[2016] FWC 1275
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.437—Protected action

Transport Workers’ Union of Australia
v
Linfox Armaguard Pty Ltd
(B2016/294)

DEPUTY PRESIDENT KOVACIC

MELBOURNE, 29 FEBRUARY 2016

Proposed protected action ballot by employees of Linfox Armaguard Pty Ltd – whether employees to be balloted are properly specified, whether there are exceptional circumstances justifying the period of notice of industrial action being more than three working days for certain forms of industrial action – description of employees to be balloted amended by agreement – exceptional circumstances found for certain forms of industrial action – ballot order issued.

[1] The Transport Workers’ Union of Australia (TWU) made an application on 17 February 2016 pursuant to s.443 of the Fair Work Act 2009 (the Act) for a protected action ballot order in respect of those employees of Linfox Armaguard Pty Ltd (Armaguard) who are “Road Crew members of the TWU based at the Employer’s depots at 4 Kembla Street, Fyshwick ACT 2609 who will be subject to the proposed agreement and for whom the TWU is a bargaining representative.” The proposed agreement is to replace the Armaguard, Road Crew (ACT) Collective Agreement 2011 1 (the Agreement). The Agreement had a nominal expiry date of 1 July 2014. As at 15 February 2016, the parties had met on several occasions, including 25 November 2015 and 3 February 2016, but had been unable to reach agreement, with wages cited as the major outstanding issue2.

[2] Armaguard advised the Commission on 22 February 2016 that it had two objections to the application. Those objections were that:

[3] Against that background, the application was listed for telephone hearing on 24 February 2016. Mr Adam Guy appeared for the TWU, while Mr Karl Blake appeared with permission for Armaguard. Mr Klaus Pinkas, an organiser with the TWU’s NSW Branch provided a witness statement 3 for the Applicant. Mr Pinkas was not required for cross-examination. Mr William Beekman, Armaguard’s Regional Security Manager – Eastern Region and Australian Capital Territory (A.C.T.), gave evidence for Armaguard.

[4] By way of background, Armaguard provides cash in transit services to a range of businesses, including banks and large and small retailers, in the Australian Capital Territory (ACT).

[5] For the reasons set out below, I have decided to make a protected ballot action order with the employees to be balloted more clearly specified and which requires the provision of five working days written notice for certain forms of industrial action.

The Respondent’s case

[6] Armaguard made no substantive submission as to whether or not a protected action ballot order should be made, contending that it was for the TWU to satisfy the Commission that the requirements of s.443 of the Act had been satisfied.

[7] With regard to the group of employees to be balloted specified in the application, Armaguard submitted that the group was not properly specified as the group was not clearly limited to those employees who would be covered by the proposed agreement.

[8] Further, as noted above, Armaguard submitted that were the Commission to decide to make a protected action ballot order the written notice period referred to in s.414(2)(a) of the Act should be extended under s.443(5) of the Act to five working days in respect of any industrial action to be authorised by questions 2 to 10 and 12 of the proposed ballot order. Those questions are as follows:

[9] Specifically, Armaguard contended that the circumstances of this case were exceptional and justify an extension of the notice period beyond three working days. The exceptional circumstances relied upon by Armaguard relate to the impact that the contemplated stoppages of work, bans on processing paperwork and return to the depot for lunch by Road Crew employees would have on Armaguard, its customers and potentially the public.

[10] Armaguard submitted that it would need to put in place contingency arrangements to minimise cash holdings on clients’ premises due to the inherent risks to clients’ employees of large amounts of cash being held on site. Armaguard further submitted that it was also necessary to maintain a constant availability of cash to major financial and retail institutions along with tens of thousands of automatic teller machines (ATMs), adding that there could be serious security consequences if appropriate contingency arrangements were not made.

[11] Armaguard highlighted that such concerns had been accepted by the Commission in a number of matters as constituting exceptional circumstances. Those matters related to Armaguard Road Crew in similar circumstances in South Australia 4 (SA matter), Victoria5 (Vic matter) and Queensland6 (Qld matter). Armaguard also stated that in the last two weeks, the TWU had made an application for two protected action ballot orders in Queensland in respect of negotiations to replace two enterprise agreements applying to different parts of Armaguard’s Queensland operations and had in relation to those applications consented to extending the notice period to five working days for industrial action in respect of periodic stoppages of between two and 48 hours and indefinite stoppages.

