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Principle and Practice in Commonwealth Industrial Arbitration after Sixty Years

Published online by Cambridge University Press:  24 January 2025

R. E. McGarvie
R. E. McGarvie*
Affiliation:
Victorian Bar
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Extract

In its joint judgment in the Standard Hours Inquiry, 1947 the Full Court of the Commonwealth Court of Conciliation and Arbitration observed:

The issue, as the history of the case indicates, comes to this Court as a number of industrial disputes (over 100 applications are before the Court) between many registered organizations of workers and their employers who are respondents. Some of these disputes are of long standing; others of them were created when it was known that the Court proposed to make a general investigation into standard hours. It is a commonplace of Australian industrial law that the limit of the constitutional power of the Court is to settle these disputes each within its ambit, and the ultimate judgment will in fact settle these particular disputes, and do no more. But we know, as a matter of practical fact, that it will in the long run lead to uniform standard hours throughout Australia. The responsibility of this onerous task does not properly belong to this Court. It is bound only to settle the dispute. It is something additional that State legislatures and State industrial tribunals make its decisions in these disputes the bases of industrial determinations.

Type
Research Article
Information
Federal Law Review , Volume 1 , Issue 1 , March 1964 , pp. 47 - 94
Copyright
Copyright © 1964 The Australian National University

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References

page 47 note 1 (1947) 59 C.A.R. 581, 588.

2 The evolution referred to by the Full Court has since been traced by Hawke, R. J., ‘The Commonwealth Arbitration Court-Legal Tribunal or Economic Legislature?’(1956) 3 University of Western Australia Annual Law Review 422.Google Scholar

3 Serial No. A 7848 pp. 5-6.

4 (1953) 77 C.A.R. 477, 506.

5 Serial No. A7072 p. 9.

6 (1953) 89 C.L.R. 461, 474.

7 ‘Industrial Conciliation, Arbitration and Regulation’ (1957) 31 Australian Law Journal 574, 575.

8 See the remarks of Mr.Deakin, A. in introducing the Bill to establish the Commonwealth Court of Conciliationand Arbitration–Commonwealth Parliamentary Debates, Vol. XV, 2862Google Scholar

9 Kingston at the 1897 and 1898 Convention debates envisaged that the Parliament would do no more than createa number of ad hoc tribunals to deal with large national disputes in the shipping and shearing industries. Even W. M. Hughes in the debates in Parliament on the Bill to set up the Court thought that the chiefreason for the Bill would disappear once all the States had followed the example of the Commonwealth in setting up arbitration tribunals-Commonwealth Parliamentary Debates, Vol. XVII, 4762.

10 Higgins, A New Province for Law and Order (1922)

11 Ibid. 150.

12 Of the 98 Acts passed by the Parliament of the Commonwealth of Australia during the year 1961 all but 24 Acts appear to be directed to the regulation of some part of the economy or the economic or taxation activities of the Commonwealth.

13 Introduction to Foenander, Solving Labour Problems in Australia (1941) xx-xiii.

14 In the Basic Wage and Standard Hours Inquiry, 1961 it was estimated that the increase of 12 shillings granted in federal basic wages would mean an increase in wages and salaries, generally of some £60,000,000 a year. In these proceedings the increase claimed was 52 shillings. Serial No. A7848 pp. 4-5, 33-34.

15 For a colourful recent criticism of the New Zealand arbitration system and tribunal from a member ofthe Arbitration Court of New Zealand, see the comment of Mr Grant in the judgment relating to the General Order of the Court Amending Awards and Industrial Agreements, 4 July 1962.

16 Industrial Conciliation and Arbitration in Australia (1959) vii.

17 Broadly the process of industrial arbitration is the settling of a dispute by prescribing new legal rights, duties or liabilities while the process of ascertaining or enforcing already existing legal rights, duties or liabilities is judicial in nature. See Gallagher v. R.; Ex parte Aberdare Collieries Pty Ltd (1963) 37 A.L.J.R. 40.

