As a civil penalty provision, it should be "certain and its
reach ascertainable by those
who are subject to
it"[34].
- The
evident object of s 340(1) is to protect workplace rights by protecting persons
from adverse action for specified reasons connected with their holding or
exercise
of workplace
rights[35]. The provision
affords scope for lawful adverse action to achieve any number of objectives,
provided that the action is not substantively
actuated by a purpose or reason
inimical to a person holding or exercising workplace rights. Importantly,
adverse action will not
offend s 340(1) if taken with mere awareness of an
effect on another person's workplace rights. Instead, adverse action will only
offend the section
if it is taken for a proscribed reason: "because" the person
against whom it is taken has a workplace right or has (or has not) done
something in relation to the exercise of a workplace right within the scope of
s 340(1)(a), or "to prevent" the exercise of a workplace right by that
person within the scope of s 340(1)(b). As already noted, the proscribed
reason must be a substantial and operative reason for taking the adverse action
against the other
person.
- Except
for s 340(1)(a)(i), the text of s 340(1) does not require a workplace
right to be held or to be capable of immediate exercise by an affected person at
the time of the adverse
action. To the contrary, as Qantas accepted, the
application of s 340(1)(a)(ii) or (iii) to prohibit adverse action because
of conduct concerning workplace rights that a person previously had is not
contingent
upon the existence of the workplace right at the time of the adverse
action.
- For
s 340(1)(a)(ii) to apply, it is clearly necessary that the affected person
had a workplace right at the time of its exercise or non-exercise.
- Section
340(1)(a)(iii) is more complex in that its focus is the nature of the affected
person's current or past proposal: to exercise or not to exercise
a workplace
right. It does not specify a temporal relationship between the proposal and the
proposed exercise of the workplace right,
but applies where the person proposes
to exercise a workplace right in the future that they have in the present and
where the person
proposes to exercise a workplace right in the future that they
will only have in the future. In that way, s 340(1)(a)(iii) undoubtedly
applies to adverse action taken before, during or after the proposed exercise of
a workplace right.
- The
focus of s 340(1)(b), in prohibiting adverse action "to prevent the
exercise of a workplace right", is the future exercise of a workplace right, not
the
present existence of a workplace right. The words "to prevent", as has been
emphasised, are directed to a substantial and operative
reason for the taking of
the adverse action and mean, in this context, "in order to prevent" or "with a
view to preventing". To "prevent"
is to preclude the occurrence of an
anticipated event or to render the event impractical or impossible by
anticipatory action[36]. To
"prevent the exercise of a workplace right" encompasses stopping or putting an
obstacle in the way of the exercise of a presently
held right. But equally, it
encompasses putting an obstacle in the way of exercising a right that may arise
at some future date.
- Why
should s 340(1)(b) be construed as applying to adverse action to prevent
the future exercise of a presently held workplace right, but not to adverse
action to prevent the future exercise of a future workplace right (including,
for example, a workplace right which will be held perhaps
as soon as the
following day)? The answer, according to Qantas, is to be found in a legislative
choice, discernible in the context
of a plethora of statutory rights under the
Act that arise at different times, to protect only rights that a person
presently has, as exemplified by the definition in s 341(1) being in the
present tense. On analysis of each of Qantas' arguments as to the proper
construction of s 340(1)(b), no such legislative choice is
apparent.
The text
- Qantas'
primary argument involved treating s 341(1) as if it were a definition so
as to confine the operation of s 340(1)(b) by adding to the content of the
proscribed reason a temporal relationship between the relevant workplace right
and the adverse action.
However, when s 341(1) is read as a substantive
statement identifying when a person has a workplace right (rather than as a
definition of a "workplace right"),
no such temporal confinement appears.
- Qantas
next argued that the workplace right referred to in s 340(1)(b) must be a
right which a person presently has within s 341(1) because any other
construction would give primacy to s 340(1)(b), which should be understood
as complementary to s 340(1)(a). This argument must be rejected. There is
no principle of statutory interpretation that requires s 340(1)(a) to be
treated as the primary proscribed reason and s 340(1)(b) as merely
complementary to it because it follows after s 340(1)(a). Any breach of
s 340 is liable to attract the same
penalty[37] and the same
forms of relief[38].
- Qantas
also submitted that construing s 340(1)(b) to apply to adverse action to
prevent the exercise of future workplace rights would make it easier to prove a
contravention of s 340(1)(b) than of s 340(1)(a) because, for
s 340(1)(b), it would not be necessary to prove the existence of an
affected workplace right. Again, this submission lacks a principled basis.
In
any event, the primary concern of s 340(1) is the substantial and operative
reasons of the person who takes the adverse action. What is required to be
proved is the state of
mind of the alleged contravener. On this appeal, it was
not in issue that Qantas contemplated or knew that the affected employees
would
have the workplace rights in 2021 and Qantas had not disproved that this was a
substantial and operative reason for the outsourcing
decision. Accordingly, it
is not necessary to address Qantas' argument of suggested unfairness that
s 361 might be invoked to cast the burden of disproof upon the alleged
contravener by nothing more than an allegation of a proscribed reason
without
proof of objective facts that would make such a reason a plausible
one[39].
- The
inclusion of conditional or contingent rights as an element of a proscribed
reason does not render s 340(1)(b) uncertain, as Qantas suggested,
principally because the section requires the alleged contravener's reasons for
the adverse action
to be determined. If the alleged reasons involve remote or
improbable circumstances, it may be expected that the alleged contravener
will
readily rebut the presumption in s 361.
- Qantas'
construction of s 340(1)(b) would leave it with little practical operation
beyond s 340(1)(a). On Qantas' construction, s 340(1)(b) would be
confined to a case where adverse action taken for a reason of preventing the
exercise of a workplace right could not also
be characterised as adverse action
taken for a reason of having a workplace right. It is difficult to envisage such
a case.
Purpose and context of Pt 3-1
- Apart
from a lack of textual justification for Qantas' construction of
s 340(1)(b), its protective purpose, the breadth of the concepts of adverse
action and workplace rights in Pt 3-1, and the apparently comprehensive
scope of s 340 all point against limiting s 340(1)(b) to the
prevention of the exercise of workplace rights in existence at the time of the
adverse action.
- Qantas
argued that s 341(3), and the related provisions in s 341(4) and (5)
concerning prospective employees, would be otiose if s 340(1)(b) were
construed to include preventing the exercise of a future workplace right.
Section 341(3) is a deeming provision applying to adverse action taken
because of a workplace right a prospective employee would have if employed.
Section 341(3) involves determining what workplace rights the prospective
employee would have had if they had been
employed[40]. It is not
concerned with the case of an existing employee (or another person who is not an
employee) who may acquire workplace rights
over time.
Broader
context of the Act
- Qantas
next argued that construing s 340(1)(b) as applying to future workplace
rights would tend to defeat the legislative choices in other parts of the Act,
namely the time limitations placed upon protected industrial action and unfair
dismissal rights. In particular, Qantas referred
to s 194(c) and (e), which
respectively provide that terms of an enterprise agreement are unlawful if they
confer any entitlement or remedy in
relation to unfair dismissal before the
employee has completed the minimum employment period under the Act or if they
are inconsistent with a provision of Pt 3-3 (which deals with industrial
action). Section 194 and the various protections conferred on employers by
ss 417 and 418, subject to the other preconditions to protected industrial
action[41], operate
independently of s 340 as exemplified by the facts in this appeal.
- As
to the unfair dismissal provisions, it is not self-evident that the balance
struck in Pt 3-2 is independent of other parts of the Act. Parts 3-1
and 3-2 serve different purposes and are attended by different legal tests.
By including dismissal of an employee within the scope of adverse
action[42], Parliament has
made a policy choice that forms part of the balance struck by Pt 3-2.
- The
Act also plainly envisages that Pt 3-2 is not a code for dealing with
conduct that falls within its terms. To the contrary, the potential for
overlapping claims under the
Act is explicitly recognised and addressed in
Div 3 of Pt 6-1, which is entitled "Preventing multiple actions". The
general rule is that a person who has been dismissed must not make an
application
or complaint of a kind referred to in any one of ss 726 to 732
in relation to the dismissal if any other of those sections applies.
Section 728 addresses general protections court applications, that is,
applications to a court for orders in relation to a contravention of
Pt 3-1[43], and
s 729 addresses applications under s 394(1) for a remedy for unfair
dismissal. This speaks against Qantas' argument of incoherence in the
possibility of a contravention of s 340(1)(b) notwithstanding an absence of
available relief under the unfair dismissal regime in
Pt 3-2.
Conclusion
- Qantas'
construction of s 340(1)(b) must be rejected. The readily ascertainable
meaning of s 340(1)(b) is to proscribe the taking of adverse action against
another person if a substantial and operative reason for the action is to
prevent
the other person exercising a presently held or future workplace
right.
- The
appeal should be dismissed.
- GORDON
AND EDELMAN JJ. The facts and statutory framework are set out in the reasons
of other members of the Court. We gratefully
adopt them. We agree that the
appeal should be dismissed and that it is unnecessary to consider the
respondent's notice of contention
or proposed cross‑appeal. We would
express our reasons for dismissing the appeal in the following way.
