1
Fair Work Act 2009
s.604—Appeal of Decision
Glen Cameron Nominees Pty Ltd (t/a Glen Cameron Trucking)
v
Transport Workers’ Union of Australia
(C2017/1406)
VICE PRESIDENT CATANZARITI
DEPUTY PRESIDENT CLANCY
COMMISSIONER JOHNS
SYDNEY, 25 JUNE 2018
Appeal against decision [2017] FWC 911 of Deputy President Bull at Perth on 28 February
2017 in matter number C2016/5290.
Introduction
[1] This is a decision about whether employees of Glen Cameron Nominees (trading as
Glen Cameron Trucking) (Glen Cameron) who perform shift work are entitled to be paid a
meal break when working afternoon and/or night shifts. The matter has been the subject of a
number of decisions by both the Fair Work Commission (Commission) 1 and the Federal
Court of Australia (FCA).2 The Transport Workers’ Union of Australian (TWU) is the
Respondent to the appeal which was reheard by this Full Bench on 22 March 2018.
[2] The matter arises out of an appeal from a decision of Deputy President Bull (the
Decision)3 which dealt with a dispute arising under the Glen Cameron Nominees Pty Ltd NSW
EBA 2015 - 2019 (Agreement). By operation of clause 2 of the Agreement,
“… all the terms of the [Road Transport and Distribution] Award, as amended from
time to time, shall apply to employees covered by the Agreement provided however
that where a clause of this Agreement is inconsistent with a clause of the Award in
part or in whole, the clause in the Agreement shall prevail to the complete exclusion of
the Award clause.”
1 Glen Cameron Nominees Pty Ltd t/a Glen Cameron Trucking v Transport Workers’ Union of Australia [2017] FWCFB
2007 (Appeal Decision); Glen Cameron Nominees Pty Ltd t/a Glen Cameron Trucking v Transport Workers’ Union of
Australia [2017] FWCFB 4636 (Revocation Decision).
2
Glen Cameron Nominees Pty Ltd v Transport Workers’ Union of Australia [2017] FCA 1026; Glen Cameron Nominees Pty
Ltd v Transport Workers' Union of Australia (No 2) [2017] FCA 1515.
3 [2017] FWC 911.
[2018] FWCFB 3744 [Note: An application relating to this matter has been
filed in the Federal Court - refer to the Federal Court decision dated 14
December 2017 [2017] FCA 1515.]
DECISION
E AUSTRALIA FairWork Commission
https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2017/2017fca1515
http://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2017/2017fca1515
http://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2017/2017fca1515
[2018] FWCFB 3744
2
[3] That is to say, the Award is called-up into the Agreement. It was common ground
between the parties that the Award is incorporated into the Agreement (to the extent that it is
not inconsistent with the Agreement). Consequently, where a term of the Award applies, it
does so as a term of the Agreement (not as a term of the Award). For this reason, in this
decision, we refer to the Award as the “Incorporated Award”.
[4] The Deputy President decided that,
“[59] … [because the] Agreement is silent on the engagement of shift workers, it is
entirely appropriate to examine the Award which applies as per clause 2 of the
Agreement to ascertain the terms under which shift workers may be engaged. The
Respondent acknowledges that it engages shift workers as per the definition under the
Award. This at least is applied by the Respondent in respect of the Award shift
penalties. While the Agreement provides for employees to receive an unpaid 30
minute meal breach, I do not see this as being inconsistent with the specific provisions
for shift workers to receive a paid meal breach under the Award.
[60] As a matter of legal interpretation, specific provisions will ordinarily override
those which are general in nature. A common sense reading of the Agreement leads to
the conclusion that the provisions regarding the engagement of shift workers have
been left to those which exist in the Award, which is incorporated into the Agreement.
[61] The ability to engage shift workers derives from the shift work provisions of
the Award; it is therefore highly artificial to rely on the general meal break provision
under the Agreement as being inconsistent with the specific meal break provisions
under the Award.
[62] There is nothing in the Agreement that suggests that the meal break provisions
were to be exhaustive or exclusive provisions applying to both shift and non-shift
workers, other than the reference to ‘an employee’ which the respondent submitted
should be interpreted as an intention to exclude the specific shift work meal break
provisions of the Award.
[63] This, in my view, is to take what is often criticised as a narrow and pedantic
approach to interpretation.
[64] The Union have sought a determination stating that the provisions of clause 24
Shiftwork of the Award apply to employees of the respondent performing shift work
and covered by the Agreement. A determination shall issue in the terms sought by the
Union.”
[5] An order4 was issued to the following effect,
“[1] Further to the decision issued on 28 February 2017 (2017 FWC 911), the
Commission determines that the provisions of clause 24, Shiftwork, of the Road
Transport and Distribution Award 2010 … in respect of meal breaks apply to
4 PR590552.
[2018] FWCFB 3744
3
employees of Glen Cameron Nominees Pty Ltd, who perform shift work and are
covered by the Glen Cameron Nominees Pty Ltd NSW EBA 2015-2019.”
[6] Glen Cameron appealed the decision and order.
The Agreement and the Incorporated Award
[7] The Agreement was approved on 6 January 2016 and commenced operation on 13
January 2016, with a nominal expiry date of 31 July 2019.5
[8] The Agreement applies to,
“all [Glen Cameron] employees … which fall within the jurisdiction of the Road
Transport and Distribution Award 2010 (the “Award”) with the exception of
employees covered by, the Glen Cameron Huntingwood Warehouse Employees
Enterprise Agreement 2009 to 2012.”6
[9] The TWU is covered by the Agreement.7
[10] The following clause in the Agreement is relevant:
“18.1 Meal Break
An employee shall be allowed a 30 minute unpaid meal break, for every five hours of
work performed. The employee shall use their discretion to take the meal break but it
may not be taken within the first 4 hours of commencing work and shall not be taken
later than 5 hours after commencing work. The meal break shall be taken as directed
by the Supervisor, only where it would otherwise cause a disruption to the on-going
performance of work.” (Emphasis added).
[11] As set out above, clause 2 of the Agreement incorporates the terms of the Road
Transport and Distribution Award 2010 (RTD Award) into the Agreement. Relevantly for
present purposes, the Incorporated Award also provides.
“24.9 Meal breaks
All shiftworkers while working on day, afternoon or night shift will be entitled to a
paid meal break of 20 minutes. An employee must not be required to work more than
five hours without a meal break.” (Emphasis added).
[12] In circumstances where the:
a) Agreement provides “an employee” with “a 30 minutes unpaid meal break”,
and
5 [2016] FWCA 51.
6 Clause 2 of the Agreement.
7 [2016] FWCA 51 at [4].
[2018] FWCFB 3744
4
b) Incorporated Award provides “all shiftworkers” with an entitlement “to a paid
meal break of 20 minutes”,
it is necessary to reconcile the operation of clause 18.1 in the Agreement with clause
24.9 in the Incorporated Award in order to determine the dispute.
[13] His Honour Justice Perram observed,
“The terms of the Agreement relating to the issue of whether shift workers should
have paid meal breaks were not especially clear or consistent and their
interpretation was not free from difficulty.”8
[14] By reason of the operation of clause 2 of the Agreement, if clause 18.1 of the
Agreement is inconsistent with clause 24.9 of the Incorporated Award (in part or in whole)
then clause 18.1 in the Agreement prevails to the complete exclusion of clause 24.9.
The Proceedings at First Instance
[15] Proceedings at first instance were initiated by an application (C2016/5290) filed by the
TWU pursuant to s.739 of the Fair Work Act 2009 (Cth) (FW Act) for the Commission to
deal with a dispute arising under the Agreement. As mentioned earlier, the dispute concerned
the entitlement of shift workers to a meal allowance. It was common ground that the
Commission had jurisdiction to hear and determine the dispute.
[16] The TWU contended that,
a) The Respondent employs a number of full time staff, whose hours are defined
under clauses 8.1 (Full-Time) and 14 (Ordinary House of Work) of the
Agreement.
b) The Agreement provides for the arrangement of these hours under clause 15
while clause 18 provides for meal and rest breaks.
c) The Respondent employs a number of staff who do not meet the definition of
full-time in the Agreement because they are engaged outside the ordinary
house of work defined in the Agreement defined under clause 14 of the
Agreement (between 4.00am and 7.00pm).
d) The Agreement does not provide a framework or definition regarding these
employees.
e) The Award is incorporated into the Agreement to the exclusion of any
inconsistency under clause 2 of the Agreement. There is no inconsistency in
the Agreement which would override the shiftwork clauses in the Award.
8 [2017] FCA 1515 at [3].
[2018] FWCFB 3744
5
f) Clarification must be found in the Award.
g) The employees meet the shiftwork requirements under clause 24 of the Award.
Additionally, the Respondent pays the employees the allowance located in
clause 24.3 of the Award for hours worked outside the ordinary hours of the
Agreement.
h) Therefore, the Respondent is not meeting its obligations under the Award and
should:
i. pay the paid meal break entitlement located in 24.9 of the Award,
ii. honour all payments that have not been paid in relation to this
entitlement since the Agreement commenced, and
iii. withdraw its demand to be reimbursed for the payment of this
entitlement in the past.