18 (1961) Serial No. A7855 pp. 70-71.

19 (1920) 14 C.A.R. 496

20 (1911) 4 B.W.C.C. 303

21 [1945] A.R. (N.S.W.) 64

22 (1920) 14 C.A.R. 496.

23 Ibid. 567.

24 (1911) 4 B.W.C.C. 303

25 Ibid. 306.

26 Ibid. 304

27 [1945] A.R. (N.S.W.) 64

28 Ibid. 83.

29 Ibid. 84.

30 (1916) 21 C.L.R. 582, 586.

31 The principle of the ‘tapering’ of increases in marginal rates is discussed later in this article.

32 (1955) 83 C.A.R. 64.

33 (1960) 94 C.A.R. 812.

34 The nature of a reference to a Full Bench is discussed later in this article.

35 Direction by the President dated 1 March 1963 in the Matter of The Australian Third Division Telegraphistsand Postal Clerks Union and Others v. The Public Service Board and Others 3.

The decisions to be reviewed were decisions of benches of three members. Although this reference was to a bench of six members there is nothing in the direction to suggest any necessity that a decision by a Full Bench could be reviewed only by a bench constituted by a larger number of members. In some jurisdictions this is regarded as essential e.g. White v. Johnstone [1927] V.L.R. 310, 320.

36 Serial No. A9200.

37 Ibid. 4-5.

38 (1960) 94 C.A.R. 812.

39 Fourth Annual Report of the President of the Commonwealth Conciliation and Arbitration Commission, 23 September 1960, 6-7.

40 Ibid. 21.

41 Serial No. A7848.

42 Ibid. 6.

43 (1954) 80 C.A.R. 3.

44 Ibid. 30-31.

45 Ibid. 14.

46 Ibid. 11.

47 (1924) 20 C.A.R. 1135.

48 (1942) 48 C.A.R. 577, 585-586.

49 (1947) 59 C.A.R. 278.

50 Ibid. 287-288.

51 Ibid. 304.

52 (1954) 80 C.A.R. 3, 32-33.

53 Ibid. 12.

54 Ibid. 53.

55 Ibid. 54.

56 (1959) 92 C.A.R. 793.

57 Ibid. 803.

58 (1954) 80 C.A.R. 3, 30-31, and the judgments there cited.

59 Serial No. A8896.

60 Ibid. 3.

61 (1959) 92 C.A.R. 793.

62 (1960) 94 C.A.R. 812.

63 Metal Trades Case (1937) 37 C.A.R. 176, 182.

64 Bank Officials Case (1935) 34 C.A.R. 843, 849.

65 (1959) 92 C.A.R. 793, 806-807.

66 Ibid. 804.

67 Ibid. 808.

68 Ibid. 812-813.

69 (1960) 94 C.A.R. 812.

70 Ibid. 818.

71 Ibid.

72 (1959) 92 C.A.R. 793, 807.

73 (1960) 94 C.A.R. 812, 819.

74 Metal Trades, Aircraft Industry and Bank Officials Case (1959) 93 C.A.R. 62.

75 (1960) 94 C.A.R. 812, 820-821.

76 (1959) 93 C.A.R. 62, 65.

77 Y.B. 33-35 Edw. 1 (R.S.) 82.

78 Serial No. A8896 pp. 16-17.

79 Serial No. A7848 pp. 21-22, and 35. The Commission affirmed this view in the Metal Trades Margins Case (1963) Serial No. A8896 p. 7.

80 (1960) 96 C.A.R. 206.

81 Judgment delivered 28 August 1963.

82 This is emphasized in the passages from the judgment of Kinsella J. set out supra p. 52.

83 Conciliation and Arbitration Act 1904-1961, s. 2 (Cth).

84 Ibid. s. 40 (1) (c).

85 Supra p. 54.

86 W.S. Sheldon, (1951) 25 Australian Law Journal 375.

87 The Common Law (1881) 1.

88 (1909) 3 C.A.R. 1, 19.