[12] Armaguard relied on Vice President Lawler’s decision in Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v Australian Postal Corporation 7 (Australia Post) and also drew the Commission’s attention to a number of other decisions in which other circumstances have seen the Commission satisfied that there were exceptional circumstances as per s.443(5) of the Act.
[13] Key aspects of Mr Beekman’s witness statement were that:

[14] In his oral evidence, Mr Beekman reiterated much of the above. Beyond this, he attested, inter alia, that:

(a) while Armaguard could contract out work to one of its competitors in circumstances where industrial action was occurring, this would take in the order of a month to arrange;

(b) Armaguard’s competitors were unlikely to be able to cover its ACT footprint and would be required to undertake a risk and site assessment for each site as well as deal with any licensing issues, with this likely to take longer than five days;

(c) employees working temporarily in the ACT would need to undergo a two-day firearms course before they could work in the ACT;

(d) it could take up to a week to obtain necessary approvals to allow the transfer of firearms across the NSW/ACT border; and

(e) a notice period of five working days as opposed to three working days would allow Armaguard to identify employees willing to work in the ACT, to train those people, to have them backed up in their home locality and transport them to the ACT.

[15] At the telephone hearing, Armaguard relied on its written submissions, adding that, in its view, exceptional circumstances exist in this case as a result of the nature of work involved, the uniqueness of the industry and the risks to safety of clients, clients’ employees, and members of the public and contingent labour in circumstances where industrial action is taken. Armaguard further submitted that steps to source contingent labour could only be taken at the time that notice of industrial action is given, with that contingent labour force drawn only from existing Armaguard employees. Further, those employees need to be available, to get to the ACT and be trained to meet ACT regulatory requirements. Armaguard also highlighted that were industrial action notified to occur in the ACT at the same time as in Queensland, both jurisdictions would be competing for the same contingent labour.

[16] Armaguard also pointed to the safety risks stemming from the proposed industrial action and pointed to its unique insurance policies which cut out when a threshold of cash held on site was passed. In particular, Armaguard highlighted the risk of clients and the public being significantly inconvenienced by industrial action given that it was the dominant provider of cash in transit services in the ACT. Finally, Armaguard highlighted that those aspects of Mr Beekman’s evidence going to security risks and the impact of the availability of cash or lack thereof on Armaguard’s smaller clients was unchallenged.

The Applicant’s case

[17] The TWU indicated that it did not object to the description of employees to be balloted being amended to incorporate reference to the Agreement.

[18] Specifically, the TWU relied on its application and the witness statement of Mr Pinkas. Mr Pinkas’ witness statement provided an overview of the participants in the negotiations for a replacement agreement, an indication of a number of meetings which had occurred to date and the progress of negotiations.

[19] Beyond that, the TWU addressed each of the requirements set out in s.443 of the Act, contending that it had satisfied those requirements and that a protected action ballot order should therefore be issued. The TWU accepted that the principles outlined by Vice President Lawler in Australia Post were appropriate and also referred to the decision in the Vic matter in which Commissioner Gregory acknowledged the existence of different circumstances to those existing in the SA matter, contending that the circumstances in the ACT do not meet the bar set out in s.443(5) of the Act. The TWU also pointed out that firearms training for contingent labour would take two days which would provide one day for Armaguard to identify potential contingent labour and make arrangements for them to travel to the ACT, adding that as a result five working days’ notice was not required. The TWU further contended that Armaguard clients would also be able to put in place contingency arrangements to secure any cash holdings and that Armaguard could put in place contingency plans as soon as a protected action ballot order was made by the Commission. Armaguard’s contingency plans, the TWU contended, could include contacting clients and competitors to discuss possible contingency arrangements. The TWU also submitted that it was not aware of any “heist” having occurred during previous periods of industrial action by Road Crew members.

[20] The TWU also drew the Commission’s attention to the decision of Senior Deputy President Harrison in Transport Workers’ Union of Australia v Linfox Armaguard Pty Ltd 8 (the ACT matter) in which the Senior Deputy President granted a protected action ballot order but did not extend the period of notice required to be given.

