1
Fair Work Act 2009
s.604 - Appeal of decisions
Construction, Forestry, Mining and Energy Union
v
Fair Work Commission
(C2014/2631)
SENIOR DEPUTY PRESIDENT WATSON
DEPUTY PRESIDENT KOVACIC
COMMISSIONER WILSON
MELBOURNE, 24 APRIL 2014
Appeal against decision [2013] FWC 9860 and [2013] FWC 10168 of Senior Deputy
President O’Callaghan at Adelaide on 16 and 23 December 2013 in matter number
RE2013/1710—Permission to appeal granted—decision [2013] FWC 10168 quashed in
relation to Lend Lease entries—appeal otherwise dismissed—on rehearing, misuse of Part 3–
4 rights found to have occurred in respect of some Lend Lease entries—matter remitted back
to Senior Deputy President O’Callaghan to determine what action should be taken under
s.508(2) of the Fair Work Act 2009 as to jurisdiction under s.508(1) and nature and extent of
misuse of Part 3–4 in relation to Lend Lease entries and complete hearing of matter in
respect of matters arising out of the Fair Work Building and Construction evidence.
[1] On 11 November 2013, Senior Deputy President O’Callaghan instituted proceedings
on his own motion, pursuant to s.508 of the Fair Work Act 2009 (the FW Act) (s.508) in
RE2013/1710. The matter initially concerned entries onto sites controlled by Lend Lease
Building Contractors Pty Ltd (Lend Lease) on 30 October 2013 by officials of the South
Australian Branch of the Construction, Forestry, Mining and Energy Union (CFMEU), but
was later expanded to encompass later entries onto the Lend Lease sites and entry onto sites
controlled by other companies.
[2] The Senior Deputy President made three decisions arising out of RE2013/1710:
1. [2013] FWC 9343, a decision of 27 November 2013, dismissing an application
by the CFMEU that he disqualify himself from further pursuing the matter
because of an apprehension of bias arising from statements made by him in
s.418 proceedings on 31 October 2013 and 1 November 2013 and subsequent
statements in a decision1 issued on 1 November 2013 in a s.418 matter;
2. [2013] FWC 9860, a procedural decision of 16 December 2013, dismissing a
jurisdictional application by the CFMEU that no further action should be taken
in the matter pursuant to s.508 on the basis that, firstly, there was no
jurisdiction to undertake what it described as a preliminary investigation into
whether to initiate action under that section, and second that there was no
specific proposal to found such an action; and
[2014] FWCFB 2709
DECISION
[2014] FWCFB 2709
2
3. [2013] FWC 10168, a decision of 23 December 2013, in which the Senior
Deputy President found that the Lend Lease entries represent serious,
deliberate and sustained misuse of entry rights by the CFMEU pursuant to
s.508(1) of the Act and set down further proceedings in respect of action under
s.508(2) of the Act and relisted the matter in respect of entries to other sites for
further evidence.
[3] The CFMEU appealed each decision—[2013] FWC 9343 in C2013/7662; [2013]
FWC 9860 and [2013] FWC 10168 in C2014/2631. Both appeals were heard by a Full Bench
on 12 February 2014.
[4] A decision determining the appeal against the decision in [2013] FWC 9343 in
C2013/7662 was published on 28 February 2014 in [2014] FWCFB 1443.
[5] This decision determines the appeals against the decisions in [2013] FWC 9860 and
[2013] FWC 10168 in C2014/2631.
Background to the appeal
[6] The background to the appeal concerns the initiation of the s.508 proceedings by
Senior Deputy President O’Callaghan.
[7] That background commences with a 30 October 2013 application by Lend Lease2 for
the making of an order pursuant to s.418 of the Act (s.418) binding on the CFMEU and
several of its own and subcontractor employees engaged on four Lend Lease sites.
[8] The Senior Deputy President refused the application for a s.418 order.3 During the
course of the proceedings and in his decision in the s.418 matter the Senior Deputy President
referred to evidence in relation to entries onto sites controlled by Lend Lease by CFMEU
officials on 30 October 2013 and expressed a concern that the material before him “indicated
various breaches of Part 3–4 of the FW Act”. The Senior Deputy President advised that he
would consider whether he should inquire into these entries pursuant to s.508.4
[9] On 11 November 2013, Senior Deputy President O’Callaghan wrote to the CFMEU
and Lend Lease, stating:
“Consistent with the advice I provided to the Construction, Forestry, Mining and
Energy Union (CFMEU) on 31 October 2013, the information provided to me
indicates that the CFMEU may have misused its entry rights such that a consideration
of s.508 of the Act is warranted.
A hearing for this purpose has been listed for 21 November 2013.”5
[10] Directions,6 attached to the letter, indicated that Senior Deputy President O’Callaghan
was “proposing to review the circumstances of entry practices followed by various officials of
the Construction, Forestry, Mining and Energy Union (CFMEU) relative to Lend Lease
Building Contractors Pty Ltd on 30 October 2013, pursuant to s.508 of the Fair Work Act
2009”. The directions also required “that any party proposing to provide additional evidence
in this [the s.508] matter to provide witness statements and any document to be relied upon by
18 November 2013”.
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[11] On 19 November 2013, the Senior Deputy President received a letter dated
18 November 2013 from the Chief Counsel of the Fair Work Building and Construction
(FWBC) asserting the right, by virtue of s.72 of the Fair Work (Building Industry) Act 2012
(FW Building Act), of the Director of the Fair Work Building Industry Inspectorate (the
Inspectorate) to make submissions (and be heard) in the s.508 matter.
[12] Also on the 19 November 2013, Lend Lease filed submissions and witness statements
and the FWBC filed an affidavit, with attachments, of Mr J Mathers (a FWBC Inspector) in
the s.508 matter.
[13] The first hearing in the s.508 matter was on 21 November 2013. At the
commencement of the hearing, Senior Deputy President O’Callaghan set out the background
to the s.508 proceedings.7 In doing so, he indicated that, pursuant to his directions of
11 November 2013:
Lend Lease had filed additional material in the form of various affidavits made out
by its Managers.
He had received a copy of correspondence from the FWBC, to the General
Manager of the Fair Work Commission (the Commission), dated 18 November
2013. It advised of the intention of the Director of the Inspectorate to make
submissions in this matter, by virtue of its right within s.72 of the FW Building
Act.
He had received an extensive affidavit, made out by Mr Mathers of FWBC.
[14] The Senior Deputy President noted that the belated receipt of that material may
disadvantage a party and that the material filed referred to site entries subsequent to
30 October 2013. He indicated that to the extent that the material raised a question as to the
expansion of the scope of the s.508 matter beyond Lend Lease sites on 30 October 2013,
those matters could be raised with him.8
[15] Senior Deputy President O’Callaghan concluded:
“At this stage, I have formed a preliminary view that an inquiry ought to be made
pursuant to section 508, on the basis of the information which was first of all, provided
to me on or around 1 November, and which was not disputed by the parties in that
particular proceeding. At this stage, I have not formed any view about what
information should or shouldn’t be taken into account, relative to events which
occurred subsequent to that date, or to events which are referenced in Mr Mathers’s
affidavit.”9
[16] The Senior Deputy President then heard the CFMEU application that he disqualify
himself on the basis of apprehended bias. Before adjourning, Senior Deputy President
O’Callaghan reserved his decision in respect of the apprehended bias application and
foreshadowed “that in the event that I decided against the CFMEU submissions that I should
disqualify myself, I would alert the parties to the likelihood that some further directions will
issue, with a view toward expediting the conduct of the matter from that point on. I make no
more than forecast that as a possibility”.10 The Senior Deputy President published his decision
on the bias application on 27 November 2013.11
[2014] FWCFB 2709
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[17] On 27 November 2013, the Senior Deputy President also relisted the s.508 matter for
10 December 2013 and issued further directions:
“[2] I confirm my expectation that this hearing will enable consideration of the
events of 30 October 2013 in as much as these events related to actions of CFMEU
Officials’ entry to Lend Lease Pty Ltd sites in Adelaide. I also confirm my expectation
that the same hearing will provide an opportunity for consideration of other building
site entries on the part of CFMEU Officials on and after 30 October 2013. This
expanded consideration of s.508 arises from material filed and served by Lend Lease
Pty Ltd and Fair Work Building and Construction prior to 21 November 2013.
[3] Any party wishing to express opposition to this expanded consideration of
circumstances pursuant to s.508 should file and serve on the parties who appeared in
the proceedings on 21 November 2013, detailed submissions and affidavits in support
of their position. This material is to be filed and served by close of business
6 December 2013. Any such material will be considered at the commencement of the
proceedings on 10 December.”12
[18] No submissions were filed expressing opposition to the expanded scope of the s.508
matter.
[19] On 9 December 2013, the CFMEU filed submissions seeking an order that the s.508
proceedings be terminated forthwith on the grounds that:
A. the Commission has no jurisdiction to initiate an action under s.508(1) on its
own initiative absent the formulation by it of a proposal or application to
“restrict the rights that are exercisable under this Part by an organization or
official of an organization”; and
B. in the alternative, if there are proceedings before the Commission within
jurisdiction, the “proceedings are a denial of natural justice and being
conducted contrary to the requirements” of the FW Act in that Senior Deputy
President O’Callaghan had not advised the CFMEU or any officials of the
nature and extent of any proposed order to be made pursuant to s.508(2).
C. no right under Part 3–4—Right of entry of the FW Act (Part 3–4) (the Part)
was asserted or relied upon by the CFMEU for the presence of the officials on
site in respect of the relevant entries and there was also a serious issue about
whether the presence of CFMEU officials on the sites was consensual. On
either view the Commission could not be satisfied that rights under Part 3–4
have been misused as none of those rights, in all the circumstances, have been
availed of. As a result, there was no jurisdiction to consider actions under
s.508(2) of the FW Act.
[20] At the commencement of the hearing on 10 December 2013, Senior Deputy President
O’Callaghan indicated that he was prepared to consider the matters that were raised in the
CFMEU application in points A and B above as a threshold issue but point C would require a
consideration of the evidence.13 The CFMEU accepted that the application in respect of point
C was “slightly premature” and sought that the application be dealt with to conclusion, as
preliminary issues, in respect of points A and B.14
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[21] Senior Deputy President O’Callaghan proceeded to hear and determine the preliminary
issues raised by the CFMEU in points A and B, announcing a decision in transcript15 and later
publishing his decision, edited, in [2013] FWC 9860, the first of the decisions subject to the
current CFMEU appeal.
[22] The Senior Deputy President proceeded to receive evidence and hear submissions in
relation to the s.508 matter on 10 December 2013, continuing into 13 and 21 December 2013.
He published his decision on 23 December 2013 in [2013] FWC 10168. That decision is also
subject to the current CFMEU appeal.
The statutory context
[23] The appeal concerns the power, under s.508, to restrict the rights of an organisation, or
officials of an organisation under Part 3–4—Right of entry of the FW Act, if the organisation
or official has misused those rights and the exercise of that power by the Senior Deputy
President.
[24] Part 3–4—Right of entry of the FW Act deals with right of entry of organisations and
permit holders of the organisation – officers or employees of the organisation issued with
entry permits under s.512 of the FW Act.
[25] Part 3–4 affords organisations and their permit holders a statutory right to enter
premises for purposes related to their representative role under the FW Act and under State or
Territory Occupational Health and Safety (OHS) laws.
[26] Section 480—Object of this Part provides:
“The object of this Part is to establish a framework for officials of organisations to enter
premises that balances:
(a) the right of organisations to represent their members in the workplace,
hold discussions with potential members and investigate suspected
contraventions of:
(i) this Act and fair work instruments; and
(ii) State or Territory OHS laws; and
(b) the right of employees and TCF award workers to receive, at work,
information and representation from officials of organisations; and
(c) the right of occupiers of premises and employers to go about their
business without undue inconvenience.”
[27] Part 3–4 provides statutory rights of entry, for purposes specified in the Part, which
encroaches on the legal rights of occupiers of property. As a result, and consistent with the
objects of the Part, the statutory rights of entry are qualified by conditions attached to it and
prohibitions in respect of the conduct of permit holders exercising the statutory rights.
[2014] FWCFB 2709
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[28] Division 2—Entry rights under this Act of Part 3–4 sets out the entry rights afforded to
organisations and their permit holders, in specified circumstances in Subdivisions A, AA and
B:
to investigate suspected contravention of the FW Act, or a term of a fair work
instrument, that relates to, or affects, a member of the permit holder’s organisation,
where the permit holder must reasonably suspects the contravention (Subdivision
A—Entry to investigate suspected contravention);
to investigate a suspected contravention relating to TCF award workers
(Subdivision AA—Entry to investigate suspected contravention relating to TCF
award workers);
to hold discussions with one or more employees who performs work on the
premises, whose industrial interests the permit holder’s organisation is entitled to
represent and who wish to participate in those discussions (Subdivision B—Entry
to hold discussions).
[29] Subdivision C—Requirement for permit holders of Division 2, sets out requirements
for permit holders exercising the rights of entry under Subdivisions A, AA and B—conditions
attached to the statutory rights of entry, including matters such as the giving of entry notice,
adherence to permit conditions, producing authorities, when the rights may be exercised and
compliance with OHS requirements.
[30] Division 3—State or Territory OHS rights of Part 3–4 of the FW Act deals with State
or Territory OHS rights. It is of a different nature to the rights afforded by Subdivisions A,
AA and B in Division 2 (and conditioned by Division 2) in that it does not provide the OHS
rights. The rights are provided by State or Territory OHS legislation, with Division 3 placing
conditions upon and providing the protections associated with the exercise of those rights.16
The first condition is that an official must be a permit holder under the FW Act to exercise the
State or Territory OHS right. Other conditions include the giving of notice of entry, the
production of the entry permit and when the right may be exercised. The right of entry under
OHS legislation is thus subject to the holding of a federal permit and the conditions,
limitations and obligations attached to right of entry for OHS purposes under Part 3–4 and the
protections within Division 4—Prohibitions. Entry by officials of organisations under OHS
law entails the use of rights conferred by Part 3–4.17
[31] Division 4—Prohibitions sets out prohibitions which apply to permit holders
exercising, or seeking to exercise the statutory entry right and to other persons in respect of a
permit holder exercising the entry right.
[32] Division 5—Powers of the FWC sets out powers of the Commission in relation to the
operation of the Part, including the power, under s.508 of the FW Act, to restrict the rights
that are exercisable under the Part by an organisation, or officials of an organisation, if the
Commission is satisfied that the organisation, or an official of the organisation, has misused
those rights.
[33] Division 5 prescribes powers of the Commission to:
[2014] FWCFB 2709
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Deal with disputes about the operation of Part 3–4 (Subdivision A—Dealing with
disputes);
Take action against permit holders in certain circumstances (Subdivision B—
Taking action against permit holder);
Restrict rights of organisations and officials where there is a misuse of rights
(Subdivision C—Restricting rights of organisations and officials where misuse of
rights) – in which s.508 appears.
[34] Subdivision D—When the FWC must revoke or suspend entry permits, prescribes
circumstances in which the Commission must revoke or suspend entry permits and
Subdivision E—General rules for suspending entry permits sets down general rules for
suspending entry permits.
[35] Division 6 of Part 3–4 deals with Entry permits, entry notices and certificates.
[36] Division 7 of Part 3–4 deals with Accommodation and transport arrangements in
remote areas.
[37] Section 508 of the FW Act, the provision under which the Senior Deputy President
O’Callaghan acted, provides:
“508 FWC may restrict rights if organisation or official has misused rights
(1) The FWC may restrict the rights that are exercisable under this Part by an
organisation, or officials of an organisation, if the FWC is satisfied that the
organisation, or an official of the organisation, has misused those rights.
Note: Only a Vice President, Deputy President or Full Bench may take action under
this subsection (see subsections 612(2) and 615(1)).
(2) The action that the FWC may take under subsection (1) includes the following:
(a) imposing conditions on entry permits;
(b) suspending entry permits;
(c) revoking entry permits;
(d) requiring some or all of the entry permits that might in future be issued
in relation to the organisation to be issued subject to specified
conditions;
(e) banning, for a specified period, the issue of entry permits in relation to
the organisation, either generally or to specified persons;
(f) making any order it considers appropriate.
(3) The FWC may take action under subsection (1):
[2014] FWCFB 2709
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(a) on its own initiative; or
(b) on application by an inspector.
(4) Without limiting subsection (1), an official misuses rights exercisable under
this Part if:
(a) the official exercises those rights repeatedly with the intention or with
the effect of hindering, obstructing or otherwise harassing an occupier
or employer; or
(b) in exercising a right under Subdivision B of Division 2 of this Part, the
official encourages a person to become a member of an organisation
and does so in a way that is unduly disruptive:
(i) because the exercise of the right is excessive in the
circumstances; or
(ii) for some other reason.”
[38] It may be seen that s.508(3)(a) authorises the Commission to take action under
s.508(1)—restricting rights that are exercisable under Part 3–4 by an organisation, or officials
of an organisation on its own motion. Section 508(2) sets out a non-exhaustive list of actions
the Commission may take to restrict the rights that are exercisable under Part 3–4 when
satisfied that misuse of those rights has occurred.
[39] Section 508(1) contains a jurisdictional prerequisite to the restriction of the rights
under s.508(1) through an action under s.508(2)—satisfaction by the Commission that the
organisation, or an official of the organisation, has misused those rights. Those rights are
rights that are exercisable under Part 3–4 by an organisation, or officials of an organisation.
The appeal in relation to the decision in [2013] FWC 10168 raises a question as to the
jurisdiction of Senior Deputy President O’Callaghan to make orders under s.508(2) of the Act
to restrict the rights that are exercisable under Part 3–4 by the CFMEU or its officials.
[40] The language of s.508(1) indicates that action against the misuse of the statutory rights
arises in relation to reliance on those rights. The rights under Part 3–4 are the statutory rights
to enter a premises of an employer for the particular purpose specified. They are conditioned
by statutory requirements specified in relation to the exercise of the statutory rights to enter.
This reflects a balance between the right of organisations to represent their members and the
right of occupiers of premises and employers to go about their business without undue
inconvenience.
[41] The jurisdiction to restrict rights under s.508 only arises if the Commission is satisfied
that the organisation, or an official of the organisation, has misused the rights that are
exercisable by them under Part 3–4. That jurisdictional prerequisite involves two questions
which must be answered in the circumstances of the specific conduct of an organisation or its
officials which is said to constitute misuse of the statutory rights of entry under Part 3–4:
[2014] FWCFB 2709
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Did the conduct occur in the exercise or purported exercise of the entry rights that
are available under Part 3–4?18 and
Did the conduct constitute misuse of those rights?
[42] Reflecting this position, Lend Lease described the two key elements to the exercise of
jurisdiction to make orders under s.508 as “[t]he first one is that the union has exercised rights
and the second is that the union has misused those rights”19 in the proceedings before Senior
Deputy President O’Callaghan.
[43] Part 3–4 does not constitute an exclusive code for the entry to premises for a purpose
for which statutory rights of entry are afforded by Part 3–4; entry for such a purpose may
occur on a basis other than upon reliance of Part 3–4 entry rights.20 As noted in the
Explanatory Memorandum to the Fair Work Bill 2008:
“1919. This Division gives officials of organisations a statutory right to enter premises
and exercise powers provided they satisfy various conditions. It is not intended to
codify all of the ways in which entry can occur or provide an exhaustive list of the
powers exercisable on the premises. The Division does not affect the ability of an
occupier of premises to invite any person onto that premises, e.g., to meet with the
employer about a particular matter.”21
[44] Similarly, the Explanatory Memorandum to the Workplace Relations Amendment
(Work Choices) Act 2005 (Work Choices) makes it clear that the entry rights (and the
associated conditions) do not apply to entry by consent22 and if so, whether those rights have
been misused.
[45] Absent satisfaction as to that jurisdictional prerequisite, the Commission is not
empowered to take actions under s.508(3) of the FW Act in respect of the conduct by officials
during the course of a site visit, even if unlawful or otherwise deserving of reproach, although
other legal avenues may be available.
[46] Accordingly, it cannot be presumed that an entry onto a workplace or work site by an
official of an organisation is undertaken in reliance on the statutory rights of entry afforded by
Part 3–4. Rather, it is necessary to consider and reach a conclusion as to whether the entry
involves the use or purported use of Part 3–4 entry rights.
[47] There are, to our knowledge, no authorities which have addressed the question
concerning the use of Part 3–4 rights in the context of s.508 of the FW Act. The only
decisions of the Commission concerning s.508, other than those subject to this appeal, are two
other decisions of Senior Deputy President O’Callaghan in Re Fair Work Australia,23
concerning Baiada Poultry (Adelaide) Pty Ltd. In that matter, the relevant entries were made,
and the conduct said to constitute a misuse of Part 3–4 rights occurred, consequent upon an
order24 under s.483AA of the FW Act, within Part 3–4. The question of whether the entries
involved the use of Part 3–4 rights was not in issue and not dealt with in those decisions of the
Senior Deputy President.
[48] A recent decision of the Federal Court of Australia (FCA) in Ramsay v Sunbuilt Pty
Ltd,25 was determined in the context of Part 3–4. In that decision, Reeves J considered the
application of the prohibitions in Division 4 in relation to a permit holder exercising, or
[2014] FWCFB 2709
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seeking to exercise, rights in accordance with the Part. However, in that matter Reeves J was
required to determine the specific legal question of whether a permit holder entitled to enter
premises under OHS legislation was exercising rights in accordance with Part 3–4. There was
no dispute that the permit holder was a permit holder and was entitled to enter the work site
under the relevant OHS legislation.26 As a result, the judgment did not examine any broader
question of whether the entry involved the use or purported use of Part 3–4 entry rights.
