Bills Digest No. 171 2001-02
Workplace Relations (Registration and Accountability of
Organisations) Bill 2002
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Workplace Relations (Registration and
Accountability of Organisations) Bill 2002
Date Introduced: 21 March 2002
House: House of Representatives
Portfolio: Employment and Workplace Relations
Commencement: Substantive provisions come
into effect on a date to be set by proclamation but no later than 6
months after Royal Assent.
This Bill and the
Workplace Relations (Registration and Accountability of
Organisations) (Consequential Provisions) Bill 2002 (the
Consequential Provisions Bill 2002) provide for:
-
- the transfer of most of the machinery for regulating registered
federal industrial organisations from Parts IX and X of the
Workplace Relations Act 1996 (WR Act) to a new
free-standing Act
-
- the reform of the current legislative provisions to modernise
accounting and auditing practices applicable to all federally
registered organisations to bring them more closely into line with
those applying under the Corporations Law
-
- the improvement of the record keeping practices of registered
organisations generally, but with particular emphasis on improving
access to and the quality of membership records, and
-
- the registration of new enterprise based organisations and the
dismantling or de-registration of existing federally registered
bodies.
As noted in the Minister for Employment and
Workplace Relations Second Reading Speech, this Bill and the
accompanying measure to a considerable degree replicate the
proposed laws considered by the Parliament in 2001 but which were
not enacted into law prior to the last General
Election.(1)
It is also the case, as Minister Abbott
suggests, that the Bills are largely technical in
nature.(2)
The changes made are consistent with the
policies of the current government. Similar measures have at times
been used at the State level.
That being the case, the current package might
be seen as more than seven tenths relocation , about two tenths
renovation and less than one tenth innovation .
As substantially similar measures have been
recently before the Parliament, and before that were subject to a
public consultation process, much has already been written on this
matter. Material is also drawn from Bills
Digest 130, 2001 01 which reviewed the Workplace Relations
(Registered Organisations) Bill 2001
The attention of readers is drawn, however, to
the following documents which are readily available on-line to
assist with their consideration of these Bills:
-
- Joint Standing Committee on Electoral Matters, Report,
Inquiry into the Role of the Australian Electoral Commission in
conducting industrial elections, October 1997.(3)
-
- Former Minister for Workplace Relations, Hon Peter Reith,
Ministerial Discussion Paper, Accountability and
democratic control of registered industrial organisations , October
1999, and.(4)
-
- Senate Employment, Workplace Relations, Small Business and
Education Legislation Committee, Report, Consideration of
Provisions, Workplace Relations (Registered Organisations) Bill
2001, June 2001.(5)
In the 1950s about 60 percent of the Australian
workforce was unionised.(6) In 1992, this figure had
fallen to 40 percent and by August 2001 only 24.5 percent of
employees belonged to a union.(7)
Unions themselves have also undergone marked
structural changes in recent years with the number of unions
declining from over 300 in the mid 1980s to just on 130 in the late
1990s.(8) Of the total number of unions, only 44 are
federally registered.(9) These account for in the
vicinity of 1.9 million members.
The Australian tradition has been for government
to enact prescriptive rules regulating in considerable detail the
internal affairs of industrial organisations that choose to take
advantage of the institutions established by government for
settling industrial disputes and dealing with broader industrial
matters.
Unions have been in the main prepared to
tolerate the controls imposed on them in exchange for these not
inconsiderable benefits. However, other factors such as membership
size, the relative attractions of any competing State industrial
system, craft-related sensitivities, partisan and industrial
politics, employer attitudes and geography also exerted an
influence.
From a legislative perspective, and as two
leading commentators have noted, the regulation of internal and
inter-union affairs by the state largely reflects two competing
interests:
¼ the public interest in accountability,
and the democratic right of members to decide upon their own form
of governance.(10)
In more than a nominal sense, these rules apply
both to representative employer bodies as well as to trade
unions.
The Australian approach has been for registered
organisations to be treated as party principals in their own right
rather than as mere agents for their members. Hence an industrial
award binds not only the registered organisation itself but also
its present and future members.(11)
Although registration confers certain rights and
obligations on registered bodies, including employer associations,
the principal focus of public attention and that of legislators
invariably has been on unions.
The rights and benefits enjoyed by unions that
chose to become registered organisations for the purposes of the
Workplace Relations Act include:
-
- corporate status including the capacity to sue and hold
property in their own right
-
- the capacity to become party to federal industrial awards
-
- unilateral access to industrial tribunals and recognition as a
bona fide bargaining agent
-
- legally recognised and largely exclusive industrial coverage of
those workers who come within the unions eligibility rules and
protection from poaching by other unions
-
- statutory anti-victimisation safeguards for union officials,
members and those promoting union interests within the law,
and
-
- limited rights of entry onto employer premises for union
officials performing their official duties.
Registered employer associations enjoy a similar
status but not directly analogous benefits.
Historically, those who have argued for more
detailed and direct control of trade union affairs have tended
to:
-
- Argue that unions derive considerable benefits from
registration and the institutional arrangements that go with
it
-
- Stress that such controls enjoy popular support including
inside the labour movement and amongst union members
-
- Point to similar legislative controls on business, particularly
corporations, and
-
- Note that unions exercise considerable power within the body
politic and in community life, sometimes arguing that they ought to
be subject to the same controls as various other species of
monopoly or economic actor enjoying monopoly power.
Those taking a contrary position have said
that:
-
- The degree of government regulation of union affairs is out of
step with comparable international practice
-
- Unions are in essence non profit voluntary associations the
corporations law analogy ought to be rejected, with a better basis
of comparison being, for instance, other essentially non profit
bodies such as political parties
-
- Union influence has diminished in recent years and is generally
no greater than that of many other interest groups in society which
are not subject to comparable controls
-
- Recent changes to industrial relations law and practice have
not only diminished the benefits of registration but also abrogated
the quasi monopoly power formerly enjoyed by many unions. The
decline in union power has been marked by the removal of various
union security devices like union preference and the closed shop
which were either encouraged or tolerated, and
-
- The enactment of laws promoting the registration of enterprise
associations and the growth of agreement making and contractual
arrangements such as those embodied in Australian Workplace
Agreements (AWAs) it is said also has shifted the balance between
union rights and responsibilities towards the latter.
Although grouped together under the single
banner of registration and accountability, the matters contemplated
by the current Bill have often been tackled individually rather
than as part of some larger design.
Chapter 8 of the present Bill deals with
financial accounts and records which organisations are required to
maintain and the form that these will take, and introduces new
accounting standards. It therefore helps to recount the steady
tightening of the financial responsibilities of registered
organisations that occurred during the 1970s and 1980s.
Additional requirements of financial reporting
and other procedures followed in the wake of inquiries, an
important inquiry being the Royal Commission into Alleged Payments
to Maritime Unions.(12) The Royal Commission s
report had significant consequences, leading to amendments to the
financial reporting provisions of the (then) Conciliation and
Arbitration Act 1904 (Cwth) (C&A Act):
The Royal Commissioner (Sweeney J.) considered
that the provisions of the Conciliation and Arbitration Act as it
then stood failed to achieve this (public accountability) result.
The Act, he said, was deficient in that it did not specify in
sufficient detail the records to be kept and filed by organisations
in order to ensure that financial records present a full and
accurate picture of the financial activities of an organisation. He
further concluded that the Act neither specified the activities of
auditors in any detail nor required the filing of auditors reports,
nor did it specifically direct the Industrial Registrar to examine
and evaluate any records filed.(13)
The Royal Commissioner s concerns and
recommendations were picked up in legislation in 1977 and 1980
forming an expanded Part VIIIAA of the C&A Act dealing with
accounts, audit and reporting, and the standard of detail to which
these accounts needed to be presented.