89 (1910) 4 C.A.R. 89, 93.

90 Printing Industry Employees Union v. Arbuckle Waddell Pty Ltd (1926) 23 C.A.R. 124, 132-134. Federated Gas Employees Industrial Union v. Australian Gas Light Co. (1942) 48 C.A.R.85.

91 AnnualLeave Case (1945) 55 C.A.R. 595, 597;Annual Leave Case (1960) 96 C.A.R. 206.

92 E.g. Annual Leave Case (1945) 55 C.A.R. 595; Annual Leave Case (1960) C.A.R. 206.

93 Supra p. 47.

94 See the reference to this procedure in the paper ‘The Jubilee of Industrial Arbitration in the Federal Sphere’ presented by their Honours Mr Justice Dunphy and Mr Justice Wright to the Seventh Legal Convention of the Law Council of Australia (1951) 25 Australian Law Journal 360, 366. As to the validity of this practice see: The Queen v. Kelly; Ex parte Australian Railways Union (1953) 89 C.L.R. 461, 475.

95 Conciliation and Arbitration Act 1904-1961, s. 36 (2) (Cth).

96 See Re Wholesale Fruit and Vegetable Employees(State) Award [1957] A.R. (N.S.W.) 216; Re Plumbers and Gas Fitters (State) Conciliation Committee [1936] A.R. (N.S.W.) 341.

97 Conciliation and Arbitration Act 1904-1961, s. 36 (1) (Cth).

98 (1961) Serial No. A7855.

99 (1962) Serial No. A8508.

page 71 note 1 Legal Professional Officers Case, 1962 42 Commonwealth Public Service Arbitration Reports 275, 306.

2 ‘The Jubilee of Industrial Arbitration in the Federal Sphere’ (1951) 25 Australian Law Journal 360, 365.

3 Ex parte H. V. McKay (1907) 2 C.A.R. 1.

4 Federated Engine Drivers and Fireman's Association of Australia v. Broken Hill Proprietary Co. Ltd (1911) 5 C.A.R. 9.

5 The King v. Barger (1908) 6 C.L.R. 41.

6 S. 33 (1) (b). The basic wage for adult females is similarly defined: s. 33 (1) (d).

7 Basic Wage and Standard Hours Inquiry (1952-1953) 77 C.A.R. 477, 494.

8 S. 33 (1).

9 This brief description of the change suffers from the deficiencies of over-simplification. See R. J. Hawke, ‘The Commonwealth Arbitration Court-Legal Tribunal or Economic Legislature? ’ (1956) 3University of Western Australia Annual Law Review 422, 449ff.

10 Serial No. A7848 p. 10.

11 (1953) 77 C.A.R. 477.

12 Serial No. A7848 p. 8.

13 Ibid. 13.

14 Metal Trades Margins Case (1954) 80 C.A.R. 3,24.

15 Their Honours Mr Justice Dunphy and Mr Justice Wright, ‘The Jubilee of Industrial Arbitration in the Federal Sphere’ (1951) 25 Australian Law Journal 360,367-368.

16 LegalProfessional Officers Case (1962) 42 Commonwealth Public Service Arbitration Reports 275, 306-307.

17 Commonwealth Legal Professional Officers Appeal (1962) Serial No. A8794 p. 3. Nor is there any principle that a margin should always bear the same relativity to the basic wage. Metal Trades Margins Case (1963) Serial No. A8896 pp. 3-4.

18 Ship Painters and Dockers Case (1960) 94 C.A.R. 579, 611-612. This approach departs from the first rule stated in the Printing Trades Case, 1947, supra pp. 57-58.

19 Metal Trades Margins Case (1954) 80 C.A.R. 3.

Metal Trades Margins Case (1959) 92 C.A.R. 793.