- Section
340(1)(b) of the Fair Work Act 2009 (Cth) provides that a person must not
take "adverse action against another person ... to prevent the exercise
of a workplace right by the other person" (emphasis added). "[A]dverse
action" is defined in s 342 of the Act and includes an employer
"alter[ing] the position of the employee to the employee's
prejudice"[44]. The meaning
of "workplace right" is set out in s 341 of the Act. A person has a
workplace right "if the person ... is able to initiate, or participate in,
a process or proceedings under a workplace
law or workplace
instrument"[45].
A "process or proceedings" includes "protected industrial
action"[46] and "a protected
action ballot"[47].
- It
is not in contention that Qantas took adverse action against the affected
employees in deciding on 30 November 2020 to outsource
ground handling
operations work at ten Australian airports ("the outsourcing decision"). It
is also not in contention that all affected
employees were entitled to the
benefit of a workplace
instrument[48], being an
enterprise agreement made under the Act.
- There
were two groups of Qantas employees affected by the outsourcing decision. The
nominal expiry date of the applicable enterprise
agreement had passed for Qantas
Ground Services Pty Ltd employees, but not for Qantas Airways Ltd employees. The
Qantas Airways Ltd
employees were therefore prohibited from taking industrial
action given their enterprise agreement remained on
foot[49], and, although the
nominal expiry date of the Qantas Ground Services Pty Ltd employees' enterprise
agreement had passed, protected
industrial
action[50] by those employees
could not be taken as the necessary procedural steps to enable that to
occur[51] had not been
completed at the time of the outsourcing decision. It was relevantly alleged,
and found by the primary judge, that the
reasons for the adverse action –
the outsourcing decision – included to prevent the exercise by employees
of their workplace
rights in 2021, following the nominal expiry of their
enterprise agreements, to: (i) organise and engage in protected industrial
action[52] or a protected
action ballot[53] for the
purpose of supporting or advancing claims in relation to a proposed enterprise
agreement; and (ii) participate in enterprise
bargaining[54] under the
Act.
- Section
361 of the Act establishes a rebuttable presumption that the adverse action was
taken for the reason alleged, or with the intent alleged, if taking
action for
that reason or with that intent would constitute a contravention of Pt 3-1 of
the Act (which includes s 340). A person takes action for a particular
reason if the reasons for the action include that
reason[55]. The presumption
in s 361 recognises that the decision‑maker is uniquely placed to
know the reasons for their action and should thus be made to prove
them[56]. An employer can
discharge that onus by proving that none of its substantial and operative
reasons for the adverse action was to
prevent the exercise of workplace
rights[57].
- Qantas
failed to rebut the presumption because its witness evidence on this point was
not accepted. Accordingly, Qantas failed to
prove that its outsourcing decision
was made for reasons not including the substantial and operative reason
of preventing the exercise of a workplace right within the meaning of
s 341(1)(b) of the Act, which was relevantly the entitlement of the
employees affected by the outsourcing decision to engage in enterprise
bargaining following
the expiry of the enterprise agreements and to organise and
engage in protected industrial action and a protected action ballot (in
short,
"the entitlement to engage in protected industrial action"). On appeal to this
Court, Qantas did not challenge the conclusion
that it had failed to rebut the
presumption that its outsourcing decision was made for reasons that included the
prevention of its
employees' exercise of an entitlement, in the future, to
engage in protected industrial action.
- This
appeal turns on the proper construction of s 340(1), and, in particular, the
term "workplace right". The central issue is the scope of the protection
afforded by s 340(1)(b) of the Act against the taking of adverse action to
prevent the future exercise of the entitlement to engage in protected industrial
action,
even where that entitlement is not presently existing. That issue is a
question of construction – does s 340(1)(b) of the Act
prohibit a person from taking adverse action against another person for the
purpose of preventing the exercise of a workplace right
when that "right" is not
a presently existing right, but is one that might arise in the future? The
answer is "yes".
- Qantas
argued that neither of the groups of affected employees had a relevant workplace
right within the meaning of s 341 at the time of the outsourcing decision,
and that prevention of the exercise of a workplace right in s 340(1)(b)
is concerned only with existing workplace rights. Qantas' contentions, both
of which were essential for its success, were that: (1)
a workplace right in
s 341(1) does not include entitlements and abilities (including contingent
entitlements and abilities) to the benefit of things, or to initiate
or
participate in things, whilst those things are positively prohibited or
unlawful; and (2) s 340(1)(b) is concerned only to prohibit adverse action
against a person to prevent that person from exercising a presently existing
workplace
right. As will be explained, the first contention is correct;
the second contention is rejected.
- "Right"
and "entitlement" are used loosely in the Act to include those legal relations
that have elsewhere been described as claim rights, powers, privileges and
immunities[58]. Nothing in
this appeal turns upon the precise legal characterisation of these concepts so
it is convenient generally to use the
language of the Act.
Qantas' first contention
- Section
341(1), headed "Meaning of workplace right", provides that:
"A person has a workplace right if the person:
(a) is entitled to the benefit of, or has a role or responsibility under,
a workplace law, workplace instrument or order made by an industrial body;
or
(b) is able to initiate, or participate in, a process or proceedings
under a workplace law or workplace instrument; or
(c) is able to make a complaint or inquiry ..." (emphasis added)
- The
chapeau refers to a person who "has a workplace right". Section 341(1)(a)
to (c) then respectively refer in the present tense to a person who "is entitled
to" a particular benefit, or who "is able to initiate,
or participate in"
a particular action or "is able to make a complaint or inquiry".
- Qantas
submitted that a workplace right in s 341(1) is concerned, in each of paras
(a) to (c), with presently held workplace rights and does not include
entitlements and abilities (including
contingent entitlements and abilities) to
the benefit of things, or to initiate or participate in things, whilst those
things are
positively prohibited or unlawful. Qantas argued that, at the time of
the outsourcing decision, neither of the groups of affected
employees had a
presently existing relevant "workplace right" because they were unable to
lawfully engage in protected industrial
action. The respondent, the Transport
Workers Union of Australia, and the Minister for Employment and Workplace
Relations (intervening),
submitted that the employees had contingent rights to
initiate or participate in protected industrial action which were workplace
rights within the meaning of s 341(1)(b) of the Act. Qantas' submission on
this first contention should be accepted. The text of s 341(1), as well as
its context and purpose, compels that conclusion.
- It
is important to draw a distinction between different forms of workplace rights
that give rise to contingent benefits which accrue
over time before they can be
claimed, and those workplace rights that represent a thing, action or activity
that is positively prohibited
or unlawful until it can be claimed.
- Two
examples of the former type of workplace rights are an employee's entitlements
to take annual leave[59] and
paid personal/carer's
leave[60].
These entitlements are contingent upon being accrued and being claimed.
So, for example, s 87(2) of the Act provides that "[a]n
employee's entitlement to paid annual leave accrues progressively during a year
of service according to the employee's
ordinary hours of work, and accumulates
from year to year"[61].
Even before the entitlements to take annual leave and paid personal/carer's
leave have accrued, it is not difficult to say that
these entitlements which
"accrue[] progressively during a year of service" are an immediate benefit
to which an employee is entitled
under a workplace law within s 341(1)(a).
Indeed, that view is reinforced by the Explanatory Memorandum to the Fair
Work Bill 2008 (Cth) which states that "benefit" in s 341(1)(a) is
intended to include benefits that are "contingent or
accruing"[62].
- However,
there is a distinct difference between, on the one hand, presently existing
but contingent entitlements, and, on the other
hand, a thing, action or activity
which is unlawful or positively prohibited under pain of civil penalty. There is
no power or entitlement
to do something that is positively prohibited or
unlawful. That is not a benefit to which a person is entitled under
s 341(1)(a).
Nor is it a process or proceeding that a person is able to
initiate or participate in under s 341(1)(b).
- By
s 417, the Qantas Airways Ltd employees were prohibited from organising or
engaging in industrial action because the nominal expiry
date of their
applicable enterprise agreement had not passed. As a matter of construction, it
is not open to say that the prohibition
in s 417 is a "benefit" to which a
person is entitled within the meaning of s 341(1)(a) of the Act. The
prohibition in s 417 does not in terms meet the description in
s 341(1)(b) of a workplace right, being a process or proceedings under a
workplace law or workplace instrument that a person "is able to initiate,
or participate in" (emphasis added). Under the s 417 prohibition, a person
is not "able to initiate" – they are prohibited from
"initiating" – any process of the kind to which s 341(1)(b) of
the Act is directed[63]. If
the person contravenes that prohibition, the Federal Court or what is now called
the Federal Circuit and Family Court of Australia
may grant an injunction or
make any other relevant orders that the court considers necessary to stop, or
remedy the effects of, the
contravention[64].
- As
noted, at the time of the outsourcing decision, the Qantas Ground Services Pty
Ltd employees were in a different position because
the nominal expiry date of
the applicable enterprise agreement had passed. Although any industrial
action by those employees was no longer prohibited under s 417, it
would not acquire the status of protected industrial action which has
immunity under law[65] unless
and until the necessary procedural steps had been
taken[66].
- Put in
different terms, it cannot be said that a person is able to initiate or
participate in that which is
prohibited[67] or that which
they are unable to lawfully do – here, to engage in protected industrial
action. The affected employees did not
have a presently existing "workplace
right" within the meaning of s 341(1) to engage in protected
industrial action at the time that the outsourcing decision was made.