Similarly, in Construction, Forestry, Mining and Energy Union v Gittany27 (Gittany), a
judgment subsequent to the hearing of the appeal, Cowdroy J was not required to consider
that broader question.
[49] However, that question has been considered by the Commission (including its
predecessors) and the Courts in other contexts, namely:
in the context of appeals against decisions of the Registrar under s.285A(3) of the
Workplace Relations Act 1996 (WR Act) (prior to Work Choices);
in the context of applications under the WR Act (prior to Work Choices) in respect
of a contravention of s.285E(1);
in the context of applications under s.770 of the WR Act (after Work Choices and
unaffected by the Workplace Relations Amendment (Transition to Forward with
Fairness) Act 2008) (WR Transition Act); and
in the context of applications under the WR Act (after Work Choices and
unaffected by the WR Transition Act) in respect of a breach of the prohibitions in
respect of right of entry in s.767.
[50] For convenience, we set out the relevant provisions under the three forms of
legislation referred to above.
The WR Act (prior to Work Choices)
[51] Section 285A(3) empowered the Registrar to “revoke the permit if he or she is
satisfied that the person to whom it was issued has, in exercising powers under this Division,
intentionally hindered or obstructed any employer or employee or otherwise acted in an
improper manner”. Such a decision was appealable under s.81 of the WR Act (prior to Work
Choices).
[52] Section 285E set out prohibitions of conduct, attracting civil penalties, in relation to
conduct by or in relation to a person exercising powers under ss.285B or 285C (the statutory
rights of entry).
The WR Act (after Work Choices, which were unaffected by the WR Transition Act)
[53] Section 770—Orders by Commission for abuse of System provides in s.770(1) that:
“If the Commission is satisfied that an organisation, or any official of an organisation,
has abused the rights conferred by this Part, then the Commission may make whatever
orders it considers appropriate to restrict the rights of the organisation, or officials of
the organisation, under this Part (Part 15).” [emphasis added]
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[54] Division 7—Prohibitions of Part 15—Right of entry, sets out prohibitions in relation
to conduct by or in relation to a permit holder exercising, or seeking to exercise, rights under
ss.747, 748 or 760; or under an OHS law in accordance with ss.756 or 757 (the statutory
rights of entry).
The FW Act
[55] The WR Act provisions after Work Choices are comparable to s.508 and Division 4 of
Part 3–4.
[56] Section 508 of the FW Act authorises the Commission to restrict rights that are
exercisable under Part 3–4 by an organisation, or officials of an organisation if the
organisation or official has misused those rights.
[57] Division 4 of Part 3–4—sets out prohibitions in relation to conduct by or in relation to
a permit holder exercising, or seeking to exercise, rights in accordance with Part 3–4 (the
statutory rights of entry).
[58] The changed language can be summarised as follows:
The WR Act (prior to
Work Choices)
Part IX—Registered
organisations –
Division 11A—Entry
and inspections by
organisations
The WR Act (after
Work Choices)
Part 15—Right of
entry
The FW Act
Part 3–4—Right of
entry
Abuse/Misuse Section 285A(3):
Power to revoke if
permit holder in
exercising powers
under this Division,
intentionally hindered
or obstructed
Section 770:
Power to make an
order restricting rights
if official/organisation
has abused the rights
conferred by this Part
Section 508:
Power to take action
restricting rights that
are exercisable under
this Part if official/
organisation misused
the rights
Penalties for
breach of
prohibition
Section 285E:
In relation to prohibited
conduct by or in
relation to a person
exercising powers
under a statutory rights
of entry
Division 7 of Part 15:
In relation to
prohibited conduct by
a permit holder
exercising, or seeking
to exercise, rights
under a statutory
rights of entry
Division 4 of Part 3–4:
In relation to
prohibited conduct by
a permit holder
exercising, or seeking
to exercise, rights
under a statutory rights
of entry
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[59] We note that objects of the Part governing right of entry were introduced into s.197 of
the WR Act by Work Choices. These objects included the object, now in s.480 of the FW Act,
of balancing the right of organisations to represent their members in the workplace (by the
authorisation of entry to hold discussions with potential members and investigate suspected
contraventions) against the right of occupiers of premises and employers to conduct their
businesses without undue interference or harassment. The objects reflect an approach of
affording organisations statutory rights of entry for specified purposes, in recognition of the
rights of organisations to represent their members, but subjecting those rights to conditions
and prohibitions on specified conduct and a power to restrict rights where abused, in
recognition of the statutory intrusion on the rights of occupiers associated with the provision
of entry rights.
[60] We turn to consider the authorities in relation to determining whether an entry is
reliant on statutory rights of entry, having regard to the specific statutory provisions which
were considered in each case.
[61] In Maurice Addison v Public Transport Corporation of Victoria28 (Addison), Senior
Deputy President Polites determined an appeal by Addison against a decision of the Registrar
revoking Mr M Addison’s permit under s.285A(3) of the WR Act (prior to Work Choices).
[62] Senior Deputy President Polites rejected an argument, for Mr Addison, that if s.285D
of the WR Act (prior to Work Choices), which required the showing of a permit and 24 hours
notice, had not been complied with then the entry onto premises was not in accordance with
Division 11A and the person entering the premises could not be said to be exercising powers
under Division 11A. His Honour found that s.285A(3) should be construed so that it has
operation where there is a purported exercise of the power under the Division.
[63] A Full Bench decision in Andrew Ferguson and Martin French and CSR Limited
trading as CSR Humes29 (Ferguson) also involved an appeal against a decision of the
Registrar to revoke permits, pursuant to s.285A(3) of the WR Act (prior to Work Choices).
The appeal concerned the construction in “exercising powers under this Division” in
s.285A(3) and the findings of the Registrar, on the evidence, as to whether the permit holders
were exercising such powers.
[64] The decision in Addison was challenged by the appellants, who submitted that in
“exercising powers under this Division” s.285A(3) should be construed “strictly”. The Full
Bench found it unnecessary to determine this question, finding error, without ruling on the
issue, construing s.285A(3) of the WR Act (prior to Work Choices) in the way it was
construed by Senior Deputy President Polites in Addison.30
[65] That Full Bench set out the relevant conduct of the permit holders during the course of
their entry onto the premises and found that, unless the conduct was undertaken in the
exercise of powers under Division 11A, there was no basis for revoking their permits under
s.285A(3).31 The Full Bench found that the Registrar erred in finding that the appellants
exercised powers under s.285B or s.285C of the WR Act (prior to Work Choices).32
[66] The Full Bench in Ferguson also found that entry onto premises could occur by means
other than reliance on statutory rights of entry. That proposition holds true in the context of
the FW Act, given that Division 2 of Part 3–4, which provides statutory rights of entry “is not
[2014] FWCFB 2709
13
intended to codify all of the ways in which entry can occur”.33 It follows that it cannot be
assumed that an entry onto a site is reliant on the statutory rights within Part 3–4.
[67] In Pine v Doyle34 (Pine), Merkel J decided an application for an order pursuant to
s.285F(2) of the WR Act (prior to Work Choices) seeking a penalty against Mr F Doyle for an
alleged contravention of s.285E(1), a prohibition on intentionally hindering or obstructing any
employer or employee in exercising powers under s.285B—Investigating suspected breaches
of Act etc, or s.285C—Discussions with employees. Merkel J identified the issues for
determination as whether Mr Doyle was “‘exercising powers’ under s 285C during his visit to
the site” on the relevant date and whether Mr Doyle intentionally hindered or obstructed a
manager and through him, the employer, during that visit.35
[68] In respect of the first issue, Merkel J found that the evidence that Mr Doyle was
exercising his power of entry under s.285C of the WR Act (prior to Work Choices) on his
visit to the site was “compelling”, citing advance notice by the CFMEU that Mr Doyle
proposed to exercise his statutory rights of entry on the relevant date, Mr Doyle showing his
permit to the manager when requested and Mr Doyle’s belief that “it was necessary for him to
assert his right of entry under s 285C in order to enter the site”.36 In so finding, Merkel J
accepted “that the power of entry was exercised for a purpose for which the power was not
conferred and was therefore not a lawful exercise of the power”,37 but found:
“[15] . . . it does not follow that, for the purposes of s 285E(1), the power was not
exercised at all. In my view, s 285E(1) requires that the power of entry be exercised as
a matter of fact, rather than as a matter of law. That construction of the sub-section
accords with the plain and ordinary meaning of the words. Also, the words used in s
285E(1) (‘person exercising powers under section 285B or 285C’) may be contrasted
with the words used in s 285E(2) (‘a person entitled to enter premises under section
285B or 285C’). Thus, when the legislature intended to refer to the exercise of the
statutory power as a matter of law, it did so in s 285E(2) in terms of ‘entitlement’ to
exercise the relevant power, rather than in terms of ‘exercising’ that power as is set out
in s 285E(1).
[16] Finally, my construction gives effect to the purpose of s 285E(1), which is to
ensure that when a person enters and remains upon premises in reliance upon s 285C
the person does not do so in a manner that intentionally interferes with the activities
being conducted by an employee or an employer at the premises. The construction
contended for by the respondent would remove that protection when it is most needed,
namely in a case of misuse or abuse of the statutory power . . .
. . .
[18] Accordingly, I regard the question mandated by s 285E(1) to be whether the
person entering the premises in question is exercising the power of entry as a matter of
fact, rather than as a matter of law. For the reasons given above, I am satisfied that the
respondent was exercising his power of entry under s 285C during his visit to the site
on 18 February 2004.”
[69] Between 2007 and 2009, the Australian Industrial Relations Commission (AIRC) dealt
with applications by inspectors appointed pursuant to s.57 of the Building and Construction
Industry Improvement Act 2005 (BCII Act) under s.770 of the WR Act (after Work Choices)
[2014] FWCFB 2709
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for orders to suspend or terminate or impose conditions on entry permits held by CFMEU
organisers.38
[70] The power granted to the AIRC to make orders was found to be “directed to
circumstances when an organisation, or official of an organisation, gains entry to a site, or
purports to gain entry to a site, in reliance on a right of entry under Part 15 and then abuses
that right”.39 Attention was also directed to whether the permit holder entered the work site
“in the exercise of his right” under Part 15 “or otherwise in the purported exercise of that
right”.40 The approach of Merkel J that a determination of whether the permit holder was
exercising, or purporting to exercise, rights conferred by Part 15 of the WR Act (after Work
Choices) was a matter of fact was applied.41 Regard was had to the circumstances of each
relevant entry, including the giving of the requisite notice of intention to enter the premises
under a relevant statutory rights of entry as a permit holder and the permit holder presenting
himself at the premises in accordance with the permit42 and the purpose of the visit, disclosed
by the evidence.43
[71] As noted above, in Pine, Merkel J considered Part IX—Division 11A of the WR Act
(prior to Work Choices) and the relevant statutory language of s.285E(1): “A person
exercising powers” under the relevant statutory entry provisions. Later cases in the FCA,
determined in the context of Part 15 of the WR Act (after Work Choices), considered the
expression: “[a] permit holder exercising, or seeking to exercise, rights” in s.767(1).
[72] In John Holland Pty Ltd v Construction, Forestry, Mining and Energy Union (New
South Wales Branch)44 (Holland v CFMEU (NSW)), Moore J dealt with a claimed
contravention of s.758 of the WR Act (after Work Choices) in Division 5—Entry for OHS
purposes, considering “whether the section operates only when the person alleged to have
contravened it had ‘a right under an OHS law to enter premises’ in the sense of a lawful
right”.45 In doing so he dealt with the contention that it was sufficient for the officials to have
asserted that they had a lawful right to enter as a matter of fact even if, as a matter of law, they
had no such right in Pine. Moore J distinguished the statutory provisions applied by Merkel J
from those he was dealing with:
“[50] In my opinion, there are material differences between the provisions Merkel J
considered in Pine and those that arise in the present case. Section 756 identifies a
class of union official upon whom Division 5 operates with the effect of the Division
being to impose conditions on the exercise of the right of entry and to prohibit certain
conduct when exercising it. That class of union official is constituted by those who
hold a permit under Part 15 and have a right to enter under an OHS law. The existence
of the right to enter under an OHS law confers a legal status on the permit holder
which engages various provisions in Division 5. It is unlikely that the provisions which
limit the way in which the right of entry might be exercised were intended to operate in
relation to a union official who did not have that status because they did not have
(though they may have mistakenly believed they did) a right to enter under an OHS
law. In particular, s 758 is not intended to operate on a permit holder who does not
have a right of entry under an OHS law. The section contemplates that the person on
whom it operates might enter or might remain on premises ‘under an OHS law’ but
shall not enter or shall not remain if a reasonable request is made by the occupier. If
the request is not complied with then the permit holder contravenes the section. In my
opinion, there was no contravention of s 758 by either respondent.
[2014] FWCFB 2709
15
. . .
[52] . . . s 756 operates on a person who has a right under an OHS law and, in that
sense, identifies a person with a particular status on whom Division 5 operates. In my
opinion it necessarily follows that the prohibition on, amongst other things, acting in
an improper manner, concerns only a person with that status.
[53] I accept that this construction of ss 756, 758 and 767 results in the various
prohibitions or limitations not providing the complete protection of the type discussed
by Merkel J in Pine (at [16] set out above). However in that matter the critical
expression was ‘[a] person exercising powers under [various provisions]’. His Honour
was able to conclude that a person can be exercising those powers even if they were
mistaken in believing that the power had been lawfully conferred by those other
provisions. In the present case the language and structure of the various provisions are
different. A person is given a status by virtue of having a right conferred by state law.
It is only then that various consequential provisions are engaged.
[54] In my opinion the second and third respondents could not have contravened
and did not contravene ss 758 and 767 because neither had a right to enter premises
under an OHS law.”
[73] The changed statutory terminology as between “powers” and “rights” as between the
two variants of the WR Act was a matter expressly considered, by Dowsett J in Construction,
Forestry, Mining and Energy Union v John Holland Pty Ltd46 (Holland), in concluding that
the parties had misconstrued ss.760, 767 and 768 of the WR Act (after Work Choices).
[74] The judgment in Holland concerned an appeal against a judgment of Greenwood J47
arising from proceedings instituted by John Holland Pty Ltd seeking a penalty in respect of
alleged contraventions of ss.767(1) and 768(1) within Part 15 of the WR Act (after Work
Choices).48 The penalty sought related to the alleged hindrance to Mr Ingham, an employee of
John Holland Pty Ltd.
[75] Dowsett J, in his judgment, found that the parties had misconstrued ss.760, 767 and
768 of the WR Act (after Work Choices), concluding to remit matter for further consideration,
with his Honour’s reasons focussing upon the operation of s.760. Noting that s.760 authorises
entry by a permit holder who enters the premises “for the purposes of holding discussions
with any eligible employees who wish to participate in those discussions”, Dowsett J found
that authorisation of entry pursuant to s.760 requires that the permit holder have the required
purpose.49 His Honour concluded:
“[38] Section 760 authorizes entry by:
a permit holder;
who enters the premises ‘for the purposes of holding discussions with any
eligible employees who wish to participate in those discussions’.
[39] The term ‘eligible employee’ is defined. However authorization of entry
pursuant to s 760 is not dependent upon satisfying that definition. The permit holder
must rather satisfy the requirement that he or she have the required purpose.
[2014] FWCFB 2709
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Establishment of, or challenge to the existence of such purpose may involve
examination of whether there was an adequate factual basis for having the prescribed
purpose. If, for example, the permit holder did not have some basis for a belief that
there were eligible employees on the premises, then it may be difficult to conclude that
he or she had the purpose of entering into discussions with people fitting that
description. His or her purpose may rather have been to discover whether there were
such people on the premises. Of course, a person may have more than one purpose.
Authorization pursuant to s 760 is not dependent upon the permit holder having
reasonable grounds for a particular belief.
[40] At [91], the primary Judge dealt with the question of authorization, concluding
that because of the operation of the Expansion Agreement the permit holders ‘did not
have a valid right of entry to the X50 work site’. This conclusion was based upon the
finding that John Holland’s employees at the X50 work site were not eligible
employees. That finding, in turn, was based upon a finding that they were not carrying
out work which was covered by an award or collective agreement which was binding
upon the appellants. Such work was regulated by the Expansion Agreement to which
those unions were not parties, and pursuant to which the operation of otherwise
relevant awards was excluded. In my view, that was not the question posed by s 760.
The relevant question was whether the permit holders had the prescribed purpose,
which question was not addressed.
[41] In the present case, s 767(1) will be engaged only if a permit holder is
exercising, or seeking to exercise rights under s. 760. If s. 760 is not engaged (because
the permit holder lacks the prescribed purpose) then there are no relevant rights for the
purposes of s.767(1). In other words, s. 767(1) regulates the way in which a person
exercises his or her right of entry pursuant to s 760. Such an approach may be
inconsistent with that taken by Merkel J in Pine v Doyle (2005) 143 IR 98 at [14]–
[18]. His Honour concluded that a purported, but unlawful, exercise of a power of
entry would engage a prohibition on hindering or obstructing in the exercise of a
statutory power to enter. Although the distinction between a power and a right may be
a narrow basis for distinguishing that decision, I am unpersuaded that a permit holder
can be described as exercising, or seeking to exercise a right under s 760 if there is no
such right because of the absence of the requisite purpose. I would, however, prefer to
leave that question unresolved, largely because it has not been argued.
. . .
[45] The first difficulty with this approach is that the allegation of hindrance or
obstruction depends upon the permit holders’ entry to the site being unauthorized. If
such entry was authorized by s 760, then Mr Ingham’s conduct was simply his
reaction to lawful conduct, presumably acting in accordance with his duty. Lawful
entry can hardly constitute hindrance or obstruction for the purposes of s 767(1). Thus,
whether the decision in Pine v Doyle is correct or not in the respect which I have
identified above, the alleged hindrance or obstruction depends upon unauthorized
entry. Assuming that the entry was unauthorized, but that s 767(1) was nonetheless
engaged as found by Merkel J, it may still be arguable that there was no hindrance or
obstruction. Merkel J reached that conclusion on facts which were similar to those in
the present case. In any event the question of whether entry was authorized has not
been addressed in accordance with s 760.”
[2014] FWCFB 2709
17
[76] As was noted by Dowsett J,50 the question of the exercise or purported exercise of
rights under s.760 (and the apparent inconsistency in his approach with the approach taken by
Merkel J in Pine based on the distinction between a power and a right) was not argued before
the Full Court. Dowsett J left that matter unresolved largely on that basis, reaching his
conclusion in the appeal without determining whether the decision in Pine was correct in
respect of the apparent inconsistency identified in his decision.51
[77] Spender J agreed with the reasons for judgment of Dowsett J that the parties had
misconstrued ss.760, 767 and 768 of the WR Act (after Work Choices), stating:
“[7] In my view, if s 760 is not engaged because the relevant permit holder lacks
the prescribed purpose, then s 767(1) has no operation, because it applies, relevantly,
only to a permit holder “exercising, or seeking to exercise a right under s 760” of the
WR Act. In my view, s 767(1) regulates the way in which a person exercises his or her
right of entry pursuant to s 760. If the entry on 13 February 2009 or 5 March 2009 was
authorised by s 760, the conduct of Mr Ingham was no more than performing his
ordinary duties as an employee of John Holland.
[8] For myself, the relevant question under s 760 was whether the permit holder
had the prescribed purpose. If the permit holder had that purpose, then it is a question
whether there was an actual intentional hindrance or obstruction of any person; in my
view, it is highly unlikely that the conduct of the union officials could, in those
circumstances, constitute a hindrance or obstruction of Mr Ingram, he doing no more
or less than what his duties as an employee of John Holland required him to do.”
[78] Logan J did not address that question in his judgment, with the challenge made by the
appellant unions to the contravention findings being confined to a challenge to the conclusion
that the union officials did not have reasonable grounds for believing that entry was
“authorised” under s.760 of the WR Act (after Work Choices),52 although his Honour found:
“[135] As to the finding that s 767(1) had been contravened, the right of access which
each official sought to exercise was one under s 760 of the WR Act. For reasons
already given, no such right existed. Nor, for reasons already given, did reasonable
grounds exist to believe that there was any such right.”
[79] The judgments of Spender and Dowsett JJ suggest, in respect of s.760 of the WR Act
(after Work Choices), that if the permit holder had the specified purpose of holding
discussions with any eligible employees who wished to participate in those discussions, s.767
was engaged in that the permit holder was exercising, or seeking to exercise, rights to enter a
premises. Conversely, if the relevant permit holder lacked the prescribed purpose, s.767 was
not engaged because the permit holder was not “exercising, or seeking to exercise a right
under s.760”. As Dowsett J expressed it, if s.760 is not engaged (because the permit holder
lacks the prescribed purpose) then there are no relevant rights for the purposes of s.767(1).
The approach is directed to whether the permit holder, in undertaking the entry, held the
purpose for which the relevant statutory rights of entry is provided.