These accounting standards are currently not the
same as the Australian Accounting Standards applicable to companies
but they are quite detailed. That detail appears not in the body of
the Act itself but is stipulated in regulations to the WR
Act.(14) Broadly, the provisions require that
organisations keep proper accounting records; ensure that these are
audited every financial year; that members have access to certain
prescribed information regarding the accounts; that copies of the
auditor s report and the audited accounts are presented to the
annual general meeting of the organisation or committee of
management or supplied to members or published in the journal and
that accounts and auditor s reports be filed with the
Registrar.
Further amendments concerning donations,
including donations to political parties, were enacted in 1982
arising from the Royal Commission into the Builders Labourers
Federation (the Winneke Royal Commission).(15) These
recommendations proposed that such donations be authorised by the
organisation s membership. The view of the Winneke Royal Commission
that such donations be authorised from a ballot of the membership
was considered too unwieldy by the (former) Department of
Employment and Industrial Relations. Rather, it considered such
expenditures could be authorised by a resolution of the Committee
of Management, which is the current arrangement under the WR
Act.
Organisations at the time considered the
combined weight of this new package of financial obligations
onerous (for example committee approval was required for donations
greater than $1000). These sentiments were reflected subsequently
in the section of the report inquiring into Australia s industrial
relations system (the Hancock Report) (16)which dealt
with registered organisations. The Hancock Report observed:
9.111 The (financial administration)
requirements were criticised in submissions as being too detailed,
unnecessary, complex and intrusive. There was, however, a general
recognition that some form of legislative prescriptions
relating to financial accounting and reporting was justified. The
question is one of degree It was put to us that we should recommend
a review of the accounting and financial reporting provisions of
the legislation. The ACTU would see any review being made in full
consultation with the union movement.(17)
The Hancock Report identified three areas that
needed to be considered in any review of financial reporting. These
were:
-
- the appropriateness of imposing on industrial organisations
requirements that are essentially transposed from corporate
law
-
- the complexity of the reporting procedures and the difficulties
met by organisations complying precisely with the detailed
requirements, and
-
- the time involved and the expense incurred in organisations
properly meeting the requirements.(18)
In due course, the Hawke Government commissioned
the accounting firm Ernst and Whinney to advise on any legislative
responses to the Hancock Report s concern about financial
administration suitable for incorporation into the Industrial
Relations Act 1988. Ernst and Whinney agreed with the three
principles outlined above to govern the review but added four of
their own relating financial management:
-
- Let the management manage: In line with current trends it
is appropriate that an organisation should be permitted to manage
its own affairs The extent of external regulation should only be of
a level to ensure the ability of the organisation to adhere to the
principles
-
- Sufficient and relevant financial information: members have
to be provided with sufficient and relevant financial data. This
should be provided regularly on an annual basis, direct to each
member
-
- Opportunity to question management: the membership need to
be given an opportunity to question the management on the
organisation s financial affairs
-
- Reduction of administrative burden: Most organisations have
competing priorities for their time and funds and it is recognised
that such a provision of membership service should be their primary
aim. Regulation and procedures which impede this objective and do
not add to overall accountability should be
reduced.(19)
The Ernst and Whinney report made eleven
recommendations most of which were not directly incorporated in the
subsequent legislation. Thus the level above which donations had to
be formally authorised remained at $1000. It has been fixed at this
level now for almost 20 years. Ernst and Whinney recommended it be
raised to $2000(20), but the recommendation was ignored.
A higher cap, say $2500, would restore the early 1980s relativity
while conforming with the Ernst and Whinney principle of letting
the managers manage . However, it may well be the consensus of the
officials of organisations that the current cap provides a
reasonable authorisation and reporting discipline.
A key finding of the Ernst and Whinney report
was that organisations which had initially found the financial
reporting obligations of 1977-82 onerous had by now (1989) made
adjustments. Secondly, there was no longer the level of antagonism
to the more onerous financial administration procedures highlighted
in the Hancock Committee report. As noted in the Ministerial
Discussion Paper(21) the Ernst and Whinney report was
the last legislative review into financial administration of
organisations until the Blake Dawson Waldron report discussed
below.
To some degree these earlier reports reflected
the structure of the trade union movement prior to the major
changes fashioned by the ALP Governments and the Australian Council
of Trade Unions (ACTU) in the 1980s and early 1990s. Those changes
saw many small unions disappear from the system and a series of
union amalgamations that produced a number of larger bodies.
Arguably, these larger and better-resourced unions should find
corporate law style governance requirements less burdensome than
the smaller and less well-resourced organisations that they either
replaced or swallowed. Supporters of the present Bill would also
say that large unions are responsible for significant amounts of
money in the form of members funds, and that that is reason enough
for imposing strict accountability controls on them while they
choose to take the benefits available by way of registration.
The proposals contained in this Bill may in part
be traced to the industrial relations policy Better Pay for
Better Work released for the 1996 Federal
Election.(22) Some key policy commitments and
principles included:
-
- employees should be free to join a union, so they should be
free not to join a union. Employees should also have the choice of
which union they join (p.3)
The Coalition will:
-
- encourage the establishment of enterprise unions. The program
of union amalgamation has failed, producing top heavy unresponsive
union bureaucracies.(p.4)
-
- repeal the "conveniently belong" rule and ensure that super
unions may, at the request of their members, provide for autonomous
branches at the enterprise level or be disamalgamated in an
equitable manner for all members.(p.4)
-
- take steps to prevent monies collected on a tax deductible
basis from being channelled in whole or in part through a union or
employer organisation to a political party (p.13)
-
- conduct a thorough examination of the operation of those
sections of the Industrial Relations Act which deal with the
accounts and auditing practices of registered organisations and
will amend them if necessary to ensure that organisations keep
proper and audited accounts which are readily available to members
(p.13)
-
- amend the Industrial Relations Act to ensure that the
accounting, auditing and other financial obligations are as nearly
as practicable the same as those of companies (p.13).
While a number of the Better Pay for Better
Work policy commitments were implemented through the
Workplace Relations and Other Legislation Amendment Act
1996 (WROLA), compromise on some points was needed to gain
passage of the Bill through the Senate. For example, the commitment
to require unions to have autonomous enterprise branches was
dropped in the agreement with the Australian
Democrats.(23) Other commitments were not followed up in
the first piece of legislation, such as the commitment to a
thorough review of auditing and accounting practices. (This issue
is now picked up in Chapter 8 of this Bill).
Important amendments which were agreed to in the
WROLA included new provisions (Division 7A of Part 1X) to
disamalgamate organisations which had been formed through
amalgamation since 1991, but disamalgamations were subject to a
sunset clause (initially 31 December 1999: WR Act s.253ZJ).
The Explanatory Memorandum to the Workplace
Relations (Registered Organisations) Bill 2001 (RO Bill) reported
on two (only) successful disamalgamations involving employee
organisations. On 31 May 2001, the Federal Court held that a ballot
for disamalgamation of a part of the Western Australian branch of
the Australian Services Union could proceed. This is only the
second successful application for a disamalgamation ballot (the
first was made by the Professional Officers Association (Victoria),
which later disamalgamated from the CPSU).(24) The
disamalgamation provisions were amended in 1997 to 'correct an
unintended limitation on the circumstances in which a constituent
unit of a registered organisation can apply to withdraw from an
amalgamation and clarify how such applications can be made.