Qantas' second contention
- That
conclusion, however, does not answer Qantas' second contention, which is that
s 340(1)(b) is concerned only with prohibiting the taking of adverse action
against a person to prevent that person from exercising a presently
existing workplace right.
- Unlike
s 341, which identifies what is a workplace right, s 340 is in a different form
and has a different purpose. Section 340 is headed "Protection". Section 340(1)
provides that:
"A person must not take adverse action against another person:
(a) because the other person:
(i) has a workplace right; or
(ii) has, or has not, exercised a workplace right; or
(iii) proposes or proposes not to, or has at any time proposed or proposed not
to, exercise a workplace right; or
(b) to prevent the exercise of a workplace right by the other person."
(emphasis added)
- The
relationship between s 340 and s 341 is important. Section 341 enacts
substantive law. It is not a mere drafting device that is designed to shorten
the length of s 340. None of the sub‑sections of s 341 is apt to be
transplanted into s 340. There is substantive and independent content to
each sub-section of s 341: the meaning of a "workplace right" in s
341(1); the examples of processes or proceedings under a workplace law or
workplace instrument in s 341(2); the deeming provision in s 341(3)
with respect to prospective employees; and the exceptions with respect to
prospective employees in s 341(4) and (5).
- In
this respect, s 341 contrasts starkly with a definition section as that concept
is properly understood. True definition sections are a drafting device.
They "are not provisions with any operative effect; they simply provide an
aid to the construction of the substantive provisions
in an
Act"[68]. The "function of a
definition is not to enact substantive law" but to "shorten[] ... the text of
the substantive enactment to which
it
applies"[69]. Hence, the only
proper course with a definition section is to "read the words of the definition
into the substantive enactment and
then construe the substantive
enactment"[70].
Section 341 is not a definition section. It is not to be read into the
words of s 340.
- Accordingly,
in the structure and hierarchy of the provisions, s 341 identifies
what is a workplace right, and then s 340, in setting out the protections
against the taking of adverse action, provides the bases upon which the
protection of those workplace
rights operates. And those bases are temporal in
nature. That is, the fact that the paragraphs of s 341(1) are
expressed in the present tense is of no moment in the application of the
prohibition contained in s 340. The reference to the structure and
hierarchy of the provisions is important. As we have said, s 341 does
not control the bases on which s 340 operates.
- This
appeal is concerned with s 340(1)(b). The question is whether that
provision extends to prevent the exercise of a workplace right if that right is
one which might exist
in the future. The answer is "yes". The text "to prevent
the exercise of a workplace right" extends to the prevention of the
future exercise of a workplace right by a person. It is necessarily concerned
with obstruction of an exercise of a workplace
right that might occur in the
future. Section 340(1)(b) applies where the workplace right that would be
exercised in the future presently exists. But, equally on a plain reading of the
paragraph, it applies to workplace rights that might be exercised in the future
after they come into existence and are therefore
not presently existing.
- Supporting
that construction, as a matter of immediate context, s 340(1)(b) is to
be contrasted with s 340(1)(a). Section 340(1)(a) applies where the
adverse action is taken "because", among other things, the person has a
workplace right, has exercised a workplace
right, or proposes, or has at any
time proposed, to exercise a workplace right. Section 340(1)(a)(i) is
directed to the present. Section 340(1)(a)(ii) is directed to the past.
Section 340(1)(a)(iii) is directed to the act of proposing to do or
not to do something, whether in the past or in the present.
- Section
340(1)(b), on the other hand, is directed to adverse action taken to
prevent the exercise of a workplace right. It is directed to, and concerned
with, different temporal aspects of the interaction between a
person and another
person, and between that other person and a workplace right. It concerns what
might be described as a pre-emptive
strike by one person against another person
so as to deny the second person the ability or opportunity to exercise a
workplace right
in the future. Put in different terms, the person to whom the
protection in s 340(1)(b) is addressed is a person who need not be doing,
have done, or propose to do, anything at all.
- Qantas
contended that construing s 340(1)(b) as a provision that extends to
workplace rights that might exist in the future would invert the natural reading
of s 340(1) and give primacy to s 340(1)(b) over s 340(1)(a). That
submission must be rejected. As is self-evident, s 340(1)(a) and (b)
are complementary. Similarly, Qantas' contention that construing
s 340(1)(b) in that way would make a contravention of that sub-section
easier to prove than under s 340(1)(a) is also rejected.
That contention fails to take account of the fact that the Act –
s 361 read with s 340 – establishes a rebuttable presumption that
adverse action is taken for the reason alleged, or with the intent alleged, if
taking that action for that reason or with that intent would constitute a
contravention of s 340. As explained, this presumption recognises that the
alleged contravener is uniquely placed to know the reasons for their action.
That
is, the Act is concerned with the alleged reason or intent and then whether
the alleged contravener can prove that none of their substantial
and operative
reasons for the adverse action was of the kind alleged. The present case is
instructive. The central issue was whether
Qantas could prove that the
outsourcing decision was made for reasons not including the substantial
and operative reason of preventing the affected employees from exercising an
entitlement to engage in protected
industrial action. Qantas was uniquely placed
to know the reasons for the outsourcing decision and to put on evidence to
address
the allegation that it was made to prevent the exercise by the affected
employees of workplace rights. Qantas' evidence on that point
was not accepted
by the primary judge.
- If
Qantas' second contention were accepted there would be a considerable gap in the
protection afforded by s 340. The gap would not be as big as the
Full Court suggested because, as has been explained, benefits such as
annual leave and paid personal/carer's
leave can be interpreted, consistently
with their express terms, as presently existing, but contingent, entitlements
even if the
benefit cannot yet be exercised. However, the gap in the protection
afforded by s 340 that would exist should Qantas' second contention be
accepted would include the inapplicability of s 340(1)(b) to, for example,
adverse action taken against a person to prevent the future taking of annual
leave in circumstances where an employment
contract has been signed but work has
not yet commenced so that the leave has not yet started to accrue and is,
therefore, not yet
an existing contingent entitlement. Section 340(1)(b)
would also not apply to adverse action taken to prevent the future taking of
annual leave where an employee has an annual leave deficit
because there would
be no presently existing accruing benefit, just a reduction of a deficit in
annual leave. The future rights in
those cases could, on Qantas' second
contention, form the basis for permissible adverse action. That construction
should not be accepted.
- Moreover,
there is nothing in the stated objects of the
Act[71], the stated objects
of Pt 3-1 of
Ch 3[72], the other
provisions of the Act[73], or
the legislative history of the
Act[74] or the predecessor
legislation[75] that supports
Qantas' narrow construction of s 340(1)(b). Put simply, the provisions in
Pt 3-1 of the Act were "intended to rationalise, but not diminish, existing
protections" and the "new provisions" in Pt 3-1 (which included
s 340(1)(b)) were intended to "protect persons against a broader range of
adverse action"[76].
- Finally,
nothing in these reasons should be understood as suggesting that employers are
prevented from considering the existence
and terms of enterprise agreements in
making decisions about the future. In fact, to fail to do so might in some
circumstances constitute
a breach of
duty[77]. There is no legal
or practical difficulty in allowing such a matter to be considered by a
decision-maker. However, what is not permissible,
and what s 340(1)(b)
protects against, is the taking of adverse action to prevent the exercise of a
workplace right, whether presently existing or not.
If Qantas had
established, for example, that its reason for the outsourcing decision was to
generate substantial savings in order
to address imminent liquidity issues (with
the inevitable consequence of that decision being termination of employment of
staff),
and that its reasons did not include a substantial and
operative reason of preventing the employees affected by the outsourcing
decision from organising and engaging
in protected industrial action, then the
outsourcing decision would not have been for a proscribed or prohibited purpose
(and the
termination would not have been unlawful under s 340). Qantas did
not do so.
- STEWARD J.
This appeal raises difficult issues about whether a business may undertake a
commercial restructure, which involves the
necessary taking of adverse action
(say the dismissal of employees within a particular business division), without
contravening the
general protection provisions contained in Div 3 of
Pt 3‑1 of the Fair Work Act 2009 (Cth) ("the FWA"). Here,
in 2020, Qantas Airways Limited ("QAL") and its wholly-owned subsidiary Qantas
Ground Services Pty Ltd ("QGS"),
referred to collectively in these reasons as
"Qantas", thought they had an opportunity during the COVID-19 pandemic to rid
themselves
of an expensive way of undertaking their ground handling operations.
This service was to be outsourced, saving QAL around $100 million
per year "when things returned to normal" and $80 million of capital
costs over five years. Given that QAL's revenues had plummeted
since the
beginning of the pandemic (QAL had incurred a revenue loss of $20 billion), the
attractiveness of outsourcing a costly
business division was manifest. But it
would involve making the employees in the ground handling operations redundant;
that is, it
would require QAL to take "adverse action" as defined by s 342
of the FWA against its employees and QGS's employees.
The
background to the Transport Workers Union's suit against Qantas
- Section 340(1)(b)
of the FWA provides that a person must not take "adverse action against
another person ... to prevent the exercise of a workplace
right by the other
person". The term "workplace right" is defined broadly in s 341.
Relevantly, a person will have a "workplace right if the person ... is able to
initiate, or participate in, a process or proceedings
under a workplace law or
workplace instrument"[78].