[17] The TWU called the following witnesses:
a) Liam Searle9
b) John Cini.10
[18] Mr Searle’s evidence was to the effect that,
a) He has been employed by the Respondent as a PM Shunt Driver since 3
September 2013, normally working the hours of 2:00pm to 2:00am.
b) He received the shift allowance for the “afternoon shift”.
c) He had recently learned that shift workers employed at the Respondent’s St
Mary’s site were receiving a paid meal break, an entitlement he had never
received.
d) He raised the issue with the Respondent, who stated that they are not eligible
for this entitlement.
e) The employees at St Mary’s are no longer receiving the paid meal break.
f) The issue had not been raised until after the Agreement had been voted on.11
[19] Mr Cini’s evidence was to the effect that,
a) He is employed by the Respondent as a forklift operator since 16 August 2015,
normally working the hours of 8:00pm to 4:00am on Sunday through to
Thursday at the Respondent’s St Mary’s site.
9 Appeal Book pp 77 – 78.
10 Appeal Book pp 75 – 76.
11 PN231.
[2018] FWCFB 3744
6
b) He received the shift allowance for the “night shift”, being split 100% loading
for working Sunday and 30% Monday to Thursday.
c) The issue of paid meal breaks were first raised in October 2015, which resulted
in a decision by the Respondent that the employees were entitled to this
payment.
d) On or around April 2016 the employees received back pay for this entitlement
from August 2015 to April 2016, and were thereafter paid the entitlement.
e) The payment of the paid meal break continued until August 2016. Around the
same time the Company’s representative, Glen Rohan held and meeting and
stated that it would attempt to recoup all of the payments made for this
entitlement.
f) The issue had not been raised during the Agreement’s negotiations when it was
being made.12
[20] Glen Cameron contended that,
a) Clause 2 of the Agreement incorporates the Award into the Agreement
provided that the Agreement will prevail in any instances of inconsistency
between the instruments.
b) The Respondent does engage employees which meet the definition of
shiftwork in clause 24.1(d) of the Award.
c) Clause 18.1 of the Agreement provides for a 30 minute unpaid meal break for
every five hours of work performed. The Agreement does not further
contemplate meal breaks and makes no allowance for paid meal breaks for any
employees.
d) Clause 24.9 of the Award provides that all shiftworkers be paid a 20 minute
meal break while working day, afternoon or night shifts.
e) The predecessor agreement contained the same 30 minute unpaid meal break
as the current Agreement.
f) Citing French J in City of Wanneroo v Australian Municipal, Administrative,
Clerical and Services Union (2006) 153 IR 426 (Wanneroo) and Madgwick J
in Kucks v CSR Ltd (1996) 66 IR 182 (Kucks), the interpretation of
“employee” in Clause 18.1 of the Agreement is to take an ordinary and natural
meaning broad enough to encompass all categories of people engaged in a
contract of service, including shiftworkers.
12 PN89-109.
[2018] FWCFB 3744
7
g) The Agreement should be interpreted “holistically”, giving effect to the
purpose of the document.
h) The Agreement does not make any specific provision in relation to employees
engaged on shiftwork, rather it is concerned with the employees wholly.
i) With reference to the principles of interpretation from The Australasian Meat
Industry Employees Union v Golden Cockerel Pty Ltd [2014] FWCFB 7447
(Golden Cockerel), that clause 18.1 of the Agreement excludes in its entirety,
clause 24.9 of the Award by way of inconsistency pursuant to Clause 2 of the
Agreement. Specifically, that by expressly providing for unpaid meal breaks
for “employees”, there is an intention to exclude the operation of clause 24.9 of
the Award by operation of clause 2 of the Agreement.
j) Further in relation to 18.1 of the Agreement that the Form 17 lodged with the
Commission by the Respondent after the Agreement, and, the fact that the
Respondent mistakenly paid the entitlement previously is not admissible in
resolving any ambiguity, as these events occurred after the Agreement was
made.
[21] Glen Cameron called its Group Human Resources and Industrial Relations Manager,
Glenn Rohan to give evidence.13
[22] Mr Rohan’s evidence was to the effect that,
a) He has been employed by the Respondent as its Group Human Resources and
Industrial Relations Manager for ten years and his responsibilities include
negotiating agreements.
b) The Agreement was made between 17 and 24 November 2015 after
approximately 5 months of negotiations which included 7 meetings.
c) Under the predecessor agreement, employees engaged on shift work received a
30 minute unpaid meal break.
d) On or about 15 March 2016, the Respondent incorrectly interpreted the terms
of the Agreement as requiring it to provide employees who perform shift work
with a 20 minute paid break. Effective from 29 February 2016, the Respondent
commenced providing this entitlement.
e) On or about 15 June 2016, he reviewed the Respondent’s practices and formed
the view that it was not required to make this payment.
13 Appeal Book pp 85 – 215.
[2018] FWCFB 3744
8
f) On 27 June 2016, he sent a letter on behalf of the Respondent to the TWU and
employees advising them of this error and giving the employees one month
notice that the Respondent would cease making this payment.
[23] As mentioned earlier, the Deputy President decided that the general provisions of the
Agreement (dealing with all employees) yielded to the special terms of the Incorporated
Award (dealing specifically with shift workers) such that shift workers were entitled to a paid
meal break. This meant that the Agreement did provide an entitlement to a meal allowance for
shift workers and he issued a determination to that effect.
[24] In his decision the Deputy President:
a) characterised the dispute as we have set out earlier,14
b) set out the relevant clauses in the Agreement and the Incorporated Award,15
c) established the jurisdiction of the Commission to deal with the dispute,16
d) observed that,
“The Agreement makes no specific reference to shift work and the Union
argue that pursuant to clause 2 of the Agreement, the shift work
provisions of the Award operate including its meal break provision.”17
e) considered the submissions of and evidence from the TWU,18
f) observed that Glen Cameron,19
“Argues that in the absence of a provision in the Agreement providing
for a paid meal break when working shift work, no such entitlement
applies or is envisaged under the Agreement.”
g) considered the submissions of and evidence from Glen Cameron,20
h) then turned to the interpretation of the Agreement, considered a number of
authorities21 and set out the relevant principles, by reference to the Full Bench
14 [2017] FWC 911 at [2].
15 [2017] FWC 911 at [3] – [10].
16 [2017] FWC 911 at [12] – [13].
17 [2017] FWC 911 at [14].
18 [2017] FWC 911 at [21] – [28].
19 [2017] FWC 911 at [15].
20 [2017] FWC 911 at [29] – [41].
21 [2017] FWC 911 at [42] – [45].
[2018] FWCFB 3744
9
decision in Australian Meat Industry Employees Union v Golden Cockerel Pty
Ltd.22
i) in accordance with Golden Cockerel, first considered whether the Agreement
had a plain meaning or contained an ambiguity. He observed,
“… the interpretation of an industrial instrument begins with a
consideration of the natural and ordinary meaning of the words in
question. The words are to be read as a whole and in context. Ambiguity
and uncertainty, if any, may be resolved by a consideration of the history
and subject matter of the agreement.”23
j) found no ambiguity or uncertainty,24 finding that,
“[48] … In interpreting the Agreement, the relevant clauses are
capable of being given their plain meaning, thus there is no need to look
to any surrounding circumstances to contradict the plain meaning of the
relevant clauses.
[49] The dispute over the construction of the Agreement can be
resolved by considering the text of the Agreement viewed as a whole; the
language of the Agreement having regard to its context and purpose and
the location in the Agreement where the dispute clause exists.
[50] … the Agreement does not contain any specific provisions relating
to the performance of shift work outside the ordinary hours of work
provided for in clause 14 of the Agreement. As such the Award must be
relied upon to allow shift work to occur….”
k) further noted that,
“[53] …The High Court has generally formulated three approaches to
ascertaining the existence of inconsistency. Inconsistency is present
where it is impossible to obey both laws, where one law purports to
confer a legal right which the other law purports to take away, or where
one law evinces an intention to cover the field, that is, it shall be the law
on the topic where or not there is a direct contradiction, this can be
express or implied.”
l) observed where the Agreement and the Incorporated Award are consistent.25
m) rejected that the unpaid meal break provisions in the Agreement applied to
shift workers,26 because,
22 [2017] FWC 911 at [46].
23 [2017] FWC 911 at [47].
24 [2017] FWC 911 at [48].
25 [2017] FWC 911 at [54].
26 [2017] FWC 911 at [56].
[2018] FWCFB 3744
10
“[56] .… the Agreement does not deal with the engagement of shift
workers and their separate entitlements e.g. shift penalties, whereas the
Award make separate provision for shift workers and their various
entitlements.”
n) found no inconsistency with the Incorporated Award providing for a paid meal
break for shift workers.27
The Appeal
[25] As we have observed previously an appeal of a decision made under the Agreement is
as of right.28 Permission to appeal need not first be obtained.
[26] It is common ground that the decision subject to appeal relates to the proper
construction of the Agreement and accordingly the issue for us is whether the interpretation
adopted by the Deputy President was correct.29 If we determine that the interpretation of the
relationship between the Agreement and the Incorporated Award is different to that of the
Deputy President it necessarily follows that the Deputy President erred in reaching his
conclusion.30
[27] On 22 March 2018 Glen Cameron was given leave to file an Amended Notice of
Appeal. Before us Mr Baroni further refined the grounds of appeal. Leave was granted to do
so.31
[28] In the final form Glen Cameron advanced the following grounds of appeal:
The Deputy President:
1. erred by misapplying the relevant principles as set out … by the Full Bench …
in [Berri] with respect to interpreting industrial instruments.
2. erred in his construction of clause 18.1 of the Agreement.
3. erred in taking into account irrelevant considerations; namely, by having
regard to the F17 – Statutory Declaration in Support of the Application for
Approval of an Enterprise Agreement and the conduct of the parties after the
making of the enterprise agreement.
4. failed to give consideration to relevant evidence going to the intention of the
parties prior to the making of the enterprise agreement and had regard to
irrelevant evidence after the making of the Agreement.
27 [2017] FWC 911 at [59] – [64] (reproduced above).