(25)The disamalgamation proposals in the present Bill
therefore make up the Government s third attempt to facilitate the
disamalgamation of so-called super unions . While these unions have
been subject to criticism for the alleged size of their
bureaucracies(26) one study of the unions and their
respective official structures has suggested no lessening of
internal democratic procedures as a result of
amalgamation.(27)
Enterprise unions could be formed and registered
as a result of the WROLA. However, there have been a few
applications lodged to register such bodies, with the only
successful application coming from the Ansett Pilots Association
(APA). As one early critic, Anthony Forsyth, has said of the
registration of enterprise unions: the results had been hardly
overwhelming .(28) Presumably following the Ansett
Airlines demise there will be grounds for reviewing the ongoing
registration of the APA. On the other hand a new registered
(industry) organisation of employees has appeared, this being the
Striptease Artists Australia Incorporated Association. It applied
to the Commission on 14 March 2001 to register as a union to cover
striptease artists and nude/semi-nude waiting and bar staff.
WROLA did not extensively restructure the
existing administrative and reporting requirements. However, it did
amend certain key provisions, most notably those dealing with
increased powers for the Australian Industrial Registrar to conduct
investigations into alleged financial maladministration of
organisations (section 280 of the WR Act). The CCH Australian
Labour Law Reporter refers to these current powers in the
following account:
The powers of the Registrar when conducting an
investigation under sec. 280, 280A or 280B(1) are quite extensive.
These powers certainly reflect a policy which perceives
organisations financial administration as of public, as well as
private, concern. The powers of the Registrar include the
following:
the Registrar may, by notice in writing, require
an officer or employee of an organisation to supply him with such
information relevant to his investigation as the Registrar may
require; and
the Registrar may, by notice in writing, require
an officer or employee of an organisation to attend before him so
that (i) questions (relevant to the Registrar s investigation) may
be put to that employee or officer, and (ii) books, documents and
papers in the custody of that officer or employee (being relevant
to the Registrar s investigation) may be produced.
Section 329 provides that a failure to attend or
produce documents carries a penalty of $500. The making of a
statement or the provision of information to the Registrar that is
false or misleading in a material particular also carries a penalty
of $500, if the false or misleading statement or information was
knowingly made or provided. (Note: Refusal or failure to answer a
question does not, of itself, constitute an offence under the
section.) (29)
Financial reporting provisions under the WR Act
now impose certain obligations on registered organisations in
respect of their financial administration, which are not imposed on
corporations under the Corporations Law. For example, the duty to
disclose donations or gifts including donations to political
parties in financial returns, where the donation is more than $1000
(WR Act s.269) has no comparable provision in the corporations
legislation. There is also a requirement that rules of an
organisation specify a procedure and authorisation for the making
of gifts, donations and loans (WR Act s.201), again without
parallel for companies.
Other key provisions of the WR Act covering
registered organisations include:
-
- Rules must conform to the requirements of the WR Act for an
organisation to be registered (s.189).
-
- An organisation must have rules (s.194).
-
- Rules cannot be contrary to law, nor oppressive or unjust
(s.196).
-
- A registered organisation must have an eligibility rule under
s.195 (ie specifying who can become a member). This provision also
specifies a number of rule requirements including (but not limited
to):
-
- the conditions for spending funds,
-
- the audit of those accounts
-
- the maintenance of the membership list, and
-
- the organisation of branches and other matters.
-
- Elections for office are specified (s.197).
-
- Where rules provide for direct elections, they must be
conducted by secret ballot (s.198).
-
- Terms of office must be specified (s.199).
-
- The rules must authorise the making of grants, donations and
loans (s.201).
-
- The Industrial Registrar may alter rules of organisations to
bring them into conformity with the requirements of the WR Act.
(s.203).
-
- A member of an organisation may make an application to the
Federal Court for the performance of the rules (s.209).
-
- Elections must be conducted by the Australian Electoral
Commission unless an exemption has been granted (s.210).
-
- An allegation of an election irregularity may be pursued by a
member (s.218).
-
- The Federal Court may declare a finding of an irregularity in
the conduct of an election after conducting a hearing (s.222).
-
- The membership register can be inspected by a person authorised
by the Industrial Registrar and details of the membership must be
forwarded in an annual return to the Registrar (s.268).
-
- Details of any loans (including the beneficiary), grants or
donations must be recorded annually with the Industrial Registrar
(s.269).
-
- Entitlement to membership of an organisation is provided for
under s.261 subject to the person paying membership fees and that
the person is eligible to become a member under the organisation s
eligibility rules.
-
- Rules addressing an organisation s accounts and related
requirements are found in s.272 (note Regulations 107 and 108 re
presentation of accounts).
-
- The role of the auditor is outlined in ss.282 284, and
-
- Disputes within organisations must be resolved through the
organisation s rules (s.290).
The Coalition s 1998 workplace relations policy
More Jobs Better Pay made further commitments on reforms
to the legislation governing registered organisations.
A Coalition Government will:
Maintain the principles of freedom of
association (voluntary unionism) and strengthen their operation in
the Workplace Relations Act 1996, particularly to avoid
loopholes where the laws may not fully protect independent
contractors or their employees from coercion;
Legislate to make it unlawful for any person or
group of persons (whether employers, union bosses or workers) to
plan to establish or maintain, directly or indirectly, a closed
union shop;
Legislate to remove all forms of preference to
unionists against non-unionists, whether by employees, employers or
contractors, including the removal of provisions granting indirect
preference in awards or agreements (such as existing requirements
that employers actively encourage unionisation of their
workforce);
Amend the Workplace Relations Act 1996
to increase the accountability of unions to their members in
financial and other matters, and foster the creation of greater
democratic control of union decision making;
Support (by further legislation, if necessary)
the formation of enterprise unions, the disamalgamation of super
unions and the creation of formal or informal workplace
consultation structures;
Amend the right of entry provisions of the
Workplace Relations Act 1996 to ensure that the proper
role of unions is as a service provider to its members, not as an
uninvited quasi-inspector at the workplace;
Amend the existing registration provisions of
the Workplace Relations Act 1996 to make them more
workable and overcome technical and procedural impediments never
rectified by Labor governments.(30)
The More Jobs Better Pay policy on
registered organisations was given impetus by a report on the
financial administration of the Australian Workers Union (AWU) by
the (then) Australian Industrial Registrar, Mr Michael Kelly. The
report was delivered to the Minister, the AWU and the Director of
Public Prosecutions (DPP) during Christmas 1998. The Hon. Peter
Reith MP made reference to the Registrar s report and signalled
reforms to provisions governing internal administration of
registered organisations.(31) The report highlighted an
alleged shortfall of operational finances for the AWU s Head Office
of $11 million from 1995-1997. Mr Kelly found that the union failed
to keep proper accounting records during 1995-96 and failed to
retain records for a number of its branches. Auditors (Coopers and
Lybrand) raised concerns over:
-
- writs for $70 million for industrial action in 1993
-
- disputes over ownership of property
-
- double counting of union assets between the branches, and
-
- back taxes owed by the NSW Branch.
In its defence, the former National Secretary of
the AWU, Mr Terry Muscat, said that the Registrar s report had only
found a failure to report on time and had praised the union for
taking the advice of the auditors .(32) The DPP has not
prosecuted this matter but has advised the AWU of his
concerns.(33) The financial difficulties of the AWU have
been well reported since the AWU s amalgamation with the Federation
of Industrial, Manufacturing and Engineering Employees in 1994 and
have been the source of questions about its ongoing viability.