Here, that "process" was said to be an ability to initiate or participate in
"protected industrial
action"[79]. The term
"adverse action" is also defined broadly in s 342. It was not in dispute
that QAL prejudicially altered "the position of" employees in the ground
handling operations when it announced,
on 30 November 2020, its decision to
outsource those operations to third parties. This constituted "adverse action"
for the purposes
of item 1(c) of s 342(1) of the FWA. So too did
the eventual dismissal of the ground handling employees.
- Section 340(1)
of the FWA should be set out in full. It provides:
"A person must not take adverse action against another person:
(a) because the other person:
(i) has a workplace right; or
(ii) has, or has not, exercised a workplace right; or
(iii) proposes or proposes not to, or has at any time proposed or proposed not
to, exercise a workplace right; or
(b) to prevent the exercise of a workplace right by the other person."
- The
Transport Workers Union of Australia ("the TWU") commenced proceedings in the
Federal Court of Australia relevantly alleging
that QAL had contravened
s 340(1)(b) of the FWA by taking adverse action against employees in
the ground handling operations to prevent those employees from exercising
a
"right" to initiate or participate in "protected industrial action" for the
purposes of s 341(2)(c). It was not in dispute that as at 30 November
2020 the ground handling employees did not have any such "ability" to initiate
or participate
in protected industrial action. The time for that ability to
arise would only be in the future, and, even then, it would be conditional
on
certain events taking place.
- In
November 2020, ground handling employees of QAL were the subject of an
enterprise agreement entitled "Qantas Airways Limited and
QCatering Limited
– Transport Workers Agreement 2018" ("the QAL Enterprise Agreement"),
which had a nominal expiry date of
31 December 2020. Ground handling
employees of QGS were the subject of another enterprise agreement entitled
"Qantas Ground Services
Pty Limited Ground Handling Agreement 2015" ("the QGS
Enterprise Agreement"), which had a nominal expiry date of 1 September
2019.
About 63 per cent of all ground handling workers were employed by
QGS, and about 50 per cent of these were members of the TWU. Almost
all of
the ground handling workers employed by QAL were members of the TWU.
- As
at 30 November 2020, in the case of QAL employees, by reason of s 417
of the FWA, they were prevented from taking industrial action, including
protected industrial action, as the QAL Enterprise Agreement
remained on foot.
No such limitation applied to the employees of QGS precisely because the QGS
Enterprise Agreement had passed its
nominal expiry date. But, as at
30 November 2020, for another reason those employees also held no ability
to initiate or participate
in protected industrial action. In order to secure
that ability, the following steps, amongst other things, were required: an
application
needed to be made by a bargaining representative to the Fair Work
Commission for an order that a protected action ballot take
place[80]; the employees
needed the Fair Work Commission to make such an
order[81]; and when the
protected action ballot occurred the employees needed at least 50 per cent
of eligible voters to vote in the ballot,
and more than 50 per cent of
those voters to approve the proposed industrial
action[82]. In the case of
the QGS ground handling employees, none of those steps had taken place before
30 November 2020.
- It
was in this context that the TWU relevantly made the following allegation in its
amended statement of
claim[83]:
"In the circumstances, Qantas contravened s 340(1)(b) of the FW Act by
taking adverse action against the Affected Employees to prevent the Affected
Employees exercising the workplace right, following
the nominal expiry date of
enterprise agreements which covered and applied to them, to participate in a
process under the FW Act, being the ability to participate in a process
under the FW Act by ... engaging in protected industrial action for the purpose
of supporting or advancing claims in relation to a proposed enterprise
agreement
under the FW Act."
- By
reason of s 361 of the FWA, it was common ground that it was to be
presumed that QAL took adverse action against the ground handling employees for
the reason alleged by the TWU in its pleading. Section 361(1)
provides:
"If:
(a) in an application in relation to a contravention of this Part, it is alleged
that a person took, or is taking, action for a particular
reason or with a
particular intent; and
(b) taking that action for that reason or with that intent would constitute a
contravention of this Part;
it is presumed that the action was, or is being, taken for that reason or with
that intent, unless the person proves otherwise."
- Section
360 should also be noted. It provides that a person "takes action for a
particular reason if the reasons for the action include that
reason".
- As
explained below at [111]-[114], the primary judge found that QAL had failed to
displace that presumption on the narrowest of grounds.
Qantas did not seek to
attack that conclusion on appeal to this Court. Instead, it relied upon what
ultimately amounted to a single
legal
proposition[84], namely that
QAL could not have taken adverse action to prevent the exercise of the relevant
workplace right because, as at 30 November
2020, no ground handling
employee had the right or ability to initiate or participate in protected
industrial action. This contention
turns upon an interpretation of
s 340(1)(b) that requires the "workplace right", the exercise of which is
to be prevented, to exist at the time when adverse action is taken.
For the
reasons given below, that construction of s 340(1)(b) of the FWA is
unsustainable.
The activating reasons for taking adverse
action
- In
a case where workers have been made redundant, the statutory context relevant to
construing s 340 of the FWA includes Part 3‑2 of that Act, which
addresses the topic of unfair dismissal. Section 385 appears within
Pt 3‑2 of the FWA. It defines when a person has been "unfairly
dismissed". Of course, the TWU did not contend that any of its members had
been
unfairly dismissed for the purposes of s 385 of the FWA. Had it done
so, it might have been met with the defence of "genuine redundancy" as provided
by s 385(d). Section 389(1) supplies a definition of this term. It
states:
"A person's dismissal was a case of genuine redundancy if:
(a) the person's employer no longer required the person's job to be performed by
anyone because of changes in the operational requirements
of the employer's
enterprise; and
(b) the employer has complied with any obligation in a modern award or
enterprise agreement that applied to the employment to consult
about the
redundancy."
- Industrial
law has long recognised that genuine redundancy, defined over the years in
various ways[85], is a
legitimate and acceptable reason for the termination of employment. As
Ryan J famously observed in Jones v Department of Energy and
Minerals[86], it is an
employer's "prerogative". In the full passage from which this expression
emerges, his Honour
said[87]:
"[I]t is within the employer's prerogative to rearrange the organisational
structure by breaking up the collection of functions,
duties and
responsibilities attached to a single position and distributing them among the
holders of other positions, including newly-created
positions."
- Of
course, it is no technical legal answer to a contention that adverse
action – in the form of dismissal or the like –
has taken place
in contravention of s 340, to submit that the defence of genuine redundancy
is made out. That is a defence to a claim of unfair dismissal; it is not a
defence
for the purposes of Div 3 of Pt 3‑1 of the FWA. But
at a practical level, and very much generally speaking, an employer who can
demonstrate that a dismissal took place
"because of changes in the operational
requirements of the employer's enterprise" which resulted in a relevant job
being no longer
required, to use the language of s 389, should thereby be
capable of displacing the presumption arising under s 361 of the FWA
in a case where a contravention of s 340 is alleged. The foregoing might
not be applicable in a case where some employees are rendered redundant, and
others not, and the
process for selecting employees is unrelated to the
circumstances of
redundancy[88]. But where, as
here, all employees of a division are rendered redundant, the general
observation remains valid. Such a conclusion
ensures that the FWA gives
effect to "harmonious
goals"[89].
- Consistently
with the foregoing, a distinction has traditionally been drawn by courts between
the operative or immediate reason for
taking adverse action as against a merely
contributing factor or factors for undertaking such conduct. Section 340 is
concerned with the former reason for acting and not the latter. Thus, in
Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd,
albeit in the analogous context of s 346 of the FWA, French CJ
and Kiefel J
said[90]:
"The
focus of the inquiry as to whether s 346(b) has been contravened is upon
the reasons for [the decision-maker] taking the adverse action. This is evident
from the word 'because'
in s 346, and from the terms of s 361. The
inquiry involves a search for the reasoning actually employed by [the
decision-maker]. The determination to be made by the court
is one of fact,
taking account of all the facts and circumstances of the case and available
inferences."
- To
similar effect, in Board of Bendigo Regional Institute of Technical and
Further Education v Barclay [No 1], Heydon J
said[91]:
"To
search for the 'reason' for a voluntary action is to search for the reasoning
actually employed by the person who acted. Nothing
in the Act expressly suggests
that the courts are to search for 'unconscious' elements in the impugned
reasoning of persons ..."
- Corporate
decision-making is often the product of many motivations, causes, influences and
processes of reasoning. Depending on their
level of seniority or function,
officers of a company may well emphasise different aspects or factors as to why
something is to be
done. For example, those in the area of human resources may
well have a focus on employment outcomes. But the task is the identification
of
the actual, immediate or operative reason or reasons for taking adverse action.
That is a question of fact. In a given case, it
may well require one to reject
as a reason for taking adverse action the musings or thoughts of employees that
ultimately play no
part in the ultimate decision-making process. It may also
require one to differentiate between the actual reasons for taking adverse
action, and factors or issues which may have contributed in only some causal way
in the lead up to the occurrence of such conduct.
Perram J explained this
well in Construction, Forestry, Mining and Energy Union v Endeavour Coal Pty
Ltd[92], when his Honour
observed that factoring something into one's consideration or taking something
into account does not necessarily
make it a reason for taking adverse action.