[80] In his further decision,53 consequent upon remittal by the Full Court, Greenwood J set
out the passages of the judgments of Spender and Dowsett JJ in the appeal concerning s.760
of the WR Act (after Work Choices). Greenwood J noted the identification by Dowsett J of
[2014] FWCFB 2709
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the relevant question as being “whether the permit holders had the prescribed purpose” a
question Dowsett J found was not addressed in his first decision.54 Greenwood J observed that
this was a question that needed to be further addressed.55
[81] Greenwood J noted the distinction suggested by Dowsett J between a power and a
right as a basis for distinguishing Pine and the observation of Dowsett J that he would prefer
to leave that question unresolved largely because it had not been argued. Greenwood J noted
that “[s]ubmissions have now been directed to that question”.56
[82] Following his consideration of the judgments of Spender and Dowsett JJ,
Greenwood J then addressed the question of whether the officials had the required purpose
when entering the premises, stating:
“[47] That question is to be answered by ascertaining on the evidence whether the
permit holder has satisfied the requirement that he or she had (that is, subjectively
held) the required purpose (Dowsett J [39] and [40]; Spender J [3], [7]–[9]). In order to
answer that question (and all matters remitted for further consideration) I have
reconsidered the transcript of the proceedings, all of the affidavit material, the
submissions of the parties, the findings reflected in the principal judgment and the
second judgment and the written submissions of the parties consequent upon the orders
described at [16].”
[83] Greenwood J applied that approach to the entries by each official, finding in each case,
that they had subjectively, the required purpose under s.760 of the WR Act (after Work
Choices), that is to say, the official entered the premises for the purposes of holding
discussions with eligible employees of the employer (whether or not those employees met the
definition of “eligible employees” under s.760) who expressed a wish to participate in
discussions about the terms of a possible collective agreement concerning the work the
union’s members (or those employees eligible to be members of the union) were undertaking,
and thus each entry was authorised57 and lawful.58
[84] Greenwood J concluded that “. . . the question to be determined is whether the Union
officials entered the premises for the prescribed purpose supported by some basis in the
evidence for that purpose”. He found that “[T]his subjective assessment of purpose does not
depend upon whether the purpose was reasonably formed or not but simply whether, in fact,
the officials entered for the prescribed purpose and genuinely acted upon that purpose”,59 and
“they did so enter holding the prescribed purpose”.60 He found that the permit holders entered
the premises under the authority of s.760 of the WR Act (after Work Choices) and thus
relevant rights were engaged for the purposes of s.767(1).61
[85] In Darlaston v Parker62 (Darlaston), Flick J considered a claimed contravention of
s.767 of the WR Act (after Work Choices) in respect of an entry said to have occurred
pursuant to s.758 for OHS purposes. Whilst he found that each of the persons, against whom
contraventions were alleged, asserted a right of entry upon the premises, he found that unless
they could be found to have been permit holders they could not be found to have contravened
the WR Act (after Work Choices) in the manner alleged.
[2014] FWCFB 2709
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“[63] But the contraventions alleged against one or other of them depend upon the
Applicant establishing that each is a ‘permit holder’ – s 758 makes it an offence for a
‘permit holder’ to enter and remain on premises in the circumstances there described;
and s 767 prohibits a ‘permit holder’ from engaging in the conduct there described.
[64] If one or other of the individual Respondents was not a ‘permit holder’, they
may each have been committing a trespass – but they could not be found to have
contravened the Workplace Relations Act in the manner alleged.”
[86] The judgment suggests that a person could only be “exercising, or seeking to exercise
a right” if they were of the class of employees who had such a right.
[87] In Setka v Gregor (No 2)63 (Setka), Lander, Tracey and Yates JJ, decided an appeal
against a judgment in the Federal Magistrates Court64 in which Mr J Setka was found to have
contravened s.767 of the WR Act (after Work Choices) in the course of a visit to a building
site. The appeal grounds relating to the finding of the contravention raised a number of issues
concerning the construction of s.767(1).
[88] In the appeal, Mr Setka relied on the observations of Spender and Dowsett JJ in
Holland, concerning the inter-relationship of ss.760 and 767(1) of the WR Act (after Work
Choices), as cited above, in support of his submission that the Federal Magistrate erred in
concluding that, at relevant times, he was exercising or seeking to exercise rights under s.756.
[89] The Full Court in Setka noted that the judgment of Dowsett J dealt with s.760 of the
WR Act (after Work Choices) and distinguished that provision from s.756(1) as follows:
“[21] It may be noted, immediately, that s 756(1) differed from s 760 in that it
contained no prescribed purpose. Moreover, section 756(1) did not create or confer a
right but rather, as the Federal Magistrate rightly noted, assumed the existence of a
right and regulated its exercise. The relevant right was conferred by the OHS Act. The
right considered in John Holland was conferred by s 760. This distinction was
reflected in the phrasing of sub-paragraphs (a) and (b) in s 767(1).
[22] The question for the Federal Magistrate was whether, on the evidence,
Mr Setka was exercising or seeking to exercise rights under the OHS Act. His Honour
answered that question by finding that Mr Setka ‘was a permit-holder and that he
entered upon the premises with a view to investigating safety concerns in respect of
members of his union.’ It followed that s 767(1) was engaged.”
[90] The Full Court noted that:
“[23] Mr Setka was ‘an authorised representative’ of the CFMEU who held an entry
permit for the purposes of the OHS Act: see ss 81 and 87. An authorised representative
has the right to enter a workplace during working hours for the purpose of inquiring
into any suspected contravention of the OHS Act: see s.87(2). By s 88(1) am
authorised representative must, immediately on entering a workplace under s 87, give a
notice to the manager of the site and produce his or her entry permit for inspection.
Once on the site, an authorised representative has powers of inspection and
consultation with employees and managers: see s.89.”65
[2014] FWCFB 2709
20
[91] The Full Court found against Mr Setka on this point in the appeal, finding that the
evidence supported the Federal Magistrate’s finding that Mr Setka was exercising or seeking
to exercise rights under the Occupational Health and Safety Act 2004 (Vic) (VOHS Act):
“[25] We are satisfied that there was ample evidence before the Federal Magistrate
on which he could, consistently with the provisions of s 140 [of the Evidence Act 1995
(Cth)], conclude that Mr Setka was, when he engaged in the exchange with the
managers, exercising, or seeking to exercise, rights under the OHS Act. That evidence
is summarised above at [14]. On this evidence it may readily be inferred that Mr Setka
was, at the least, seeking to exercise rights under the OHS Act. He was involved in
consultations with employer representatives about health and safety issues.”
[92] The evidence referred to in Setka at paragraph 14 was said to include:
“ Mr Setka’s complaint, immediately on entering the site, that it was a ‘fucking
pigsty’.
The avowed purpose of the officials who attended the site in company with
Mr Setka which was to deal with health and safety issues.
The taking of photographs, by one of them, of works on the site which were said
to present a risk to the health and safety of workers.
The tenor of Mr Setka’s exchange with the managers.
The conduct of a meeting (albeit one not attended by Mr Setka) shortly after the
incident to deal with health and safety issues.
The parts of the cross-examination of Mr Keeble . . .”
[The cross-examination suggested that the conduct of Mr Setka in his exchange with
the managers occurred in context of clear risks to health and safety of workers.]
[93] The Full Court also referred to evidence before the Federal Magistrate that “Mr Setka
told managers, who challenged their right to enter the site, that they had been invited by the
safety committee and that they had significant safety concerns.”66
[94] The question framed and answered by the Full Court was put in the terms of the
language of s.767 of the WR Act (after Work Choices)—was Mr Setka exercising, or seeking
to exercise, rights under the VOHS Act? That question was answered by reference to the
evidence that Mr Setka was “an authorised representative” of the CFMEU who held an entry
permit for the purposes of the relevant VOHS Act, had the right to enter a workplace during
working hours for the purpose of inquiring into any suspected contravention of the VOHS Act
(s.87(2)) and was involved in consultations with employer representatives about health and
safety issues and evidence as to the focus on OHS matters by Mr Setka and his colleagues
during the site visit. That answer went to both the right of Mr Setka to undertake an entry
authorised by the VOHS Act and the purpose of his entry disclosed by the evidence.
[2014] FWCFB 2709
21
[95] In Gittany, Cowdroy J determined an appeal against Cameron FM,67 concerning
alleged contraventions of ss.501 and 502 of the FW Act in relation to an entry within the
scope of Division 3—State or Territory OHS rights.
[96] Cowdroy J dealt with a CFMEU submission that the finding of the primary judge that
the right of entry being exercised by the CFMEU representatives concluded when they left the
premises was inconsistent with the primary judge’s observation that the CFMEU
representatives had not completed their inspection before leaving the premises. Cowdroy J
distinguished between matters of law and fact:
“[38] The primary judge was correct in his findings. As a matter of law, once
the CFMEU representatives departed the premises, the statutory rights of entry ceased.
Such consequence resulted from the fact that the right of entry was wholly dependent
upon the existence of a requisite constitutional foundation. This finding is not
inconsistent with the observation at [88] which is directed not to a matter of law,
but to a matter of fact. The issues are distinct, as was explained by the primary judge at
[96], where he said:
‘… Moreover, ss 501 and 502 are relevantly identical to a predecessor section
considered in Pine v Doyle [2005] FCA 977 where Merkel J said at [15] that a
provision which spoke of a person “exercising powers” of entry required that
the power be exercised as a matter of fact, rather than as a matter of law,
whereas a provision which spoke of a person being “entitled to enter” was a
reference to the exercise of the statutory power as a matter of law. That is to
say, while s 501 concerns the assertion of a right, s 502 concerns its actual
exercise in the sense of it being put into practical effect.’”
[97] Cowdroy J relied on the proposition of Cameron FM that s.501 of the FW Act was a
contravention in relation to a permit holder who is entitled to enter the premises (a matter of
law) whilst s.502 relates to a permit holder exercising rights (a matter of fact) a distinction in
language drawn by Merkel J in relation to the WR Act (prior to Work Choices) in Pine.
Conclusions on the authorities
[98] Before drawing conclusions from the specific authorities, it may be noted that:
Decisions of the Commission (and its predecessors) considered above have been
concerned with decisions of the Registrar revoking permits under s.285A(3) of the
WR Act (prior to Work Choices) and applications in respect of abuse of statutory
entry rights under s.770 of the WR Act (after Work Choices);
Decisions of the FCA considered above have concerned applications for civil
penalties in respect of alleged breaches of prohibitions in the exercise of the
statutory rights of entry in the context of the WR Act in its various forms and, to a
limited degree, the FW Act. Although they do not directly involve s.508 (or the
equivalent provisions in the WR Act), they do raise similar considerations and have
been relied upon by the Commission in determining such matters under s.770 of
the WR Act (after to Work Choices);
[2014] FWCFB 2709
22
Decisions of the FCA dealt largely with entry under OHS legislation and the WR
Act or FW Act provisions authorising entry for the purpose of holding discussions.
In this regard, it needs to be recalled that, Division 3—State or Territory OHS
Rights of Part 3–4 is of a different nature to the entry rights afforded and
conditioned by Division 2—Entry rights under this Act, in that it does not provide
the OHS rights. Nonetheless, entry by officials of organisations under OHS law
entails the use of rights conferred by Part 3–4.68
[99] In Addison, Senior Deputy President Polites found that a permit holder was
“exercising powers” afforded by statutory rights of entry where there was a purported exercise
of the power, rejecting the proposition that powers were exercised only when such powers
were lawfully exercised in compliance with the associated conditions. This proposition was
challenged in Ferguson but it was unnecessary for that Full Bench to determine that “in
exercising powers under this Division” should be construed “strictly”.
[100] The decision of Merkel J in Pine,69 concerning the imposition of a penalty in respect
of contraventions of prohibitions, was also decided under the WR Act (prior to Work
Choices). Merkel J found that there was no lawful exercise of the power provided by the
statutory rights of entry but approached the question of whether a person was exercising the
power of entry as a matter of fact, rather than as a matter of law, finding, on the evidence, that
Mr Doyle was exercising his power of entry under statutory rights of entry.
[101] Decisions of the AIRC between 2007 and 2009, applied the approach of Merkel J that
a determination of whether the permit holder was exercising, or purporting to exercise, rights
conferred by Part 15 of the WR Act (after Work Choices) was a matter of fact.70 The power of
the Commission to make orders has been found to be “directed to circumstances when an
organisation, or official of an organisation, gains entry to a site, or purports to gain entry to a
site, in reliance on a right of entry under Part 15 and then abuses that right”.71
[102] Then followed a series of judgments of the FCA under both the WR Act (after Work
Choices) and the FW Act, directed to the question of whether the power to order penalties in
respect of contraventions of prohibitions in statutory rights of entry.
[103] The judgments in Holland v CFMEU (NSW) and Holland departed from the approach
of Merkel J in Pine on the basis of changed statutory provisions between the WR Act prior to
and after Work Choices.
[104] In respect of a claimed contravention of s.758 of the WR Act (after Work Choices) in
Division 5—Entry for OHS purposes, Moore J, in Holland v CFMEU (NSW), found that the
contravention provision operated on a person, who had a right under an OHS law and, in that
sense, identified a person with a particular status on whom Division 5 operated. He found that
it was only when a person was given a status by virtue of having a right conferred by State
law that various consequential provisions are engaged, rejecting the proposition in Pine that it
was sufficient for the officials to have asserted they had a lawful right to enter as a matter of
fact even if, as a matter of law, they had no such right.
[105] The approach arising from the judgments of Spender and Dowsett JJ in Holland,
which concerned the statutory right to enter for the purpose of holding discussions (s.760 of
the WR Act (after Work Choices)) was that the jurisdictional requirement in relation to
s.767(1) that “exercising, or seeking to exercise rights” under s.760 is to be determined by
reference to whether or not the permit holder had the prescribed purpose of the relevant right.
[2014] FWCFB 2709
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Dowsett J found that authorisation of entry pursuant to s.760 is not dependent upon satisfying
the requirement that the permit holders have the required purpose.72
[106] On remittal,73 Greenwood J applied the approach of Spender and Dowsett JJ,
addressing the question of whether the officials had the required purpose when entering the
premises by ascertaining on the evidence whether the permit holder had satisfied the
requirement that he or she had (that is, subjectively held) the required purpose.74
[107] In Darlaston,75 Flick J considered a claimed contravention of s.767 of the WR Act
(after Work Choices) in respect of an entry said to have occurred pursuant to s.757, finding
that a person could only be “exercising, or seeking to exercise a right under s.757” if they
were of the class of employees who had such a right, in that case, concerning OHS entry,
requiring that they were a permit holder.
[108] In Setka,76 the Full Court found that Mr Setka was exercising, or seeking to exercise,
rights under the VOHS Act by reference to the evidence that Mr Setka was “an authorised
representative” of the CFMEU who held an entry permit for the purposes of the relevant
VOHS Act, had the right to enter a workplace during working hours for the purpose of
inquiring into any suspected contravention of the VOHS Act (s.87(2)) and was involved in
consultations with employer representatives about health and safety issues and evidence as to
the focus on OHS matters by Mr Setka and his colleagues during the site visit. The approach
of the Full Court went to both the right of Mr Setka to undertake an entry authorised by the
VOHS Act and the purpose of his entry disclosed by the evidence.
[109] It is necessary to discern the appropriate test for determining whether an organisation
or its officials were using rights exercisable under Part 3–4 to establish jurisdiction for the
taking of action to restrict those rights in the event that those rights were misused.
[110] As noted above, previous decisions of the AIRC applied the approach of Merkel J in
Pine that a determination of whether the permit holder was exercising, or purporting to
exercise, rights conferred by Part 15 of the WR Act (after Work Choices) was a matter of fact,
with the power to make orders arising when an organisation, or official of an organisation,
gains entry to a site, or purports to gain entry to a site, in reliance on a right of entry under
Part 3–4 and then misuses that right.
[111] However, that approach and the reliance on Pine cannot be sustained in light of
subsequent authority from the FCA, including two judgments of Full Courts, which have
distinguished the approach in Pine on the basis of the changed terms of the relevant
legislation. It is therefore necessary to discern and apply the test evident in the subsequent
FCA judgments determined in the context of the WR Act (after Work Choices) in relation to
prohibition provisions within the right of entry Part of that Act, which are materially in the
same terms as in the FW Act.
[112] As already noted, the FCA authorities do not deal directly with the basis of jurisdiction
within s.508 of the FW Act. However, the questions which arise are comparable—the
determination, as a matter of jurisdiction of whether the organisation or official/permit holder
was using entry rights exercisable under the relevant part of the FW Act. Consistent with the
past approach of the Commission’s predecessors, we think that the FCA authorities in relation
to the prohibition provisions provide guidance as to the approach to be applied in relation to
the misuse question. Each of the authorities of the FCA, subsequent to Pine (other than
[2014] FWCFB 2709
24
Gittany) dealt with the statutory term “a permit holder exercising, or seeking to exercise,
rights”. Section 508, although referring to “rights that are exercisable”, provides jurisdiction
when those rights are misused. Since the misuse of rights requires their use, the post Pine
authorities, concerning the exercise of the rights are relevant.
[113] We note that the terms of s.508—“misuse of rights exercisable under the Part”—are
slightly different from s.770 of the WR Act (after Work Choices)—“abuse of the rights
conferred by the Part”. However, we see no material difference in that the rights exercisable
under the Part 3–4 are those conferred by the Part.
[114] In Holland v CFMEU (NSW) and Darlaston, it was found that consequential
provisions in the right of entry Part of the WR Act (after Work Choices) would only operate
in respect of persons upon whom a right has been conferred as statutory rights of entry under
the relevant OHS law. Neither decision goes beyond that point. In Holland v CFMEU (NSW),
Moore J found that the persons entering the premises were not an “authorised representative”
for the purposes of s.76 of the Occupational Health and Safety Act 2000 (NSW) (NSW OHS
Act) and had no right to enter a work site. A similar proposition was put to Flick J in
Darlaston but he found that consequent upon amendments to the NSW OHS Act since
Holland v CFMEU (NSW), the persons entering the premises in the matter before him were
not an “authorised representative”. The judgments do not otherwise assist in discerning the
proper approach to determining whether the persons were exercising rights under the Part 15
of the WR Act (after Work Choices). These judgments assist only to the extent of establishing
that in order to be exercising, or seeking to exercise rights under the right of entry provisions
the person has been conferred with statutory rights of entry.
[115] The judgments of Spender and Dowsett JJ in Holland put the question in terms of
whether or not the permit holder had the prescribed purpose of the relevant right.
Greenwood J applied that approach by ascertaining on the evidence whether the permit holder
had satisfied the requirement that he or she had (that is, subjectively held) the required
purpose. These judgments adopt a test of whether or not the permit holder had the prescribed
purpose of the relevant right. It may be noted that no issue arose as to whether or not the
officials in that case were conferred with statutory rights of entry.
[116] In Setka, the approach applied by the Full Court went to both the right of Mr Setka to
undertake an entry authorised by the VOHS Act and the purpose of his entry disclosed by the
evidence.
[117] Taken together these authorities suggest the test for determining whether a permit
holder exercising, or seeking to exercise, rights under statutory rights of entry involves two
elements:
Satisfaction that the relevant organisation or official has been conferred with
statutory rights of entry; and
Satisfaction that the permit holder had the prescribed purpose of the relevant right.
[118] This approach represents a departure from the approach in Pine of satisfaction, as a
matter of fact, that an organisation, or official of an organisation, gains entry to a site, or
purports to gain entry to a site, in reliance on a right of entry under Part 3–4.
[2014] FWCFB 2709
25
[119] The words of s.508, read on their face, suggest the exercise of Part 3–4 rights in order
to misuse them. There are means of entering a site which do not rely on or utilise the statutory
rights of entry within Part 3–4, and Part 3–4 is not a comprehensive code governing site entry
for purposes for which it provides a right of entry. In that context the approach in Holland and
Setka, determined by reference to a permit holder having a purpose of entry prescribed within
a statutory right of entry, does not sit comfortably with:
the possibility of entry to premises by means other than in reliance with the
statutory entry rights, given Part 3–4 it not intended to codify all of the ways in
which entry can occur; and
on the other hand, the possibility of purported reliance on a statutory right to gain
entry to a site for a particular statutory purpose but with no intention, on the
evidence, to engage in that purpose, with an intention of engaging in some other
purpose, including a prohibited activity.
[120] In the first instance where, for example, a permit holder is invited to immediately enter
the workplace by an employer to dissuade members threatening industrial action from doing
so, by entering without notice and holding discussions with the employees during work time,
it seems unlikely that because the official has a statutory right of entry available and the
purpose of the entry is to hold discussions with employees, the permit holder could be held to
be exercising, or seeking to exercise rights under s.484 of the FW Act and to have misused
those rights by entering without notice and holding discussions during working time.
[121] On the other hand, it is difficult to envisage that there would be no jurisdiction to take
action under s.508 against a permit holder purporting to rely on a statutory right to gain entry
to a site but without a purpose for which a right is available, when assessed against the
evidence, but with a purpose of hindering, obstructing or harassing an occupier.
[122] Nonetheless, given the authority of two Full Courts of the FCA, we apply the test we
have discerned from the FCA authorities subsequent to Pine, involving, two elements:
Satisfaction that the relevant organisation or official has been conferred with
statutory rights of entry; and
Satisfaction that the permit holder had the prescribed purpose of the relevant right.