However the former Secretary of the ACTU, Mr Kelty, gave strong
support for an ongoing role of the AWU in the labour movement in
1998.(34) This support seems to have been borne out as
has been recently noted: 'Now the AWU is again a force,
industrially and politically'. An article recently appearing in the
Australian Financial Review attributes the AWU's rebirth
in part to the business acumen of the current AWU National
Secretary, Bill Shorten.(35)
The Government commissioned the legal firm,
Blake Dawson and Waldron (BDW), to review the financial and
administrative requirements of registered organisations in 1997-98.
Submissions were invited from interested parties. The report was
published in August 1998.(36) This report is important
because the Government subsequently announced that it would
introduce separate legislation to implement the BDW
recommendations, based in part on the notion that provisions
dealing with registration, industrial elections and financial
reporting had no relevance to many users of the workplace relations
system.(37)
Few if any of the registered organisations which
made submissions to the BDW review agreed with the suggestion,
couched in the review s terms of reference, that there was a need
to align accounting and reporting standards to those of
companies.(38) In his critique of the BDW report, one
academic, Mark Mourell(39) commented:
It appears that none of the organisations which
made submissions to the review (including the Metal Trades Industry
Association, the Australian Council of Trade Unions and the Finance
Sector Union) considered it appropriate to adopt business standards
in accounting, auditing and reporting to members of their
organisations. They also submitted that for the purposes of the WR
Act they should not have to rely on external professional
accounting advice to make judgments about administration or their
own financial stability. Despite these submissions the authors of
the report fundamentally followed Australian Society of Certified
Practicing Accountants and the Institute of Chartered Accountants
and urged that financial and auditing provisions be tightened but
modelled on those of non-profit organisations.(40)
Also according to Mourell, the key question not
answered in the BDW report was: what is the appropriate level of
accountability for industrial organisations? As he put it:
the fact remains that unions do not raise money
from the public in order to make a profit; do not enjoy the
benefits of limited liability and it may be argued are not in
contractual relationship with their members. Consequently, they
ought to be spared the detailed accounting requirements of
businesses particularly as their officers are accountable to their
members through periodic elections.(41)
The over-riding reason for organisations
supporting the current regulatory regime was that they viewed the
current provisions as already adequate, if not onerous. The former
Workplace Relations Minister, the Hon. Peter Reith MP released an
Implementation Discussion Paper for the More Jobs Better
Pay policy in May 1999.(42) This was followed by a
Ministerial Discussion Paper released in October
1999(43), which in addition to addressing financial
practices and accountability issues included the Government s
response to a report of the Joint Standing Committee on Electoral
Matters (JSCEM) concerning industrial elections.(44)
The JSCEM report was generally satisfied with
the current arrangements for industrial elections including the
current public funding arrangements of industrial elections at
about $3.6 million or $6000 per election ($1997). It nevertheless
made a number of recommendations for amendment to the provisions
governing elections for example in respect of: ballot returns,
cut-off rolls, applications for inquiries into election outcomes by
the Electoral Commissioner and model rules. The JSCEM report also
provides a concise history of industrial election provisions from
the C&A Act onwards. The Ministerial Discussion Paper picked up
most of the election issues proposed for reform and some
others.
Another important proposal of the Ministerial
Discussion Paper was the proposition to impose fiduciary standards
of conduct ( directors duties ) on officials of registered
organisations (borrowed from company law).
In his review of trade union regulation, Anthony
Forsyth has observed that the federal proposal concerning fiduciary
duties on union officials has followed similar legislation
regulating trade unions introduced by conservative State
governments. In certain cases, following a change of government,
ALP administrations have been reluctant to reverse these (higher)
standards.(45) There thus arises the assumption
according to Forsyth that the community may regard such standards
as a reasonable imposition on union office holders.
A draft Registered Organisations Bill
incorporating these and other principles was released for
discussion and comment in December 1999. However the RO Bill tabled
on 4 April 2001 differed from the exposure draft in a number of
areas. Gone was the proposal in the earlier Bill for registered
organisations to seek approval from the membership for setting up
political funds , from which donations to political parties would
(only) be made. The proposal to reduce the minimum membership
number to 20 was also abandoned. On the other hand, the proposal
placing fiduciary duties on office holders was retained.
Forsyth concluded that the combined weight of
the administrative burdens proposed in the Ministerial Discussion
Paper and incorporated in the RO Bill seem designed to keep unions
in ever increasing layers of bureaucratic red tape .(46)
A contrary view, that the proposed reforms meet the higher
educational standards of the modern workforce, was reported in
Industrial Relations and Management Newsletter:
With employees becoming more independent, better
educated and more individual in their approach, both unions and
employer associations are discovering that they need to find new
ways to maintain their relevance with their membership.
The government says that the proposed
legislation will assist organisations in this, because the new Bill
is all about ensuring that members will have an enhanced scope to
know how the organisation works, where its money goes, how they can
get involved in its policy decisions and what value they get for
their subscription.
The policy changes will primarily be aimed at
modernising financial accounting and reporting requirements. It
will also establish new statutory duties for officers and employees
of organisations modelled in part on those in the Corporations
Law.
Improved disclosure to members regarding
expenditure of fundings (sic), including political donations and
professional (legal) fees will be required. The government is
concerned that some organisations are spending huge amounts of
members money in internal disputes between officials, potential
officials and in feuds between branches.(47)
On 5 April 2001 the Senate referred to its
Employment, Workplace Relations, Small Business and Education
Legislation Committee the substance of the Workplace Relations
(Registered Organisations) Bill 2001. The ensuing report was tabled
on 18 June 2001. The Committee was split on party lines with ALP
Senators indicating that they thought the Bill went beyond the
making of purely mechanical or technical changes to the law.
Australian Democrat, Senator Andrew Murray (WA) commented that
although he did not oppose the Bill, it was something of a pity
that the Committee had not been able to look at the rationale for
such heavy levels of government regulation in this
area.(48)
The RO Bill was passed by the House of
Representatives on 27 August 2001 after incorporating 13 Government
and 14 Opposition amendments.(49) It was introduced into
the Senate on 30 August 2001 but was not considered beyond the
Second Reading prior to the Parliament being prorogued for the
November 2001 General Election.
The Coalition s 2001 workplace relations policy,
Choice and Reward in A Changing Workplace, indicated its
intention to persist with the measures presented in the 2001
package, committing a re-elected Howard Government to:
-
- restrict trade union right of entry, especially into small
business
-
- expand the period of notice trade union officials have to give
before demanding entry onto premises, and limit legal entry rights
if the purpose is purely membership recruitment
-
- tackle corruption in the commercial construction industry by
supporting and resourcing the Building and Construction Industry
Royal Commission industry (sic), and give immediate consideration
to any recommendations it makes for reform consideration to any
recommendations it makes for workplace reform
-
- provide mechanisms (which currently do not exist) for workers
to democratically vote to disamalgamate from super unions, and for
the simpler registration of bona fides of enterprise
unions and
-
- legislate to increase disclosure, accountability and democratic
control by trade unions and employer associations in the
expenditure of member funds for political
purposes.(50)
On 29 May 2002, the Australian Financial
Review reported that the Australian Labor Party would support
the present Bill following an agreement by the Government to remove
two controversial elements in the package.
The Government appears to have dropped its plan
to establish a separate Act and will instead re-incorporate the
provisions of the present Bill as a schedule or schedules to the WR
Act.
The Financial Review further reports that a
proposal that would have allowed the Minister to pursue civil
penalties against trade union officials found to have defied orders
of the Australian Industrial Relations Commission has also been
agreed to be dropped.(51)
This very large and quite technical Bill cannot
be dealt with here comprehensively.
As already noted, a further complication is that
the Bill as introduced will be subject to a number of Government
amendments.