Perram J
said[93]:
"[T]here is a factual distinction between factoring something into one’s
consideration of a matter and making a decision about
the matter itself. To give
an example: in reaching the conclusions I have reached on this appeal I have
taken the CFMEU's submissions
into account and they have formed an important
element in my decision-making processes. However, as will be apparent, the fact
that
I have had regard to them does not entail that they may therefore be
described as constituting a part of my subjective reasons for
decision. Of
course, if by reason one means 'cause' then one gets a different result. On that
view of things, [the employee's] prior
record was causally connected to the
decision to transfer him to a different shift. That approach to the
identification of the reason
in question is prevented, however, by CFMEU v
BHP. The inquiry thrown up by s 340 is not one concerned with causation
but, rather, the subjective reasons for action of the decision-maker."
- For
similar reasons it is not enough that there may be a "connection" between the
taking of adverse action, and, for example, protected
industrial activity. As
French CJ and Kiefel J said in BHP
Coal[94]:
"Section
346 does not direct a court to inquire whether the adverse action can be
characterised as connected with the industrial activities
which are protected by
the Act. It requires a determination of fact as to the reasons which motivated
the person who took the adverse action."
- The
foregoing observation applies equally to s 340 of the FWA.
- Identifying
the actual or operative reason for taking adverse action will also require one
to identify the decision-maker or decision-makers.
That is again a question of
fact. In this matter, it was accepted that the decision-maker was Mr Andrew
David, Chief Executive Officer
of Qantas Domestic and International. Where a
company takes adverse action, the decision-makers will usually be those who
represent
its directing mind, and, ordinarily, that will be the company's board
of directors[95] or, where
applicable, the board's authorised delegate or delegates and agent or agents. In
every case, if the presumption mandated
by s 361 is to be displaced, what
is required is a determination of the actual or authentic reason or reasons for
taking adverse action by
the real decision-maker or decision-makers.
- The
distinction between the actual or operative reason for taking adverse action and
factors contributing to the causes for adverse
action explains the principle
that s 340 does not inhibit an employer from taking adverse action for a
legitimate commercial reason, even when the cost of employment has
been a factor
in the decision-making process. As Finkelstein J observed in Greater
Dandenong City Council v Australian Municipal, Administrative, Clerical and
Services
Union[96]:
"[T]o decide whether an employee has been unlawfully dismissed, it is necessary
to ascertain the true motive for, or purpose of,
the dismissal. If there is some
legitimate reason for the dismissal, such as the desire to avoid bankruptcy or
the need to maintain
a profitable operation, the dismissal will be lawful. It
matters not that the cause of the impending bankruptcy or the unprofitable
trading is the high rate of wages payable under an award or certified agreement.
That is to say, although the benefits produced by
an award or certified
agreement have caused the problem which the employer seeks to address, that does
not necessarily make those
benefits the 'reason' or motive for his act."
- The
foregoing followed from the distinction between an operative reason and a
participating cause, described earlier. Finkelstein
J usefully explained
that distinction in the following
way[97]:
"[T]here has been an unbroken line of State and federal authority in favour of
the proposition that, for the purpose of deciding
whether there has been an
unlawful dismissal for the reason that an employee is entitled to the benefit of
an award or certified
agreement, it is necessary to draw a distinction between
the 'reason' or motive behind the dismissal and what produced that motive."
- The
foregoing is also consistent with the "balance" struck by the FWA between
the interests of employers and the interests of employees
"of which Alfred
Deakin spoke as being necessary for an effective conciliation and arbitration
system"[98]. That same
balance can be seen in the first listed "object" of the FWA, which (as
presently framed)
provides[99]:
"The object of this Act is to provide a balanced framework for cooperative and
productive workplace relations that promotes national economic prosperity
and
social inclusion for all Australians by:
(a) providing workplace relations laws that are fair to working Australians,
promote job security and gender equality, are flexible
for businesses, promote
productivity and economic growth for Australia's future economic prosperity and
take into account Australia's
international labour obligations".
- There
was evidence before the primary judge that the decision by QAL to outsource the
ground handling operations was based upon three
commercial imperatives: (a) the
achievement of two‑year cost targets by a reduction in operating costs;
(b) a need to increase
variability in the cost base; and (c) a concern to
minimise capital expenditure, grow customer confidence and deliver ongoing
business
improvement. Stating commercial objectives in this way – using
language of high generality – is unlikely to be of utility.
Of greater
concrete reality is the fact, as already mentioned, that it was estimated by QAL
that outsourcing its ground handling
operations would save it around
$100 million per year. Following the making of the outsourcing decision,
Mr David sent a communication
to employees, which set out more relevant
detail about what had occurred. Amongst other things, Mr David wrote that
because of the
COVID‑19 pandemic:
"We face a huge task to recover from this crisis and we need to make fundamental
changes across the Group.
For ground operations, we need to solve for three challenges – lower our
overall cost of ground handling operations (by outsourcing
we anticipated saving
around $100 million annually based on pre-COVID flying), avoid large spending on
equipment (calculated at $80
million over 5 years) and match our ground handling
services with fluctuating levels of demand."
- In
considering how to achieve its commercial objectives, QAL invited the TWU to
make an in-house bid to continue ground handling
operations internally. But it
was rejected in favour of specialist third-party ground handlers; seemingly, the
TWU never had much
hope of being the winning bidder. As Mr David explained in
his communication:
"The TWU national in-house bid was unsuccessful because it didn’t outline
a plan or any real detail for how costs savings would
be practically achieved.
The bid was also unable to solve the challenge to avoid large spending on
equipment and matching our ground
handling services with fluctuating levels of
demand.
In contrast, teams at some airports presented a number of ideas to deliver our
ground handling services more efficiently. Unfortunately,
they were only able to
identify $18 million in savings compared to external suppliers who can solve all
three challenges, including
an overall reduction in annual ground handling costs
of approximately $103 million.
Specialist third-party ground handlers provide services to many airlines as
their core business. This means they have much lower
overheads and equipment
costs, better access to technology and resources they can scale up and down more
easily between airlines."
- The
foregoing might have been accepted by the primary judge as the actual or
operative reasons for the taking of adverse action by
QAL. If that had been the
case, QAL would not have been found to have contravened s 340 of
the FWA. But without deciding whether the foregoing could have been the
actual or operative reasons of QAL, the primary judge
determined that the
evidence before him was most unsatisfactory. That evidence included affidavits
filed by current and former officers
of QAL, and the answers those officers gave
in cross-examination. Mr Jones was one such key witness. The primary judge
described
him as an "unimpressive witness" and observed that unless what
Mr Jones said accorded with the "inherent probabilities" or other
evidence
accepted by his Honour, the primary judge did not "consider it ... safe to place
any significant reliance upon [Mr Jones']
evidence"[100]. Mr Hughes
was another witness. His evidence was found, in some respects, to be "less than
compelling"[101]. The
primary judge lacked confidence in accepting the affidavit sworn by
Mr David[102]; he did
not consider that Mr David's evidence was "entirely satisfactory", and he
found that Mr David was unwilling "to make concessions
from time to
time"[103]. The upshot was
that the primary judge found that QAL had simply failed to discharge its onus of
demonstrating that the reason pleaded
by the TWU for taking adverse action,
presumed by s 361 to exist, was incorrect. As his Honour
said[104]:
"If
the question posed was whether I have reached a state of actual persuasion or
reasonable satisfaction that a substantial and operative
reason for Mr David
outsourcing the ground operations was the Relevant Prohibited Reason, I would
answer that question in the negative.
If the same question was posed in relation
to the reasons for the relevant endorsement of outsourcing by Mr Jones, I would
answer
in the positive. But neither of these questions is the issue I am
presently addressing.
I am not satisfied that Qantas has proved on the balance of probabilities
that Mr David did not decide to outsource the ground operations
for reasons
which included the Relevant Prohibited Reason. As will already be obvious, this
conclusion reflects my unease as to the
state of the evidence on this fact in
issue and, in particular, Mr David’s evidence when viewed in the
light of all the other
evidence to which I have made reference."
- Thus,
it was on the narrowest of grounds that QAL was unable to succeed in
demonstrating that it did not take adverse action for
the reasons alleged by the
TWU.
Preventing the exercise of a workplace right
- This
left Qantas with its point of construction concerning how to apply
s 340(1). The submission turned upon the language of the definition of
"workplace right" in s 341(1) of the FWA. That provision is in the
following terms:
"A person has a workplace right if the person:
(a) is entitled to the benefit of, or has a role or responsibility under, a
workplace law, workplace instrument or order made by
an industrial body; or
(b) is able to initiate, or participate in, a process or proceedings under a
workplace law or workplace instrument; or
(c) is able to make a complaint or inquiry:
(i) to a person or body having the capacity under a workplace law to seek
compliance with that law or a workplace instrument; or
(ii) if the person is an employee – in relation to his or her employment."
- Ultimately,
this case concerned only s 341(1)(b). The term "process or proceedings
under a workplace law or workplace instrument" is defined in s 341(2) by
reference to a list of activities or actions. As already mentioned, one of these
is "protected industrial
action"[105]. Qantas
submitted that the language of s 341(1) is necessarily concerned with
presently held workplace rights. Thus, the chapeau to the provision
refers to a person who "has" a right, and thereafter: in para (a) the reference
is to a person who "is entitled"
to certain matters, or who "has" a certain role
or responsibility; in para (b) the reference is to a person who "is able to
initiate,
or participate in, a process or proceedings", relevantly here
protected industrial action; and in para (c) the reference is to a
person who
"is able to make" a certain type of complaint or inquiry. In the case of para
(c) the significance of the phrase "is able
to make" has led
Dodds‑Streeton J in Shea v TRUenergy Services Pty Ltd [No
6] to observe that the ability to make a complaint must be underpinned by
some entitlement or right to do
so[106], which,
inferentially, must be actually and presently held by the employee.