28 [2017] FWCFB 4636.
29 Australian, Administrative, Clerical and Services Union v Australian Tax Office (ATO) [2013] FWCFB 4752.
30 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd (2001) FCA 1833.
31 Transcript PN7 – 16.
[2018] FWCFB 3744
11
5. adopted an erroneous approach in determining whether an inconsistency arose
between the Agreement and the incorporated Award which approach led the
Deputy President into error by finding that there was no inconsistency.
Principles of interpretation
[29] The principles relevant to the task of construing an enterprise agreement were
summarised in Golden Cockerel32 as follows:
‘1. The [Acts Interpretation] Act does not apply to the construction of an
enterprise agreement made under the [FW] Act.
2. In construing an enterprise agreement it is first necessary to determine whether
an agreement has a plain meaning or contains an ambiguity.
3. Regard may be had to evidence of surrounding circumstances to assist in
determining whether an ambiguity exists.
4. If the agreement has a plain meaning, evidence of the surrounding
circumstances will not be admitted to contradict the plain language of the agreement.
5. If the language of the agreement is ambiguous or susceptible to more than one
meaning then evidence of the surrounding circumstance will be admissible to aide the
interpretation of the agreement.
6. Admissible evidence of the surrounding circumstances is evidence of the
objective framework of fact and will include:
(a) evidence of prior negotiations to the extent that the negotiations tend to
establish objective background facts known to all parties and the subject matter
of the agreement;
(b) notorious facts of which knowledge is to be presumed;
(c) evidence of matters in common contemplation and constituting a common
assumption.
7. The resolution of a disputed construction of an agreement will turn on the
language of the Agreement understood having regard to its context and purpose.
8. Context might appear from:
a) the text of the agreement viewed as a whole;
b) the disputed provision’s place and arrangement in the agreement;
c) the legislative context under which the agreement was made and in
which it operates.
9. Where the common intention of the parties is sought to be identified, regard is not
to be had to the subjective intentions or expectations of the parties. A common
32 [2014] FWCFB 7447 at [41].
[2018] FWCFB 3744
12
intention is identified objectively, that is by reference to that which a reasonable
person would understand by the language the parties have used to express their
agreement.
10. The task of interpreting an agreement does not involve rewriting the agreement to
achieve what might be regarded as a fair or just outcome. The task is always one of
interpreting the agreement produced by parties.”
[30] At first instance the parties addressed the principles in Golden Cockerel.
[31] In 2017 a Full Bench of the Commission modified the above summary in Automotive,
Food, Metals, Engineering, Printing and Kindred Industries Union (known as the Australian
Manufacturers Workers Union (AMWU) v Berri Pty Ltd (Berri).33 The Full Bench made the
following observations:
“[41] The construction of an enterprise agreement, like that of a statute or a contract,
begins with a consideration of the ordinary meaning of the relevant words. The
disputed words must be construed in the context of the agreement as a whole. The
process of interpretative analysis focusses upon the language of the agreement itself.
In Amcor Limited v CFMEU,34 Gleeson CJ and McHugh J described the process in the
following terms: ‘[t]he resolution of the issue turns upon the language of the particular
agreement, understood in the light of its industrial context and purpose ...’.35 Or, as
Kirby J put it in the same case, ‘[i]nterpretation is always a text-based activity’.36
….
[44] There is considerable force in the Appellant’s contention that, as a general
principle, all words in an enterprise agreement must prima facie be given some
meaning and effect. It would seem to follow that the inclusion of a laundry allowance
in Appendix 3 of the 2014 Agreement should not be regarded as superfluous or
insignificant. Such an approach accords with the principles of statutory construction,37
and, as a general proposition, the principles developed in the general law in the context
of the interpretation of statutes are applicable to the interpretation of enterprise
agreements. As the Full Bench observed in Paper Australia Pty Ltd t/a Australian
Paper v Australian Manufacturing Workers’ Union:38
‘Australian Paper made the submission that no principle of statutory
construction has any application to the interpretation of enterprise agreements,
and relied upon the proposition stated in Golden Cockerel that the Acts
Interpretation Act 1901 (Cth) does not apply to the construction of enterprise
agreements in support of that submission. The submission is rejected. It does
not follow from the fact that enterprise agreements are not instruments to
33 [2017] FWCFB 3005.
34 (2005) 222 CLR 241.
35 Ibid at 246.
36 Ibid at 262.
37 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 at 382 per McHugh, Gummow, Kirby and
Jayne JJ.
38 [2017] FWCFB 1621 at [21].
[2018] FWCFB 3744
13
which the Acts Interpretation Act applies that modes of textual analysis
developed in the general law in the context of the interpretation of statutes are
incapable of application to enterprise agreements. While it undoubtedly
remains necessary in interpreting a particular instrument to pay attention to the
peculiar characteristics of that instrument, it is equally the case that there has
been a convergence in the approach taken to the interpretation of statutes,
agreements and other types of instruments - in particular, in the emphasis on
the objective ascertainment of the instrument’s purpose and the move from
textual to contextual interpretation. Additionally, many of the grammatical
aides to the interpretation of statutes are equally applicable to other types of
instruments. In the High Court decision in Royal Botanic Gardens and Domain
Trust v South Sydney City Council, Kirby J said “... it would be indefensible for
this Court, without good reason, to adopt a different approach in the
ascertainment of the meaning of contested language in a contract from the
approach observed in respect of legislation”. We therefore do not consider that
Golden Cockerel should be taken as an exhaustive statement of the means by
which the text of an enterprise agreement might be construed.’ (references
omitted)
….
[46] There is a long line of authority in support of the proposition that a ‘narrow or
pedantic’ approach to the interpretation of industrial instruments (such as enterprise
agreements) is to be avoided,39 and that ‘fractured and illogical prose may be met by a
generous and liberal approach to construction’.40 A consequence of such an approach
may be that some principles of statutory construction have less force in the context of
construing an enterprise agreement. For example, in Shop, Distributive and Allied
Employees’ Association v Woolworths Limited,41 Gray ACJ held that the presumption
that a word used in one provision of a statute has the same meaning when it is used in
another provision of the same statute, applied with less force in the context of an
enterprise agreement:
‘Typically, such agreements are the product of hard negotiation, in which
wording of particular clauses is often agreed without reference to other
provisions of the same document. Provisions are commonly transmitted from
one agreement to the next in a series, without regard to whether their
terminology sits well with the words used in newly adopted terms. The use of
other agreements, and awards, as precedents can often result in the borrowing
of provisions, again without regard to whether the words used in them are
consistent with the rest of the agreement under consideration. For these and
other reasons, consistency will often be absent. It is easy to see that the same
word can be used in different provisions with different meanings.’42
39 Kucks v CSR Limited (1996) 66 IR 182 at 184.
40 City of Wanneroo v Australian, Municipal, Administrative, Clerical and Services Union (2006) 153 IR 426 at 440; See in
general Golden Cockerel at [19]–[22].
41 [2006] FCA 616.
42 Ibid at [26].
[2018] FWCFB 3744
14
[47] We acknowledge that the fact that the instrument being construed is an
enterprise agreement is itself an important contextual consideration. But it is also
relevant that the instrument being interpreted in these proceedings is an enterprise
agreement made pursuant to Part 2-4 of the FW Act and, as observed by White J in
National Tertiary Education Union v La Trobe University,43 it may be inferred that
such agreements are intended to establish binding obligations:
‘The manner of making such agreements is subject to detailed prescription and
their operation is contingent upon approval by the Fair Work Commission, the
obtaining of which is itself a matter of detailed prescription. In my opinion, it is
natural to suppose that parties engaging in this detailed process intend that the
result should be a binding and enforceable agreement. To my mind, that is an
important matter of context when approaching the construction of [the disputed
clause in the agreement]’.44
[48] Of course his Honour’s observation does not mean that an enterprise
agreement may not include ‘matters which are in the nature of statements of aspiration
or commitment and not themselves intended to be enforceable obligations or
entitlements’45 – so much is clear from Reeves v MaxiTRANS Australia Pty Ltd.46 The
fact that the 2014 Agreement is an enterprise agreement made pursuant to Part 2-4 of
the FW Act is also relevant to the weight to be given to evidence of prior negotiations,
a point to which we shall return shortly.
….
[60] It seems to us that there is an ambiguity in the 2014 Agreement regarding the
laundry allowance referred to in Attachment 3. In particular, it is unclear in what
circumstances the amount specified is to be paid and to whom. The frequency with
which any such payment is to be made is also unclear.
[61] Having identified ambiguity it is permissible to consider evidence of the
surrounding circumstances as an aid to the task of interpreting the agreement. As
Mason J observed in Codelfa Construction Pty Ltd v State Rail Authority (NSW)
(Codelfa):47
‘… evidence of surrounding circumstances is admissible to assist in the
interpretation of the contract if the language is ambiguous or susceptible of
more than one meaning. But it is not admissible to contradict the language of
the contract where it has a plain meaning.’48
[62] The admissibility of evidence of the surrounding circumstances is limited to
evidence tending to establish objective background facts which were known to both
parties and the subject matter of the contract. Evidence of such objective facts is to be
distinguished from evidence of the subjective intentions of the parties, such as
43 [2015] FCAFC 142.
44 Ibid at [108].
45 NTEU v La Trobe University [2015] FCAFC 142 at [109] per White J.
46 (2009) 188 IR 297 at [19]-[22].
47 (1982) 149 CLR 337.