Accordingly, the following analysis therefore
attempts by reference to the RO Bill to highlight some of the
matters that were regarded as potentially contentious when the
substance of what the Government is (again) proposing was last
before the Parliament less than 12 months ago.
The Bill is presently divided into 11 Chapters
the RO Bill contained 10. The difference arises on account of the
decision to divide what was Chapter 8 in the RO Bill on Records,
accounts and conduct of officers into two Chapters. These are
Chapters 8 and 9 of the present Bill, which deal respectively with
Records and accounts and Conduct of officers and employees .
Chapter 1 contains the principal objects and
definitions and is very similar to the comparable Chapter in the RO
Bill.
Clause 5 dealing with the
objects of the proposed Act reflects amendments moved by the ALP
during the debate on the RO bill to delete reference to the Act
promoting a diversity of employer and employee organisations
registered under the Act. The clause also incorporates another ALP
amendment that makes it an object of the Act to encourage members
to participate in the affairs of their respective
organisations.
Clause 6 also reflects an ALP
sponsored amendment to the RO Bill as introduced, by providing that
the form of declaration envelope shall be prescribed by way of
regulation.
Clause 12 relating to the
membership of organisations is intended to reflect the operation of
section 4(5) of the WR Act.
Clause 15 is new and is
designed to exclude the operation of Part 2.5 of the Criminal Code.
Part 2.5 sets out principles of corporate criminal responsibility.
The exclusion of Part 2.5 means that the Bill s own corporate
criminal responsibility regime (clause 344) will
apply instead.
Clause 18 identifies the types
of organisations that may apply for registration and includes the
three current categories: employer associations, industrial unions
that are capable of engaging in an interstate industrial dispute
and enterprise unions. Clauses 19 and 20 set out
the criteria for registration and replicate the current s.189 of
the WR Act. The minimum membership number for a union is retained
at 50.
Clauses 21 and 22 prohibit
discriminatory conduct by either employers, e.g. through dismissal
of an employee or the termination of a contractor's services, or
unions through industrial action against an individual where the
individual's action (or omission) is in relation to forming an
association seeking registration under the Bill. Clause
23 details the power of the Federal Court to make orders
in relation to conduct that contravenes clauses 21 and
22.
Clauses 26 and 27 respectively
provide for the registration of organisations and confer corporate
status on registered bodies.
Part 3 of Chapter 2 deals with the cancellation
of registration of an organisation. Cancellation of registration is
currently dealt with under Part X of the WR Act. Grounds for
deregistration include a continued breach of an award or certified
agreement; interference with interstate trade or international
trade; endangering the safety, health or welfare of the Australian
community (WR Act, s.294).
Part 3 of Chapter 2 of the present Bill
incorporates an ALP amendment to the RO Bill as first introduced.
That amendment provided for the retention of the current
cancellation of registration provisions under the WR Act. The
intended effect of retaining the current provisions is to prevent
the grounds for cancellation of registration being extended to
include non-compliance with any court
order.(52)
Until 1972, the rules governing the merger of
registered organisations were relatively simple. One body would
voluntarily deregister and the other would expand its eligibility
rule to allow it to represent the interests of the former
organisation s membership. From then on, a minimum turnout of
members was required as well as a majority support being required
in each of the amalgamating bodies.
Under the present law largely as a result of
amendments made in 1983 and 1991 for an amalgamation to take
effect, 25 percent of the membership of each of the balloting
bodies must vote unless there is a community of interest between
the merging parties. An exemption may also be granted from the
balloting requirement where a small organisation is being taken
over by a much larger body.
After the significant upheavals in the union
movement in the 1980s and early to mid 1990s, there has for some
years been comparatively little change in the pattern of union
representation in the federal system.
As noted in Clause 34, Part 2
of Chapter 3 deals with the main elements of the amalgamation
procedure and with the consequences of an amalgamation.
Part 2 encompassing clauses 35 to
91 of the present Bill, largely reflects the existing
position under Division 7 of Part IX of the WR Act.
Changes to the RO Bill are also minor or
technical. Clause 72 of the present Bill dealing
with offences in relation to a ballot includes two new paragraphs (
j and k ) that create separate offences for being unlawfully in
possession of a ballot paper and destroying ballot boxes.
Clause 86 is a new provision and creates a
specific regulation making power in respect of amalgamations.
These provisions in many respects reflect the
ongoing commitment of the present Government to facilitate the
break up of the super unions created in the late 1980s and 1990s at
the behest of the ACTU and underpinned by legislation enacted by
the previous Labor Government. The Howard Government s position has
been that as many unions and their members were forced into
mergers, they should have a fast-track method of dissolving such
marriages of convenience.
As noted in the Explanatory
Memorandum(53), Part 3 provides largely for the
consolidation of Division 7A of Part IX of the WR Act and matters
currently dealt with under the Workplace Regulations
1996.
Clause 93 contains a list of
definitions, substantially expanded from the equivalent list in the
RO Bill.
Clause 94 deals with the
requirements for obtaining a Federal Court ordered disamalgamation
ballot in the case of former organisations that now form part of
another registered body. These provisions relate to amalgamations
that occurred after 1 February 1991 when the Principal Act was
amended to encourage amalgamations. The application of the proposed
provisions varies in accordance with how long the amalgamation has
been operative and whether the amalgamation in question occurred
before or after 31 December 1996. The constituent parts of existing
registered bodies that will be able to take advantage of these
disamalgamation provisions are those that:
-
- amalgamated between 1 February 1991 and 31 December 1996 and
subsequently apply to disamalgamate within three years of the
commencement of this Act, and
-
- amalgamated after 31 December 1996 but have been amalgamated
for less than 5 years.
Clause 105 of the RO Bill as introduced provided
for the amendment of applications in certain circumstances does not
reappear in the present Bill. This reflects the Government s
agreement to an ALP amendment to the earlier Bill.
Clause 103 dealing with the
provision of information to electoral officials has been expanded
from the equivalent in the RO Bill, largely to bring it into line
with current Commonwealth policy dealing with the admissibility of
evidence and self-incrimination in criminal proceedings.
Clause 105 differs from the
equivalent in the RO Bill (clause 115) in form but not
significantly in intention.
Clause 106 sets out the means
for reporting the outcome of a ballot previously this was to be
dealt with by way of regulation. Clause 107
reflects similar considerations but also details matters that must
be included in the Australian Electoral Commission s ballot report.
Clause 108 deals with Federal Court inquiries into
alleged ballot irregularities.
Clause 111 deals with the means
by which after a disamalgamation, members of the new bodies
individually decide which organisation to join. This clause is a
recast version of clause 120 of the RO Bill.
Clauses 113 and 114 vary from
the equivalent provisions in the RO Bill (clauses 122 and 123) to
reflect the Government s acceptance of ALP amendments to the 2001
Bill. Clause 113 also provides for the continuity
of all existing awards, agreements etc in respect of the newly
registered organisation and its members. Clause
114 provides that a newly registered body that was once
part of a registered organisation is bound by any agreement with a
State union that would have applied to it if it had remained part
of the organisation from which it has disamalgamated.
Clause 115 seeks to provide for the continued
operation of various instruments (as defined in clauses 35
and 93) with respect to the newly created organisation and
to the ongoing body and its members. New clause
116 similarly seeks to ensure the continuity of legal and
tribunal proceedings.
Clauses 117 to 122 deal with
the mechanics of transferring and dealing with the assets of the
new organisation. Clause 123 is another
transitional provision, and provides that constituent
office-holders in the former amalgamated body may serve out their
current term in the newly formed organisation.