Dodds-Streeton J's observation has since been upheld
by the Full Court of
the Federal Court in Cigarette & Gift Warehouse Pty Ltd v
Whelan[107]. It is
plainly correct.
- Here,
Qantas submitted, as at 30 November 2020 it could not be said that the
ground handling employees had a presently held right
to initiate or participate
in protected industrial action, for the reasons set out above. The TWU, and the
Minister for Employment
and Workplace Relations intervening, sought to contend
otherwise by submitting that the employees had contingent rights to initiate
or
participate in such action and that this was sufficient to satisfy
s 341(1)(b) of the FWA. Reference was made to the Explanatory
Memorandum to the Fair Work Bill 2008 (Cth), which expressed the
proposition that the word "benefit" in s 341(1)(a) included "benefits that
are contingent or
accruing"[108]. However, no
equivalent language may be found in the explanation for s 341(1)(b); that
provision does not use the word "benefit".
Moreover, to proclaim that one has a
present right to take protected industrial action – which may only be
exercisable, or
which may only crystallise, upon the happening of future
contingent events, which may or may not happen – is to assert no more
than
the retention of an expectancy, given content by mere
hope[109]. With respect,
that is most unlikely to be what Parliament intended to include when it
relevantly referred in s 341(1)(b) to a person
who is able to initiate or
participate, here, in protected industrial action. The TWU's and the Minister's
submission on this point
is rejected.
- Qantas
sought to support its case by relying upon the decision of the Full Court of the
Federal Court in Burnie Port Corporation Pty Ltd v Maritime
Union[110]. That case
concerned former ss 298K and 298L of the Workplace Relations Act
1996 (Cth). Section 298K provided that an employer must not refuse to
employ another person for a "prohibited reason". Pursuant to s 298L,
conduct was for a prohibited reason if it was carried out because the employee
"is entitled to the benefit of an industrial instrument".
Qantas latched onto
the phrase "is entitled" as part of its broader submission that there must be a
present or existing, rather than
prospective, entitlement. Bernie Port
Corporation Pty Ltd had two vacancies it needed to fill, and made it clear to
candidates in
interviews that it would require the successful candidates to
enter into an Australian Workplace Agreement
("AWA")[111]. One of the
candidates said that he was "not
happy"[112] with this; he
wished to be governed by an enterprise bargaining agreement ("EBA") that the
Port had entered into with the Maritime
Union. He was overlooked for both
positions in favour of two other candidates, both of whom agreed to enter into
an AWA before commencing
employment with the Port. The Union contended that he
had been refused employment for a prohibited reason. The Full Court rejected
the
contention because at the time when employment was refused the candidate was not
yet "entitled" to the benefit of the
EBA[113]. The Full Court
agreed with the following submission made by the
Port[114]:
"[Section] 298L(1)(h) required that the person who has been refused employment
be, at the date of the refusal, entitled to the benefit
of an industrial
instrument or an order of an industrial body; it was said to be insufficient
that the person might in the future
be entitled to that benefit. It was common
ground that at the date of the refusal, as [the candidate] was not yet an
employee of
the Corporation, he had no existing legal entitlement to any benefit
under the EBA or under any other industrial instrument or order
of an industrial
body that was of relevance to his prospective employment with the Corporation."
- Qantas
submitted that this reasoning applied here. The ground handling employees simply
had "no existing legal entitlement" to initiate
or participate in protected
industrial action when Qantas took adverse action.
- Qantas'
submission is misconceived once s 341(1) is read with s 340(1) of
the FWA. That is so for a number of reasons.
- First,
the Full Court of the Federal Court was correct to conclude that the "temporal
frame", or time, for considering a workplace right
in connection with the taking
of adverse action is governed by s 340(1), being the operative provision,
rather than s 341, which is a definitional section. The language of
s 340 bears that out: s 340(1)(a)(i) refers to action taken against a
person because he or she "has" a workplace right; s 340(1)(a)(ii) refers to
action taken against a person who "has, or has not, exercised" a workplace
right; and s 340(1)(a)(iii) refers to action taken against a person who
"proposes or proposes not to, or has at any time proposed or proposed not to,
exercise”
a workplace right. Sub‑paragraph (i) necessarily
deals with the present and would require an employee to hold or have a workplace
right as defined by s 341(1). Sub-paragraph (ii) deals with the past; when
it applies it will not matter whether the employee has continued to hold the
workplace
right, which either was or was not exercised in the past, when adverse
action is taken. Sub-paragraph (iii) deals with the future
as well as the past.
Whilst it requires an actual "proposal" which either must exist when adverse
action is taken or has existed
in the past, it nonetheless contemplates that the
exercise of the applicable workplace right has yet to take place. It follows
that
Qantas' reliance on the words and phrases "has", "is entitled" and "is
able" in s 341(1) are of no moment; they cannot control the operation of
s 340(1). If they did, they would undo much that s 340(1)(a) seeks to
achieve.
- Secondly,
s 340(1)(b) also addresses the future. When introduced as part of
the FWA, it was wholly new. Unlike s 340(1)(a), and previous statutory
analogues of Div 3 of
Pt 3‑1[115], it
does not employ the word "because" to direct attention to the actuating reason
for taking adverse action. Instead, it applies
when adverse action is taken
against a person "to prevent" the exercise of a workplace right. As the Full
Court of the Federal Court
in Toyota Motor Corporation Australia Ltd v
Marmara[116] correctly
observed (with which the Full Court below agreed), the phrase "to prevent" must
be read as "in order to prevent". In that
case, the Full Court
said[117]:
"[T]he expression 'to prevent the exercise' must be read in the sense 'in order
to prevent the exercise' or 'with a view to preventing
the exercise'. It was not
sufficient if action taken by the person referred to in the subsection had the
incidental effect of preventing
the exercise."
- Plainly,
like s 340(1)(a)(iii), s 340(1)(b) contemplates a situation where a
workplace right has yet to be exercised, where the exercise of the right remains
preventable. But
unlike s 340(1)(a)(iii), it does not require the employee
or employees to have done anything. In order to be engaged, it does not require
the present existence
of a proposed or threatened exercise of a workplace right.
Its concern is thus with the pre‑emptive strike.
- Thirdly,
given the foregoing, it would make little sense to confine s 340(1)(b) to
pre‑emptive strikes only against the exercise of workplace rights
presently held by an employee or employees. Once it is
accepted that the
language of s 341(1) cannot relevantly control the operation of
s 340(1) in the sense contended for by Qantas, there is nothing in the text
of s 340(1)(b) that limits its operation to only those workplace rights
which are in existence when adverse action has been taken. Such a restriction
would require the presence of words of limitation which operate to exclude
future workplace rights, yet no such words are to be found.
Moreover, given that
the concern of s 340(1)(b) is with the pre‑emptive strike, it would
make little sense for Parliament to have enacted a provision that would deny
such
a strike against presently held rights, but not against rights which may
arise and then possibly be exercised in the future. There
is nothing in the
Explanatory Memorandum that would support the pursuit, as a matter of
legislative policy, of such a distinction.
- In
that respect, the following reasons of the primary judge, which are essentially
similar to the foregoing, are entirely correct
and necessarily
dispositive[118]:
"[T]he submission that the outsourcing decision 'did not prevent anything' and
that the Union cannot point to any direct or immediate
'prevention' is
misconceived. The Union makes the point, correctly, that the insertion of a
requirement that the prevention of the
exercise of the workplace right be
'direct or immediate' involves a gloss on the words of s 340(1)(b). The
section directs attention to whether adverse action has been taken 'to prevent'
the exercise of a workplace right. There is no
basis for adding a requirement
that the right be of a particular nature such that it can be characterised, by
some sort of evaluative
assessment, to be sufficiently immediate. In any event,
the outsourcing decision prevented the members of the Union who were affected
employees exercising their workplace right to do something that Qantas did not
want to occur and wished to prevent, that is, participation
in protected
industrial action. Section 340(1)(b) contemplates acts to prevent employees
exercising workplace rights by preventing circumstances arising whereby those
rights could
be exercised."
- Fourthly,
the reliance by Qantas on the decision in Burnie Port Corporation is
flawed. The operative language in that case required the Full Court to focus on
whether the putative employee was "entitled" to
the benefit of an industrial
instrument (relevantly a certain EBA) at a time when he was not employed by the
Port. The language used
in s 340(1)(b) is, for the reasons given above,
very different from that considered in Burnie Port Corporation.
- It
is otherwise unnecessary to consider the TWU's notice of contention, or its
proposed cross-appeal. The appeal must be dismissed.
[1] Section 342(1),
item 1(c) of the Act.
[2] Section 342(1),
item 3(c) of the Act.