Metal Trades Margins Case (1963) Serial No. A8896.

In the last case the Commission referred to the desirability of there being a work value assessment of margins in the Metal Trades industry (p. 4).

20 (1959) 92 C.A.R. 793, 803-804.

21 (1937) 37 C.A.R. 176, 182.

22 (1947) 58 C.A.R. 1088, 1090.

23 (1954) 80 C.A.R. 3.

24 (1959) 92 C.A.R. 793, 813-814.

25 (1945) 55 C.A.R. 595, 575; (1960) 96 C.A.R. 206.

26 Serial No. A8896 pp. 6-7.

27 Ibid. 16.

28 Ibid. 6.

29 Ibid. 9.

30 (1960) 94 C.A.R. 812, 815.

31 Even in the case of the highest salaries it is the practice to treat the excess over the basic wage as a margin, e.g. Commonwealth Public Service Case (1960) 94 C.A.R. 81.

32 (1960) 94 C.A.R. 812, 828.

33 Serial No. A9200 p. 6.

34 Banking Margins Case (1963) Serial No. A9200.

35 Serial No. A9201.

36 The Waterside Workers Interim (General) Award Case (1959) 93 C.A.R. 122, 123.

37 Ibid.; The Merchant Service (Bay, Harbour and River Vessels) Award Case (1960) 94 C.A.R. 419.

38 Metal Trades Margins Case (1959) 92 C.A.R. 793, 803.

39 Public Service (Engineers and Legal Officers) Margins Case (1963) Serial No. 9201 p.5.

40 S. 4 and Part III Division 1.

41 Part III Division 2.

42 Part III Division 3.

43 Part III Division 4. Under Divisions 2, 3 and 4 of Part III the exercise of the power of the Commission by a member must be by a presidential member SSe 73, 78 and 84.

44 Part III Division 5.

45 S. 4 (1) paragraph (d) of the definition of ‘ industrial dispute ’.

46 Seat of Government (Administration) Act 1910-1959, s. 5; Northern Territory (Administration) Act 1910-1961, s. 6.

47 S. l1A. See also the Aluminium Industry Act 1944-1956, Australian National Airlines Act 1945-1961 and Australian Coastal Shipping Commission Act 1956.

48 See the discussion of the constitutional sources of arbitral power by Dr Foenander, Industrial Conciliation and Arbitration in Australia (1959) chapter 1.

49 Report from the Joint Committee on Constitutional Review (1959) 107, para. 783.

50 (1955-1956) 94 C.L.R. 254; (1957) 96 C.L.R. 529.

51 Conciliation and Arbitration Act 1904-1961, s. 23.

52 Ibid. s. 6.

53 Ibid. s. 7.

54 Ibid. s. 13.

55 Ibid. s. 33 (2).

56 Ibid. s. 25.

57 See ibid. s. 26.

58 Ibid. ss. 4 (1), 33 (1).

59 Ibid. s. 34.

60 Ibid. s. 35.

61 Public Service Arbitration Act 1920-1961, s. 6.

62 Ibid. s. 12.

63 Ibid. s. 15A.

64 It appears that the test for determining whether an appeal should lie under the Public Service Arbitration Act differs from the test under the Conciliation and Arbitration Act. Legal Professional Officers Appeal (1962) Serial No. A8794 p. 4.

65 R. v. Kelly; Ex parte The Victorian Chamber ofManufactures (1953) 88 C.L.R. 285.

66 (1961) Serial No. A7855.

67 Transcript of preliminary proceedings 14 November 1963 pp. 138-139.

68 The Queen v. Graziers Association of N.S. W.; Ex parte Australian Workers' Union (1956) 96 C.L.R. 317, 335.

69 Ibid. 336-337. This practice is discussed by Mr Commissioner Portus in his article‘ The Necessity for an Industrial Dispute’ (1956) 30 Australian Law Journal 250.

