Department of Justice

Tasmanian Industrial Commission

www.tas.gov.au
Contact  |  Accessibility  |  Disclaimer

T12962

 

TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.29 application for hearing of industrial dispute

Emma Kate Ackerley
(T12962 of 2007)

and

Lyell District Ex-Servicemen's Club Inc.

 

COMMISSIONER JP McALPINE

HOBART, 25 July 2007

Industrial dispute - termination of employment - jurisdiction - constitutional corporation - application dismissed

REASONS FOR DECISION

[1] On 5 June 2007, Emma Kate Ackerley (the applicant) applied to the President, pursuant to Section 29(1A) of the Industrial Relations Act 1984, for a hearing before a Commissioner in respect of an industrial dispute with the Lyell District Ex-Servicemen's Club Inc. (the Club) arising out of a dispute in relation to termination of employment.

[2] This matter was listed for hearing at the Magistrates Court, Sticht Street, Queenstown, Tasmania on Thursday, 7 June 2007 at 1.00 pm. The applicant entered an appearance on her own behalf, and cited Mr El Said as her support person. Mr S Cornish, Tasmanian Chamber of Commerce and Industry Limited, appeared for and on behalf of the Club.

[3] The applicant had been employed by the Club from August 2006 until 22 March 2007 as a casual bar attendant. The applicant alleged an incident occurred where a customer's mobile phone had reportedly gone missing. The applicant's employment was subsequently terminated by the Mr Stringer, the Club president. There was no evidence educed to directly link the mobile phone incident with the termination, although it was assumed by the applicant.

[4] Unfortunately, much of the statement made by the applicant was unsubstantiated hearsay. This was drawn to her attention during the hearing.

[5] Mr Cornish for the respondent did not argue against any of the submission put by the applicant. At the outset of the proceedings, Mr Cornish raised a threshold matter with respect to jurisdiction. He relied on his argument proffered in the matter T12941 of 2007 (Mr El Said), and sought the matter be dismissed for want of jurisdiction.

[6] The progress of the matter hinged on this Commission's jurisdiction, or lack of, to arbitrate.

[7] Mr Cornish informed the Commission, during the hearing of matter T12941 that the Lyell District Ex-Servicemen's Club Inc. was a corporation incorporated under the Tasmanian Associations Incorporation Act 1964 and, as such, fell under the jurisdiction of the Australian Workplace Relations Act 1996. He tendered a copy of the Certificate of Incorporation.1

[8] Mr Cornish stated at paragraph 30 of matter T12941 transcript:

"Now, under the Workplace Relations Act and the Commonwealth Constitution, a constitutional corporation is one which is a corporate body and, secondly, one which must either be a foreign corporation, financial corporation or a trading corporation. Now, clearly, the club is not a foreign corporation or a financial corporation. However, I am going to argue that it is a trading corporation."

[9] The second vein of Mr Cornish's argument was to establish whether the Club was indeed a trading corporation. The Club's trading statement2 showed the majority of it's income came from bar and food sales.

[10] At a later date Mr El Said, in support of his own matter, supplied the Commission with a more detailed financial statement. This supplementary data supported Mr Cornish's assertion that the Club earned most of its revenue from the sale of alcohol and food and that other income such as subscriptions from members was minimal.

[11] Mr Cornish cited an authority of the High Court of Australia, in the case The Queen v Federal Court of Australia; Ex parte W.A. Football League Inc [1979] 143 CLR 190 (27 February 1979), as being relevant to this matter. In summary the High Court found, by a majority decision, that the Western Australian Football League Inc. should be deemed to be a trading corporation.

[12] Mr Cornish sought that the claim for alleged unfair termination of employment be dismissed for want of jurisdiction.

[13] Mr Cornish asserted that the applicant also failed to meet the requirements of s.29(1B) of the Tasmanian Industrial Relations Act 1984. This section of the act states:

"An application for a hearing before a Commissioner in respect of an industrial dispute relating to termination of employment ... is to be made within 21 days after the date of termination or, if the Commissioner considers the to be exceptional circumstances, such further period as the Commissioner considers appropriate."

[14] Mr Cornish sought that the application be dismissed on these grounds if the jurisdictional argument failed.

[15] The application was lodged some 54 days out of time. The applicant did not give a reason for the late lodgement of her application.

[16] The applicant sought relief from the Commission in regard to alleged unfair termination of employment.

FINDINGS

[17] With regard to the issue of jurisdiction I rely on my findings in T12941.

[18] The outcome, if the conclusion is that the Club is indeed a trading corporation recognized by the Constitution, would be that s.109 of the Constitution may apply with respect to the entity being subject to the Australian Workplace Relations Act 1996 over the Tasmanian Industrial Relations Act 1984.

[19] The Commonwealth Constitution states at s.51:

"The Parliament shall, subject to this Constitution, have power to make laws for the peace, order, and good government of the Commonwealth with respect to: -

(xx.) Foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth:"

[20] To progress a resolution to the threshold matter of jurisdiction, two factors hold the key to which Mr Cornish alluded. The first is, the descriptor of the entity: is it a corporation or not a corporation under the Commonwealth Constitution? The second is: the form of the entity if it is deemed to be a corporation, is it a trading corporation?

[21] At s.2, Interpretation, of the Associations Incorporation Act 1964, it states at (1):

"association" means -

(a) any association, society, club, institution, or body that is formed or carried on -

(iv) for the purpose of recreation or amusement;"

[22] The Club could, in my view, fall quite comfortably into the category as set out in s.2(1)(a)(iv) of the Associations Incorporation Act 1964.