[3] See General Motors-Holden's Pty
Ltd v Bowling (1976) 51 ALJR 235 at 242; 12 ALR 605 at 619; Board of
Bendigo Regional Institute of Technical and Further Education v Barclay [No 1]
[2012] HCA 32; (2012) 248 CLR 500 at 535 [104], 540-541 [121]. See also Greater
Dandenong City Council v Australian Municipal, Administrative, Clerical and
Services Union [2001] FCA 349; (2001) 112 FCR 232 at 275-276 [163]- [164], 287-288 [204], 289
[209]; Australia, House of Representatives, Fair Work Bill 2008,
Explanatory Memorandum at 234 [1458].
[4] Transport Workers' Union of
Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 324-330 [282]- [302].
[5] Transport Workers' Union of
Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244; Transport Workers'
Union of Australia v Qantas Airways Ltd [No 2] [2021] FCA 1012; (2021) 308 IR 333; Qantas
Airways Ltd v Transport Workers' Union of Australia [2022] FCAFC 71; (2022) 292 FCR 34.
[6] Transport Workers' Union of
Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 295 [139].
[7] Including, relevantly, a protected
action ballot: see Pt 3-3, Div 8 of the Act. See also ss 417 and
418.
[8] Transport Workers' Union of
Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 298 [156].
[9] Transport Workers' Union of
Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 307 [194], 322
[272(1)].
[10] Section 6(1) of the Act.
[11] Section 3(e) of the Act.
[12] Section 6(2) of the Act.
[13] See Greater Dandenong City
Council [2001] FCA 349; (2001) 112 FCR 232 at 282-288 [192]- [204]; Cummins South Pacific
Pty Ltd v Keenan [2020] FCAFC 204; (2020) 281 FCR 421 at 431-432 [23]- [30].
[14] Inserted by Workplace
Relations Amendment (Work Choices) Act 2005 (Cth), Sch 1, item 193
as s 253, which was then renumbered to s 792 by Sch 5 to that
same Act.
[15] See s 792(1) and (5) of
the Workplace Relations Act 1996 (Cth).
[16] Australia, House of
Representatives, Fair Work Bill 2008, Explanatory Memorandum at
212 [1336].
[17] Australia, House of
Representatives, Fair Work Bill 2008, Explanatory Memorandum at
221 [1386].
[18] Section 336(1)(a) of the
Act.
[19] Section 334 of the
Act.
[20] Section 12 of the Act,
definition of "workplace law" (para (a)).
[21] Section 340 of the
Act.
[22] Section 343 of the
Act.
[23] Section 344 of the
Act.
[24] Section 345 of the
Act.
[25] Section 336(2) of the Act.
[26] Section 381(1)(a) of the
Act.
[27] Section 360 of the Act.
[28] cf Greater Dandenong City
Council [2001] FCA 349; (2001) 112 FCR 232 at 291 [215]- [216].
[29] Kelly v The Queen [2004] HCA 12; (2004)
218 CLR 216 at 253 [103]; Allianz Australia Insurance Ltd v GSF Australia Pty
Ltd [2005] HCA 26; (2005) 221 CLR 568 at 574-575 [12]. See also Gibb v Federal
Commissioner of Taxation [1966] HCA 74; (1966) 118 CLR 628 at 635.
[30] See s 109 of the Act.
[31] See, eg, Burnie Port
Corporation Pty Ltd v Maritime Union of Australia [2000] FCA 1768; (2000) 104 FCR 440 at 446
[30]. Other examples under the Act include the notice and/or evidentiary
requirements for taking unpaid parental leave or flexible unpaid parental leave
(ss 70, 72A and 74), paid personal/carer's leave (ss 96 and 107),
unpaid pre-adoption leave (s 85), unpaid carer's leave (ss 102
and 107), compassionate leave (ss 104 and 107) and, most recently,
paid family and domestic violence leave (ss 106A and 107) (though at the
time of the outsourcing decision, those provisions established only an
entitlement to unpaid family and domestic
violence leave).
[32] Australia, House of
Representatives, Fair Work Bill 2008, Explanatory Memorandum at 216
[1363]. See also Pt 2-1, Div 9 of the Act.
[33] Cummins South Pacific
[2020] FCAFC 204; (2020) 281 FCR 421 at 433 [34]; Alam v National Australia Bank Ltd
[2021] FCAFC 178; (2021) 288 FCR 301 at 328 [85].
[34] Construction Forestry Mining
and Energy Union v Mammoet Australia Pty Ltd (2013) 248 CLR 619 at 634-635
[48].
[35] PIA Mortgage Services Pty
Ltd v King [2020] FCAFC 15; (2020) 274 FCR 225 at 229 [10]; cf Cummins South Pacific
[2020] FCAFC 204; (2020) 281 FCR 421 at 429 [14].
[36] The Oxford English
Dictionary, online, "prevent", sense II.9.a.
[37] Section 539(2),
item 11 and s 546 of the Act.
[38] Section 545 of the
Act.
[39] cf Tattsbet Ltd v Morrow
[2015] FCAFC 62; (2015) 233 FCR 46 at 75-76 [119].
[40] Maric v Ericsson Australia
Pty Ltd [2020] FCA 452; (2020) 293 IR 442 at 461-462 [58].
[41] See, eg, ss 409(2), 437
and 459 of the Act.
[42] Section 342(1), item 1(a) of
the Act.
[43] Section 368(4) of the
Act.
[44] Fair Work Act, s 342(1),
item 1(c).
[45] Fair Work Act,
s 341(1)(b); see s 341(1)(a) and (c) for the other circumstances in which a
person has a workplace right.
[46] Fair Work Act,
s 341(2)(c).
[47] Fair Work Act,
s 341(2)(d).
[48] Fair Work Act, s
341(1)(a).
[49] Fair Work Act, s
417.
[50] Fair Work Act, ss 408
and 409.
[51] Fair Work Act, ss 437,
438, 443, 449, 459.
[52] Fair Work Act, Div 2 of
Pt 3-3.
[53] Fair Work Act, Div 8 of
Pt 3-3.
[54] Fair Work Act, Pt 2-4.
[55] Fair Work Act,
s 360.
[56] General
Motors-Holden’s Pty Ltd v Bowling (1976) 51 ALJR 235 at 241;
12 ALR 605 at 617; Board of Bendigo Regional Institute of Technical
and Further Education v Barclay [No 1] [2012] HCA 32; (2012) 248 CLR 500 at 517
[44]- [45], 519‑520 [49]‑[51], 535‑536 [105]-[106];
Rumble v The Partnership (t/as HWL Ebsworth Lawyers) [2020] FCAFC 37; (2020) 275 FCR 423
at 430-431 [33]- [34].
[57] Bowling (1976) 51 ALJR
235 at 238‑239, 241-242; 12 ALR 605 at 611-612, 616‑617, 619;
Barclay [No 1] [2012] HCA 32; (2012) 248 CLR 500 at 522 [56], 523 [59], 523 [62], 535
[103]-[104], 542 [127]; Construction, Forestry, Mining and Energy Union v BHP
Coal Pty Ltd [2014] HCA 41; (2014) 253 CLR 243 at 249 [7]- [9], 252-253 [22], 267 [85],
268‑269 [88]-[90]; Construction, Forestry, Mining and Energy Union v
Endeavour Coal Pty Ltd [2015] FCAFC 76; (2015) 231 FCR 150 at 160 [30], 160‑161 [32],
169 [75]-[77], 186‑187 [166], 191 [190]-[191]; Construction,
Forestry, Mining and Energy Union v Anglo Coal (Dawson Services) Pty Ltd
[2015] FCAFC 157; (2015) 238 FCR 273 at 281‑282 [36]-[37], 301 [130]-[131], 302 [133]-[135].
[58] The word "right" is one of
the most ill-used legal concepts: Hohfeld, "Some Fundamental Legal
Conceptions as Applied in Judicial
Reasoning" (1913) 23 Yale Law Journal
16 at 28-30; Pound, "Legal Rights" (1915) 26 The International Journal of
Ethics 92; Walker, The Oxford Companion to Law (1980) at 1070
(definition of "[r]ight").
[59] Fair Work Act, s
87.
[60] Fair Work Act, s 96.
[61] See also Fair Work
Act, s 96(2).
[62] Australia, House of
Representatives, Fair Work Bill 2008, Explanatory Memorandum at 216
[1363].
[63] cf Fair Work Act,
s 438 dealing with an application for a protected action ballot order which
must not be made earlier than 30 days before the nominal expiry
date of the
enterprise agreement.
[64] Fair Work Act, s 417(3)
read with s 545(1).
[65] Fair Work Act, s
415.
[66] Unless protected, industrial
action can have a range of civil consequences. Those consequences include
that, if it appears to the
Fair Work Commission that industrial action by one or
more employees that is not or would not be protected industrial action is
happening,
is threatened, impending or probable, or is being organised,
the Commission must make an order that the industrial action stop,
not
occur or not be organised: Fair Work Act, s 418(1). A
person must not contravene such an order: Fair Work Act, s 421(1).
[67] Fair Work Act, s
417(1)(a).
[68] LibertyWorks Inc v The
Commonwealth [2021] HCA 18; (2021) 274 CLR 1 at 72 [185].
[69] Kelly v The Queen [2004] HCA 12; (2004)
218 CLR 216 at 253 [103].
[70] Kelly [2004] HCA 12; (2004) 218 CLR 216
at 253 [103].
[71] Fair Work Act, s 3.
[72] Fair Work Act,
s 336.
[73] See, eg, Fair Work Act,
Pt 3-2, concerned with the unfair dismissal of national system employees
and the granting of remedies for unfair dismissal.