48 Ibid at 352.
[2018] FWCFB 3744
15
statements and actions of the parties which are reflective of their actual intentions and
expectations. As Mason J observed in Codelfa:
‘… when the issue is which of two or more possible meanings is to be given to
a contractual provision we look, not to the actual intentions, aspirations or
expectations of the parties before or at the time of contract, except insofar as
they are expressed in the contract, but to the objective framework of facts
within which the contract came into existence, and to the parties’ presumed
intention in this setting.’49
[63] As noted in Golden Cockerel, evidence of relevance to the objective
framework of facts will include:
i. evidence of prior negotiations to the extent that the negotiations tend to
establish objective background facts known to all parties and the
subject matter of the agreement;
ii. notorious facts of which knowledge is to be presumed; and
iii. evidence of matters in common contemplation and constituting a
common assumption.
[64] As to category (i), evidence of prior negotiations will be admissible – but only
for a defined purpose. As Mason J observed in Codelfa:
‘Generally speaking facts existing when the contract was made will not be
receivable as part of the surrounding circumstances as an aid to construction,
unless they were known to both parties, although, as we have seen, if the facts
are notorious knowledge of them will be presumed.
It is here that a difficulty arises with respect to the evidence of prior
negotiations. Obviously the prior negotiations will tend to establish objective
background facts which were known to both parties and the subject matter of
the contract. To the extent to which they have this tendency they are
admissible. But in so far as they consist of statements and actions of the parties
which are reflective of their actual intentions and expectations they are not
receivable. The point is that such statements and actions reveal the terms of the
contract which the parties intended or hoped to make. They are superseded by,
and merged in, the contract itself. The object of the parole evidence rule is to
exclude them, the prior oral agreement of the parties being inadmissible in aid
of construction, though admissible in an action for rectification.’50
[65] Admissible extrinsic material may be used to aid the interpretation of a
provision in an enterprise agreement with a disputed meaning, but it cannot be used to
disregard or rewrite the provision in order to give effect to an externally derived
conception of what the parties’ intention or purpose was. So much is clear from the
oft-quoted statement of Madgwick J in Kucks v CSR Limited:51
49 Ibid.
50 Ibid.
51 (1996) 66 IR 182 at 184.
[2018] FWCFB 3744
16
‘But the task remains one of interpreting a document produced by another or
others. A court is not free to give effect to some anteriorly derived notion of
what would be fair or just, regardless of what has been written into the award.
Deciding what an existing award means is a process quite different from
deciding, as an arbitral body does, what might fairly be put into an award. So,
for example, ordinary or well-understood words are in general to be accorded
their ordinary or usual meaning.’
….
[88] The diversity of interests involved in the negotiation and making of enterprise
agreements warrants the adoption of a cautious approach to the admission and reliance
upon evidence of positions advanced during the negotiation process. As Rares J
recently observed, in Australian International Air Pilots Association v Qantas Airways
Limited:52
‘Substantially, the Act provided that the agreement was a tripartite document
between a body of employees, a corporation with numerous officers and an
industrial association. The involvement of so many individuals in the formation
of the agreement re-emphasises the importance of approaching the construction
of that document in accordance with the principle of objectivity. It is important,
in doing so, to be cautious and bear firmly in mind the fact that the agreement
was formed by a diversity of persons who had sought to protect their differing
interests by various formulations of words in it. Those disparate intentions
cannot be determinative of the proper construction to be given to the words
chosen. In Health Services Union v Ballarat Health Services [2011] FCA 1256
at [79], Gray J said:
“In the days when an award might be negotiated between a union and an
employer, and made by consent, the existence of a common
understanding between the union and the employer as to the meaning of
terms might have had some role to play in their construction. Whatever
were the terms of such an agreement, and whatever their meaning was,
those terms were imposed upon the employees who became bound by the
award. In the current era, most industrial instruments are required to be
put to a vote of the employees whose work will be covered by them,
before they can be certified or approved so as to become enforceable by
statute. The union and the employer who negotiated the terms might have
had a common understanding of the meaning of them, but that
understanding might not have been shared by all or some of the
employees who voted for the operation of the agreement. They may have
been entirely ignorant of the common understanding. In those
circumstances, the occasions on which it can be said that a party to an
agreement who entered into it on a common understanding should not be
allowed to resile from that understanding will be rarer than they have
been in the past.”‘
….
52 [2017] FCA 346 at [29].
[2018] FWCFB 3744
17
[101] The admissibility of the post-contractual conduct as an aid to the construction
of a contract is a somewhat vexed issue, in respect of which no clear line of authority
has emerged.
[102] Some early High Court authority permitted the admissibility of post-
contractual conduct as an aid to construction.53 But obiter in more recent High Court
judgements tends to support the view that such evidence is inadmissible.54
[103] Further, in Agricultural and Rural Finance Pty Ltd v Gardiner,55 a majority of
the High Court adopted the ‘general principle’ that ‘it is not legitimate to use as an aid
to the construction of [a] contract anything which the parties said or did after it was
made’. Of course, the expression ‘general principle’ is itself somewhat ambiguous, as
Campbell JA observed in Franklins Pty Ltd v Metcash Trading Ltd (Metcash):56
‘It might mean that it is a principle that applies in all cases, or that it is a
principle that usually applies, though perhaps being subject to exceptions.’
[104] As Allsop P observed in Metcash (at [6]), ‘much ink has been spilt over the
last 30 years on this topic’. There is a daunting array of intermediate appellate court
judgements on the admissibility of post contractual conduct,57 but no clear consensus
appears to have emerged.
[105] The judgement of Santow J in Spunwill Pty Ltd v BAB Pty Ltd58 gave detailed
consideration to whether subsequent conduct may be used as an aid to construction.
Spunwill is a significant first instance judgement that has been considered, and cited
with approval, in some of the intermediate appellate court judgements which have
dealt with this issue. After considering the relevant authorities, Santow J concluded
that the use of subsequent conduct as an aid to the construction of a contract:
‘… will be legitimate under the objective theory of contract in the limited
circumstances where conduct evidences a clear and mutual subjective intention
as to what the contract originally meant.’59
[106] In the industrial context it has been accepted that, in some circumstances,
subsequent conduct may be relevant to the interpretation of an industrial instrument.
But, consistent with the view expressed by Santow J in Spunwill, the post-contractual
conduct must be such as to found a common understanding – a settled interpretation
accepted by the parties.
53 See Howard Smith and Co Ltd v Verawa (1907) 5 CLR 68 at 78; Farmer v Hanon (1919) 26 CLR 183 at 197 and White v
Australian and New Zealand Theatres Ltd (1943) 67 CLR 266 at 275 and 281.
54 Administration of Papua New Guinea v Daera (1973) 130 CLR 353 at 446; Codelfa Construction Pty Ltd v State Rail
Authority of NSW (1982) 149 CLR 337 at 348.
55 (2008) 251 ALR 322 at [35] per Gummow, Hayne and Kiefel JJ, and at [163] per Heydon J.
56 [2009] NSWCA 407 at [319] per Allsop P .
57 Metcash at [330].
58 (1994) 36 NSWLR 290 at 304.
59 Ibid at 312.
[2018] FWCFB 3744
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[107] We also note that in Spunwill60 Santow J observed that in deciding on the
weight to be given to extrinsic evidence of post contractual conduct as part of the
surrounding circumstances, it was useful to refer to the following passage from the
judgment of Lambert JA in the Canadian case of Re Canadian National Railways and
Canadian Pacific Ltd 61:
‘In the case of evidence of subsequent conduct the evidence is likely to be most
cogent where the parties to the agreement are individuals, the acts considered
are the acts of both parties, the acts can relate only to the agreement, the acts
are intentional and the acts are consistent only with one of the alternative
interpretations. Where the parties to the agreement are corporations and the
acts are the acts of employees of the corporations, then evidence of subsequent
conduct is much less likely to carry weight. In no case is it necessary that
weight be given to evidence of subsequent conduct.’”
[32] The Full Bench then modified the summary set out in Golden Cockerel in light of the
observations made in the course of our decision:
“[114] The principles relevant to the task of construing a single enterprise agreement
may be summarised as follows:
1. The construction of an enterprise agreement, like that of a statute or contract,
begins with a consideration of the ordinary meaning of the relevant words. The
resolution of a disputed construction of an agreement will turn on the language of
the agreement having regard to its context and purpose. Context might appear
from:
i. the text of the agreement viewed as a whole;
ii. the disputed provision’s place and arrangement in the agreement;
iii. the legislative context under which the agreement was made and in
which it operates.
2. The task of interpreting an agreement does not involve rewriting the agreement to
achieve what might be regarded as a fair or just outcome. The task is always one of
interpreting the agreement produced by parties.
3. The common intention of the parties is sought to be identified objectively, that is
by reference to that which a reasonable person would understand by the language
the parties have used to express their agreement, without regard to the subjective
intentions or expectations of the parties.
4. The fact that the instrument being construed is an enterprise agreement made
pursuant to Part 2-4 of the FW Act is itself an important contextual consideration.
It may be inferred that such agreements are intended to establish binding
obligations.
60 Ibid.
61 (1978) 95 DLR (3d) 242 at 262.
[2018] FWCFB 3744
19
5. The FW Act does not speak in terms of the ‘parties’ to enterprise agreements made
pursuant to Part 2-4 agreements, rather it refers to the persons and organisations
who are ‘covered by’ such agreements. Relevantly s.172(2)(a) provides that an
employer may make an enterprise agreement ‘with the employees who are
employed at the time the agreement is made and who will be covered by the
agreement’. Section 182(1) provides that an agreement is ‘made’ if the employees
to be covered by the agreement ‘have been asked to approve the agreement and a
majority of those employees who cast a valid vote approve the agreement’. This is
so because an enterprise agreement is ‘made’ when a majority of the employees
asked to approve the agreement cast a valid vote to approve the agreement.
