Workplace Relations and Queensland Rail

In recent decision by the Federal Court, Queensland Rail has been fined $660,000.00 for failing to properly consult its staff on the sale of the company. This ruling may make consultation in similar cases something that unions can demand in the future as part of work agreements. The need to retrench 20 Queensland Rail workers which arose from the sale of the business lead to a finding that the company had breached its agreements with the workers. The finding by Justice Logan was emphatic and stated that

“This change so radical, a breach so comprehensive, the occasion for consultation so obvious that anything less than maximum penalties would not do justice to the case and the need to ensure public confidence in the adherence to industrial relations bargains.”

Union were obviously pleased with the decision which would enable to demand greater amounts of consultation before the assets of a business were sold off. The decision is considered unusual by industrial law experts because of the size of the fine and the way in which the judge railed against the actions of the company in the decision. This decision was brought down despite the fact that the company had gone to great efforts to inform its workers about the planned changes, but nothing to consult them or to genuinely account for their views in the decision making processes of the company. The company has already filed a notice of intention to appeal the decision in the High Court. It is obviously difficult to predict what will eventuate from a high court decision because the High Court makes a ruling from a position of far greater stature than the Federal Court of Australia. However, the present High Court has appeared to have taken a traditionally more conservative view of the status of the law in the past than some of their judicial brethren in lower courts and on a probability basis it would seem unlikely that the decision would be overturned.

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