[123] Several decisions of the Commission have dealt with the question of what constitutes
“misuse” of the statutory entry rights, once the use of the rights had been found. In
determining whether Part 3–4 have been misused Senior Deputy President O’Callaghan in Re
Fair Work Australia77 found that “the misuse which must be established on the balance of
probabilities must refer to the use or purpose of the rights of entry which is contrary to the
purpose for which they were granted by the Entry Orders or by Part 3–4 itself”.78
[124] This approach is consistent with earlier decisions in relation to the WR Act (after
Work Choices). In Gregory Charles Alfred v Andrew Quirk, Senior Deputy President Lacy
said:
“[14] As may be seen from the foregoing summary the rights conferred by Part 15
consist of a statement of an absolute right tempered and conditioned by a number of
[2014] FWCFB 2709
26
limitations and restrictions on the exercise of the right. In my view the rights conferred
by Part 15 can be defined as the parcel of rights that are to be exercised in accordance
with their specified limitations and restrictions. Abuse of the rights may result in
revocation or suspension of the rights or the imposition of further conditions on the
exercise of them. What is not defined by Part 15 is the term ‘abuse’. Dictionary
definitions of the term suggest a meaning of ‘wrong or improper use’. In the context of
the expression ‘abused the rights conferred’ by Part 15, the right might be said to be
abused if its exercise cannot reasonably be reconciled with the duty or duties to which
the holder of the rights is subjected by the several limitations and restrictions in Part 15
itself. So much is consistent in my view with the views expressed by Senior Deputy
President Watson in Re Australian Building and Construction Commission.”79
[125] The view expressed regarding Re Australian Building and Construction Commission
from the above paragraph is as follows:
“In my view, the concept of abuse within s.770 of the Act would clearly encompass a
collateral intent or an improper purpose when exercising, or purporting to exercise,
entry rights under Part 15 of the Act. However, it is not clear that abuse requires a
collateral intent or an improper purpose. It might also extend to the exercise of the
right of entry in a manner which fails to reflect the conditions or limitations attached
by the statute to the right. Abuse would arise from some of the issues suggested by Ms
Martino - the misuse of the right of entry to abuse or intimidate representatives of the
occupier, to procure unlawful industrial action, to obstruct and frustrate the normal
operation of the enterprise and to compromise OHS requirements of a site.” 80
THE CFMEU APPEAL AGAINST THE PRELIMINARY DECISION IN [2013] FWC
9860
The decision of Senior Deputy President O’Callaghan in [2013] FWC 9860
[126] Senior Deputy President O’Callaghan dealt with two bases for the CFMEU
submission that no further action should be taken in this matter pursuant to s.508:
“firstly, there is no jurisdiction to undertake what it describes as a preliminary
investigation into whether to initiate action under that section”, and
second, “there is no specific proposal to found such an action.”81
[127] The Senior Deputy President was “not persuaded that there are any such jurisdictional
impediments to the matter proceeding or that the proceedings represent a preliminary
investigation”:
“[9] I am not satisfied that s.508 limits the FWC’s capacity to initiate actions to
circumstances which are detailed in a particular application. As I indicated in my
decision of 27 November 2013, the FWC very rarely invokes the capacity to act of its
own motion under s.508. I have adopted the position that such an action of this nature
should only be taken in circumstances where the material before a particular Member
of the FWC is such that it gives rise to a substantial concern about the possible misuse
of entry rights.
[2014] FWCFB 2709
27
[10] The enquiry that must then ensue must go to establishing whether, on the
evidence then presented to the Commission, one or more concerns are made out such
that misuse of entry rights is established. Hence, I consider that it was incumbent on
the FWC to articulate the concerns that gave rise to the commencement of the s.508
action so that the parties could be aware of the issues to be addressed. The advice
provided to the parties must strike a balance between the expression of the concerns
giving rise to the s.508 proceedings and the invitation to fairly consider evidence about
those concerns.
[11] The absence of regulations or rules relating to the operation of this section is
not relevant to the issue of jurisdiction. In procedural terms, it is simply incumbent on
the FWC to formulate an approach which balances the dictates of speed and efficiency
with those of fairness and equity. To read s.508 as requiring that the jurisdiction to
invite submissions and evidence about misuse of entry rights is limited to situations
where the FWC has formed a concluded view about misuse, would itself represent a
denial of natural justice.
[12] Section 508 and, indeed, other sections of the FW Act which empower the
FWC to act on its own initiative may be applied so that they have about them, an
element of inquiry. It is only if this inquiry, on the evidence put to the FWC,
establishes misuse of the nature addressed in this section, that the Commission is then
empowered to take action. To deprive the FWC of that capacity, or the capacity to
embark on such an inquiry, or to require it to articulate specific assertions would be to
render this section effectively inoperative. It is simply the case that the evidence which
may, or may not be put to me, will establish whether the jurisdiction to act under s.508
exists.
[13] As a consequence, I concluded that there was no jurisdictional barrier to the
matter proceeding.
[14] Secondly, the CFMEU argued that the proceedings represented a denial of
natural justice. Again, I do not accept this position. The basis for the proceedings has
been clearly articulated. In part, this basis was relied upon in the CFMEU’s earlier
argument that I should exclude myself from further consideration of the matter
because of an apprehended bias. The directions issued to date have put the parties on
notice about the proceedings in matters of concern to me. In this respect I am satisfied
that natural justice requirements have been met.
[15] The material before me to date identifies certain unnamed individuals who are
asserted to be officials or employees, or representatives of the CFMEU. In some cases,
this is a matter of public record and I may take note of it accordingly.
[16] The CFMEU advice is that it does not represent those persons and that
Mr Pearce only represents the CFMEU. Some of the persons referenced in the material
before me are not identified by name and the material indicates that in some cases they
have not been prepared to identify themselves. This may, or may not be established on
the evidence that is put to me.
[17] To the extent that the evidence enables conclusions about individuals in terms
of the names or their activities is a matter for later consideration in the context of the
[2014] FWCFB 2709
28
obligation on the FWC to ensure procedural fairness. Consequently, to ensure a
procedurally fair approach to all of the parties, including potentially affected
individuals, I confirmed my intention to reach conclusions about the extent to which
the circumstances in s.508(1) are established, before inviting the parties to consider
what, if any, form of order should then be made. This approach may extend to
proposed orders about which submissions may later be made. It may also extend to
specific invitations to individuals to appear and make submissions about the
appropriate form of orders being countenanced.”82
The CFMEU appeal
[128] The CFMEU appeal was brought on the basis of two broad contentions reflected in six
appeal grounds directed to the decision of Senior Deputy President O’Callaghan in [2013]
FWC 9860:
Failure to formulate a proposal or application [Grounds 1, 5 and 6]; and
Construing s.508 as authorising proceedings under s.508 where a Member of the
Commission has only formed the opinion that he/she has “substantial concerns”
that the possible misuse of rights may have occurred [Grounds 2, 3 and 4].
Failure to formulate a proposal or application
[129] The CFMEU submitted that Senior Deputy President O’Callaghan failed to provide
procedural fairness to the CFMEU by failing to order that the proceedings be terminated on
10 December 2013 for want of jurisdiction/power because the Senior Deputy President had
failed to formulate a proposal or application to restrict the rights that are exercisable under
Part 3–4 by the CFMEU when the formulation of such proposal or application was a
necessary prerequisite to the exercise of jurisdiction/power under s.508 of the FW Act and
where the failure to formulate such a proposal or application and the continuation of the
proceedings constituted a denial of procedural fairness to the CFMEU.
[130] The CFMEU also submitted that whilst no mechanism is provided by s.508(3) of the
FW Act, the Fair Work Regulations 2009 or the Fair Work Commission Rules 2013 regarding
the initiation of a s.508 matter on its own motion, the Commission must perform the functions
and exercise the powers exercised in a manner consistent with the general requirements of the
FW Act as set out in ss.577 and 578. These include the requirements for the Commission in
exercising the powers under s.508 to act in a manner which is “fair and just” and “open and
transparent” and which takes into account the objects of Part 3–4 as well as “equity, good
conscience and the merits of the matter”. In addition the Commission is under a duty to act
judicially, and to afford procedural fairness to any person likely to be adversely affected by
the proceedings.
[131] The CFMEU further submitted that neither the 11 November 2013 letter, or the
11 November 2013 application/notification document or the observations in matter
RE2013/1710 advised the CFMEU or any of its officials of the nature and extent of any
proposed order likely to be made pursuant to s.508(2) of the FW Act. It submitted that in the
absence of such a proposal or application that the proceedings should have been terminated on
10 December 2013 for want of jurisdiction/power and the continuation of the proceedings
constituted a denial of procedural fairness to the CFMEU.
[2014] FWCFB 2709
29
[132] We see no basis for the CFMEU proposition that a Member initiating s.508
proceedings on their own motion is obliged to formulate a specific proposal or application.
What is required, in our view, is that the Member affords natural justice to organisations or
persons who may be affected by an action, under s.508(3) of the FW Act, arising out of the
hearing and determination of a s.508 matter.
[133] The initiation of a s.508 matter by a Member on their own motion should reflect a
reasonably based concern about the possible misuse of entry rights. If a Member is of the
view that information available to him/her raises such a concern, it would be incumbent upon
that Member to provide an opportunity for an organisation or person potentially affected by
the outcome of the matter to bring evidence and submissions as to whether a relevant misuse
has occurred and, if so, what actions should be taken under s.508(2) of the FW Act, provide
access to the evidence and submissions made in the matter and, if an outcome not raised in the
proceedings was in the contemplation of the Member, to alert potentially affected
organisations or persons of that possibility.
[134] Before the hearing of relevant evidence and submissions in proceedings, initiated by a
Member on the basis of some reasonably based concern, the formulation of a proposal or
application, not informed by the evidence and submissions in the matter would not be
possible and would suggest pre-judgment in relation to relevant evidence and submissions. At
that early stage, a Member could do no more than to appraise potentially affected
organisations or persons of the fact of the s.508 matter and the proceedings to occur and
ensure access to and an opportunity to consider and deal with evidence and submissions in the
matter. Advice of the initiation of the s.508 matter in itself would alert potentially affected
organisations or persons of the possibility of findings on misuse against organisations and/or
officials of the organisations and possible action to restrict the rights that are exercisable
under Part 3–4 by organisations, or officials of any kind contemplated by s.508(2) of the FW
Act. At that stage, without having heard the evidence and submissions, it would not be
possible to closely specify the extent and nature of the misuse by the organisation or an
official, if any, or the nature of any action under s.508(2) if a finding of misuse was made.
[135] In very rare circumstances, where a misuse was established beyond doubt in the mind
of a Member, in advance of s.508 proceedings, there may be occasion to set out the nature and
extent of misuse of rights established, the basis of that conclusion and s.508(2) actions
contemplated with some specificity, and inviting affected organisations or persons, with an
opportunity to bring evidence and submissions, to show cause why such a course of action
should not follow. The circumstances before Senior Deputy President O’Callaghan were not
of this nature. His concern arose out of limited uncontested evidence in the context of a s.418
matter, without submissions in respect of the import of that evidence (and other evidence
which might arise) to s.508 of the FW Act.
[136] In the current circumstances, Senior Deputy President O’Callaghan expressed
concerns about possible misuse of entry rights on the basis of the limited evidence in the
s.418 matter and raised the possibility of further enquiry through s.508 proceedings, both in
the proceedings and in his decision. By letter of 11 November 2013 he advised the CFMEU
and Lend Lease that he had initiated s.508 proceedings, setting down directions which
provided an opportunity for the CFMEU and Lend Lease to bring evidence additional to that
in the s.418 proceedings. He ensured that all materials filed in the s.508 proceedings were
available to the CFMEU, Lend Lease and the FWBC.
[2014] FWCFB 2709
30
[137] On 27 November 2013, the Senior Deputy President expanded the scope of the entries
under consideration in the s.508 matter, having alerted the CFMEU, Lend Lease and the
FWBC to that possibility in the proceedings of 21 November 2013 and affording them the
opportunity to put submissions against such a course.83 No submissions were filed expressing
opposition to the expanded scope of the s.508 matter. In deciding the preliminary issues in
[2013] FWC 9860, the Senior Deputy President was conscious of the need to ensure
procedural fairness for potentially affected individual officials of the CFMEU and for him to
“reach conclusions about the extent to which the circumstances in s.508(1) are established,
before inviting the parties to consider what, if any, form of order should then be made”.84
[138] In his decision of 23 December 2013 in respect of misuse of rights in relation to the
Lend Lease entries, the Senior Deputy President, was concerned about “potential for
inequitable outcomes” of his findings if directed at individual persons when there was
uncertainty about the identity of all the persons who conducted the entries. As a result, he
directed his “attention to the entirety of those entries conducted on behalf of the CFMEU” and
restricted his findings to the CFMEU as an organisation.85
[139] As we have already found, the initiation of a s.508 by a Member on their own motion
does not require the formulation of a specific proposal or application by them. Rarely would
such a specific formulation be possible without pre-judging the matter in advance of receiving
evidence and submissions in the s.508 proceedings. What is required is the provision of
natural justice to potentially affected organisations or persons. From our consideration of the
process adopted and the steps taken by Senior Deputy President O’Callaghan, we are satisfied
that he afforded the CFMEU natural justice in the conduct of the s.508 matter.
[140] We note that the CFMEU appeal was directed to the impact of the failure of the Senior
Deputy President to formulate a proposal or application on the provision of natural justice to
the CFMEU as an organisation.86 We think the natural justice point was properly confined in
this way by the CFMEU given the reasons of Senior Deputy President O’Callaghan at
paragraphs 15 to 17 of his decision.
[141] Nonetheless, the CFMEU argued in oral submissions that Senior Deputy President
O’Callaghan, in failing to identify individuals who might be affected by the s.508 proceeding,
failed to put individuals on notice that they might be affected by the proceedings87 and denied
them of procedural fairness.88 We are not satisfied that such a denial of procedural fairness
has occurred. Part 3–4 balances “the right of organisations to represent their members in the
workplace, hold discussions with potential members and investigate suspected
contraventions” with the rights of others89 and sets out rights (and responsibilities) of permit
holders as officials of those organisations in giving effect to the right of the organisations to
represent their members in the workplace. An application for a entry permit under the FW Act
is made by an organisation registered under the Fair Work (Registered Organisations) Act
2009 in respect of an office holder or employee of the organisation in order that the permit
holder, can exercise rights of and on behalf of the organisation under the FW Act in their
capacity as an officer or employee of the organisation.
[142] Further, the possibility of action against the CFMEU as an organisation was such that
any individual CFMEU permit holder might be affected by action taken under s.508(2) of the
FW Act. The state of the evidence in the s.418 proceedings and in the s.508 matter was such
that individuals involved in the entries were not in all cases identified with clarity. For that
[2014] FWCFB 2709
31
reason, Senior Deputy President O’Callaghan refrained from making findings of abuse
directed at individual permit holders.90 In his decision in [2013] FWC 9860, he said:
“[17] . . . to ensure a procedurally fair approach to all of the parties, including
potentially affected individuals, I confirmed my intention to reach conclusions about
the extent to which the circumstances in s.508(1) are established, before inviting the
parties to consider what, if any, form of order should then be made. This approach may
extend to proposed orders about which submissions may later be made. It may also
extend to specific invitations to individuals to appear and make submissions about the
appropriate form of orders being countenanced.”
[143] It was not suggested by the CFMEU that the identification of specific permit holders
who may have been affected by the decisions of Senior Deputy President, would have resulted
in a different outcome in respect of their rights as individuals, as distinct from permit holders
exercising rights of the CFMEU under Part 3–4. The Senior Deputy President confined his
finding as to misuse of rights by the CFMEU as an organisation, he has not considered or
determined actions under s.508 in relation to that misuse of rights at this point and has under
consideration specific notice to individuals to appear and make submissions about the
appropriate form of orders being countenanced. Those steps would seem to protect their rights
as individuals, such as the potential impact on their continuing employment, a different
consideration to those attaching to action against the CFMEU affecting them as officers or
employees of the CFMEU exercising rights of the CFMEU as permit holders on behalf of the
CFMEU under Part 3–4.
Construing s.508 as authorising proceedings under s.508 where a Member of the
Commission has only formed the opinion that he/she has “substantial concerns” that the
possible misuse of rights may have occurred
[144] The CFMEU submitted that Senior Deputy President O’Callaghan erred in construing
s.508 as authorising the commencement and continuation of proceedings in circumstances
that a Member of the Commission has only formed the opinion that he/she has “substantial
concerns” that the possible misuse of the rights exercisable under Part 3–4 may have
occurred. The CFMEU submitted that as a consequence, the Senior Deputy President erred in
failing to order that the proceedings be terminated on 10 December 2013 for want of
jurisdiction/power.
[145] We see no basis for this submission by the CFMEU in the appeal. As we have already
noted, it would be open to a Member to initiate a s.508 matter on their own motion on the
basis of a reasonably based concern about the possible misuse of entry rights. A reasonably
based concern about the possible misuse of Part 3–4 rights warranting further investigation
would be necessary before embarking on a process to elucidate further evidence and
submissions given the impact on the resources of the Commission and interested parties in
doing so. However, there is no basis for the proposition that satisfaction that a misuse of
rights has occurred would be necessary in order for a Member of the Commission to initiate
s.508 proceedings on their own motion.
[2014] FWCFB 2709
32
THE CFMEU APPEAL AGAINST THE DECISION IN [2013] FWC 10168
[146] Most of the appeal grounds brought by the CFMEU were directed to the decision of
Senior Deputy President O’Callaghan of 23 December 2013 in [2013] FWC 10168. They fell
into two broad categories:
A. Grounds directed to the Lend Lease entries, in respect of which Senior Deputy
President O’Callaghan ultimately found “that the circumstances of the Lend
Lease entries represent serious, deliberate and sustained misuse of entry rights
by the CFMEU pursuant to S508(1)”,91 although directed only to the “CFMEU
as an organisation”;92 and
B. Grounds directed to entries not involving Lend Lease sites raised by the
evidence of the FWBC, which the Senior Deputy President found “establishes
a prima facie case to the effect that misuse of Part 3–4 entry rights has
occurred”, but in respect of which he was not “prepared to reach a conclusion”
in relation to s.508(1). Instead he provided a further opportunity to the
companies concerned, the FWBC and the CFMEU to “provide submissions
and evidence relevant to the events referenced in that evidence”.93
[147] His Honour’s decision in relation to the two classes of entries, and the different stages
of his decision making process in relation to them, raises different considerations in the appeal
and we will deal with them separately in this decision.
A. Lend Lease
The CFMEU contentions of appeal
[148] In its written submissions94 in the appeal, the CFMEU grouped its appeal grounds
concerning the Lend Lease entries as follows:
1. Grounds 7–12: which related to the broad contention “there was no
jurisdiction/power for the Senior Deputy President to exercise the
jurisdiction/power under s.508 of the Act in the proceedings because as a
matter of fact and law no rights that are exercisable under Part 3–4 of the Act
have been used or misused by the CFMEU or an official of the CFMEU”, with
the “existence of such matter of fact and law” being a “prerequisite to the
exercise of jurisdiction under s.508 purportedly being engaged in by the Senior
Deputy President”.
2. Grounds 13 and 14: in respect of which the CFMEU broadly asserted “that, the
Senior Deputy President has failed to provide procedural fairness to the
CFMEU by failing to provide adequate reasons for concluding that as a matter
of fact and law rights that are exercisable under Part 3–4 of the Act have been
used by the CFMEU or an official of the CFMEU”.
3. Grounds 15 and 16: in which the CFMEU submitted “that the Senior Deputy
President has failed to provide procedural fairness to the CFMEU by failing to
consider, and/or have regard to, and/or give any weight to, and/or give
sufficient weight to, submissions for the CFMEU that, as a matter of fact and
[2014] FWCFB 2709
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law, rights that are exercisable under Part 3–4 of the Act, were not used by the
CFMEU or an official of the CFMEU”.
4. Grounds 21 and 22: The CFMEU submitted “that the Senior Deputy President
erred as a matter of fact and law . . . in finding that the requirement of sections
486 and 487 were contravened with respect to the Lend Lease purported
entries” and in so doing failed to provide procedural fairness to the CFMEU
and the permit holders.
5. Grounds 23 and 24: in which the CFMEU contended “that the Senior Deputy
President erred as a matter of fact and law . . . in finding that the permit
holders . . . contravened s.490(3) of the FW Act . . . and in so doing failed to
provide procedural fairness to the CFMEU and the permit holders”.
6. Grounds 25 and 26: “These grounds assert that the Senior Deputy President
erred as a matter of fact and law . . . in finding that the numerous of the permit
holders . . . contravened s.491 of the Act and in so doing failed to provide
procedural fairness to the CFMEU and the permit holders”.
7. Grounds 28 and 29: “These grounds assert that the Senior Deputy President
erred as a matter of fact and law . . . in finding that various of the
officials . . . contravened s.495 and s.499 of the Act and in so doing failed to
provide procedural fairness to the CFMEU and the permit holders”.
8. Grounds 30 and 31: in which the CFMEU asserted “that the Senior Deputy
President erred as a matter of fact and law . . . in finding that the Lend Lease
Entries . . . contravened s.500 of the Act and in so doing failed to provide
procedural fairness to the CFMEU and the permit holders and in so doing
failed to provide procedural fairness to the CFMEU and the permit holders”.
9. Grounds 32 and 33: “These grounds assert that the Senior Deputy President
erred as a matter of fact and law . . . in finding that the Lend Lease
Entries . . . contravened s.503 of the FW Act and in so doing failed to provide
procedural fairness to the CFMEU and the permit holders”.