[21] For all these reasons, the TWU submitted there should be no extension to the period of notice it was required to give under s.414(2)(a) of the Act.

Relevant statutory provisions

[22] The relevant provisions of s.443 of the FW Act are as set out below.

Consideration of the issues

[23] The threshold issue to be determined is whether the Commission is satisfied that the statutory requirements set out in s.443 of the Act have been met, in which case the Commission is required to make a protected action ballot order. Should the Commission be satisfied of that, it will then be necessary to first determine whether there are exceptional circumstances in this case, second whether those exceptional circumstances justify the period of written notice being longer than three working days and, if so, whether it is appropriate for the Commission to exercise the discretion available to it to specify a longer period of up to seven working days. I will deal with each of these issues separately.

Should the Commission make a Protected Action Ballot Order?

[24] With regard to the statutory requirements set out in s.443(1) of the Act, as noted above the TWU submitted that it had satisfied those requirements and that a protected action ballot order should be made. Armaguard made no submissions in this regard, even when directly asked by the Commission if it wished to make any submissions regarding whether or not the TWU was genuinely trying to reach an agreement with it.

[25] In his witness statement, Mr Pinkas deposed that he was currently involved in negotiating an enterprise agreement on behalf of TWU members employed by Armaguard in the ACT. Mr Pinkas further deposed that the parties have met on several occasions to bargain for an agreement to replace the Agreement and that the steps taken by the TWU to attempt to reach agreement included accepting the offer put by Armaguard on 3 February 2016 but which was subsequently withdrawn. Mr Pinkas’ evidence was not challenged by Armaguard.

[26] What flows from Mr Pinkas’ evidence is that the TWU is a bargaining representative as required by s.437(1) of the Act, that there has been a notification time as required by s.437(2A) of the Act and that the TWU has been and is genuinely trying to reach an agreement with Armaguard.

[27] Against that background, based on the material before me, I am satisfied that the requirements of s.443(1) have been met. Accordingly, the Act requires that the Commission make a protected action ballot order.

[28] As agreed during the telephone hearing, the description of employees to be balloted will be amended to incorporate reference to the Agreement to ensure that s.443(3) of the Act is satisfied.

Are there exceptional circumstances in this case?

[29] As previously alluded to, the meaning of exceptional circumstances was summarised, as set out below, by Vice President Lawler in Australia Post. That matter concerned a similar provision to s.443(5) of the Act which was set out in predecessor legislation to the current Act and has been cited on a number of occasions by members of the Commission in decisions relating to s.443(5) of the Act.

[30] Vice President Lawler further stated:

[31] I have adopted the approach taken by Vice President Lawler in determining the matter before me.

[32] Armaguard’s submissions were to the effect that it needs to put in plan contingency arrangements to address the security risks for its employees, clients, the employees of its clients and the broader public as a result of some of the forms of industrial action contemplated by the TWU. Armaguard submitted that this together with the need to comply with its obligations under relevant Codes of Practice and to mitigate the potential impact on clients and the public if the collection and distribution of cash was interrupted constituted exceptional circumstances. As noted above, the TWU contended that the factors relied upon by Armaguard did not satisfy the test set out in s.443(5) of the Act.

[33] Armaguard also pointed to previous Commission decisions in the SA, Vic and Qld matters where some or all of the above factors were relied upon by Armaguard in those cases and were found to constitute exceptional circumstances. On the other hand, the TWU pointed to the decision in the ACT matter. By way of background, the decision in the ACT matter related to an application by the TWU for a protected action ballot order in the context of the negotiations for the Agreement. It appears from that decision that Armaguard did not on that occasion request that a longer period of notice be specified in the order. No material was put before the Commission as to the circumstances existing at that time. Accordingly, little weight can be attached to that decision.

[34] Drawing on Vice President Lawler’s summary in Australia Post of what constitutes exceptional circumstances and the decisions in the SA, Vic and Qld matters, the abovementioned considerations identified by Armaguard support a finding that exceptional circumstances do exist in this case. In particular, I consider the potential increased security risks for Armaguard’s employees, its clients, its clients’ employees and the broader public, together with the potential economic impact on third parties such a small to medium retailers as a result of any interruption to cash collections and distribution to constitute exceptional circumstances. While industrial action invariably has an impact on the employer and sometimes on the employer’s customers and/or other third parties, the potential in this case for some forms of the proposed industrial action to impact in the above way is in my view out of the ordinary, unusual, special or uncommon to use the language of Vice President Lawler in Australia Post.