Clause 125 outlining the powers
of the Federal Court to resolve problems arising out of the
disamalgamation is broader than the equivalent clause in the RO
Bill and is not specifically limited by the rules of any other
organisation or association seeking registration. Validation
provisions in the present Bill are more explicit and detailed than
those of the RO Bill.
Like section 118A of the WR Act, this Chapter
will allow the AIRC to issue orders, in the context of demarcation
disputes, about the representation rights of unions.
Clause 133 replicates the
current subsection 118A(1) (WR Act) allowing the AIRC to: (a) grant
exclusive coverage to a union which has constitutional coverage of
the relevant employees; (b) give rights of coverage to a union
which has no present constitutional coverage of the relevant
employees; and/or (c) exclude a union from representing employees
over whom it has constitutional coverage.
Sub-clause 133(2) is a new
provision allowing the Minister, an organisation or an employer to
apply for a variation of a demarcation order. Under clause
135, an order made under clause 133 does not prevent a
newly registered organisation that covers 'relevant' employees from
representing their industrial interests.
Clauses 133 to 137 are in
substance the same as the equivalents in the RO Bill. Clause 135 of
the RO Bill allowing newly registered organisations to represent
workers, notwithstanding existing AIRC exclusive representation
orders, is not replicated. This reflects the Government s agreement
to an ALP amendment to the earlier Bill.
The WR Act is part of a long tradition of state
regulation of the internal affairs of registered organisations.
Regulation takes three forms, the:
-
- principal statute prescribes an extensive list of matters that
registered organisations must include in their rules (see sections
195 to 200 of the WR Act and clauses 141 to 146 of
the present Bill)
-
- principal statute also requires all registered organisations to
adopt certain specific rules ie it not only makes it a requirement
that certain matters be covered by the rules but the Act also fixes
the content of the rules or limits the scope for rule-making on
particular matters, and
-
- courts have also added certain common and administrative law
requirements to those imposed by statute for example, the
insistence that the principles of due process/natural justice be
applied and that officials exercise their powers under the rules in
good faith .
Clause 141 of the present Bill
largely replicates the provision of the WR Act and the RO Bill. As
with other parts of the proposed legislation, ALP amendments to the
RO Bill are reflected in this clause. The requirement in the RO
Bill that membership rules must provide that no membership dues are
payable by a person where they are not eligible to be a member or
are an inactive member has been dropped from the current Bill.
Clause 142 also reflects an ALP
amendment to the RO Bill (clause 140). New sub-clause
142(2) allows organisations to continue to charge
differential membership fees according to the rates of pay of
members (even where those rates of pay are based on a person s
age).
Clause 147 provides for the
Minister to publish guidelines containing sets of model rules for
organisations. This is an interesting and potentially worthwhile
innovation that could form the basis for the winding back or
possible simplification of regulatory requirements in the
future.
Chapter 6 Membership of
organisations
This Chapter, which largely replicates Division
9 of Part IX of the WR Act, covers such matters as: entitlement to
membership, resignation from membership, recovery of money from
members of organisations (dues owing), and legal objections to
membership.
The provisions in this Chapter are substantially
the same as the equivalents in the RO Bill. (A small explanatory
note has been omitted at the end of sub-clause
166(2)).
Clause 166 details the right of
a person to become a member of an organisation providing he or she
meets the criteria listed in the organisation s relevant
eligibility rules. Clause 172 provides that
members who have been non financial for a period of 2 years must
have their name removed from the membership register before a
further 12 months has elapsed. Clause 174 provides
for resignation from membership where the member ceases to be
eligible or after two weeks from notice of resignation.
Clause 180 provides for
conscientious objection to membership of an organisation (currently
section 267 of the WR Act). The clause applies to both registered
employer associations and registered unions. However, with the
outlawing of compulsory unionism and the removal of union
preference from the legislation, it is not entirely clear why it is
necessary for the position of conscientious objectors to be
regulated by law.
This Chapter sets the rules for the conduct of
elections for offices in registered organisations. These elections
must generally be conducted by the Australian Electoral Commission
(section 210 of the WR Act and clause 182) and are
publicly funded. Part 3 deals with Federal Court inquiries into
elections and Part 4 with the circumstances in which persons may be
barred from election to office in a registered organisation.
The equivalent provisions may be found in
Divisions 4, 5 and 6 of Part IX of the WR Act.
Only minor technical changes have been made to
the equivalent provisions in the RO Bill.
As noted in the Bills Digest for the RO Bill,
the Bill reflects a recommendation of the Joint Standing Committee
on Electoral Matters (Report, 1997), that votes in elections not be
counted unless the approved form of declaration envelope is used
(clause 188).
Clause 190 prohibits the use of
organisation resources to favour one candidate over another in
elections for office.
Clause 191 makes it a strict
liability offence for an officer or employee of an organisation to
fail to respond to a request from a returning officer in respect of
an organisation s membership register.
Clauses 193, 199 and 202
reflect changes to the RO Bill regarding the wording of offences
and defences in the case of prosecutions for: failing to act on the
valid direction of an electoral official in connection with an
election for office; the preservation of ballot papers; and
hindering the Industrial Registrar in connection with the
performance of a Federal Court sponsored inquiry into an election
for office. Additionally, offences against clauses 193 and
199 become strict liability offences and an element of
strict liability is added to the offence against clause
202.
Clause 215 (the equivalent of
clause 212 in the RO Bill) provides that a person may not hold
office where they have been convicted of a prescribed offence as
defined in clause 212. The main forms of
prescription relate to offences involving fraud or dishonesty
punishable by imprisonment for a period of three months or more and
offences in relation to the formation and management of
organisations. The Federal Court may, however, grant leave for a
person to hold office notwithstanding clauses 212 and
215 (refer: clauses 216 and 217).
The present Bill departs from the RO Bill by
adding a new Division to Part 4 of Chapter 7 clauses 221 to
228. This Division deals with persons who have been
disqualified from office by virtue of incurring a penalty order
imposed under subclause 306(1) of the Bill. That
subclause relevantly refers to imposition of a civil penalty
imposed by the Federal court on an individual of 20 penalty units
(currently a single penalty unit is $110.00).
This chapter is about the recording keeping and
accounting practices of organisations. Organisations must keep
lists of members and office-holders and details of loans, donations
and grants must be lodged with the Industrial Registrar.
As provided by Part 2 of Chapter 8, basic record
keeping requirements are the same as under the RO Bill
(clauses 230 and 231). However, clause
232 makes changes to the fault elements of the offence of
interfering with or destroying a register of members or an official
copy of such a register where either forms part of the organisation
s official records kept in accordance with clauses 230 and
231. Amongst other things, clause 232
inserts a strict liability element into the offence. The equivalent
offence under the RO Bill (clause 221) required proof of intention.
It may be noted that unlike the strict liability offences in the
Bill for example, clause 199 dealing with ballots
- clause 232 does not explicitly provide for
possible defences. The standard defences, including that of mistake
of fact in relation to the strict liability element, are
nonetheless available under the Criminal Code Act
1995.
Part 3 of Chapter 8 sets out the requirements
that must be met by organisations in relation to their financial
affairs and Part 4 is a new provision dealing extensively with
access to organisations financial records.
Divisions 1 to 3 of Part 3 are the same as the
equivalent provisions in the RO Bill. Clause 258
in Division 4 of Part 3 dealing with the obstruction of auditors
has been redrafted to insert a strict liability element into the
offence. Statutory defences, as well as Criminal Code defences are
available.
Divisions 5 to 6 of Part 3 are the same as the
equivalent provisions in the RO Bill.