10. Grounds 34 and 35: in which the CFMEU submitted “that the Senior Deputy
President erred as a matter of fact and law . . . in finding that there were
numerous, deliberate and sustained contraventions of the rights under Part 3–4
of the Act involved in the purported Lend Lease Entries . . . and to the extent
that the Senior Deputy President’s finding . . . is based on other undisclosed
findings not set out at above the Senior Deputy President has failed to provide
procedural fairness to the CFMEU by failing to provide adequate reasons for
decision”.
[149] In their oral submissions, the CFMEU identified the jurisdictional prerequisites for
actions under s.508(2) of the FW Act, arising out of s.508(1) as, “[f]irstly, it requires
identification of rights that are exercisable under Part 3–4 and associated with that, the use of
those rights; and secondly, you need to find that those rights were misused”.95
[150] On that basis, the CFMEU focussed on three “important” issues96 in the appeal.
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[151] Firstly, the finding of Senior Deputy President O’Callaghan “that rights exercisable
under the Act were used; that is rights under Part 3–4 were being used on the days in
question”, described by the CFMEU as the centrepiece of its case below.97
[152] In this regard, the CFMEU submitted that:
the officials “positively disavowed any reliance on the Act”.98 The CFMEU
conceded that the officials did not expressly state during any site visit that they
were not using rights under Part 3–4, but submitted that “if someone was to go onto
a building site and everything they said or did was contrary to any indication that
they were using those rights, then likewise one would not suggest that they were
using rights exercisable under 3–4; they were doing something else . . . All of these
indicia point against an exercise of rights under Part 3–4”;99 and
“in relation to the incidents each individually considered was that there was not a
designated purpose identified.”100
[153] In short, the CFMEU submitted that the Senior Deputy President erred in his finding
because the evidence as a whole did not support a finding that the permit holders were relying
on Part 3–4 rights in relation to the Lend Lease entries.
[154] Second, the making of only global findings by Senior Deputy President O’Callaghan
in relation to the use of Part 3–4 and his failure to dissect the purpose of the visits in each
case.101
[155] Third, the failure of Senior Deputy President O’Callaghan to provide adequate reasons
in relation to his satisfaction that the officials were relying on Part 3–4. The CFMEU
submitted that in the part of his decision dealing with the question of whether the entries
involved the use of Part 3–4—paragraphs 70 to 75—no mention was made of the question of
giving of notice and what weight, if any, should be provided to that and no assessment was
made of the full circumstances disclosed by the evidence of the individual entries. It
submitted that “it was incumbent upon the Senior Deputy President to resolve the issue” about
reliance on Part 3–4 by reference to the “purpose of each and every visit”.102
[156] In this regard, the CFMEU submitted that there are “two fundamental failings in terms
of the reasoning” 103 in relation to the question of reliance on Part 3–4 rights:
His decision discloses only conclusions, without any analysis of the individual
entries, so that there is no indication for the reasons for the conclusion that Part 3–4
rights were being exercised; and
There is no indication of what test Senior Deputy President O’Callaghan applied in
reaching his conclusion.
[157] The 23 December 2013 decision of Senior Deputy President O’Callaghan in respect of
the Lend Lease entries dealt only with the jurisdictional prerequisite to restricting the Part 3–4
–satisfaction by the Commission that the organisation, or an official of the organisation, has
misused those rights. He did not proceed so far as to determine what actions, if any, under
s.508(2) of the FW Act should be taken to restrict the rights.
[2014] FWCFB 2709
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[158] The jurisdiction to restrict rights under s.508 only arises if the Commission is satisfied
that the organisation, or an official of the organisation, has misused the rights that are
exercisable by them under Part 3–4, involving two questions:
Did the conduct occur in the exercise or purported exercise of the entry rights that
are available under Part 3–4?;104 and
Did the conduct constitute misuse of those rights?
[159] It is evident from the CFMEU grounds in relation to the entries involving properties
controlled by Lend Lease, and from its case before Senior Deputy President O’Callaghan that
the primary focus of the appeal in respect of the Lend Lease entries goes to the question as to
whether those entries involved use of the Part 3–4 rights by the relevant CFMEU officials,
although some appeal grounds challenge findings of the Senior Deputy President in relation to
the misuse of the rights.
[160] It is convenient to commence our consideration of the CFMEU appeal against the
23 December 2013 decision in respect of Lend Lease in relation to the appeal grounds going
to the use of the rights—the first element of the jurisdictional requirement and the CFMEU
contentions that the Senior Deputy President failed to provide adequate reasons, misapplied
the relevant test and erred in his conclusions on the evidence in respect of the use of the
rights.
[161] The relevant entries by CFMEU officials about which there was evidence before
Senior Deputy President O’Callaghan involved several properties controlled by Lend Lease:
The Adelaide Oval project, with entries on 30 and 31 October 2013, and 5, 6, 12,
13, 14 and 15 of November 2013;
The Adelaide Convention Centre project, with an entry on 30 October 2013;
The TAFE Tonsley Park project, with entries on 30 October 2013 and 8 November
2013; and
The Tonsley Park Flinders University project, with entries on 30 October 2013 and
8 November 2013.
[162] In his decision of 23 December 2013, Senior Deputy President O’Callaghan ultimately
found that the Lend Lease entries (other than the entries of 14 and 15 November 2013)105
involved “serious, deliberate and sustained misuse of entry rights by the CFMEU pursuant to
s.508(1)”106 of the Act “with respect to the CFMEU as an organisation”.107 In coming to that
conclusion, the Senior Deputy President was satisfied as to the jurisdictional requirement for
the taking of action under s.508(2) to restrict the rights that are exercisable under Part 3–4 by
an organisation, or officials of an organisation, in this case the CFMEU as an organisation.
[163] We note that in considering the various entries onto the Lend Lease sites, Senior
Deputy President O’Callaghan said:
“[71] I have referred to the entries to those sites of 30 and 31 October and 5, 6, 12
and 13 of November 2013 as the ‘Lend Lease entries’. I have excluded from this
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category, entries to the Adelaide Oval site on 14 and 15 November 2013 on the basis
that the evidence establishes these entries occurred following the provision of notices
consistent with s.518.”
[164] He neither includes nor excludes an entry at the Tonsley Park Flinders University site
on 8 November 2013, which is the subject of evidence of Mr G Fisher,108 Project Manager
and at the Tonsley Park TAFE site in relation to which a record of events of Mr J Burgess,
Site Manager, was attached to the evidence of Mr M Gooding, Project Manager.109 It is
unclear whether those entries were included in the Senior Deputy President’s consideration of
and conclusions as to the use and misuse of Part 3–4 rights in respect of sites controlled by
Lend Lease.
[165] In considering the appeal ground concerning the failure to provide adequate reasons, it
is necessary to consider more closely the terms of the decision of the Senior Deputy President
in respect of Lend Lease.
[166] In this respect, Senior Deputy President O’Callaghan recorded:
the terms of s.508;110
the background to the matter;111
the context of the right of entry provisions of Part 3–4, by reference to ss.478 and
480 of the FW Act, in which he considered the evidence;112
the evidence which informed his deliberations;113 and
a summary of the parties’ submissions.114 This included CFMEU reliance on
Ferguson115 and Setka116 in support of its position that the evidence did not
establish that the entries were for purposes associated with Part 3–4.
Findings117 that:
the persons who conducted the various entries were CFMEU officials;
on a number of occasions, the evidence was that the officials advised that
they were acting on the direction of the Secretary of the CFMEU in terms of
the manner of the entries; and
the failure of the persons who conducted the various entries to give evidence
in support of the CFMEU submissions leaves open the capacity for
inferences about the behaviours which occurred.
[167] The Senior Deputy President reached what appears to be a conclusion in relation to the
issues concerning whether the Part 3–4 entry rights were used:
“[71] I have referred to the entries to those sites of 30 and 31 October and 5, 6, 12
and 13 of November 2013 as the ‘Lend Lease entries’. I have excluded from this
category, entries to the Adelaide Oval site on 14 and 15 November 2013 on the basis
[2014] FWCFB 2709
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that the evidence establishes these entries occurred following the provision of notices
consistent with s.518.
[72] I have considered whether the application of the approach in Setka or Ferguson
or, for that matter, the various authorities asserted by the CFMEU support its
contention that the evidence does not establish that the entries were for a purpose
relevant to Part 3-4.
[73] Even if the purposive test succinctly summarised in Setka is applied, it seems
very clear that the Lend Lease entries included the purposes of holding discussions
with employees or investigating safety issues. That the CFMEU officials may have
had other intentions is not supported by the evidence before me, but even if it was the
case that the officials did have other intentions such as, for example, the intention of
simple trespass, it appears to me that any such intentions were combined to a
significant extent with the discussions with the employees such that this purpose must
be taken into account.
[74] There were numerous occasions when the CFMEU officials stated that the
purpose of their visits was to have discussions. Further, and irrespective of any stated
purposes, the behaviour of the officials in engaging in discussions with employees
categorically establishes this as a purpose of the visits.
[75] Finally, the CFMEU has not provided any evidence that confirms that the
purposes of the visits did not include discussions with employees.
[76] The CFMEU contention that, as notices had not been given consistent with
s.518, the Part 3-4 entry rights had not been activated is inconsistent with the concept
of a balance referred to in s.480 between the right to represent employees and the
rights of businesses to operate without undue inconvenience.
[77] The Lend Lease entries were made by persons who were CFMEU officials.
That has been agreed by the CFMEU. At least one of the officials engaged in each
entry is a current permit holder pursuant to s.512 of the FW Act.”
[168] Thereafter, Senior Deputy President O’Callaghan considered whether the rights had
been misused,118 the officials refused to leave the site when requested on numerous
occasions,119 the requirements of:
sections 486, 487, 490(3), 491, 499 and 500 were contravened;
the “CFMEU approach was planned and reflected a clear strategy”;120
some entries involved “discussions between the CFMEU officials and employees
whom the CFMEU was not entitled to represent”;121
“a number of the entries involved discussions between CFMEU officials during
work time”;122
“notice requirements in s.495 were not complied with”;123 and
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the “entries represented a clear hindrance of Lend Lease operations”.124
[169] The Senior Deputy President ultimately concluded that:
“[113] . . . there were numerous, deliberate and sustained contraventions of the rights
and associated obligations on the CFMEU permit holders involved in the Lend Lease
entries. I have concluded that these contraventions occurred as part of a general
CFMEU instruction relative to the actions of its permit holders. On that plain reading,
the absence of notice pursuant to s.518, or assertions by the officials that they were
trespassing, does not change the character of the entries. Leaving aside the
contraventions, the entries were of a nature inherently similar to past entries conducted
in accordance with Part 3–4 and the normal Lend Lease practices.
. . .
[117] I am satisfied that the circumstances of the Lend Lease entries represent
serious, deliberate and sustained misuse of entry rights by the CFMEU pursuant to
S508(1). These misuses are directly contrary to the objects of this part of the FW Act.”
[170] We deal first with the complaint by the CFMEU that Senior Deputy President
O’Callaghan committed a jurisdictional error in that he failed to provide adequate reasons for
his decision that the CFMEU and its officials had used Part 3–4 rights and misused those
rights in the Lend Lease entries.
[171] It is necessary for a Member to “provide adequate reasons for reaching conclusions on
matters that fall for determination”.125 Considerable authority exists, both from the Courts and
the Commission, for the proposition that it is required to provide adequate reasons for its
decisions, consequent upon the obligation upon it to provide procedural fairness, rather than
by an express statutory requirement. Such authorities, in relation to the AIRC, were
considered by Moore and Marshall JJ in the FCA in Edwards v Giudice and Others.126 In his
judgment, Marshall J noted various authorities of the Courts and the AIRC, stating:
“[43] The Commission, although an administrative tribunal, does arbitrate on the
claims of competing parties in a quasi-judicial setting. It is obliged to act judicially and
afford procedural fairness to persons with business before it. See, for example,
Re Australian Railways Union; Ex parte Public Transport Corporation also Re Media,
Entertainment and Arts Alliance; Ex parte Arnel where Mason CJ, Brennan, Dawson
and Gaudron JJ referred to the requirements of procedural fairness as being an
essential feature of the arbitral power . . .
[44] In a seriously contested case before a tribunal which is required to afford
procedural fairness and act judicially, an arbitrator is obliged to disclose the steps
involved in the reasoning which leads to a particular result. There does not appear to
be any obligation expressed in the Act to require a member of the Commission to give
adequate reasons for a decision. It does not thereby follow however that in some cases
such as strongly contested ones where a final order of significant consequence may be
made that full reasons should not be given.
[45] As Deane J said in Australian Broadcasting Tribunal v Bond:
[2014] FWCFB 2709
39
‘A duty to act judicially (or to accord procedural fairness or natural justice)
extends to the actual decision-making procedure or process, that is to say, to
the manner in which and the steps by which the decision is made.’
[46] The obligation to give adequate reasons may more readily arise when a right of
appeal lies from the order which gives effect to the decision at first instance, as is the
case in the instant circumstances . . .
[47] It should be noted that Full Benches of the Commission have thoroughly
reviewed the obligation of Commission members to provide adequate reasons for
decision on previous occasions and that their decisions accord with the views
expressed above. See, for example, Re Astec Pty Ltd and Confectionery Workers
Union of Australia v Australian Chamber of Manufactures . . .” [References omitted]
[172] These observations have been considered and adopted in subsequent decisions of the
Commission on appeal Jones and Britax Rainsfords Pty Ltd,127 Tiver v University of South
Australia128 and Tabro Meat Pty Ltd v Heffernan.129
[173] Whilst the discharge of a Member’s “obligation to give reasons for a decision . . . does
not require lengthy or elaborate reasons . . . it is necessary that the essential ground or grounds
upon which the decision rests should be articulated”.130
[174] It is apparent given paragraph 71 of his decision and his other findings, that Senior
Deputy President O’Callaghan was satisfied that the CFMEU and its officials entered the
premises in reliance on statutory rights of entry and misused the rights in respect of each of
the Lend Lease entries of 30 and 31 October 2013 and 5, 6, 12 and 13 November 2013 and
that the right was exercised but not misused in respect of the entries to the Adelaide Oval site
on 14 and 15 November 2013. It is unclear what conclusions his Honour reached as to the
Tonsley Park entry of 8 November 2013. The decision at paragraph 71 indicates that the
Senior Deputy President reached a conclusion that each of the other entries identified as the
Lend Lease entries did involve the use and misuse of Part 3–4 rights.
[175] However, the decision of Senior Deputy President O’Callaghan does not reflect
reasoning as to why he reached such a view in relation to the particular circumstances of each
entry. It is unclear from the reasoning of Senior Deputy President O’Callaghan on the basis
upon which he made the finding that each of the Lend Lease entries of 30 and 31 October
2013 and 5, 6, 12 and 13 November 2013 involved reliance on statutory rights of entry.
[176] The Senior Deputy President finds at paragraph 73 that “[e]ven if the purposive test
succinctly summarised in Setka is applied, it seems very clear that the Lend Lease entries
included the purposes of holding discussions with employees or investigating safety issues”
[emphasis added]. It appears that his Honour did apply the approach in Setka from his
subsequent finding131 that there were numerous occasions when the CFMEU officials stated
that the purpose of their visits was to have discussions, referenced by way of example to the
entry to the Adelaide Oval site on 5 November 2013, the Adelaide Convention Centre site on
30 October 2013 and the Tonsley Park TAFE site on 30 October 2013 and irrespective of any
stated purposes, the behaviour of the officials in engaging in discussions with employees
categorically established this as a purpose of the visits. He also found that on various
(unspecified) Lend Lease entries to the Adelaide Oval and Tonsley Park sites, the “officials
raised alleged safety issues . . . finding that a purpose of those visits was to identify safety
[2014] FWCFB 2709
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issues”.132 The Senior Deputy President also found that the “officials of the CFMEU held
entry permits and had rights as permit holders under Part 3–4”.133
[177] Apart from the three entries referred to by the Senior Deputy President in the footnote
in paragraph 74, there is no reference to any other entry in relation to the global finding that
the Lend Lease entries, as described in paragraph 71, constituted a use of statutory rights of
entry. The global conclusion of the Senior Deputy President that the misuse and therefore the
use of Part 3–4 rights related to each of the entries other than those of 14 and 15 November
2013 seems to be premised on his later findings that the Lend Lease entries “occurred as part
of a general CFMEU instruction relative to the actions of its permit holders”134 and the
CFMEU consistently failed to use those rights consistent with the requirements of Part 3–4 in
relation to the Lend Lease entries.135
[178] Whilst it appears that the Senior Deputy President’s findings as to the use of Part 3–4
rights relied on his later findings that the CFMEU was engaged in some form of strategy as to
entry onto premises at the time (and there is a proper basis in the evidence to support such a
finding), the Senior Deputy President was, in our view, obliged to assess each of the entries,
albeit with regard to the evidence as to a CFMEU strategy at the time, to satisfy himself that
each entry, in the context of that strategy, involved the use of statutory rights of entry,
applying the approach evident in Holland and Setka.
[179] The need to assess the circumstances of each entry and make a finding as to the use of
Part 3–4 rights is evident in the decision of the Senior Deputy President that some of the
entries subject to the evidence—the 14 and 15 November 2013 entries—were not reflective of
the CFMEU strategy at the time. It is clear from that finding that the fact of a CFMEU
strategy in relation to site entry around that time does not, in itself, support a finding that a
particular entry was undertaken in accordance with that strategy. The need to consider and
reach conclusions in relation to the circumstances of each entry was also recognised by Senior
Deputy President O’Callaghan in relation to the FWBC evidence, which he found did not
establish “the extent or the effect of that misuse” found to exist on a prima facie basis, such
that he was not “prepared to reach a conclusion”136 in relation to s.508(1) of the FW Act in
relation to those entries.
[180] Further, the identification of the specific uses and misuses of statutory rights of entry
was necessary to assess the nature and extent of the misuse for the purposes of allowing the
parties to put submissions and for Senior Deputy President O’Callaghan to make a decision
about actions under s.508(2) of the FW Act which should follow as a consequence of the
misuse.
[181] In formulating an action under s.508(2) (or penalty in relation to decisions of the FCA
in relation to a breach of prohibition provisions), it is necessary to have regard to the nature of
the misuse.137 The Full Bench in Office of Australian Building and Construction
Commissioner v Construction, Forestry, Mining and Energy Union,138 found that “attempts
were then made to speak with employees . . . on the safety walk there would have been an
abuse of Part 15 rights” and the fact “that any conversations were of minimal duration, but
this goes to remedy rather than to breach”, again indicating the necessity to have regard to the
nature of a misuse in determining what action should follow.
[182] We find that in failing to explain the rationale for his global finding that the CFMEU
and its officials used Part 3–4 rights in relation to each of the Lend Lease entries of 30 and
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31 October 2013 and 5, 6, 12 and 13 November 2013, Senior Deputy President O’Callaghan
failed to identify the manner and steps by which the decision was made. He failed to disclose
the steps involved in the reasoning which lead to that finding. As a result, the Senior Deputy
President failed to afford the CFMEU procedural fairness. This is a jurisdictional error which
warrants permission to appeal and the quashing of his decision in respect of the use of Part 3–
4 rights.
[183] The Full Bench notes that similar issues arise in the findings of misuse of the Part 3–4
rights. Senior Deputy President O’Callaghan set out findings of misuse of the Part 3–4 rights
arising from the Lend Lease entries, noting that “[m]isuse, in that context must include a
failure to comply with a condition or obligation associated with, or integral to those exercise
rights”.139
[184] In this regard, he found:
The requirements of ss.486 and 487 of the FW Act were clearly contravened with
respect to the Lend Lease entries [[2013] FWC 10168, at para 90]. Section 487 is a
requirement to give an entry notice or exemption certificate in exercising entry
rights under Subdivisions A, AA and B of Division 2 of Part 3–4. In fact s.486 does
not provide for conditions but provides that a permit holder is not authorised by the
entry rights in Division 2 to enter or remain on premises if he or she contravenes
the requirements attached to such entry under Subdivision C (ss.486–493 of the
FW Act).