6. Enterprise agreements are not instruments to which the Acts Interpretation Act
1901 (Cth) applies, however the modes of textual analysis developed in the
general law may assist in the interpretation of enterprise agreements. An overly
technical approach to interpretation should be avoided and consequently some
general principles of statutory construction may have less force in the context of
construing an enterprise agreement.
7. In construing an enterprise agreement it is first necessary to determine whether an
agreement has a plain meaning or it is ambiguous or susceptible of more than one
meaning.
8. Regard may be had to evidence of surrounding circumstances to assist in
determining whether an ambiguity exists.
9. If the agreement has a plain meaning, evidence of the surrounding circumstances
will not be admitted to contradict the plain language of the agreement.
10. If the language of the agreement is ambiguous or susceptible of more than one
meaning then evidence of the surrounding circumstance will be admissible to aide
the interpretation of the agreement.
11. The admissibility of evidence of the surrounding circumstances is limited to
evidence tending to establish objective background facts which were known to
both parties which inform and the subject matter of the agreement. Evidence of
such objective facts is to be distinguished from evidence of the subjective
intentions of the parties, such as statements and actions of the parties which are
reflective of their actual intentions and expectations.
12. Evidence of objective background facts will include:
(i) evidence of prior negotiations to the extent that the negotiations tend to
establish objective background facts known to all parties and the subject matter
of the agreement;
(ii) notorious facts of which knowledge is to be presumed; and
(iii) evidence of matters in common contemplation and constituting a common
assumption.
[2018] FWCFB 3744
20
13. The diversity of interests involved in the negotiation and making of enterprise
agreements (see point 4 above) warrants the adoption of a cautious approach to the
admission and reliance upon the evidence of prior negotiations and the positions
advanced during the negotiation process. Evidence as to what the employees
covered by the agreement were told (either during the course of the negotiations or
pursuant to s.180(5) of the FW Act) may be of more assistance than evidence of
the bargaining positions taken by the employer or a bargaining representative
during the negotiation of the agreement.
14. Admissible extrinsic material may be used to aid the interpretation of a provision
in an enterprise agreement with a disputed meaning, but it cannot be used to
disregard or rewrite the provision in order to give effect to an externally derived
conception of what the parties’ intention or purpose was.
15. In the industrial context it has been accepted that, in some circumstances,
subsequent conduct may be relevant to the interpretation of an industrial
instrument. But such post-agreement conduct must be such as to show that there
has been a meeting of minds, a consensus. Post-agreement conduct which amounts
to little more than the absence of a complaint or common inadvertence is
insufficient to establish a common understanding.”
[33] We adopt the principles as set out in Berri. Consequently, we must,
a) begin our analysis with a consideration of the ordinary meaning of the words
of the relevant clauses in the Agreement and the Incorporated Award,
b) determine whether the Agreement (and the terms of the incorporated by the
Award) have a plain meaning,
c) review the text of the Agreement as a whole,
d) not rewrite the Agreement to achieve what might be regarded as a fair or just
outcome,
e) (in determining the objective intention of the parties) do so by reference to
what a reasonable person would understand by the language used in the
Agreement,
f) not adopt an overly technical approach to the interpretation of the Agreement,
and
g) not contradict the plain language of the Agreement.
Submissions – Glen Cameron
[34] Before us Glen Cameron contended that,
“… clause 18.1 of the Agreement operated to the exclusion of any incorporated Award
provision which was in conflict with a provision of the Agreement by virtue of clause
2 of the Agreement…”
[35] Further, Glen Cameron contended that,
a) “The Award is incorporated into the Agreement only to the extent that it is
consistent with a term or terms of the Agreement.
b) Where the terms of the Award are inconsistent with the Agreement (whether in
whole or in part) then the clause in the Award is completely excluded.
[2018] FWCFB 3744
21
c) The terms of the Agreement are clear from both the text and the context that
employees, including employees engaged on shift work, are entitled to a 30
minute unpaid meal break for every 5 hours of work performed; and
d) Therefore, due to the operation of clause 2 of the Agreement, the terms of
clause 24.9 of the Award which are concerned with a 20 minute paid meal
break are completely excluded.”
[36] Glen Cameron submitted as follows,
“The Dispute
17. The dispute application filed by the TWU below concerned the interpretation
of:
(a) Clause 2 of the Agreement;
(b) Clause 18.1 of the Agreement; and
(c) Clause 24.9 of the Award.
18. As noted above at paragraph 15, the Award is incorporated and to that extent it
forms part of the Agreement and is not a separate document. This is by virtue of
section 57 of the FW Act.
19. The TWU allege that employees engaged by the respondent within the
coverage of the Agreement on afternoon or night shift were entitled to a paid 20
minute meal break pursuant to clause 24.9 of the Award. The appellant rejected this
assertion.
20. Pursuant to clause 21 of the Agreement and section 739 of the FW Act, the
TWU made an application to the Commission for this dispute to be resolved by
arbitration.
21. Prior to the Agreement, the industrial arrangements in place for the appellant
were regulated and governed in NSW by a former enterprise agreement called the
Glen Cameron NSW EBA, 2009 to 2012 (the Former Agreement) which was
approved by the Commission on 3 December 2009 by Commissioner Lewin.
22. The Former Agreement was subsequently replaced by the Agreement.
23. Clause 25A – Meal Break, of the Former Agreement was in the same terms as
clause 18. Further, employees of the Appellant employed at the time the Former
Agreement was in operation did not receive a paid meal break nor did the same
employees receive a paid meal break once the Agreement was made or once the
Agreement was approved by the Commission. This is the evidence of Mr Rohan and
remained unchallenged by the TWU.
24. The Former Agreement operated until it was replaced by the Agreement,
which was approved on 6 January 2016 and commenced on 13 January 2016.
25. The Agreement was made between 17 and 24 November 2015 when the
employees of the appellant voted to approve the Agreement.
[2018] FWCFB 3744
22
Approach to Interpretation
26. The principles, which are to be applied to the task of interpreting an enterprise
agreement, are helpfully summarized in Golden Cockerel. The Appellant does not
repeat them.
27. The dispute between the parties fundamentally requires the Full Bench to
ascertain and give effect to the proper interpretation of the Agreement. The process of
interpretation requires focus to be placed “first and foremost” on the language of the
Agreements: SDA v Woolworths Ltd. Ultimately, the process of interpretation is
directed to ascertaining the meaning of words. The task of determining what meaning
words convey is to be undertaken having regard to the objective circumstances know
to all the parties at the time and in the industrial context in which an agreement was
made.
28. As such, it is a necessary first step for Full Bench to ascertain the meaning of
the words of clause 18.1 of the Agreement.
29. As is well entrenched, the “golden rule” of the common law as to statutory
construction is that the grammatical and ordinary sense of the words is to be adhered
to: JJ Richards and Sons Pty Ltd v Fair Work Australia (2012) 201 FCR 297 at [50].
In this regard, it is non- controversial that the principles of statutory interpretation are
applicable to the construction of enterprise agreements: Short v F W Hercus Pty Ltd
(1993) 40 FCR 511 at 520; DP World Brisbane Pty Ltd [2013] FWCFB 8557 at [32]-
[37].
30. In the present case, there is no basis for limiting the application of clause 18.1
to employees who only work a shift other than an afternoon or night shift.
31. Firstly, there is nothing that can be identified in the Agreement that would permit
and conclusion that the express provisions of Agreement are limited to only applying
to employees who work dayshift. Clause 2 of the Agreement makes pellucid that the
Agreement covers, “…. all employees of the Company which fall with the jurisdiction
of the [Award]…..”. It must follow therefore that all employees, irrespective of their
classification or employment status are covered by the Agreement.
32. Secondly, clause 14 of the Agreement does no more than simply identify and
stipulate what the ordinary hours of employees covered the Agreement are. It further
expresses the methods by which such ordinary hours may be worked.
33. Thirdly, clause 15 of the Agreement describes the various rostering options in
which employees may be directed to work their ordinary hours (emphases added).
34. Lastly, clause 18 is proscribes the “rules” for the taking of “Meal and Rest
Breaks”. There is nothing in the clause that can lead to a conclusion that the clause is
only relevant to employees who work a shift other than afternoon or night shift.
35. The task of interpretation includes a consideration of not only the text but also but
also of the surrounding circumstance known to the parties, and the object of the
[2018] FWCFB 3744
23
transaction. In that context, what matters therefore is what each of party by words and
conduct would have led a reasonable person in the position in the position of the other
party to believe. As noted above at paragraph 27 this consideration must be undertaken
objectively.
36. The Appellant contends that, having regard to paragraph 35 above, it is not
open to find that clause 18 of the Agreement does not apply to all employees for the
following reasons:
(a) Whilst the Agreement does not expressly deal with shift workers as
contemplated by clause 24 of the Award, clause 18 expressly deals with the
taking of Meal and Rest Breaks for all employees;
(b) Clause 18 stands alone and is not a sub-clause or subordinate clause to
another clause or clauses of the Agreement dealing with a specific subject
matter. The clause stands in isolation.
(c) Given that clause 18 is a standalone clause, all other clauses in the Award
dealing in whole or in part with the same subject matter must yield and give
way to the supremacy of clause 18 as a consequence of clause 2 of the
Agreement;
(d) Further or in the alternative;
(i) there is objective evidence that the Appellant had employees working
either afternoon and/or night shift at the time the Agreement was made
and that clause 18.1 was in identical terms in the Former Agreement.
(ii) There is further objective evidence by way of the minutes of the
negotiations of the Agreement that the parties turned their attention to
amending clause 18.2 and not 18.1 of the Agreement.