Division 7 of Part 3 deals with members access
to financial records. Sub-clause 272(6) has been
widened (from clause 261(6) of the RO Bill) to include requests for
information made by a member of an organisation or on behalf of
such a member. Clause 273 deals with orders
for the inspection of financial records. A new sub-clause
273(3) has been added to empower the AIRC to make orders
authorising the inspection of financial records that relate to
reasonably suspected breaches of the Act and the Regulations and
various reporting standards and guidelines in respect of the
financial administration of a reporting unit (organisation or part
thereof).
Part 4 of Chapter 8 of the RO Bill dealt with
the Conduct of officers and employees. That Part does not appear in
that form in the present Bill but constitutes part of a new Chapter
9. Part 4 of Chapter 8 in the present Bill deals with rights of
access of officers and former officers to an organisation s
books.
Chapter 9 Conduct of officers and
employees
This Chapter lists some of the more significant
duties of officers and employees of organisations.
It is a new Chapter although it picks up
elements of Chapter 8 of the RO Bill. For instance, clauses
281 to 289 and 291 to 293 replicate
respectively clauses 269 to 276 and 278 to 281 of the RO Bill.
Clause 277 of the RO Bill that dealt with the
use of position and information in ways that may give rise to a
criminal offence was deleted at the instigation of the Opposition
and is not reproduced in the present Bill.
Part 3 of Chapter 9 is new to this Bill and
concerns the general duties officers and employees in respect of
orders or directions issued by the Federal Court.
These provisions clauses 294 to
303 represent a significant departure from the RO Bill and
are potentially quite contentious.
No rationale for these new provisions appears in
the Explanatory Memorandum but the proposed changes are flagged in
Minister Abbott s Second Reading Speech where he notes that:
The Bill establishes duties on (sic) officers
and employees of organizations to comply with orders and directions
of the Australian Industrial Relations Commission and the Federal
Court. Breach of these duties would result in financial penalties,
and in the case of officers of organizations, disqualification from
holding or seeking office. These provisions which did not form part
of the 2001 Bill, have been included in recognition of the fact
that such breaches pose a threat to the integrity of the federal
workplace relations system.(54)
It would appear that the conduct that has
inspired these proposals is the refusal of some high profile union
officials to comply with Commission orders issued under section 127
of the WR Act to cease industrial action. As such orders are
already enforceable by the Federal Court under section 127(6) of
the WR Act but it would appear that some employers are reluctant to
press their rights under this provision. Contravention of the
proposed provisions would expose union officials not just the
relevant pecuniary penalty but also prevent them holding office by
virtue of new Division to Part 4 of Chapter 7 clauses 221
to 228 of the present Bill.
This Chapter is the equivalent of Chapter 9 in
the RO Bill. It also reflects in part an ALP amendment to clause
289 of the RO Bill. The relevant provision is now located at
clause 310, and deletes the reference to the
Employment Advocate. However, new sub-clause
310(2) provides that applications for orders may now be
made by the Minister or their nominee presumably this could be the
Employment Advocate in respect of matters covered by clause
305(2)(zk) of the Bill. The relevant matters in this
instance are those arising under clauses 297 to
303 of the Bill regarding the enforcement of Commission
and Court orders.
Clause 305 lists the civil
penalty provisions contained in the Act and provides that
application may be made to the Federal Court for orders regarding
contraventions. Clause 306 sets out the pecuniary
penalties that the Court may order (up to $11 000 for bodies
corporate and $2200 for natural persons). Clause
307 enables the Federal Court to order a person who has
contravened a provision to make compensation to the organisation
and the Court is to calculate the value of any profits made by the
person in assessing the compensation payable. Clause
309 preserves the operation of other laws concerning the
duties of officers and employees. Clause 310
allows the Registrar or person authorised by the Registrar amongst
others to apply for an order about a contravention other than a
contravention of provisions relating to officers duties.
Clause 311 prevents civil proceedings following
criminal proceedings for the same conduct. Clause
313 allows criminal proceedings to follow civil
proceedings for the same contravention. Clause 314
prevents the admission of evidence in criminal proceedings where
the evidence was given previously in civil proceedings in relation
to the same conduct.
This Chapter is the equivalent of Chapter 10 in
the RO Bill.
An ALP amendment to clause 303 of the RO Bill in
respect of the authorisation of financial assistance to members
appears as clause 324 of the present Bill.
Otherwise there appear to be no changes of great
significance to the RO Bill. Former clause 316 dealing with
offences in relation to the Registrar s investigations now appears
in a slightly altered form as clause 337. The
changes to this provision appear to reflect matters of drafting
technique rather than differences of substance.
The Chapter also includes provisions validating
certain invalidities in relation to registered organisations.
Clause 318 defines 'invalidity'. Clause
319 provides that all acts done in good faith by a
collective body of an organisation or an official are valid despite
any later finding of an invalidity concerning the election or
appointment of a collective body or a person to the collective
body, or the making of rules. Clause 320 validates
certain acts after four years have elapsed. Clause
321 allows the Federal Court to order that clauses
319 or 320 may not apply in relation to certain acts.
Clause 322 allows an organisation, its members or
an interested person to apply to the Court for a ruling on an
alleged invalidity. The Court may make orders to correct the
invalidity. This includes the reconstruction of a defunct branch
(clause 323).
Part 3 allows financial assistance from the
Commonwealth to meet the costs of legal proceedings to be granted.
Clause 324 authorises the Minister to grant legal
assistance in respect of proceedings for suspected contravention of
defined provisions. Clause 325 enables the Federal
Court to certify that an unsuccessful applicant for assistance had
acted reasonably seeking the assistance. Clause
326 allows the Minister to refuse assistance in relation
to proceedings concerning certain matters (eg relating to rules)
where the order sought is substantially the same as that sought in
other proceedings. Clause 327 provides financial
assistance is not normally payable for two or more counsel.
Part 4 gives the Registrar powers to make
inquiries into the affairs of organisations. Clause
330 enables the Registrar or registry staff to make
inquiries regarding compliance with Part 3 of Chapter 8 (accounts
and audit) reporting guidelines, relevant rules governing reporting
and finances. Clause 331 enables the Registrar to
compulsorily conduct an investigation to determine whether there
has been a contravention of Chapter 8 Part 3, where satisfied that
there are reasonable grounds for doing so. Clause
332 allows the Registrar to investigate an irregularity or
deficiency of an organisation's accounts arising the auditor's
report. Clause 333 allows that a prescribed number
of members of a reporting unit may request its finances to be
investigated by the Registrar. Clause 335
prescribes the assistance to be afforded in the conduct of an
investigation. Sub-clause 336(4) requires a
reporting unit to remedy the contravention. Clause
337 makes it an offence to refuse to cooperate with an
investigation, if requested to do so by the Registrar.
Part 5 deals with the jurisdiction of the
Federal Court. Clause 338 vests the Federal Court
with jurisdiction in relation to matters arising under this Bill or
the WR Act. Clause 339 sets out certain matters in
which the Federal Court has exclusive jurisdiction (eg an act for
which an organisation is to be sued). Clause 340
requires the Federal Court's jurisdiction to be exercised by a Full
Court in relation to certain matters (eg cancellation of
registration).
Part 6 reproduces provisions currently found in
Division 12 of Part 1X of the WR Act. A member's right to
participate in organisation ballots is provided in clause
345. A member's request for information concerning
elections and/or ballots is provided for in clause
346. A copy of the organisation's rules must be supplied
to a member where the request has been put in writing
(clause 347).
The general aim of this Bill is to remove
administration of registered organisations to a separate statute.