The Adelaide Oval entry of “12 November 2013 involved discussions between the
CFMEU officials and employees whom the CFMEU was not entitled to represent”
(discussions not authorised by s.480, having regard to s.484(b)).140
“A number of the Lend Lease entries involved discussions between CFMEU
officials during work time which was in contravention” of s.490 (when right may
be exercised). In this regard, Senior Deputy President O’Callaghan referred by way
of example to “the entries to the Adelaide Oval site of 30 October 2013 and
13 November 2013 and the entries to the Tonsley Park Flinders University site on
30 October 2013”.141
There were several failures to meet reasonable occupational health and safety
requirements, as required by s.491 of the FW Act, evidenced by disregard of “clear
signage instructions regarding site entry on numerous [unspecified] occasions” at
the Adelaide Oval site, instances (unspecified) of “proceeded around the site
unescorted” and, on 6 November 2013 non-compliance with the “site clothing
requirements” and, in relation to the Tonsley Park site non-compliance “with the
signage instructions with respect to entry on numerous [unspecified] occasions”
and, on 30 October 2013 two officials remained on the site in “contrary to long
sleeved clothing instructions”.142
In respect of the exercise of rights under State Work Health and Safety legislation,
and the requirements set out in Division 3 of Part 3–4 in respect of such entry, “the
notice requirements in s.495 were not complied with” and, at least in respect of the
Adelaide Oval site on 13 November 2013, “the official engaged in discussions with
[2014] FWCFB 2709
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persons who I am not satisfied that the CFMEU could represent [and] the officials’
behaviour contravened the requirements of s.499”.143
“The Lend Lease entries [unspecified] represented a clear hindrance of Lend Lease
operations”, such that they contravened s.500.144
“To the extent that the CFMEU officials involved in the Lend Lease entries
[unspecified] insisted on exercising normal entry rights when they had not
complied with the entry notice requirements”, they contravened s.503.145
[185] Senior Deputy President O’Callaghan concluded, on this basis, that “there were
numerous, deliberate and sustained contraventions of the rights and associated obligations on
the CFMEU permit holders involved in the Lend Lease entries”.146
[186] Although, Senior Deputy President O’Callaghan identified particular misuses of Part
3–4 rights, in relation to some categories of misuse, he failed to identify all the particular
misuses. His finding of a contravention of s.490 of the FW Act was illustrated by some
examples. The finding of failures to meet reasonable occupational health and safety
requirements, as required by s.491 of the FW Act, was evidenced by disregard of signage on
numerous (unspecified) occasions at the Adelaide Oval and Tonsley Park sites, instances
(unspecified) of proceeding around the site unescorted, although some of the failures were
particularised. His findings in relation to hindrance and misrepresentation did not identify the
basis of the findings. His findings in relation to s.487 of the FW Act appear to go to all Lend
Lease entries (other than on 14 and 15 November 2013) under Subdivisions A, AA and B of
Division 2 of Part 3–4. To the extent that the nature and extent of the misuses is not specified,
we also find that Senior Deputy President O’Callaghan failed to provide adequate reasons.
This is also a jurisdictional error which warrants permission to appeal and the quashing of
those aspects of his decision in respect of the use of Part 3–4 rights.
[187] The Full Bench notes in respect of both the use and misuse of Part 3–4, the inadequacy
of reasons provided by Senior Deputy President would have denied the CFMEU (and Lend
Lease and the FWBC) a proper opportunity to address the actions which should follow in
relation to the inadequately specified misuse of Part 3–4 rights identified in his decision.
Rehearing in relation to the entries to Lend Lease sites
[188] Given the largely uncontested nature of the evidence before Senior Deputy President
O’Callaghan and the absence of questions of credibility of witnesses, we have decided that we
will determine, by way of rehearing, the jurisdictional question in relation to the Lend Lease
entries. The failure to give reasons in relation to use of the Part 3–4 rights in relation to each
Lend Lease entry is such that his Honour’s findings as to misuse, where adequately specified,
can be maintained only if the evidence as to the misuse arose in respect of the entries in which
the Part 3–4 rights were used. Given the limited specification of the misuses within the
decision and the error in relation to the use of Part 3–4 rights which goes to the question of
jurisdiction under s.508(1) of the FW Act in relation to all of the Lend Lease entries, we will
determine the jurisdictional question—going to both the use and misuse of Part 3–4 rights,
ourselves in respect of all entries, other than the Adelaide Oval entries of 14 and
15 November 2013, where His Honour specifically found that Part 3–4 rights were used but
not misused, a conclusion which is not challenged by any party in the appeal.
[2014] FWCFB 2709
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[189] We deal first with the question of whether the CFMEU and its officials were using
Part 3–4 rights in relation to the various Lend Lease entries, applying the approach we have
discerned from authorities of the FCA and set out at paragraph 122 of this decision.
[190] The relevant entries are those set out in paragraph 161 of this decision. We will
consider whether the entries involved a use of Part 3–4 rights, having regard to the approach
set out in paragraph 122 of this decision.
[191] We are satisfied that, in each case the entries were undertaken by officials of the
CFMEU conferred with statutory rights of entry. Each entry involved an official of the
CFMEU, SA Branch holding a current right of entry permit issued by the Commission and
entitled to access the statutory entry rights under Part 3–4 of the Act. Other persons who on
the evidence, were officers of an interstate Branch of the union, accompanied these officials
on some site entries.147 To the extent to which they were identified,148 the records of the
Commission indicate that they were permit holders in relation to Branches of the CFMEU
other than the SA Branch.
[192] We now consider the evidence in relation to the Lend Lease entries in relation to
whether the permit holder had the prescribed purpose of the relevant statutory entry right.
Before doing so, it is necessary to consider some general evidence, which provides context to
the specific entries.
[193] Firstly, Lend Lease managers at each of the four sites gave evidence that prior to
30 October 2013, the CFMEU undertook regular site visits and gave effect to them in
compliance with the conditions associated with the relevant entry right—the giving of notice
and adherence to mandatory safety requirements. This evidence was not challenged.
[194] Second, there was evidence of a strategy of some kind directed by the Secretary of the
CFMEU SA Branch, Mr A Cartledge, affecting the manner in which entry was undertaken in
relation to at least some of the Lend Lease entries between 30 October 2013 and
30 November 2013:
During the Adelaide Oval entry of 30 October 2013, Mr D Roberts, when asked the
purpose of the visit replied “This is the way of the world until your managers talk
to our managers”;149
During the Adelaide Oval entry of 31 October 2013, Mr Roberts, in relation to not
providing entry notices, said “this is the new way of the world”;150
During the Adelaide Oval entry of 12 November 2013, Mr Roberts, when asked to
produce his permit, stated “This is being dealt with higher up the line”;151
During the Tonsley Park TAFE site entry of 30 October 2013, Mr M Gava, in the
context of officials attending the site without giving notice, said “that’s the way its
going to be from now on”152 and commented that “it was their intention to not
provide entry notices and this was a directive from the secretary”;153
During the Adelaide Convention Centre site entry of 30 October 2013,
Mr B Beattie, a Victorian union official responded to a request to identify the
purpose of the visit by stating “We want to talk with Lend Lease/Baulderstone
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members. This is part of a national drive that is focussed on Lend Lease
employees”;154
During the Tonsley Park Flinders University entry of 30 October 2013, when told
he could not enter the site without an entry permit in place (clarified to be a
reference to notice)155 Mr Gava said “[w]e are not leaving. This is the way it is
done now. We are going for a walk on site”; and156
During the Tonsley Park Flinders University entry of 8 November 2013, when
asked if he had submitted a notice, Mr B Pitt replied “No, we are not here under a
right of entry notice”.157
[195] The evidence established that each of these entries (seven of the 12 entries) was
undertaken subject to a CFMEU strategy as to the undertaking of Lend Lease site visits at the
time, under the direction of the State Secretary, although it is not clear from the evidence
exactly what that strategy was. There were vague references to “this” being the new way of
the world, issues being dealt with between Lend Lease and the CFMEU at a higher level, and
a practice of not providing entry notices at the direction of the State Secretary. Mr Beattie’s
comments suggest that the strategy was part of a national campaign in relation to Lend Lease
employees. It is clear that the strategy involved not providing notice of the entries in
accordance with Part 3–4 of the FW Act. Consideration of the evidence in relation to the other
five entries will need to have regard to the existence of such a strategy.
[196] We also note that the written records of site entries by the CFMEU at sites other than
the Lend Lease sites attached to Mr Mathers’s affidavit,158 although carrying limited weight in
the absence of the adoption of the record as evidence by their authors and an opportunity for
cross-examination, are consistent with the existence of a CFMEU strategy around the time of
the Lend Lease entries, although not necessarily the same strategy applying in relation to
Lend Lease:
In relation to a 4 November 2013 entry at a Hindmarsh Constructions site, the notes
of its Site Manager indicate that there was some rationale for the undertaking of a
site entry in an unauthorised manner, which would be explained to the Site
Manager by Mr Gava over coffee the following week;159
In relation to a prospective entry on 11 November 2013 at another Hindmarsh
Construction site, an email from the Senior Project Manager to the Master Builders
Association of South Australia Incorporated160 records that he rang Mr Cartledge to
enquire as to the reasons for the visit and the absence of an entry notice. He records
the response from Mr Cartledge as “Luke would be attending and that they
wouldn’t be providing a notice. He advised they would follow any reasonable
safety direction issued to them but that was all”;
In relation to a 30 October 2013 entry at a Hansen Yunken site, the notes of the
Project Manager161 record that one official (Dave), when asked if the CFMEU had
issued a notice advised “that they are not doing that” and “we should contact Aaron
Cartlidge (sic) if we had a problem with it”; and
In relation to a 5 November 2013 entry at another Hansen Yunken site, the notes of
the Site Manager162 record that when told that they could not enter the site without
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an entry notice, the officials responded that “we do not need one in Victoria so
same here and we are going to walk the site anyway” and when they left they
advised “that they would be back again without a ‘right of entry’”.
[197] Although we place limited weight on that documentary evidence, it is consistent with
the evidence of CFMEU strategy, under the direction of Mr Cartledge, which arises from the
evidence in relation to the Lend Lease entries.
[198] No evidence was given by Mr Cartledge or any other CFMEU official, including those
who undertook one of the specific entries subject to his direction. Whilst the evidence
indicates that managers on some sites were advised to contact Mr Cartledge or discuss the
circumstances of the entry with the relevant official at some later time, there was no evidence
that any of them did so or, if they did, what was said by Mr Cartledge or the relevant CFMEU
official.
[199] Against that background, we turn to consider each of the Lend Lease entries,
considering, first, whether Part 3–4 rights were used, where they were and, whether they were
misused.
The Adelaide Oval project
30 October 2103
[200] The evidence of Mr D Ising,163 Site Manager, was that six persons entered the site at
around 8.30 a.m., all wearing CFMEU clothing. Four were local CFMEU officials known to
him. He understood the others to be interstate officials because they were not known to
him.164 Mr Ising asked Mr M McDermott what was the purpose of the visit. Mr McDermott
replied “We’re taking a look around your site” Mr Ising replied “You nor any of the other
visitors have an entry permit”. The six officials proceeded onto the site and split up, with
Mr Ising and two other managers escorting three of the officials, while three proceeded
around the site unescorted. Mr Ising’s evidence was that in the course of walking around,
Mr Roberts,165 who he accompanied, engaged in conversations with workers he encountered.
Mr S Jackson,166 another manager, gave evidence that Mr McDermott spoke to a contractor
from Samaras, but he did not know what the conversation was about.167
[201] Mr Ising’s evidence was that workers began gathering in a lunchroom at 9.20 a.m., a
meeting commenced at 9.40 a.m. and concluded at 10.00 a.m. Mr Ising was not aware of what
was said at the meeting.168 After the meeting Mr Roberts raised three issues (waters coolers,
dust and toilets)169 that were raised by the workforce in the meeting and advised Mr Ising that
another meeting would occur at 12.30 p.m. Lend Lease offered improvements in relation to
the issues raised and Mr Roberts advised that this response would be put to the workers at the
12.30 p.m. meeting. The further meeting occurred between 12.30 p.m. and 1.00 p.m. After the
meeting Mr Ising spoke to the officials. Mr Roberts stated that “these issues would not be an
issue if there was a working steward” and a conversation ensued around working stewards.
[202] We are satisfied that the evidence establishes that the purpose of the entry was to
inspect work and consult with/hold discussions with employees. Such discussions occurred in
two meetings and the subject matter of the discussions disclosed by Mr Roberts to Mr Ising, if
characterised as health and safety issues, reflected a purpose in the entry rights of the Work
Health and Safety Act 2012 (SA) (WHS (SA) Act) or, if not, discussions about employment
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conditions, within the purpose reflected in s.484 of the FW Act. The evidence of Mr Ising that
after proceeding around the site and holding a meeting of members, Mr Roberts raised with
him issues arising out of the meeting and undertook to put the Lend Lease response to
workers at a further scheduled meeting supports such a finding. Mr Roberts and
Mr McDermott, at least, held federal entry permits and WHS permits and were conferred with
statutory rights of entry for either purpose.170
[203] We are satisfied that the 30 October 2103 Adelaide Oval entry involved the use of
Part 3–4 entry rights.
[204] We are satisfied that these rights were misused in that:
No notice of entry was given as required by the FW Act or the WHS (SA) Act;
To the extent that entry occurred without notice, the entry hindered the employer’s
managers by distracting them from their planned activities and hindrance which
magnified given the number of officials entering the site (s.500 of the FW Act);
and
The officials utilised the entry for the purpose of asserting a demand in relation to a
permanent delegate being a purpose for which the right of entry does not extend.
[205] We understand the meetings which were referred to in the evidence of Mr Ising
occurred during breaks and were not discussions during working times (s.490 of the FW Act).
We are not satisfied that the vague and limited evidence of incidental conversations between
the officials and workers during their movement through the site provides a sufficient basis
for a finding that entry rights were misused by the holding of discussions during working
times.
[206] There is no evidence of a request of the officials to produce their permits, nor of any
request that they be escorted on the site.
[207] The evidence does not suggest that, other than in arriving without the required notice,
the entry involved intentional hindering or obstruction, or otherwise acting in an improper
manner (s.500). The evidence as to Mr Roberts, as being heated during a conversation with
Mr Ising, the content of which Mr Ising could not exactly recall171 is insufficient to
substantiate such a finding.
[208] We are not satisfied that the evidence supports a finding that the officials entered and
walked through the site without authority. Although there is no evidence of an express
authority having been given by Mr Ising and he observed that the officials did not have an
entry permit, there is similarly no evidence of a request made by him for the officials to leave
the site.
31 October 2013
[209] The evidence of Mr Jackson172 was that four officials entered the site without notice
and proceeded on site without authorisation. Upon confirming that no notice had been given
by the officials, Mr Jackson told the officials that they were not permitted to enter the site.
Mr McDermott advised that the officials were there to follow up the issues of 30 October
2013. Mr McDermott then wandered away from the group. Between 12.35 p.m. and
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12.48 p.m., the officials held a meeting with workers in the amenities area. Mr Jackson did
not hear the conversation. Mr McDermott requested more eye washing stations and left the
site.
[210] Given the evidence as to the holding of the meeting, the statement by Mr McDermott
that the visit was to follow up the issues from the previous day and the evidence as to issues
being put to managers following that meeting, we are satisfied that the purpose of entry was
one for which a statutory right was conferred.173 The 30 October 2103 Adelaide Oval entry
involved the use of Part 3–4 entry rights.
[211] We are satisfied that these rights were misused in that:
No notice of entry was given as required by the FW Act or the WHS (SA) Act;
To the extent that entry occurred without notice, the entry hindered the employer’s
managers by distracting them from their planned activities (s.500 of the FW Act);
and
In proceeding on site, after signing in, without authority, the officials failed to give
effect to a reasonable request, conveyed by signage at entry gates, that
unauthorised entry should not occur.
5 November 2013
[212] The evidence of Mr Ising174 was that Mr Cartledge arrived on site and signed the
visitor book on arrival. No notice of the entry had been given. Mr Ising asked Mr Cartledge if
he had a permit. He replied, “I don’t have a permit. I’m going to see the Laser Lining’s
employees at the 10.30 break to discuss pay rates”, providing a copy of the wages sheets he
was going to discuss with the workers. Another manager escorted Mr Cartledge to the
basement room. Mr Cartledge left the meeting and the site unescorted.
[213] The purpose of the entry is clear—Mr Cartledge entered for the purpose of holding
discussions with employees. Mr Cartledge had statutory rights of entry for that purpose.175
We find that he was using Part 3–4 rights in undertaking the entry.
[214] We are satisfied that these rights were misused in that:
No notice of entry was given as required by the FW Act; and
To the extent that entry occurred without notice, the entry hindered the employer’s
managers by distracting them from their planned activities (s.500), although on the
evidence, the extent of any hindrance was minor, a matter relevant to remedy.
6 November 2013
[215] The evidence of Mr Jackson176 was that he received advice that officials of the
CFMEU had entered the site. They had signed the entry book and proceeded on site without
authorisation. When asked what they were doing on site, the officials responded “We’re here
to look at the job”.177 Mr Jackson had no knowledge what they did on that day when he was
not with them and his evidence disclosed no purpose effected for a statutory right which is
available under Part 3–4. There is no statutory right to enter a site to look at the site. The
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evidence does not support a finding that the purpose of the entry was to exercise rights under
the WHS (SA) Act or Part 3–4. We are not satisfied that the 6 November 2013 entry at the
Adelaide Oval involved the use of Part 3–4 rights.
12 November 2013
[216] The evidence of Mr Jackson178 was that two CFMEU officials entered the site, signed
in and proceeded on site without authority. No notice of entry had been provided. Mr Jackson
requested the production of permits: Mr L Stephenson produced his and Mr McDermott did
not, saying “no, you’ve seen it before”. Mr Jackson requested the officials to leave the site.
Mr Stephenson moved to a lunch room and spoke to some employees. Mr McDermott placed
union paraphernalia around two lunchrooms. Mr Jackson did not hear any conversation other
than Mr McDermott asking the employees “how they were and they replied, Well.”179
[217] Mr McDermott then asked what arrangements were in place in relation to “cricket
balls tomorrow” (the first day of a test match) and then returned to a lunchroom where he told
workers that he would be back tomorrow using a WHS permit to “follow up on the cricket
balls over the fence”.
[218] The evidence indicates that the purpose of the entry was for Mr McDermott to post
union materials in the lunchrooms. The evidence of Mr Jackson was that conversations
occurred between each official and some workers but there was no evidence which would
support a finding that the purpose of the visit was to hold discussions with employees or to
consult with them about WHS matters. There were no meetings for the purpose of
discussions. The only evidence of the conversation was that a conversation involving
Mr McDermott exchanging usual pleasantries with workers he came across whilst posting his
materials. We find that the purpose of the entry was to post union materials in the
lunchrooms. There is no statutory right to enter a site for that purpose. We are not satisfied
that the 12 November 2013 entry at the Adelaide Oval involved the use of Part 3–4 rights.
13 November 2013
[219] Two entries were made onto the site by Mr McDermott on the 13 November 2013.
[220] The evidence of Mr Jackson in relation to the 12 November 2013 entry is that, when
leaving, Mr McDermott told workers that he would “be back here tomorrow using a WHS
permit to follow up on the cricket balls over the fence”.180 Mr Jackson’s evidence in relation
to the first 13 November 2013 entry181 is that prior to arriving, Mr McDermott rang
Mr Jackson to advise that he would be coming on site. He signed in and provided a permit,
purporting to exercise a right of entry under s.117 of the WHS (SA) Act “to inspect the site
for workers’ safety while cricket match is being played”.182 Although described as a permit,
the form then included an identification of the specific purpose of the visit, indicated that it
was a notice rather than a permit. Whilst on site, Mr McDermott spoke to workers about the
safety of cricket balls and approached ball retrievers engaged by the South Australia Cricket
Association (SACA).
[221] The evidence is clear. We are satisfied that the evidence establishes that the purpose of
the entry was to exercise a right of entry under s.117 of the WHS (SA) Act. Mr McDermott
held federal entry permits and WHS permits and was conferred with statutory rights of entry
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for the purpose of a WHS entry.183 We are satisfied that the first 12 November 2013 entry at
the Adelaide Oval involved the use of Part 3–4 rights.
[222] As to the misuse of the rights exercised by Mr McDermott in relation to the first entry
on 13 November 2013, the evidence is that Mr McDermott spoke to workers about their
safety in relation to work undertaken in the course of a cricket match at the site, the matter
identified in his entry notice and a legitimate incident of his inquiring about that issue.
[223] Lend Lease contended that in speaking to workers engaged as “ball retrievers” by a
firm contracted by the SACA constituted a misuse of his entry rights in that an official may
only inspect breaches in respect of relevant workers under the WHS (SA) Act. The evidence
of Mr Jackson is that Mr McDermott spoke to two ball retrievers and to their employer, by
telephone, during the course of the entry. There is no evidence as to the content of the
conversation, save for a question by Mr McDermott to one ball retriever concerning the
provision of seating, shade and water. On the basis of the limited evidence we cannot be
satisfied that the substantive conversations—with the second ball retriever and the
employer—were not concerned with an inquiry directed to their role as it affected the safety
of union members, the matter for which the notice of entry was given. Such an inquiry would
concern health and safety issues concerning relevant employees under the WHS (SA) Act.
There is an insufficient basis in the evidence for the Full Bench to be satisfied that the
discussions with the ball retrievers and their employer constituted a misuse of the entry rights.
[224] We do, however, accept that the unchallenged evidence of Mr Jackson184 that
Mr McDermott interfered with bunting marking in an exclusion zone. We are satisfied that
such action constitutes a misuse of his rights.
[225] The second entry on 13 November 2013 by Mr McDermott occurred in the evening.
The evidence of Mr Jackson185 is that Mr Ising advised him that Mr McDermott had rung him
and advised that he and Mr T Jarrett would be attending the site using WHS permits and
would be reviewing access, egress, emergency procedures and working at height. Mr Jackson
returned to the site and called Mr McDermott asking where he was. He responded “on site”.
Mr Jackson requested that “he return to the site office and sign in”.186 Mr McDermott and
Mr Jarrett did so and provided their entry notices. Mr McDermott then asked “how many
people are on site”, Mr Jackson advised that “there are four electricians and four abseilers”187
on site. The officials then walked to see the abseilers accompanied by Mr Jackson and
questioned their supervisor about Job Safety Analyses and Material Safety Data Sheets for the
work. They then moved to another area to visit electricians who were on a break. There is no
evidence of any interaction between the officials and the electricians. The party then returned
to the office where Mr McDermott requested, was provided with, and reviewed the Job Safety
Analyses and Material Safety Data Sheets for the abseilers’ work.