[74] See, eg, Cummins South
Pacific Pty Ltd v Keenan [2020] FCAFC 204; (2020) 281 FCR 421 at 431-432 [23]- [30].
[75] See, eg, Burnie Port
Corporation Pty Ltd v Maritime Union of Australia [2000] FCA 1768; (2000) 104 FCR 440;
Greater Dandenong City Council v Australian Municipal, Administrative,
Clerical and Services Union [2001] FCA 349; (2001) 112 FCR 232 at 282-288
[192]‑[204].
[76] Australia, House of
Representatives, Fair Work Bill 2008, Explanatory Memorandum at 212
[1336], 221 [1386].
[77] See, eg, Fair Work Act,
s 550 read with s 539; Corporations Act 2001 (Cth),
ss 180 and 181.
[78] FWA, s 341(1)(b).
[79] FWA, s 341(2)(c).
[80] FWA, ss 437 and 438.
[81] FWA, s 443.
[82] FWA, s 459.
[83] Paragraph 44A of the amended
statement of claim dated 31 December 2020.
[84] Kiefel CJ, Gageler,
Gleeson and Jagot JJ rightly point out that Qantas had a second legal
contention, but it was wholly subsumed
within Qantas' primary argument.
[85] R v The Industrial
Commission of South Australia; Ex parte Adelaide Milk Supply Co-operative
Ltd (1977) 16 SASR 6 at 8 per Bray CJ, 26-27 per Bright J;
Termination, Change and Redundancy Case [1984] CthArbRp 284; (1984) 8 IR 34 at 55-56 per
Moore P, Maddern J and Brown C; Ulan Coal Mines Ltd v
Howarth [2010] FWAFB 3488; (2010) 196 IR 32 at 36-38 [15]- [20] per Boulton J, SDP,
Drake SDP and McKenna C; Mackay Taxi Holdings Ltd v Wilson
[2014] FWCFB 1043; (2014) 240 IR 409 at 416-420 [29]- [47] per Richards SDP, Spencer and
Simpson CC; McRae v Greyhound Australia (2020) 295 IR 126 at 145-149
[68]-[78] per Sams DP; cf Amcor Ltd v Construction, Forestry, Mining and
Energy Union [2005] HCA 10; (2005) 222 CLR 241 at 249 [12] per Gleeson CJ and
McHugh J.
[86] [1995] IRCA 292; (1995) 60 IR 304 at 308.
[87] [1995] IRCA 292; (1995) 60 IR 304 at 308. See
also ICI Australia Operations Pty Ltd v Hutton (1993) 47 IR 288 at
296-297 per Bauer, Hill and Peterson JJ; Short v F W Hercus Pty Ltd
(1993) 40 FCR 511 at 520-521 per Burchett J; Quality Bakers of
Australia Ltd v Goulding [1995] IRCA 285; (1995) 60 IR 327 at 332-333 per Beazley J;
Finance Sector Union of Australia v Commonwealth Bank of Australia [2001] FCA 1613; (2001)
111 IR 241 at 269-275 [70]- [81] per Moore J; Dibb v Commissioner of
Taxation [2004] FCAFC 126; (2004) 136 FCR 388 at 401-405 [33]- [44] per Spender, Dowsett and
Allsop JJ.
[88] Australia, House of
Representatives, Fair Work Bill 2008, Explanatory Memorandum at 247
[1553].
[89] Project Blue Sky Inc v
Australian Broadcasting Authority [1998] HCA 35; (1998) 194 CLR 355 at 381-382 [70] per
McHugh, Gummow, Kirby and Hayne JJ, citing Ross v The Queen [1979] HCA 29; (1979)
141 CLR 432 at 440 per Gibbs J.
[90] [2014] HCA 41; (2014) 253 CLR 243 at 249 [7]
(footnotes omitted).
[91] [2012] HCA 32; (2012) 248 CLR 500 at 546
[146].
[92] [2015] FCAFC 76; (2015) 231 FCR 150.
[93] [2015] FCAFC 76; (2015) 231 FCR 150 at 173
[91].
[94] [2014] HCA 41; (2014) 253 CLR 243 at 252
[19].
[95] Federal Commissioner of
Taxation v Whitfords Beach Pty Ltd [1982] HCA 8; (1982) 150 CLR 355 at 370 per
Gibbs CJ. See also, by way of example, Australian Workers' Union v John
Holland Pty Ltd [2001] FCA 93; (2001) 103 IR 205 and Maritime Union of Australia v CSL
Australia Pty Ltd [2002] FCA 513; (2002) 113 IR 326.
[96] [2001] FCA 349; (2001) 112 FCR 232 at 286
[199].
[97] [2001] FCA 349; (2001) 112 FCR 232 at 287
[204].
[98] Board of Bendigo Regional
Institute of Technical and Further Education v Barclay [No 1] [2012] HCA 32; (2012) 248 CLR
500 at 523 [61] per French CJ and Crennan J.
[99] FWA, s 3(a).
[100] Transport Workers' Union
of Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 266 [61], 273 [69],
292 [133] per Lee J.
[101] Transport Workers' Union
of Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 274 [73] per
Lee J.
[102] Transport Workers' Union
of Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 325 [289] per
Lee J.
[103] Transport Workers' Union
of Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 279 [90]- [91] per
Lee J.
[104] Transport Workers' Union
of Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 325 [287]- [288] per
Lee J.
[105] FWA, s 341(2)(c).
[106] (2014) 314 ALR 346 at 440
[625].
[107] [2019] FCAFC 16; (2019) 268 FCR 46 at 55-56
[28] per Greenwood, Logan and Derrington JJ. See also PIA Mortgage
Services Pty Ltd v King [2020] FCAFC 15; (2020) 274 FCR 225 at 229-230 [11]- [14] per Rangiah
and Charlesworth JJ, 257-258 [162]-[164] per Snaden J; Cummins
South Pacific Pty Ltd v Keenan [2020] FCAFC 204; (2020) 281 FCR 421 at 488 [285]- [286] per
Anastassiou J; Alam v National Australia Bank Ltd [2021] FCAFC 178; (2021) 288 FCR 301
at 324-332 [68]- [97] per White, O'Callaghan and Colvin JJ. Dodds-Streeton
J's observation has also been followed at first instance on many occasions:
The Environmental Group Ltd v Bowd [2019] FCA 951; (2019) 288 IR 396 at 439-440 [128] per
Steward J; Morton v Commonwealth Scientific and Industrial Research
Organisation [No 2] [2019] FCA 1754 at [34]- [36] per Rangiah J;
Maric v Ericsson Australia Pty Ltd [2020] FCA 452; (2020) 293 IR 442 at 453-454 [27], 460
[55] per Steward J; Lamont v University of Queensland [No 2] [2020]
FCA 720 at [55]- [56], [110] per Rangiah J; Flageul v WeDrive Pty Ltd
[2020] FCA 1666 at [273]- [274] per Steward J; Salama v Sydney Trains
[2021] FCA 251 at [99]- [102] per Burley J; SBP Employment Solutions Pty
Ltd v Smith [2021] FCA 601 at [128]- [143] per Rangiah J; Wong v
National Australia Bank Ltd [2021] FCA 671 at [69]- [77] per Snaden J;
Crossing v Anglicare NSW South, NSW West & ACT [2021] FCA 1112 at
[290]- [294] per Abraham J; Messenger v The Commonwealth [2022] FCA
677 at [142]- [150] per Snaden J; Pigozzo v Mineral Resources Ltd
[2022] FCA 1166 at [44]- [46] per Feutrill J.
[108] Australia, House of
Representatives, Fair Work Bill 2008, Explanatory Memorandum at 216
[1363].
[109] cf Norman v Federal
Commissioner of Taxation [1963] HCA 21; (1963) 109 CLR 9. The TWU submission had no more
substance than an assertion that a person can presently hold a right because
they
may become a citizen of another country upon satisfying in the future that
country's conditions for citizenship.
[110] [2000] FCA 1768; (2000) 104 FCR 440.
[111] [2000] FCA 1768; (2000) 104 FCR 440 at
441-442 [7]- [8] per Wilcox, Kiefel and Merkel JJ.
[112] [2000] FCA 1768; (2000) 104 FCR 440 at 442
[8] per Wilcox, Kiefel and Merkel JJ.
[113] cf FWA, s 341(3).
[114] [2000] FCA 1768; (2000) 104 FCR 440 at 443
[17] per Wilcox, Kiefel and Merkel JJ.
[115] See, eg, Industrial
Relations Act 1988 (Cth), s 334(3); Workplace Relations Act 1996
(Cth), ss 298K and 298L. See also Commonwealth Conciliation and
Arbitration Act 1904 (Cth), s 9(1), as amended by the Commonwealth
Conciliation and Arbitration Act (No 2) 1914 (Cth), which adopted the
expression "by reason of".
[116] [2014] FCAFC 84; (2014) 222 FCR 152.
[117] [2014] FCAFC 84; (2014) 222 FCR 152 at 190
[126] per Jessup, Tracey and Perram JJ; see also Qantas Airways Ltd v
Transport Workers' Union of Australia [2022] FCAFC 71; (2022) 292 FCR 34 at 62 [86].
[118] Transport Workers' Union
of Australia v Qantas Airways Ltd [2021] FCA 873; (2021) 308 IR 244 at 323 [278] per
Lee J.