(e) The evidence referred to in sub-paragraph (d)(i) and (d)(ii) was
unchallenged.
37. The Appellant submits that the evidence referred to in 36(e) is relevant and
consequently admissible (which evidence was admitted below) as it gives context to
the history of the Former Agreement and the Agreement because it aids in the
objective construction of the Agreement by having regard to the context in which it
was made and the mutually know facts at the time.
38. In Kucks v CSR the Court emphasized that it was:
“….not free to give effect to some anteriorly derived notion of what would be
fair or just, regardless of what has been written into the award. Deciding what
an existing award means is a process quite different from deciding, as an
arbitral body does, what might fairly be put into an award. So, for example,
ordinary and well-understood words are in general to be accorded their
ordinary or usual meaning”
[2018] FWCFB 3744
24
39. The Appellant therefore submits that the Full Bench is not to have regard to
notions of fairness or what a shift worker may usually be entitled to when undertaking
its task.
40. Of course, it is conceded that the unreasonableness of a particular construction
is a relevant consideration. The more unreasonable the result the more unlikely it is the
parties would not have intended that result. However, in the current circumstances the
construction the Appellant contends for is not even remotely close to an unreasonable
construction when one has regard to the objective evidence.
Common Understanding
41. In SDA v Woolworths [2013] FWCFB 2814, the Full Bench affirmed that in the
process of interpretative analysis the “task is to identify the common intention of the
parties as they expressed it in the terms of their agreement”. Although the Full Bench
recognised that “…it is permissible to take into account the industrial context and
purpose of the agreement”, the Full Bench held that there are two important
limitations:
(a) first, as noted above, the process of interpretative analysis must focus, first
and foremost, upon the language of the agreement itself; and,
(b) second, regard cannot be had to the respective subjective intentions and
expectations of the parties as demonstrated by their “statements and actions” in
negotiating the agreement.
42. As noted at paragraph 36(d) above, unchallenged objective evidence was available
to assist DP Bull with the interpretative task, which he was duty bound to undertake.
In this context, his Honour failed to have regard to the “common understanding” of the
parties as to the meaning of sub-clause 18.1 of the Agreement and clause 25A of the
Former Agreement.
43. The principle of “common understanding” stated by Tracey J in Transport
Workers’ Union of Australia v Linfox Australia Pty Ltd [2014] FCA 829 (Linfox) at
[36] was as follows:
“A further aid to construction was referred to in submissions. It related to the
possibility that the parties had, historically, adopted a common understanding
as to the meaning and effect of disputed provisions in the relevant
instruments”.
44. At [41] Tracey J cited with approval the decision of Gray J in the SDAEA case
as follows:
“There is authority that, if a provision has appeared in a series of agreements
[2018] FWCFB 3744
25
between the same parties, and if they can be shown to have conducted
themselves according to a common understanding of the meaning of that
provision, then it can be taken that they have agreed that the term should
continue to have the commonly understood meaning in the current agreement.
See Merchant Service Guild of Australia v Sydney Steam Collier Owners and
Coal Stevedores Assn (1958) 1 FLR 248 at 251 per Spicer CJ, 254 per Dunphy
J and 257 per Morgan J, and Printing and Kindred Industries Union v Davies
Bros Ltd (1986) 18 IR 444 at 452–453. It is necessary to take great care in the
application of this limited principle, to avoid infringing the general principle
that the conduct of parties to an agreement cannot be taken into account in
construing the agreement. For the limited principle to operate, there must be
clear evidence that the parties have acted upon a common understanding as to
the meaning of the relevant provision and not for other reasons, such as
common inadvertence to its true meaning.”
45. In Linfox, Tracey J applied this limited principle, but it is clear that his Honour did
so by reference to a common understanding of the actual text contained in the relevant
enterprise agreement. At [88], his Honour noted that the disputed words in question
were “day shift” and set out its literal meaning. At [92], his Honour noted that
provisions of earlier instruments “contained clauses in the same terms as those which
are centrally relevant in the present proceeding”. At [93], his Honour noted that the
“same provisions” had been incorporated into subsequent instruments and the “terms
of the relevant provision” had been “consistently applied”.
46. It is apparent from this analysis that the limited principle of “common
understanding” is (unsurprisingly) confined in its operation to the meaning of the
actual words contained in an agreement. Hence, for example, in Linfox, the dispute
related to a historical common understanding as to the meaning of the words “day
shift”, in the ALHMWU case the dispute related to a historical common understanding
as to the meaning of the words “instrumentalities” and in SDAEA case the dispute
related to the meaning of the words “ordinary pay”. Likewise, in Merchant Service
Guild of Australia v Sydney Steam Collier Owners and Coal Stevedores Assn (1958) 1
FLR 248, which was cited by both Tracey J in Linfox and Gray J in the SDAEA case,
it was made apparent that the dispute related to the meaning of words which had been
in “operation for over fourteen years” (per Spicer CJ at 251.2), where there were
“similar provisions” (at 254 per Dunphy J) and the “same words” had been retained (at
257 per Morgan J) and had been used in successive instruments. In Printing and
Kindred Industries Union v Davies Bros Ltd (1986) 18 IR 444 at 452–453, the dispute
related to the meaning of the word “employee” as used overtime in successive awards.
47. It is critical to bear in mind, and it is axiomatic, that the principles as to “common
understanding” are premised upon, and confined to, a historical understanding
between the parties as to disputed words where those words and the relevant
provisions of the contested instruments have remained unchanged. As Gray ACJ stated
in the SDAEA case at [31]:
[2018] FWCFB 3744
26
“There is authority that, if a provision has appeared in a series of agreements
between the same parties, and if they can be shown to have conducted
themselves according to a common understanding of the meaning of that
provision, then it can be taken that they have agreed that the term should
continue to have the commonly understood meaning in the current agreement.”
48. It is immediately evident that the principle so stated is confined to instances where
(a) the relevant provision has appeared in a series of agreements, and (b) the parties
have a consensus as to the meaning of that provision. However, both of those
conditions existed in the present case: first, sub-clause 18.1 of the Agreement was
drafted in identical terms to clause 25A of the Former Agreement, and, second, there
was evidence before the Commission that all the employees engaged by the appellant,
including those performing shift work received an unpaid 30 minute meal break after
every 5 hours worked. This remained the case for the first break following the
negotiation of the Agreement (the common understanding) but clause 25B of the
Former Agreement was modified following negotiation to provide payment for the
break taken after the second 5 hours worked as evidenced in clause 18.2 of the
Agreement.
49. Further, the appellant contends that the learned Deputy President erred to not
drawing an adverse inference from the TWU’s failure to call any witnesses who were
present during the negotiation of the Agreement.
50. Finally, DP Bull failed to have regard to the minutes of the negotiation meetings,
which gave rise to the Agreement.
51. For these reasons, the Appellant contends that the learned Deputy President:
(a) erred in the proper construction of the Agreement, misapplied the
principles of interpretation;
(b) erred in particular by applying the notion of “logic” to substitute his view of
the manner in which the Agreement should operate and in so doing misapplied
the principles of interpretation; and
(c) erred by failing to have regard to relevant evidence in determining whether
the agreement gave rise to inconsistency.”
Submissions – TWU
[37] The TWU submitted as follows,
“Relevant Provisions of the Agreement
18. The dispute between the parties turns upon the proper interpretation of the
Agreement and, particular, the interaction between provisions of the Award which are
incorporated into the Agreement by reference and the remainder of the Agreement.
[2018] FWCFB 3744
27
The approach to interpretation is described in detail in Australasian Meat Industry
Employees’ Union v Golden Cockerel Pty Ltd (2014) 245 IR 294 at [41] and, more
recently, in AMWU v Berri Pty Limited [2017] FWCFB 3005 at [114]. It is
unnecessary to repeat them here.
19. Relevant provisions of the Agreement include the following. The parties to the
Agreement are set out in clause 2 and are Glen Cameron Nominees Pty Ltd, the TWU
and employees falling within the “jurisdiction” of the Award. Clause 2 further
provides:
It is further agreed that all of the terms of the Award, as amended from time to
time, shall apply to employees covered by this Agreement provided however
that where a clause of this Agreement is inconsistent with a clause of the
Award in part or in whole, the clause in this Agreement shall prevail to the
complete exclusion of the Award clause.
20. Clause 12 of the Agreement provides that the “ordinary spread of hours are
from 4.00 am to 7.00 pm.” Similarly, clause 14 provides for ordinary hours of work
and, relevantly, provides that:
A full time employee must be rostered to work their ordinary hours, between
the hours of 4.00am and 7pm, Monday to Sunday.
21. Clause 15 provides that “an employee may be rostered to work their ordinary
hours” by a number of different methods. The rostering arrangements then set out in
clauses 15.1 and 15.2 require provision for a “30 minute unpaid meal break”.
22. Clause 18 provides for “Meal & Rest Breaks” and provides as follows:
18.1 Meal Break
An employee shall be allowed a 30 minute unpaid meal break, for every five
hours of work performed. The employee shall use their discretion to take the
meal break but it may not be taken within the first 4 hours of commencing
work and shall not be taken later than 5 hours after commencing work. The
meal break shall be taken as directed by the Supervisor, only where it would
otherwise cause a disruption to the on-going performance of work.
23. Clause 18.2 makes provision for an overtime crib break where an employee is
required to work overtime for two hours or more after working ordinary hours.