[226] We are satisfied that the second entry involved the use of Part 3–4 rights. We are not
satisfied that any abuse is established by the evidence. The activities of the officials on site
were consistent with the purpose disclosed by their entry notices.
14 and 15 November 2013
[227] We find that Part 3–4 rights were used but not misused in relation to these entries.
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The Adelaide Convention Centre project
30 October 2013
[228] The evidence of Mr A Hay,188 Site Supervisor at the site, was that he was advised by
Mr E McMahon, the Site Manager, that officials of the CFMEU had presented at the site
office at 8.40 a.m. No entry notices had been provided and no purpose of the visit was
disclosed. Mr Hay attended the site office and found that the officials had already signed in.
[229] Mr Hay could give no direct evidence as to the interaction between Mr McMahon and
the officials.189 Mr McMahon told Mr Hay that he had told the officials “that they did not
have a right to enter the premises and they were not allowed to enter the site”.190 In cross-
examination Mr Hay’s conversation with Mr McMahon is recorded as Mr Hay saying the
officials “haven’t got a right-of-entry permit” and Mr McMahon responding “Yes, that’s
right. They’re going whether they like it or not”.191
[230] The officials entered the site nonetheless and were escorted by managers. Mr Hay
observed the officials speaking to employees,192 including two dogmen,193 although Mr Hay
was not aware of the contents of that conversation.194 The only evidence as to the content of
the conversations was Mr Hay’s evidence that the officials were just walking through and just
saying, “Hello”.195 The officials then held a meeting with employees in the lunchrooms at the
designated lunch break for 10 to 15 minutes,196 the content of which is not disclosed by the
evidence.
[231] The Full Bench is satisfied that the evidence establishes that the purpose of the entry
was to hold discussions with employees, evidenced by the lunch time meeting. One official,
Mr J O’Connor held a federal entry permit as an official of the South Australian Branch and
was conferred with statutory rights of entry for the purpose within s.484 of the FW Act.197
[232] We are satisfied that the 30 October 2103 Adelaide Convention Centre entry involved
the use of Part 3–4 entry rights.
[233] We are satisfied that these rights were misused in that:
No notice of entry was given as required by the FW Act; and
To the extent that entry occurred without notice, the entry hindered the employer’s
managers by distracting them from their planned activities (s.500 of the FW Act).
[234] The Full Bench is not otherwise satisfied that a misuse of the rights under s.484 of the
FW Act has been established. There is no direct evidence as to the discussions between
Mr McMahon and the officials as to authority to enter the site. The evidence of Mr Hay as to
what Mr McMahon told him about that conversation is not consistent as between his witness
statement and his vive voce evidence. There is no satisfactory evidentiary basis to find that
Mr McMahon denied the officials entry and that the entry was made without authority. The
evidence as to the incidental conversations between the officials and workers encountered
during the traversing of the site by the officials, goes no further than to evidence to the
exchange of greetings and does not in our view support any finding of misuse of rights.
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The Tonsley Park TAFE project
30 October 2013
[235] There were two entries to the Tonsley Park TAFE site on 30 October 2013.
[236] The evidence in relation to both entries was given by Mr Gooding, the Project
Manager.198 His evidence was that Mr Gava rang him in the morning and asked, as a favour,
to allow him and a “few of my interstate colleagues come to the job”. Being aware that no
entry notice had been provided Mr Gooding said “I’m out of favours. What’s the problem?
Why do they need to come to site today?” Mr Gava responded “We need to see the site
today”. Mr Gooding advised “If you want to come to site you can complete relevant notice
and I will be more than happy to facilitate a visit tomorrow. I’ll make a couple of calls to
other sites to see what’s happening”. Mr Gava responded by saying “Don’t bother making any
calls. We’re coming on to your site today”. Mr Gooding advised that if Mr Gava and his
colleagues came it would be an “illegal entry”. Mr Gava concluded by saying “I’ll see you
soon”.199
[237] Around three hours later, Mr Gava and four others (later advised to be an ACT official
and three Victorian officials) attended the site and proceeded to the site shed and met with
employees of a contractor. Mr Gooding approached and asked the “purpose of your visit?”
Mr Gava replied “We are just here to talk to the boys and show the guys the project”.200
[238] Mr Gooding told Mr Gava that since no entry notices had been provided and no
suitable reason to be on site had been provided, the officials were not allowed on site.
[239] Mr Gava then chatted to a few employees and advised Mr Gooding that he and the
other officials were going to walk around the site. Mr Gooding advised Mr Gava that he was
not permitted to do so. Mr Gooding then noticed two of the officials had short sleeves,
contrary to the “two longs” policy (requiring the wearing of long sleeves and trouser legs on
site) and asked that they respect the policy. The officials proceeded on site. The officials
dispersed and walked around the site and returned, raising minor safety issues. Mr Gooding
observed the officials talking with various workers and the workers ceasing work during the
conversations.
[240] The officials left the site but returned later making “it clear that it was their wish that
Lend Lease would employ a full-time CFMEU delegate at the site”.201
[241] We are satisfied the purpose of the first visit included discussions with the employees,
evidenced by Mr Gava’s statement that the officials wished to “to talk to the boys” and the
evidence as to discussions occurring between the officials and workers on site. Alternatively,
the evidence that the officials raised safety issues with the employer indicates that the purpose
of the entry reflected a purpose under the WHS (SA) Act. Mr Gava, held a federal entry
permit and was conferred with statutory rights of entry for that purpose under s.484 of the FW
Act.202 We are satisfied that the first 30 October 2013 Tonsley Park TAFE entry involved the
use of Part 3–4 entry rights.
[242] We are satisfied that these rights were misused in that:
No notice of entry was given as required by the FW Act;
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To the extent that entry occurred without notice, the entry hindered the employer’s
managers by distracting them from their planned activities (s.500 of the FW Act);
The officials entered and walked through the site without authority, in the face of
specific advice by Mr Gooding that they were not permitted on site and in
contravention of the requirement for authorisation for entry evident on site signage;
and
Two officials failed to comply with an express and reasonable request to respect
the “two longs” policy.
[243] In our view, the later entry was a separate entry. On the evidence, it was effected for
the purpose of making clear the union’s view that Lend Lease should employ a full-time
CFMEU delegate at the site. It is not a purpose for which a Part 3–4 right exists and no
official was conferred with a statutory right to enter for that purpose. We are not satisfied that
the second 30 October 2103 Tonsley Park TAFE entry involved the use of Part 3–4 entry
rights.
8 November 2013
[244] A further entry to the Tonsley Park TAFE site occurred on 8 November 2013. The
evidence in respect of this entry was in the form of notes of the visit of Mr Burgess.203
Mr Gooding was not on site at the time.204 The evidence, in the form of a documentation of
the events by Mr Burgess, carries limited weight since it was not adopted as sworn evidence
nor subjected to cross-examination. To the extent that the activities of the officials recorded
was consistent with similar visits to Lend Lease sites around that time it suggests that the
entry was made for the purpose of discussions with employees and was an entry using rights
under s.484 of the FW Act.
[245] We are prepared, on that basis, to find that entry involved the use of Part 3–4 rights205
and they were abused in that the officials failed to provide the required entry notice. To the
extent that entry occurred without notice, the entry hindered the employer’s managers by
distracting them from their planned activities (s.500 of the FW Act). Beyond that, given the
limited weight which can be attached to the evidence, we are not satisfied as to any other
misuse of the rights.
The Tonsley Park Flinders University project
30 October 2013
[246] Evidence in relation to the entry on 30 October 2013 at this site was given by
Mr B Crabb, the Site Manager.206 Two site entries occurred on that day. The evidence as to
the first entry was that four officials attended the site, Mr Gava and three others who Mr Gava
advised were from Melbourne and Canberra.207 None of the officials “made any reference to
their rights under the Fair Work Act when they came on the site”.208 The officials were
halfway between the site office and the far end of the site when Mr Crabb caught up with
them. Mr Crabb engaged in a conversation with Mr Gava, whilst the other officials continued
to walk around the site. During the conversation, Mr Crabb said “There is no entry permit in
place, you cannot enter the site. Please leave”,209 to which Mr Gava replied “We are not
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leaving. This is the way it is done now. We are going for a walk on site”.210 Mr Crabb
observed the officials talking to employees and the conduct of a meeting between the officials
and workers during the smoko. Mr Crabb was unaware as to what occurred during the
meeting.211
[247] Following the meeting, the officials met with Mr Crabb, discussing the employment of
a permanent CFMEU delegate by Lend Lease and the positioning of a CFMEU flag on the
crane, with the CFMEU seeking that it be placed on the hook. The four officials left the site,
with a fifth official who had arrived on site shortly before.
[248] In relation to the second entry, Mr Crabb’s evidence was that the five officials
returned to the site, three and a half hours later. Mr Gava called Mr Crabb from his office and
asked why the flag was not on the hook and if it was not placed on the hook “we will stop the
job” and approached the dogman. After a discussion, which Mr Crabb did not hear, the flag
was placed in the position on the crane favoured by the CFMEU. The dogman later told
Mr Crabb that the officials had insisted that this occur and “work could not continue” until
this was done.212
[249] In our view, the two entries were separate entries for different purposes.
[250] In respect of the first entry, no purpose for the visit was expressed by the officials.
However, we are satisfied by the evidence of discussions between the officials and employees
and the conduct of a meeting during the smoko that the entry was made for the purpose of
discussions with employees, Mr Gava was conferred with a statutory right for that purpose. It
was an entry using rights under s.484 of the FW Act.213
[251] We are satisfied that these rights were misused in that:
No notice of entry was given as required by the FW Act;
To the extent that entry occurred without notice, the entry hindered the employer’s
managers by distracting them from their planned activities (s.500 of the FW Act);
The officials entered and walked through the site without authority, in the face of
specific advice by Mr Crabb that they could not enter the site and in contravention
of the requirement for authorisation for entry evident on site signage; and
The officials utilised the entry for the purpose of asserting demand in relation to a
permanent delegate and the position of a CFMEU flag on the crane, being purposes
for which the right of entry does not extend.
[252] The second entry was effected for the purpose of making a demand in relation to the
positioning of the flag and to cause the dogman to reposition the flag into the position
preferred by the CFMEU. It is not a purpose for which a Part 3–4 right exists and no official
was conferred with a statutory right to enter for that purpose. We are not satisfied that the
second 30 October 2103 Tonsley Park Flinders University entry involved the use of Part 3–4
entry rights.
[2014] FWCFB 2709
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8 November 2013
[253] Evidence in relation to the 8 November 2013 entry to the Tonsley Park Flinders
University site was given by Mr Fisher, the Project Manager.214 No notice of entry had been
given. His evidence was that around noon, he was advised that three CFMEU officials were
on the site. Mr Fisher went on site and observed the officials in conversation with two
employees. He did not hear the conversation.215 Mr Fisher engaged in a conversation with two
of the officials, who introduced themselves as Brendon (Pitt) and David (Bolton). The third
official, Mr Gava, continued the conversation with the two employees. Mr Fisher asked
Mr Pitt and Mr Bolton if they had submitted a notice of entry. Mr Pitt replied “No, we are not
here under a right of entry notice”.216 Mr Fisher asked them to leave the site. They did not
leave. Mr Fisher then asked the officials to sign the visitors’ book, which they did. After
signing the visitors book the officials stayed, with Mr Fisher, in the general area of the site
office and engaged in conversation. Mr Fisher advised the officials of the presence of a
FWBC inspector on site and suggested that the inspector would like to meet them. Mr Bolton
then turned the conversation to the flag on the crane, suggesting that it would be safer with a
flag. The officials left the site at 12.30 p.m., indicating they intended to return to speak to
Mr Crabb.
[254] On the evidence, we are not satisfied that the entry was for a purpose for which Part 3–
4 entry rights were available to the officials. The evidence as to a conversation between the
official and two workers is not sufficient to support a finding that the purpose of the visit was
to undertake discussions with employees. There is no evidence of any stated purpose of the
visit. We find that the entry on site by the officials was for the purpose of raising a demand as
to the flying of the flag on the crane. It is not a purpose for which a Part 3–4 right exists and
no official was conferred with a statutory right to enter for that purpose. The purpose of the
entry is consistent with that reflected in the second visit to the site on 30 October 2013. We
are not satisfied that the 8 November 2013 Tonsley Park Flinders University entry involved
the use of Part 3–4 entry rights.
Conclusion
[255] In relation to the specific entries to Lend Lease sites, we have found that some of them
involved a misuse (involving the use and misuse) of Part 3–4 rights, which provides the
jurisdiction under s.508(1) of the FW Act for the taking of action the Commission considers
appropriate under s.508(2) of the FW Act to restrict the rights exercisable under Part 3–4 by
the CFMEU, or its officials.
[256] Specifically we have found the following misuse of Part 3–4 rights:
1. The Adelaide Oval project
30 October 2013:
No notice of entry was given as required by the FW Act or the WHS (SA)
Act;
[2014] FWCFB 2709
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To the extent that entry occurred without notice, the entry hindered the
employer’s managers by distracting them from their planned activities and
hindrance which magnified given the number of officials entering the site
(s.500 of the FW Act); and
The officials utilised the entry for the purpose of asserting a demand in
relation to a permanent delegate being a purpose for which the right of entry
does not extend.
31 October 2013:
No notice of entry was given as required by the FW Act or the WHS (SA)
Act;
To the extent that entry occurred without notice, the entry hindered the
employer’s managers by distracting them from their planned activities (s.500
of the FW Act); and
In proceeding on site, after signing in, without authority, the officials failed
to give effect to a reasonable request, conveyed by signage at entry gates, that
unauthorised entry should not occur.
5 November 2013:
No notice of entry was given as required by the FW Act; and
To the extent that entry occurred without notice, the entry hindered the
employer’s managers by distracting them from their planned activities (s.500
of the FW Act), although on the evidence, the extent of any hindrance was
extremely minor, a matter relevant to remedy.
13 November 2013 (first entry):
Interference with bunting marking in an exclusion zone.
2. The Adelaide Convention Centre project
30 October 2013:
No notice of entry was given as required by the FW Act; and
To the extent that entry occurred without notice, the entry hindered the
employer’s managers by distracting them from their planned activities (s.500
of the FW Act).
3. The Tonsley Park TAFE project
30 October 2013 (first entry):
No notice of entry was given as required by the FW Act;
[2014] FWCFB 2709
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To the extent that entry occurred without notice, the entry hindered the
employer’s managers by distracting them from their planned activities (s.500
of the FW Act);
The officials entered and walked through the site without authority, in the
face of specific advice that they were not permitted on site and in
contravention of the requirement for authorisation for entry evident on site
signage; and
Two officials failed to comply with an express and reasonable request to
respect the “two longs” policy.
8 November 2013:
No notice of entry was given as required by the FW Act.
To the extent that entry occurred without notice, the entry hindered the
employer’s managers by distracting them from their planned activities (s.500
of the FW Act).
4. The Tonsley Park Flinders University project
30 October 2103:
No notice of entry was given as required by the FW Act;
To the extent that entry occurred without notice, the entry hindered the
employer’s managers by distracting them from their planned activities (s.500
of the FW Act);
The officials entered and walked through the site without authority, in the
face of specific advice that they could not enter the site and in contravention
of the requirement for authorisation for entry evident on site signage; and
The officials utilised the entry for the purpose of asserting demand in relation
to a permanent delegate and the position of a CFMEU flag on the crane,
being purposes for which the right of entry does not extend.
[257] We note in respect of each of the entries in which we have found misuse of Part 3–4,
other than the Adelaide Oval site on 5 and 13 November 2013 and the Tonsley Park TAFE
site on 8 November 2013, there was evidence that the conduct formed part of a general
strategy of the CFMEU directed by its State Secretary, Mr Cartledge. The misuse of the rights
in respect of the Adelaide Oval site on 5 November 2013 and the Tonsley Park TAFE site on
8 November 2013 were of a nature which was consistent with the misuses found in relation to
the entries for which there was evidence of such a strategy. In those circumstances, we think
the Adelaide Oval site on 5 November 2013 and the Tonsley Park TAFE site on 8 November
2013 reflected that general CFMEU strategy.
[2014] FWCFB 2709
57
[258] The exception is the Adelaide Oval entry of 13 November 2013. The misuse of Part 3–
4 rights—interference with bunting marking in an exclusion zone—does not fit comfortably
within the broader strategy, but reflects a misuse of rights by Mr McDermott.
[259] Having regard to the evidence in paragraph 194 of this decision and the other evidence
in relation to the specific entries involving a misuse of Part 3–4 rights, we find that the misuse
of rights arose out of a CFMEU strategy in relation to entry to the Lend Lease sites at the
time, under the direction of the State Secretary. As a result, we find that the CFMEU, as an
organisation has misused rights under Part 3–4.
[260] In relation to the Lend Lease entries the Full Bench grants permission to appeal,
quashes the decision of Senior Deputy President O’Callaghan in relation to these entries and
determined by ourselves, that a misuse of Part 3–4 rights has occurred to the extent and in the
manner set out immediately above.
[261] We remit the matter back to Senior Deputy President O’Callaghan to determine what,
if any, action should be taken under s.508(2) of the FW Act, consequent upon our finding as
to jurisdiction under s.508(1) and the nature and the extent of the misuse of Part 3–4 rights
identified by this Full Bench.
B. The FWBC
[262] In its appeal Grounds 17–19, the CFMEU submitted that Senior Deputy President
O’Callaghan erred in finding that the FWBC was entitled to call evidence in the proceedings
by virtue of its rights under s.72 of the FW Building Act. The CFMEU submitted that the role
of the FWBC is relevantly limited in Commission proceedings to making submissions.
[263] These appeal grounds were directed to a decision in transcript by Senior Deputy
President O’Callaghan when he dismissed an objection by the CFMEU to the acceptance of
evidence of the FWBC on the basis that the Director of the Inspectorate had no right under the
FW Building Act to call evidence in the proceedings, or indeed in any proceedings in the
Commission.
[264] Senior Deputy President O’Callaghan decided that, subject to weight attached to it, he
was prepared to accept and admit into evidence a statement made by Mr Mathers (the FWBC
evidence) on the basis that “to deprive the Fair Work Building and Construction of the
capacity to provide material in support of its submissions would be inconsistent with the
provisions of the Act”.217
[265] The CFMEU submitted to Senior Deputy President O’Callaghan and in the appeal that
the right afforded by s.72 to the Director of the Inspectorate under the FW Building Act is
limited to the making of submissions, as naturally understood and does not extend to the
bringing of evidence.
[266] Section 72 of the FW Building Act provides:
[2014] FWCFB 2709
58
“72 Director may make submissions in FWC proceedings
The Director may, by giving written notice to the General Manager of the FWC, make
a submission in a matter before the FWC that arises under the FW Act or the Fair
Work (Transitional Provisions and Consequential Amendments) Act 2009 and
involves:
(a) a building industry participant; or
(b) building work.”
[267] The CFMEU contrasted this right to:
First, the fuller rights afforded to the Director in s.71 of the FW Building Act:
“71 Director may intervene in court proceedings
(1) The Director may intervene in the public interest in a civil proceeding
before a court in a matter that:
(a) arises under this Act; or
(b) arises under the Independent Contractors Act 2006, the FW Act
or the Fair Work (Transitional Provisions and Consequential
Amendments) Act 2009 and involves:
(i) a building industry participant; or
(ii) building work.
(2) If the Director intervenes in a proceeding under subsection (1), the
Director is taken to be a party to the proceeding and has all the rights,
duties and liabilities of such a party.”
Secondly, the rights afforded to the Director in s.72 of the BCII Act (which
preceded the FW Building Act):
“72 ABC Commissioner intervention in AIRC proceedings
The ABC Commissioner may, by giving written notice to the Industrial
Registrar, intervene in a matter before the AIRC that arises under the
Workplace Relations Act and involves:
(a) building industry participant; or
(b) building work.”
[268] We are not persuaded that the comparative legislative provisions support the
contention advanced by the CFMEU when more closely examined.
[2014] FWCFB 2709
59
[269] The changed terms of s.72 as between the FW Building Act and the BCII Act has two
elements:
1. the reference to Director rather than ABC Commissioner, which arose out of
the amendment of the BCII Act by the Building and Construction Industry
Improvement Amendment (Transition to Fair Work) Act 2012, giving effect to
the FW Building Act. It was directed to changed nomenclature of the officer of
the now FWBC and has no bearing on the extent of the rights provided by s.72
of the FW Building Act. Section 71 of that Act was similarly amended.
2. The change in s.72 from “intervene in a matter” to “make a submission in a
matter” was effected by Schedule 8, Part 1, Item 68 of the Fair Work (State
Referral and Consequential and Other Amendments) Act 2009 (State Referral
Act).
[270] The Explanatory Memorandum which attended the State Referral Act noted generally
in relation to consequential amendments of other legislation:
“Schedules 4 to 19 to the Bill make transitional and consequential amendments to
67 Commonwealth Acts which refer to parts of the WR Act that will be repealed by
the T&C Bill. The Schedules replace those references with references to corresponding
concepts in the FW Act. The Schedules also make more significant amendments to
certain other Commonwealth legislation to provide clarity and consistency with respect
to the operation of that legislation in the new federal workplace relations system
established by the FW Act.”
[271] In relation to the consequential amendments to the BCII Act specifically, the
Explanatory Memorandum said:
“241. The BCII Act adopts many concepts used by the WR Act. That Act, with the
exception of the provisions relating to registered organisations, will be
repealed by the T&C Bill and replaced by the FW Act. This Part makes
consequential amendments to the BCII Act to reflect this change.