[23] With regard to an entity being a corporation, I cite Mason J's comment in the aforementioned W.A. National Football League matter, where at paragraph 21 he states:

"... if an association which fell within the proviso were issued with a certificate of incorporation, it must be deemed, at least so long as that certificate is extant, to be a corporation. Although not so said in express terms, the Associations Act in reality makes the certificate of incorporation conclusive evidence of the corporate personality of the registered association."

[24] I take the evidentiary view of Mason J in the above authority.

[25] Mr Cornish adduced evidence in the form of a copy of the Club's Certificate of Incorporation, and I accept this as conclusive evidence that the Club is indeed an organisation incorporated under the Associations Incorporations Act 1964, and I so find.

[26] In assessing the form of the corporation, again I take cognizance of Mason J's view in the W.A. National Football League matter, where at page 234 (cited by Mr Cornish) his Honour said:

"Whether the trading activities of a particular corporation are sufficient to warrant it being characterised as a trading corporation is very much a question of fact and degree."3

[27] Further at paragraph 54 of the decision Mason J states:

"I remain of the firm conviction that for constitutional purposes a corporation formed within the limits of Australia will satisfy the description "trading corporation" if trading is a substantial corporate activity. Its activities rather than the purpose of its incorporation will designate its relevant character" (My emphasis)

[28] This view of Mason J applies comfortably to the instant matter. It also helps to clarify the Club's position with respect to the Associations Incorporation Act 1964. Under s.2, Interpretation, of this Act it states at (1)(b):

" any other association, society, club, institution, or body that is declared by the Minister, by order, to be an association for the purposes of this Act-

but does not include any association, society, club, institution, or body that is formed or carried on for the purpose of trading or securing pecuniary profit for it's members;"

[29] It is my view that neither the Club's purpose, nor it's trading activities, offend s.2(1)(b) of the Associations Incorporations Act 1964.

[30] In the matter of E v Australian Red Cross Society; Australian Red Cross Society New South Wales Division and Central Sydney Area Health Service No G759 of 1989 Fed No. 20 Trade Practices - Negligence (1991) 13 ATPR 41-085 99 ALR 601 27 FCR 310, Wilcox J, at paragraph 108, said:

"The evidence disclosed that the first respondent (Australian Red Cross Society) raises revenue from a multitude of sources: social functions, sporting events, field days, raffles and lotteries, other minor events, the sale of goods in permanent shops, at temporary venues such as stalls, fairs and markets ... The society also receives income from rented properties and investments."

[31] There is a parallel with the nature of the revenue raising activities of the Club and the "first respondent" in the above authority. Where the Club trades by way of the provision of bar and food sales in it's own facility, the "first respondent" trades through selling goods from permanent shops.

[32] Again in the above matter, Wilcox J, at paragraph 117, makes reference to the comments of Stephen J in the matter of the Queen v Trade Practices Tribunal; ex parte St George County Council (1974) 130 CLR 533:

"However if some other motive actuates a corporation or individual to engage in trading activities those activities will not themselves be altered in character and, if they consist of what is properly described as trading, a corporation which undertakes them as its sole or principal business will, in my view, be a trading corporation."(My emphasis)

[33] In the instant matter, Mr Cornish gave evidence which clearly showed that the bar and food revenue and sundry other sales was substantial in terms of the Club's overall income.

[34] Further, at paragraph 120, Wilcox J again cites the St George County Council decision:

"Murphy J went a little further, saying at p 239:

"A trading corporation may also be a sporting, religious, or governmental body. As long as the trading is not insubstantial, the fact that trading is incidental to other activities does not prevent it being a trading corporation." (My emphasis)

[35] I find that the observations and conclusion of Murphy J in the above authority sit comfortably with situation in the instant matter.

[36] The Concise Oxford Dictionary defines "Trade" as:- " ... exchange of commodities for money ..."

[37] In the Western Australian Industrial Relations Commission, appeal matter, Aboriginal Legal Service of Western Australia Incorporated v. Mark James Lawrence their Honours considered all the aforementioned authorities. The full bench formed the view that the appellant was deemed not to be a trading corporation. Under the heading "22. Is the Appellant a Trading Corporation?" at paragraph 320 of that decision, it states:

"As stated above, the conclusion that the appellant trades with the department does not inevitably lead to the conclusion that the appellant is a trading corporation. This is because all of the activities of a corporation need to be assessed. In this instance they include the provision of legal representation to indigenous people for which they are not charged. This arm of what the appellant does is clearly not trading. There is no exchange for value between the appellant and its indigenous clients."

[38] A concrete distinction can be drawn between the instant matter and the above authority. In the Aboriginal Legal Service of Western Australia Incorporated case, their Honours found that the appellant did not perform a trading function. In that case, the service provided was to third parties, for which those third parties were not normally charged by the provider of the service. The extent of that service was somewhat independent of the monies received from a second party, government funding. Whereas, in the instant case, there is a distinct process of buying food and drink to sell directly to customers on the premises, albeit those customers may or may not be club members.

[39] The evidence shows, and the cited authorities support the conclusion, that the Club is a trading corporation, and I so find.

[40] As a consequence of this decision, s.109 of the Constitution must apply with respect to the entity being subject to the Australian Workplace Relations Act 1996 over the Tasmanian Industrial Relations Act 1984.

[41] I dismiss the matter of alleged unfair termination of employment for want of jurisdiction, and I so Order.

[42] Finally, as a consequence of the above finding it is not necessary for this Commission to rule on the "out of time" aspect of the application.

 

James P McAlpine
COMMISSIONER

Appearances:
Ms EK Ackerley for herself
Mr S Cornish, Tasmanian Chamber of Commerce and Industry Limited, for the Lyell District Ex-Servicemen's Club Inc.

Date and Place of Hearing:
2007
June 7
Queenstown

1 Exhibit R1
2 Exhibit R2
3 Transcript PN34