24. The Award makes provision for the hours of work of day workers in clause 22.
As an alternative, an employee covered by the Award may perform “shiftwork” which
is defined in clause 24.1(d) as follows:
shiftwork means work extending for at least two weeks and performed either in
daily recurrent periods, wholly or partly between the hours of 6.30 pm and 8.30
am or in regular rotating periods but does not include work performed by day
workers employed under clause 22—Ordinary hours of work
[2018] FWCFB 3744
28
25. Separate provision is made with respect to the conditions of employment of
shift workers, including hours of work and rostering of shift workers (clause 24.2), the
payment of shift allowances (clause 24.3), casual shift workers (clause 24.4), overtime
payments for shift workers (clause 24.5), shift work on Saturdays and Sundays (clause
24.8), meal breaks (clause 24.9) and holiday shifts (clause 24.12).
26. Relevantly, clause 24.9 provides:
24.9 Meal breaks
All shiftworkers while working on day, afternoon or night shift will be entitled
to a paid meal break of 20 minutes. An employee must not be required to work
more than five hours without a meal break.
27. It is clear, as developed below, that the Award provides a separate regime of
conditions for shift workers as opposed to day workers, at least with respect to hours
of work, rostering and breaks. The Agreement, on the other hand, does not directly
make provision for shift work at all.
[…]
Grounds of Appeal
30. The notice of appeal sets out 7 grounds of appeal. The more recent
submissions of the [appellant] focus upon two submissions. Firstly, it is submitted that
the construction adopted by the Deputy President was not open or otherwise
erroneous. Secondly, the appellant relies upon what is said to be the “common
understanding” of the interpretation of the relevant terms of the Agreement. These
submissions will address those two matters and, where appropriate, repeats matters set
out in the earlier submissions filed by the TWU.
Entitlement to Paid Meal Break
31. The appellant’s submissions rely upon the assertion that clause 18.1 of the
Agreement should be interpreted to apply to shift workers and is, as a result,
inconsistent with the application of clause 24 of the Award. It is submitted that the
Deputy President departed from the “golden rule” of statutory construction which is
said to be that the grammatical and ordinary sense of the words used is to be adhered
to.”
32. The appellant’s submissions in effect seek to interpret clause 18.1 of the
Agreement in isolation and are inconsistent is fundamental principles of statutory
[2018] FWCFB 3744
29
interpretation and the approach long adopted to the interpretation of industrial
instruments. A particular statutory provision must be read in the context of the
legislation as a whole: K & S Lake City Freighters Pty Ltd v Gordon & Gotch Ltd
(1985) 157 CLR 309 at 314-315; Project Blue Sky Inc v Australian Broadcasting
Authority (1998) 194 CLR 355 at 381. In K & S Lake City Freighters Pty Ltd, for
example, Mason J (as his Honour then was) said (at 315):
… to read the section in isolation from the enactment of which it forms a part is
to offend against the cardinal rule of statutory interpretation that requires the
words of a statute to be read in their context. … Problems of legal
interpretation are not solved satisfactorily by ritual incantations which
emphasize the clarity of meaning which words have when viewed in isolation,
divorced from their context.
33. The approach of requiring a particular provision to be read in the context of an
instrument as a whole has also been consistently applied in the interpretation of
awards and industrial agreements. In City of Wanneroo v Australian Municipal,
Administrative, Clerical and Services Union (2006) 153 IR 426, for example, French J
(as his Honour then was) said (at 438):
The construction of an award, like that of a statute, begins with a consideration
of the ordinary meaning of its words. As with the task of statutory construction
regard must be paid to the context and purpose of the provision or expression
being construed. Context may appear from the text of the instrument taken as a
whole, its arrangement and the place in it of the provision under construction.
It is not confined to the words of the relevant Act or instrument surrounding the
expression to be construed. It may extend to “… the entire document of which
it is a part or to other documents with which there is an association”. It may
also include “… ideas that gave rise to an expression in a document from
which it has been taken” — Short v FW Hercus Pty Ltd (1993) 40 FCR 511 at
518 (Burchett J); Australian Municipal, Clerical and Services Union v
Treasurer of the Commonwealth of Australia (1998) 80 IR 345 (Marshall J)
34. In Amcor Ltd v Construction, Forestry, Mining and Energy Union (2005) 222
CLR 241, Gummow, Hayne and Heydon JJ said (at 253):
Clause 55.1.1 must be read in context. It is necessary, therefore, to have regard
not only to the text of cl 55.1.1, but also to a number of other matters: first, the
other provisions made by cl 55; secondly, the text and operation of the
Agreement both as a whole and by reference to other particular provisions
made by it; and, thirdly, the legislative background against which the
Agreement was made and in which it was to operate
35. The Commission has, of course, adopted the same approach: see, for example,
Australasian Meat Industry Employees Union v Teys Australia Beenleigh Pty Ltd
(2014) 245 IR 170 at [29]- [37]; Australasian Meat Industry Employees Union v
Golden Cockerel Pty Ltd (2014) 245 IR 294 at [19]-[22]; AMWU v Berri Pty Limited
[2017] FWCFB 3005 at [114].
[2018] FWCFB 3744
30
36. Bull DP applied relevant authorities in relation to the approach to the
interpretation of industrial instruments, including City of Wanneroo, Kucks v CSR
Limited and Golden Cockerel. The Deputy President was correct to interpret the meal
break provisions of the Agreement in the context of the Agreement as a whole. The
Deputy President would have fallen into error if he had, as urged by the appellant,
interpreted a particular provision in isolation from other provisions of the Agreement.
37. When the Agreement is read as a whole, the Deputy President was correct to
conclude that no inconsistency arose between the application of the shift work
provisions of the Award and the remaining provisions of the Agreement. In particular,
it is noted that:
(a) The provisions of the Agreement itself (leaving aside the incorporation
of the Award) make no provision at all for shift work and sets no conditions of
employment for shift workers. In those circumstances, it is appropriate to infer
that the parties intended that the conditions of employment of shift workers be
covered by the incorporated provisions of the Award.
(b) Clause 12 provides that the ordinary spread of hours are from 4am to 7pm
and clause 14 requires that an employee “must” be rostered to work their
ordinary hours of work between 4am and 7pm, Monday to Sunday. In contrast
to the Award, the Agreement makes no provision for an employee to work
ordinary hours other than as a day worker within the span of hours specified.
(c) Clause 15 deals with rostering and provides for the manner in which an
employee “may be rostered to work their ordinary hours”, that is, the ordinary
hours which must (in accordance with clause 14) be worked between 4am and
7pm. Clause 15.1 and 15.2 provide that the “ordinary hours” of an employee
must be rostered so as to include a “30 minute unpaid meal break”. Those
provisions can (in accordance with clause 14) only apply to workers working
within the spread of hours in clause 12 of the Agreement.
(d) Clause 17 deals with overtime and requires that an employee who “exceeds
the number of ordinary hours worked for their shift, during the spread of
ordinary hours of 4.00am to 7pm Monday to Friday” or “during the spread of
ordinary hours on a Saturday … and on a Sunday”. Again, the Agreement
makes no provision for the performance of work outside the ordinary spread of
hours and only provides for overtime to be worked within that spread.
(e) Clause 18 then deals with meal and rest breaks. Clause 18.1 provides that
an employee shall be allowed a 30-minute unpaid meal break “for every five
hours of work performed”. The expression “hours of work performed” in
clause 18.1 can only, in the context of clauses 12, 14, 15 and 17, be read as a
reference to hours worked between 4am and 7pm. The Agreement (leaving
aside the incorporation of the Award) only provides for work to be performed
between 4am and 7pm.
(f) There is no basis upon which clause 18.1 could be construed as making
provision for meal breaks for employees performing work other than in the
[2018] FWCFB 3744
31
spread of hours provided for in the Agreement. It is also noted, in this respect,
that clause 15.1 and 15.2 make clear that provision for a 30-minute unpaid
meal break is a requirement for the rostering of “ordinary hours”, that is, the
ordinary hours set out in clause 14.
(g) Clause 18.2 provides for a paid break of 20 minutes where an employee is
required to work overtime for two or more “after working ordinary hours”.
When read with clauses 14 and 17, it is clear that clause 18.2 is dealing with
employees working within the spread of “ordinary hours” for which the
Agreement provides. It would be most surprising if clause 18.1 was intended to
apply to shift workers, but clause 18.2 was not.
38. The appellant’s assertion that the reference to “an employee” in clause 18.1
means “all employees, irrespective of their classification or employment status
covered by the Agreement”,21 ignores the full terms of clause 18.1 and the
surrounding provisions of the Agreement. The expression “hours of work performed”
in clause 18.1 can only be understood as referring to the hours of work provided for in
the Agreement and the clause can only have sensible application to day workers
performing work in accordance with clauses 12, 14 and 15 of the Agreement.
39. For these reasons, the Agreement can only be interpreted as intending that the
conditions of employment for employees performing shift work are to be dealt with by
the incorporation of the provisions of the Award. Clauses 14, 15, 17 and 18 of the
Agreement can only be read as applying to employees working within the spread of
hours set out in clause 12. No inconsistency arises between those provisions, including
clause 18.1, and clause 24 of the Award and clause 24 of the Award applies to shift
work pursuant to clause 2 of the Agreement.
40. If the appellant were correct that clause 18 of the Agreement is inconsistent
with clause 24 of the Award, the inconsistency component of clause 2 would have
operation. Clause 2 provides that if a clause of the Agreement is inconsistent with a
clause of the Award “in whole or in part”, the clause of the Agreement shall prevail
“to the complete exclusion of the Award clause.” Accordingly, if the appellant’s
submissions were correct, clause 24 of the Award would be completely excluded for
employees covered by the Agreement.