242. These items replace terms used in the WR Act with corresponding terms used
in the FW Act. For example, references to a workplace inspector are replaced
with references to a Fair Work Inspector, and references to the Industrial
Registrar are replaced with references to the General Manager of FWA. These
items also amend, insert or repeal definitions as necessary to bring the BCII
Act into line with the FW Act.”
[272] The Explanatory Memorandum makes no reference to a substantive restriction of the
rights of the FWBC under s.72 of the FW Building Act of the type suggested by the CFMEU.
[273] It is clear that the changes within s.72 from “intervene in a matter” to “make a
submission in a matter” was directed to replace terms used in the WR Act (after Work
Choices) with corresponding terms used in the FW Act, providing clarity and consistency
with respect to the operation of the BCII Act in the new federal workplace relations system
established by the FW Act. One significant element of the changes in the new federal
workplace relations system established by the FW Act was the removal of an explicit
statutory power to allow intervention of the type reflected in s.101 of the WR Act (after Work
Choices):
[2014] FWCFB 2709
60
“Where the Commission is of the opinion that an organisation, a person (including the
Minister) or a body should be heard in a matter before the Commission, the
Commission may grant leave to the organisation, person or body to intervene in the
matter.”
[274] A provision of that kind is not found in the FW Act, reflecting a move away from
formal, adversarial processes, with legal representation and intervening parties.218 Instead the
FW Act provides a general power in s.590 for the Commission to inform itself in such manner
as it considers appropriate, providing flexibility and discretion as to how it is able to inform
itself in relation to any matter before it.219
[275] For the same reasons, similar changes were made in respect of the rights of the
Minister to intervene (s.102 of the WR Act (after Work Choices)) and to make submissions
(s.597 of the FW Act).
[276] No similar changes occurred to Acts governing the Courts, so that s.71 is in the same form
in the BCII Act and the FW Building Act (save for the amendment changing Commissioner to
Director and changed reference from proceedings under the WR Act to proceedings under the
FW Act).
[277] The Full Bench is not persuaded that the right of the FWBC to make a submission before
the Commission in a relevant matter is restricted to prevent the bringing of evidence in
support of the submission. The only restriction, in relation to submissions and related
evidence arising from s.72 of the FW Building Act is that they relevantly relate to the matter
and the matter arises under the FW Act in relation to a building industry party or building
work. Senior Deputy President O’Callaghan was right to find that there was no basis to
deprive the FWBC of the capacity to provide material in support of its submissions and to
accept that evidence.
[278] We note, in any case, that even if the right under s.72 of the FW Building Act was
limited in the way contended for by the CFMEU, Senior Deputy President O’Callaghan could
have accepted the evidence, as a matter of discretion pursuant to the general power to inform
himself under s.590 of the FW Act.
[279] We see no basis for this appeal ground. It provides no basis on appeal for interfering in
the decision of Senior Deputy President O’Callaghan in relation to the entries arising from the
FWBC evidence or the continuing process in relation to those entries set out in his decision.
Conclusion
[280] For the reasons indicated, we grant permission to appeal and quash the decision of
Senior Deputy President O’Callaghan in relation to the Lend Lease entries in relation to these
entries. We find that a misuse of Part 3–4 rights has occurred in respect of some of those
entries to the extent and in the manner set out in paragraph 256 of this decision.
[281] We otherwise dismiss the Appeal.
[282] We remit the matter back to Senior Deputy President O’Callaghan:
[2014] FWCFB 2709
61
to determine what, if any, action should be taken under s.508(2) of the FW Act,
consequent upon our finding as to jurisdiction under s.508(1) and the nature and
the extent of the misuse of Part 3–4 rights identified by us; and
to continue and complete his hearing of the matter in respect of the matters arising
out of the FWBC evidence.
SENIOR DEPUTY PRESIDENT
Appearances:
R Reitano of Counsel for the Construction, Forestry, Mining and Energy Union.
J Forbes of Counsel for Lend Lease Building Contractors Pty Ltd.
M Roder Senior Counsel for Fair Work Building and Construction.
Hearing details:
2014.
Melbourne:
February 12.
Printed by authority of the Commonwealth Government Printer
Price code J, PR549957
1 [2013] FWC 8659.
2 C2013/6599.
3 [2013] FWC 8659.
4 ibid. at para 16.
5 Letter issued in RE2013/1710 on 11 November 2013.
6 Directions issued in RE2013/1710 on 11 November 2013.
7 Transcript in RE2013/1710 of 21 November 2013 at paras 15–16, 20 and 24–25.
8 ibid. at para 24.
9 ibid. at para 25.
10 ibid. at para 222.
11 [2013] FWC 9343.
12 Directions issued in RE2013/1710 on 27 November 2013 at paras 2–3.
13 Transcript in RE2013/1710 of 10 December 2013 at paras 251–253.
14 ibid. at paras 253 and 257.
15 ibid. at paras 529–539.
16 Setka v Gregor (No 2), [2011] FCAFC 90 at para 21; Ramsay v Sunbuilt Pty Ltd, [2014] FCA 54 at para 51; and Darlaston
v Parker, [2010] FCA 771 at para 39.
[2014] FWCFB 2709
62
17 Ramsay v Sunbuilt Pty Ltd, [2014] FCA 54 at para 87 and Office of Australian Building and Construction Commissioner v
Construction, Forestry, Mining and Energy Union, (Lane) [2008] AIRCFB 898 at para 16, decided in the context of Part
15 of the Workplace Relations Act 1996.
18 Andrew Ferguson and Martin French and CSR Limited trading as CSR Humes, PR910502 at para 17; Pine v Doyle, [2005]
FCA 977 at para 6; Gregor v Setka, [2010] FMCA 690 at para 54; and Setka v Gregor (No 2), [2011] FCAFC 90 at para
26.
19 Transcript in RE2013/1710 of 13 December 2013 at para 1793.
20 See Andrew Ferguson and Martin French and CSR Limited trading as CSR Humes, PR910502 at para 21.
21 As cited by O’Callaghan SDP in [2013] FWC 10168 at para 79.
22 Explanatory Memorandum to the Workplace Relations Amendment (Work Choices) Act 2005 at paras 2449 and 2494.
23 [2011] FWA 384 and [2011] FWA 4096.
24 PR502694.
25 [2014] FCA 54.
26 ibid. at para 101.
27 [2014] FCA 164.
28 Print Q5997.
29 PR910502.
30 ibid. at paras 16–17.
31 ibid. at para 22.
32 ibid. at paras 26–29.
33 As cited by O’Callaghan SDP in [2013] FWC 10168 at para 79.
34 [2005] FCA 977.
35 ibid. at para 6.
36 ibid. at para 13.
37 ibid. at para 14.
38 Australian Building and Construction Commission, (McLoughlin) [2007] AIRC 717; Australian Building and Construction
Commissioner, (Lane) [2008] AIRC 1140; Office of Australian Building and Construction Commissioner v Construction,
Forestry, Mining and Energy Union, (Lane) [2008] AIRCFB 898 and Gregory Charles Alfred v Andrew Quirk, [2008]
AIRC 781.
39 Australian Building and Construction Commission, (McLoughlin) [2007] AIRC 717 at para 51.
40 Gregory Charles Alfred v Andrew Quirk, [2008] AIRC 781 at para 26.
41 Australian Building and Construction Commissioner, (Lane) [2008] AIRC 1140 at para 15 and Charles Alfred v Andrew
Quirk, [2008] AIRC 781 at para 26. Different conclusions as to the application of the facts to that question were reached.
See Australian Building and Construction Commissioner, (Lane) [2008] AIRC 1140; Office of Australian Building and
Construction Commissioner v Construction, Forestry, Mining and Energy Union, (Lane) [2008] AIRCFB 898 and
Gregory Charles Alfred v Andrew Quirk, [2008] AIRC 781.
42 Office of Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union, (Lane)
[2008] AIRCFB 898 at para 23 and Gregory Charles Alfred v Andrew Quirk, [2008] AIRC 781 at para 47.
43 Gregory Charles Alfred v Andrew Quirk, [2008] AIRC 781 at para 27.
44 [2009] FCA 645.
45 John Holland Pty Ltd v Construction, Forestry, Mining and Energy Union, [2009] FCA 645 at para 45.
46 Construction, Forestry, Mining and Energy Union v John Holland Pty Ltd, [2010] FCAFC 90.
47 Construction, Forestry, Mining and Energy Union v John Holland Pty Ltd, [2009] FCA 786.
48 The Workplace Relations Act 1996 (after Work Choices amendments) continued to apply, notwithstanding its repeal, to
conduct which occurred prior to that repeal by reason of the operation of the Fair Work (Transitional Provisions and
Consequential Amendments) Act 2009 (Cth).
49 Construction, Forestry, Mining and Energy Union v John Holland Pty Ltd, [2010] FCAFC 90 at para 39.
50 ibid. at paras 40–41.
51 ibid. at para 45
52 ibid. at para 108.
[2014] FWCFB 2709
63
53 Construction, Forestry, Mining and Energy Union v John Holland Pty Ltd, [2011] FCA 770.
54 ibid. at para 31.
55 ibid. at para 32.
56 ibid. at para 36.
57 ibid. at paras 82, 97, 106 and 121.
58 ibid. at para 171.
59 ibid. at para 130.
60 ibid. at para 131.
61 ibid. at para 132.
62 [2010] FCA 771.
63 [2011] FCAFC 90.
64 Gregor v Setka, [2010] FMCA 690.
65 Setka v Gregor (No 2), [2011] FCAFC 90 at para 23.
66 ibid. at para 6.
67 Construction, Forestry, Mining & Energy Union v Hume Highway Constructions Pty Ltd & Anor, [2013] FMCA 154.
68 Ramsay v Sunbuilt Pty Ltd, [2014] FCA 54 at para 87 and Office of Australian Building and Construction Commissioner v
Construction, Forestry, Mining and Energy Union, (Lane) [2008] AIRCFB 898 at para 16 decided in the context of Part
15 of the Workplace Relations Act 1996.
69 [2005] FCA 977.
70 Australian Building and Construction Commissioner, (Lane) [2008] AIRC 1140 at para 15 and Charles Alfred v Andrew
Quirk, [2008] AIRC 781 at para 26. Different conclusions as to the application of the facts to that question were reached.
See Australian Building and Construction Commissioner, (Lane) [2008] AIRC 1140; Office of Australian Building and
Construction Commissioner v Construction, Forestry, Mining and Energy Union, (Lane) [2008] AIRCFB 898 and
Gregory Charles Alfred v Andrew Quirk, [2008] AIRC 781.
71 Australian Building and Construction Commission, (McLoughlin) [2007] AIRC 717 at para 51.
72 Construction, Forestry, Mining and Energy Union v John Holland Pty Ltd, [2010] FCAFC 90 at para 39.
73 Construction, Forestry, Mining and Energy Union v John Holland Pty Ltd, [2011] FCA 770.
74 ibid. at para 41.
75 [2010] FCA 771.
76 [2011] FCAFC 90.
77 [2011] FWA 384 and [2011] FWA 4096.
78 [2011] FWA 4096 at para 56.
79 [2008] AIRC 781.
80 [2007] AIRC 717 at para 74.
81 [2013] FWC 9860 at para 6.
82 ibid. at paras 7 and 9–17.
83 Transcript in RE2013/1710 of 21 November 2013 at para 24.
84 [2013] FWC 9860 at para 17.
85 [2013] FWC 10168 at para 69.
86 Written submissions of the CFMEU in the appeal at para 2 and in footnote 3.
87 Transcript in Appeal at paras 14 and 19.
88 ibid. at para 14.
89 Section 480(a) of the Fair Work Act 2009.
90 [2013] FWC 10168 at para 69.
91 ibid. at para 117.
92 ibid. at para 69.
93 ibid. at paras 122–124.
94 CFMEU written submissions in Appeal C2014/2631.
[2014] FWCFB 2709
64
95 Transcript in Appeal at para 268.
96 ibid. at para 120.
97 ibid. at para 120.
98 ibid. at para 121.
99 ibid. at para 377.
100 ibid. at para 158.
101 ibid. at para 153.
102 ibid. at para 189.
103 ibid. at para 375.
104 Andrew Ferguson and Martin French and CSR Limited trading as CSR Humes, PR910502 at para 17; Pine v Doyle,
[2005] FCA 977 at para 6; Gregor v Setka, [2010] FMCA 690 at para 54 and Setka v Gregor (No 2), [2010] FMCA 690
at para 26.
105 [2013] FWC 10168 at para 71.
106 ibid. at para 117.
107 ibid. at para 69.
108 Exhibit L5 at paras 9–24 in RE2013/1710.
109 Exhibit L7 at attachment MG2 in RE2013/1710.
110 [2013] FWC 10168 at para 4.
111 ibid. at paras 1–11.
112 ibid. at paras 12–13.
113 ibid. at paras 14–36.
114 ibid. at paras 48–61.
115 PR910502.
116 [2011] FCAFC 90.
117 [2013] FWC 10168 at paras 62–69.
118 ibid. at paras 77–116.
119 ibid. at para 89.
120 ibid. at paras 91 and 93.
121 ibid. at paras 92 and 105.
122 ibid. at para 95.
123 ibid. at para 105.
124 ibid. at para 108.
125 John Pinawin T/A Rose Vi Hair Face Body v Mr Edwin Domingo, [2012] FWAFB 1359 at para 21.
126 [1999] FCA 1836.
127 PR908112.
128 [2010] FWAFB 3544.
129 [2011] FWAFB 1080.
130 Soulemezis v Dudley (Holdings) Pty Ltd, (1987) 10 NSWLR 247, per McHugh JA at p. 280.
131 [2013] FWC 10168 at para 74.
132 ibid. at para 104.
133 ibid. at para 115.
134 ibid. at para 113.
135 ibid. at para 115. See also paras 91 and 93.
136 ibid. at para 123.
137 Australian Building and Construction Commission, (McLoughlin) [2007] AIRC 717 at para 221 and Australian Building
and Construction Commissioner, (Lane) [2009] AIRC 868 at para 27.
138 [2008] AIRCFB 898 at para 27.
[2014] FWCFB 2709
65
139 [2013] FWC 10168 at para 78.
140 ibid. at para 92.
141 ibid. at para 95.
142 ibid. at paras 99–101.
143 ibid. at paras 105–106.
144 ibid. at paras 108–110.
145 ibid. at paras 111–112.
146 ibid. at para 113.
147 Adelaide Oval site on 30 October 2013 and 6 November 2013, Adelaide Convention Centre site on 30 October 2013,
TAFE Tonsley Park site on 30 October 2013 and 8 November 2013 and Flinders University Tonsley Park site on
30 October 2013 and 8 November 2013.
148 Long, Harrison, Beattie, Buchan, Nicholls, Pitt and O’Connor. Others were identified as Moe, John, Vern and Brenton.
149 Exhibit L3 in RE2013/1710, attachment DI1 at para 10.
150 Exhibit L1 in RE2013/1710 at para 13.
151 ibid. at para 43.
152 Exhibit L7 in RE2013/1710, attachment MG1 at para 6.
153 ibid. at para 10.
154 Exhibit L4 in RE2013/1710 at para 10.
155 Transcript in RE2013/1710 of 13 December 2013 at paras 1449–1453.
156 Exhibit L6 in RE2013/1710 at para 7.
157 Exhibit L5 in RE2013/1710 at para 13.
158 Exhibit FWBC1 in RE2013/1710.
159 ibid. at Attachment JDM2.
160 ibid. at Attachment JDM8.
161 ibid. at Attachment JDM3.
162 ibid. at Attachment JDM7.
163 Exhibit L3 in RE2013/1710, at Attachment DI1.
164 Transcript in RE2013/1710 of 10 December 2013 at para 1001.
165 He was not aware of what the other officials were doing, Transcript in RE2013/1710 of 10 December 2013 at para 1026.
166 Exhibit L1 at para 11 in RE2013/1710.
167 Transcript in RE2013/1710 of 10 December 2013 at paras 733, 741–742 and 746.
168 ibid. at para 1042.
169 ibid. at para 915.
170 The FWC https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-permit?MTR_SERIES_CD=RE and
Industrial Court of South Australia http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-
9C56156E1A17DA9A search facilities disclose for those recorded as entering the site on the visitors book:
Mr McDermott holds a Federal entry permit (RE) and WHS permit (FWHS) and a SA WHS permit, Mr Long holds a RE
and SA WHS permit, Mr Stephenson holds a RE and SA WHS permit, Mr Roberts holds a RE and WHS permit and
Mr Kirner holds a RE and SA WHS permit.
171 Transcript in RE2013/1710 of 10 December 2013 at para 1110.
172 Exhibit L1 in RE2013/1710.
173 The FWC https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-permit?MTR_SERIES_CD=RE and
Industrial Court of South Australia http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-
9C56156E1A17DA9A search facilities disclose for those recorded as entering the site on the visitors book:
Mr McDermott holds a RE and FWHS permit and a SA WHS permit, Mr Long holds a RE and SA WHS permit and
Mr Beattie holds a RE permit.
174 Exhibit L3 in RE2013/1710.
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66
175 The FWC https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-permit?MTR_SERIES_CD=RE and
Industrial Court of South Australia http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-
9C56156E1A17DA9A search facilities discloses that Mr Cartledge holds a RE and FWHS permit and a SA WHS permit.
176 Exhibit L1 in RE2013/1710.
177 Exhibit L1 in RE2013/1710 at para 36.
178 Exhibit L1 in RE2013/1710.
179 Transcript in RE2013/1710 of 10 December 2013 at para 822.
180 Exhibit L1 in RE2013/1710 at para 50.
181 Exhibit L1 in RE2013/1710.
182 Exhibit L1 in RE2013/1710 at para 53.
183 The FWC https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-permit?MTR_SERIES_CD=RE and
Industrial Court of South Australia http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-
9C56156E1A17DA9A search facilities discloses that Mr McDermott holds a RE and FWHS permit and a SA WHS
permit.
184 Exhibit L1 in RE2013/1710 at para 60.
185 Exhibit L1 in RE2013/1710.
186 Exhibit L1 in RE2013/1710 at para 67.
187 ibid. at para 69.
188 Exhibit L4 in RE2013/1710.
189 Transcript in RE2013/1710 of 10 December 2013 at para 1188.
190 Exhibit L4 in RE2013/1710 at para 6.
191 Transcript in RE2013/1710 of 10 December 2013 at para 1190.
192 ibid. at para 1165.
193 ibid. at para 1166.
194 ibid. at paras 1169 and 1195.
195 ibid. 1167 and 1196.
196 ibid. 2013 at paras 1197–1198.
197 The FWC https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-permit?MTR_SERIES_CD=RE and
Industrial Court of South Australia http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-
9C56156E1A17DA9A search facilities disclose for those recorded as entering the site on the visitors book: Mr O’Connor
holds a RE permit and SA WHS permit, Mr Beattie and Mr Nicholls hold a RE permit.
198 Exhibit L7 in RE2013/1710, at Attachment MG1.
199 ibid. at para 3.
200 ibid. at para 5.
201 ibid. at para 10.
202 Only one official, Mr Gava, was identified in the evidence. The others were described as an official from ACT and three
from Melbourne. The FWC https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-
permit?MTR_SERIES_CD=RE and Industrial Court of South Australia
http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-9C56156E1A17DA9A search facilities
discloses that Mr Gava holds a RE and a SA WHS permit.
203 Exhibit L7, attachment MG2 in RE2013/1710.
204 Exhibit L7 at para 2 in RE2013/1710.
205 The FWC https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-permit?MTR_SERIES_CD=RE and
Industrial Court of South Australia http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-
9C56156E1A17DA9A search facilities discloses that Mr Gava holds a RE and a SA WHS permit and Mr Bolton holds a
RE and FWHS permit and a SA WHS permit and Mr Pitt holds a RE permit and a SA WHS permit.
206 Exhibit L6 in RE2013/1710.
207 Transcript in RE2013/1710 of 13 December 2013 at para 1457.
208 Transcript in RE2013/1710 of 13 December 2013 at para 1463.
209 Exhibit L6 at para 7 in RE2013/1710.
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67
210 Exhibit L6 at para 7 in RE2013/1710.
211 Transcript in RE2013/1710 of 13 December 2013 at paras 1464–1469.
212 Exhibit L6 at para 16 in RE2013/1710 and Transcript in RE2013/1710 of 13 December 2013 at para 1486.
213 The only identification of the officials is of Mr Gava and persons called Moe, Vern and John. The FWC
https://beta.fwc.gov.au/registered-organisations/entry-permits/check-entry-permit?MTR_SERIES_CD=RE and Industrial
Court of South Australia http://www.industrialcourt.sa.gov.au/index.cfm?objectID=835A5E52-9EC3-2015-
9C56156E1A17DA9A search facilities discloses that Mr Gava holds a RE and a SA WHS permit.
214 Exhibit L5 in RE2013/1710.
215 Transcript in RE2013/1710 of 13 December 2013 at para 1309.
216 Exhibit L5 in RE2013/1710 at para 13.
217 Transcript in RE2013/1710 of 13 December 2013 at para 1690.
218 Explanatory Memorandum, Fair Work Bill 2008, Regulatory Analysis at r.335.
219 Explanatory Memorandum, Fair Work Bill 2008 at 2276.