70 Conciliation and Arbitration Act 1904-1961, SSe 24, 28.

71 Ibid. s. 28; Conciliation and Arbitration Regulations, regulation 16.

72 Ibid. s. 28 (1); regulation 17.

73 Conciliation and Arbitration Regulations, regulation 19.

74 Ibid. regulation 20. Regulation 25 makes special provision for the preliminary procedures where a dispute is to be heard by the Commission in Presidential Session or by a Reference Bench.

75 Conciliation and Arbitration Act 1904-1961, SSe 39, 40 and 41.

76 Conciliation and Arbitration Regulations, regulations 20 and 25.

77 See: Basic Wage Inquiry (1959) 91 C.A.R. 680, 704-707 per Foster J.; J.R. Kerr, ‘ Procedures in General Wages Cases in the Commonwealth Arbitration Conunission ’(1961) 3 The Journal of Industrial Relations 81.

78 Conciliation and Arbitration Act 1904..1961, s. 63. See also Public Service Arbitration Act 1920-1961, s. 19.

79 (1956) 11 Industrial Information Bulletin 1096.

80 Conciliation and Arbitration Act 1904-1961, s. 55.

81 The Queen v. The Members of the Railways Appeals Board and the Commissioner for Railways (N.S. W.); Ex parte Davis (1956-1957) 96 C.L.R. 429; 437.

82 Conciliation and Arbitration Act 1904-1961, s. 58.

83 Ibid. s. 59. This power may be exercised either during the period specified in the award or while the award is continued in force by s. 58 (2) after the expiry of the specified period. R. v. Kelly; Ex parte Australian Railways Union (1953) 89 C.L.R.461, 473.

The Commission in Presidential Session may cancel or suspend an award: s. 62. This power is normally confined to cases where the provisions ofan award are not being followed.

84 Conciliation and Arbitration Regulations, regulation 31.

85 (1953) 77 C.A.R. 477.

86 (1953) 89 C.L.R. 461.

87 Australian Insurance Staffs Federation v. The Atlas Insurance Company Ltd (1931)45 C.L.R. 409; R. v. Kelly; Ex parte Australian Railways Union (1953) 89 C.L.R. 461.

88 Conciliation and Arbitration Regulations, regulaation 12.

89 R. v. Blackburn; Ex parte Transport Workers Union of Australia (1952) 86 C.L.R. 75.

90 Conciliation and Arbitration Act 1904-1961, s. 61.

91 Mills, Nolan and Cohen's Federal Industrial Law (3rd ed. 1963) 259-260.

92 Conciliation and Arbitration Act 1904-1961, SSe 41 (1) (c), 119, 122.

93 Ibid. SSe 119 (3), 123.

94 Ibid. s. 40 (1) (b).

95 Mills, Ope cit. 222.

96 (1951) 72 C.A.R. 26.

97 (1953) 77 C.A.R. 477, 506-7.

98 See the passage from the Fourth Annual Report of the President, supra p. 54. The principles in this reportwere adopted by the Commission in the Basic Wage and Standard Hours Inquiry, 1961 Serial No. A7848 p. 6.

99 Basic Wage Inquiry (1959) 91 C.A.R. 680, 704-706.

page 93 note 1 Annual Leave Case (1960) 96 C.A.R. 206, 212.

2 Basic Wage Inquiry (1959) 91 C.A.R. 680, 705 per Foster J.

3 (1947) 59 C.A.R. 581.

4 One statement relied on by the employers in support of their economic arguments/vas a statement by Premier Krushchev of the U.S.S.R.

5 Conciliation and Arbitration Act 1904-1961, s. 42.

6 This article was prepared before the Full Bench of the Commonwealth Conciliation and Arbitration Commission delivered judgment on 9 June 1964 in The Metal Trades Employers Association and others v. The Amalgamated Engineering Union (Australian Section) and others. It is hoped that a comment upon this decision will appear in the next issue of this Review.