Thus, the Workplace
Relations Act 1996 would deal primarily with awards,
certified agreements and Australian Workplace Agreements. However,
as a result of the report in the Financial Review (29 May 2002,
cited earlier) which notes that agreement seems to be available to
pass the current Bill as a schedule to the Workplace
Relations Act 1996 and not as it is currently proposed to
be a new statute, it would be prudent to reserve comments about the
new arrangements until amendments to the Bill (or indeed a new
Bill) are presented.
One ongoing query may however remain. This
concerns the more onerous duties of officials of organisations
under the proposed arrangements and whether these duties may
dissuade persons from nomination to elected positions.
-
- House of Representatives, Debates, 21 March 2002, p.
1835.
- ibid.
- http://www.aph.gov.au/house/committee/em/ie/ieindex.htm
- This also brings together as attachments a number of other
useful documents including: The Recommendations of the Review
of the current arrangements for Governance of Industrial
Organisations, prepared by Blake Dawson and Waldron (June
1998) and the Government Response, tabled in the House of
Representatives on 15 July 1998, to the Report of the Joint
Standing Committee on Electoral Matters: Inquiry into the role
of the Australian Electoral Commission in Conducting Industrial
Elections :
http://www.dewrsb.gov.au/ministers/reith/disc_info/disc/accountability.pdf
- See:
http://www.aph.gov.au/senate/committee/EET_CTTE/WR%20tranbus_bill/WR%20Bills
%202001.pdf
- Braham Dabscheck and John Niland, Industrial Relations in
Australia, George Allen and Unwin, 1981, pp. 133 134.
- ABS, Employee Earnings, Benefits and Trade Union Membership
August 2001, Cat No. 6310.0, 28 February 2002.
- ABS and other figures cited in Creighton and Stewart, op cit,
pp. 352 354.
- According to Australian Industrial Registry data, presently
there are also 69 federally registered employer associations.
- Breen Creighton and Andrew Stewart, Labour Law: an
introduction, third edition, Federation Press, 2000, p. 338.
- Jumbunna Coal Mine NL v Victorian Coal Miners
Association (1908) 6 CLR 309. Burwood Cinema Ltd v
Australian Theatrical Employees Association (1925) 35 CLR 528.
- Report of Mr Justice Sweeney: Royal Commission into Alleged
Payments to Maritime Unions (AGPS, 1976).
- Department of Industrial Relations Accounting Practices and
Financial Reporting Requirements: Guidelines for Organisations
Registered under the Commonwealth Conciliation and Arbitration Act
1904, (AGPS, 1980).
- See Regulations 107 and 108 of the Workplace Regulations 1996.
- Report of Commissioner J. Winneke: Royal Commission into
the Activities of the Australian Building Construction Employees
and Builders Labourers' Federation (AGPS, 1982).
- Report of the Committee of Review into Australia s
Industrial Relations Law and Systems (AGPS, 1985) p. 483.
- ibid., p. 482.
- Ernst and Whinney (Chartered Accountants) Review of
Financial Accounting and reporting Requirements, (April 1998),
p. 6.
- ibid., p. 7.
- ibid., p. 25.
- The Hon Peter Reith, Accountability and Democratic Control
of Registered Industrial Organisations, October 1999, p. 1.
- The Hon Peter Reith MP, Better Pay for Better Work: the
Federal Coalition s Industrial Relations Policy (February
1996).
- Agreement between the Commonwealth Government and the
Australian Democrats on the Workplace Relations Bill (October
1996).
- See Workplace Relations Act Monitor (June 2001). This
site is maintained by the Department of Employment and Workplace
Relations http://www.dewrsb.gov.au/workplaceRelations/default.asp
- See Schedule 7 of the Workplace Relations and Other
Legislation Amendment Act 1997 and subsections of s.253ZJ of
the Workplace Relations Act.
- Tom Bramble, Deterring Democracy; Australia s New Generation of
Trade Union Officials Journal of Industrial Relations
v.37(3) 1995. See also Braham Dabscheck, The Struggle for
Australian Industrial Relations (OUP, 1995) p. 134.
- Richard Hall, Bill Harley and Matthew Tomkins The
bureaucratisation of Australian unions? Evidence from a national
survey , Journal of Sociology, v. 36, no. 3, November
2000.
- Anthony Forsyth, Ministerial Discussion Paper Accountability
and Democratic Control of Registered Industrial Organisations ,
Australian Journal of Labour Law, v.12 (1999) p. 196.
- CCH Australian Labour Law Reporter [ 7-817].
- More Jobs, Better Pay The Federal Coalition's
Workplace Relations Policy, September 1998, p. 28:
http://www.liberal.org.au/archive/1998%20election%20policies/workplace/workplace.html
- See address to the Australian Institute of Management by the
Hon. Peter Reith (Melbourne 22 February 1999).
- Union finances reviewed by DPP , The Australian, (6
January 1999).
- Personal communication with officers of the Australian
Industrial Registry.
- Kelty comes out for AWU life-line , The Australian, 27
August 1998.
- Is this man the future of the ALP? Australian Financial
Review 8 June 2002.
- Blake, Dawson and Waldron, Review of Current Arrangements
for Governance of Industrial Organisations: Report and
Recommendations (June 1998)
http://www.dewrsb.gov.au/workplacerelations/policy/governance/finalrep.htm.
- See The Continuing Reform of Workplace Relations:
Implementation of More Jobs Better Pay Implementation
Discussion Paper issued by the Hon. Peter Reith MP, May 1999: These
provisions which govern matters such as the financial accounting
and auditing and reporting obligations of organisations and
regulation of industrial elections are detailed and complex. They
have no relevance to many users of the workplace relations systems
p. 28.
- Inter alia, the terms of reference commissioning Blake
Dawson Waldron required any recommended changes on standards to be
consistent with the statutory obligations to be met by corporations
and other comparable organisations .
- Faculty of Commerce, Griffith University.
- Mark Mourell, Industrial Organisations and Corporate
Accountability , Australian Journal of Labour Law, v.12,
1999, p. 137.
- ibid.
- The Continuing Reform of Workplace Relations:
Implementation of More Jobs Better Pay Implementation
Discussion Paper issued by the Hon. Peter Reith MP, May 1999.
- The Hon. Peter Reith, Accountability and Democratic Control
of Registered Industrial Organisations, October 1999.
- Joint Standing Committee on Electoral Matters (Parliament of
Australia), Industrial Elections; report of the inquiry into
the role of the Australian Electoral Commission (AEC) in conducting
industrial elections, (AGPS, October 1997).
- Anthony Forsyth, Trade Union Regulation and the Accountability
of Union Office-Holders: Examining the Corporate Model
Australian Journal of Labour Law, v.13, 2000, p. 36 37.
- Anthony Forsyth, Ministerial Discussion Paper Accountability
and Democratic Control of Registered Industrial Organisations ,
Australian Journal of Labour Law, v.12, 1999, p. 197.
- Beyond the Second Wave the Government is seeking new ways to
develop a sensible framework for workplace relations ,
Industrial Relations and Management Newsletter, May 2000.
- Senate Employment, Workplace Relations, Small Business and
Education Legislation Committee, Consideration of Provisions:
Workplace Relations (Registered Organisations) Bill 2001,
Report, June 2001, pp. 34 and 36 respectively.
- House of Representatives, Debates, 27 August 2001, pp.
30308 30323.
- Policy issued by the Prime Minister 12 October 2001. See parts
10 and 15.
- Labor gives union bill the green light , 29 May 2002, p. 7.
- House of Representatives, Debates, 27 August 2001, p.
30308.
- Explanatory Memorandum, p. 37.
- ibid., 21 March 2002, p. 1835.
Steve O'Neill
21 June 2002
Bills Digest Service
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