41. The consequence would be that the Agreement (incorporating the Award)
would make no provision for shift work at all. The appellant would be unable to roster
employees other than in accordance with clause 14 of the Agreement which, as we
have seen, only permits ordinary hours to be- rostered between 4am and 7pm. If the
appellant wished employees to work outside those hours, it would be required to pay
overtime and it would be liable for underpayments to employees who have, until now,
been working outside the span of hours prescribed in clause 14 of the Agreement.
[2018] FWCFB 3744
32
42. To the extent it is submitted that the Deputy President erred by reasoning by
the use of “logic”, no error is demonstrated. Longstanding approaches to statutory
interpretation include consideration of the consequences of a particular interpretation,
including whether the interpretation proposed is logical or make sense. As Jordan CJ
said in Hall v Jones (1942) 42 SR (NSW) 203 at 208, “[A] Court is entitled to pay the
legislature the not excessive compliment of assuming that it intended to enact sense
and not nonsense.”
43. An industrial agreement should be interpreted on the basis that it is intended to
make sense. There was no error in the Deputy President endeavouring to read the
Agreement as a whole and interpret the text of the Agreement in a manner that was
“logical”. The interpretation of an agreement should include “a search of the evident
purpose”: Kucks v CSR Limited (1996) 66 IR 182; Construction, Forestry, Mining and
Energy Union v Broadspectrum Australia Pty Ltd (2017) 262 IR 122 at [80]-[81]. An
appeal to logic does not involve the substitution of the Deputy President’s view of the
manner in which the Agreement should operate.
Common Understanding
44. The appellant relies upon what is said to the “common understanding” of the
parties as to the meaning of clause 18.1 of the Agreement said to arise from the past
practice of the appellant in relation to payment of meal breaks.
45. The past practice of the appellant cannot assist in this case. The authorities
make clear that reliance upon any “common understanding” of the parties in the
interpretation of an industrial instrument is a “limited principle”: Shop, Distributive
and Allied Employees’ Association v Woolworths Ltd (2006) 151 FCR 513 at 520. It is
only capable of application where there is clear evidence of a common understanding
as to the meaning of the provision and that the parties did not act for another reason,
including common inadvertence: Australian Liquor, Hospitality and Miscellaneous
Workers Union v Prestige Property Services Pty Ltd (2006) 149 FCR 209 at 222;
Woolworths at 520.
46. The mere fact that successive agreements may have contained the same
provision and no claim was made under an earlier instrument will not sustain an
assertion that the parties had a common understanding as to the meaning of a
provision. In Australian Manufacturing Workers’ Union v Energy Australia Yallourn
Pty Ltd (2017) 262 IR 300, for example, the Full Bench concluded (at [46]):
[46] We also consider that Commissioner Gregory erred when he found that it
was the common understanding of the parties that this was how the previous
agreement had been interpreted and applied. We do so because there was no
evidence before the Commission on which he could make this finding. We
reject the submission that such a finding was able to be inferred from the
[2018] FWCFB 3744
33
evidence that the clause was in the same terms as the predecessor agreement;
that the unions or the employees did not make any claim for the inclusion of
casual loading in the overtime payment; and that this is how the predecessor
agreement had been applied.
47. In this matter, the appellant relies upon the assertion that the previous
agreement contained a provision in similar terms to clause 18.1 and that employees
under the previous agreement received an unpaid meal break. On the authorities, that
is an insufficient basis to sustain an assertion that the parties had a common
understanding as to the interpretation of the clause. The evidence was that there was
no discussion of paid meal breaks in the negotiations which resulted in the making of
the Agreement.
48. Furthermore, the “common understanding” principle could only be applied
with extreme caution with respect to enterprise agreements made under the current
Act. The principle arose under earlier legislation under which industrial agreements
were made directly between industrial parties. Under the current Act, an enterprise
agreement is made by a process of voting by employees. An enterprise agreement does
not have “parties” in the usual sense. In Toyota Motor Corporation Australia Ltd v
Marmara (2014) 222 FCR 152, the Full Federal Court said (at [88]):
We do not accept that premise, or the appropriateness of the contractual
analogy. Under the FW Act, an enterprise agreement is an agreement in name
only. Those who, by s172(2), are empowered to “make” an enterprise
agreement are the employer and “the employees who are employed at the time
the agreement is made and who will be covered by the agreement”. A contract
lawyer would assume that those persons would be parties to the agreement, and
that the assent of all of them would be necessary for the agreement to be
“made”. But the lawyer would be wrong on both counts. The FW Act does not
identify the employer, or any employee, as a “party” to an enterprise
agreement. Further, notwithstanding the specific empowering terms of s 172, it
is not necessary for all the employees who are employed at the time an
agreement is made and who will be covered by the agreement to assent to the
terms of the agreement. Once a majority of those employees have agreed by
voting, the agreement must be sent to the Commission for approval and, if
approved, thenceforth applies to all the employees in the relevant group, even
those who did not agree, and even those, subsequently taken into employment,
who were not part of the relevant group at the time the vote was taken under s
182.
49. In circumstances in which an enterprise agreement does not have “parties” in
the contractual sense, the “common understanding” principle is not capable of
application.
50. Finally, it is submitted that the Deputy President erred in not drawing an
adverse inference from the TWU’s alleged failure to call witnesses present during the
negotiation of the Agreement. The submission is without merit. The appellant does not
identify any factual question which was resolved against it in relation to which it is
said an adverse inference should have been drawn nor what relevant evidence any
[2018] FWCFB 3744
34
TWU witness could have given in relation to the negotiations. No such inference could
be drawn.”
Consideration
Grounds 1, 2 & 5
[38] The starting point is to determine if the Agreement (with the Incorporated Award) is
ambiguous or susceptible to more than one meaning. For the reasons below we do not think it
is. While an interpretation of the Agreement (with the Incorporated Award) may not be free
from difficulty it is the case that the principles developed in the general law in the context of
the interpretation of statutes can usefully be applied.
[39] Also, it is necessary to have regard to the ordinary meaning of relevant words. The
first word to consider is “inconsistent”. Essentially, the Incorporated Award terms must be
incompatible with the Agreement term in order for the Agreement term to prevail. Assessing
inconsistency or incompatibility must be done through the prism of established principles.
[40] As the Deputy President correctly identified,
“[53] Inconsistency has been examined on multiple occasions by the High Court.
Section 109 of the Constitution provides that “when a law of a state is inconsistent
with a law of the Commonwealth, the latter shall prevail, and the former shall, to the
extent of the inconsistency, be invalid.” The High Court has generally formulated
three approaches to ascertaining the existence of inconsistency. Inconsistency is
present where it is impossible to obey both laws, where one law purports to confer a
legal right which the other law purports to take away, or where one law evinces an
intention to cover the field, that is, it shall be the law on the topic whether or not there
is a direct contradiction, this can be express or implied.”
[41] In relation to the Agreement term and the Incorporated Award term it is not impossible
to obey both. There is no direct conflict in the sense that the Agreement term expressly takes
away what the Incorporated Award term provides. Express words would be necessary to do
the same and they are not to be found in the Agreement.
[42] Further, the Agreement does not purport to cover the field. It is not enough to establish
inconsistency that the Agreement term and the Incorporated Award term both deal with the
same subject matter, namely meal breaks.
[43] It is entirely consistent with the Berri principles that the rules of statutory construction
be applied to assist in understanding the meaning of the Agreement (with its incorporated
terms) as a whole. As the Full Bench observed in Berri,
“… the modes of textual analysis developed in the general law may assist in the
interpretation of enterprise agreements. An overly technical approach to interpretation
should be avoided…”
[2018] FWCFB 3744
35
[44] In the present matter there are specific provisions in the Incorporated Award dealing
with shift works. The relevant Agreement term deals generally with employees and an unpaid
meal break. Applying established principles it should not be presumed that it was the common
intention of the parties to void the specific provisions by later agreeing to general words in the
Agreement. No other common intention is to be discovered in the making of the Agreement
or how it has been applied.
[45] Once this tool of statutory construction is applied it becomes possible to apply both the
Agreement and the Incorporated Award term (to shift workers). To do otherwise is to consider
the Agreement term in isolation from the rest of the text of the Agreement as a whole with its
Incorporated Award terms.
[46] Quite properly the Deputy President found that the general does not derogate from the
specific. It was an orthodox approach. For these reasons we discern no error in that approach.
There was no misapplication of the relevant principles.
Grounds 3 & 4
[47] We do not accept that the Deputy President took into account irrelevant considerations
by having regard to:
a) the F17 – Statutory Declaration in Support of the Application for Approval of
an Enterprise Agreement, nor
b) the conduct of the parties after the making of the enterprise agreement.
[48] A proper reading of the decision as a whole does not support such a determination.
While the Deputy President referred to those matters there is nothing in his findings that is
suggestive that he took those matters into consideration.
[49] Further, the Deputy President did not fail to have regard to relevant evidence. The
evidence (as much as it was) was generally unhelpful in being able to determine the common
intention of the parties. It was primarily subjective in nature. We discern no error in the
Deputy President’s approach.
Conclusion
[50] An examination of the Deputy President’s reasoning process does not disclose error
and on that basis we have decided to dismiss the appeal.
[51] The appeal is dismissed.
[2018] FWCFB 3744
36
VICE PRESIDENT
Appearances:
Mr M Baroni of counsel instructed by Ms Raad for Glen Cameron Nominees Pty Ltd.
Mr M Gibian of counsel instructed by Mr Grumley for the Transport Workers’ Union.
Hearing details
2018.
Melbourne with video link to Sydney.
22 March.
Printed by authority of the Commonwealth Government Printer
PR608420
WORK COMMISSION ORK THE LAFOTBALL THE SEAA