Do those exceptional circumstances justify a longer period of notice?

[35] The question then arises as to whether these exceptional circumstances justify an extension of the notice period beyond the three days written notice specified in s.414(2)(a) of the Act.

[36] For the reasons set out at paragraph [19] above, the TWU submitted that the circumstances did not justify the Commission exercising its discretion to extend the notice period. As noted above, the TWU contended that any contingency measures implemented by Armaguard could include it outsourcing work to some of its competitors.

[37] Armaguard essentially submitted that the public interest considerations involved in this case justified extending the notice period. This was reinforced by Mr Beekman’s evidence which set out the security risks attaching to some of the forms of industrial action proposed by the TWU and the timeframes involved in obtaining regulatory approval for contingent labour to work in the ACT. On the latter point, Mr Beekman’s evidence included the need for replacement employees to undertake a two-day firearms training course before they could work in the ACT and that the process involved in the mutual recognition of replacement employees could take up to one week. These timeframes are in addition to the need to identify available replacement employees, transport them to the ACT and put in place back fill arrangements at their home location. Other significant aspects of Mr Beekman’s evidence were that:

[38] Being provided with written notice of the intention to take industrial action provides an employer with an opportunity to take steps to mitigate the impact of that industrial. In this case the evidence supports a finding that a key consideration for Armaguard in this case is on steps to put in place appropriate contingency measures to minimise the security risks for its employees, its clients, its clients’ employees and the broader public and to mitigate the impact of disruptions to the collection and distribution of cash. To that end, Mr Beekman’s evidence clearly sets out some of the timeframes involved in putting in place appropriate contingency measures, with some of the timeframes involved in the required regulatory steps exceeding three working days. These considerations support a finding that the exceptional circumstances in this case justify an extension of the notice period beyond the three days written notice.

What is the appropriate period of written notice?

[39] As to what extended period of notice should be required, Armaguard proposes five working days. The TWU did not proffer a view on this issue other than to submit that no extension was warranted. Armaguard relied on the Commission’s decisions in the SA, Vic and Qld matters where the Commission had extended the period of notice to five working days. Having regard to the timeframes involved in putting in place appropriate contingency measures and drawing on the Commission’s decisions in the SA, Vic and Qld matters supports extending the period of notice to five working days.

[40] While I note that in the SA matter, Commissioner Hampton determined that stoppages over four hours would be subject to five working days’ notice, no material was put before me and no submissions were made as to any differential impact attaching to the differing levels of industrial action contemplated in the TWU’s draft order. In the absence of any such submissions or material, I am satisfied that the extended period of notice should apply to the forms of industrial action contemplated by questions 2 to 10 and 12 in the TWU’s draft order.

Conclusion

[41] As previously indicated, based on the material before me, I am satisfied that the requirements of s.443(1) have been satisfied and accordingly must make a protected action ballot order. Further, for the reasons set out above, I am satisfied that there are exceptional circumstances justifying the period of written notice being extended to five working days for certain forms of industrial action. Further, the employees to be balloted will be clearly specified in the order. An order 9 that effect will be issued separately to this decision.

gnature title and seal

Appearances:

A. Guy for the Applicant.

K. Blake for the Respondent.

Telephone Hearing details:

2016.

Melbourne:

February 24.

 1   AE889729.

 2   Exhibit G1.

 3   Ibid.

 4   Transport Workers’ Union of Australia v Linfox Armaguard Pty Ltd [2014] FWC 1753 and PR548666.

 5   Transport Workers’ Union of Australia v Linfox Armaguard Pty Ltd [2014] FWC 7558 and PR557611.

 6   Transport Workers’ Union of Australia v Linfox Armaguard Pty Ltd [2014] FWC 8934 and PR559103.

 7   167 IR 4.

 8   [2011] FWA 4403 and PR511399.

 9   PR577480.

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