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In re Application by Ports Authority of Fiji [1996] FJHC 34; Hbj0008d.1996s (8 August 1996)

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Fiji Islands - In re an application by the Ports Authority of Fiji - Pacific Law Materials

IN THE HIGH COURT OF FIJI

ass=MsoNormal align=center nter style="text-align: center; margin-top: 1; margin-bottom: 1"> (AT SUVA)

JUDICIAL REVIEW NO. 0008 OF 1996n>

IN THE MATTER of an Application by the PORTS AUTHORITY OF FIJI
for Judicial Review under Order 53 of the High Court Rules, 1988

AND:

IN THE MATTER of Itof Item 1 of the Award of the
ARBITRATION TRIBUNAL OF THE REPUBLIC OF FIJI
No. 15/95 made on 27 February 1996 and Interpretation of Award No. 15/95
made on 22nd March 1996 in a dispute between the
PORTS AUTHORITY OF FIJI and the
PORT WORKERS AND SEAFARERS UNION OF FIJI

B.N. Sweetman for the Applicant

K. Bulewa for the Respondent

Dates of Hearing: 20th June, 30th July 1996

Date of Ruling: 8th August 1996

RULING

ass=MsoNormal stal style="margin-top: 1; margin-bottom: 1"> The Ports Authority of Fiji applies for leave ek Judicial Review of an Award of the Arbitration Tribunal unal of the Republic of Fiji No. 15/95 made on 27th February 1996 whereby he purported to hold that the Applicant as a government-owned corporation has an obligation to take a broader approach to employment issues than that required by law and to award to Lautoka Casual Dockworkers a figure of $500 per employee for each of the years 1988, 1989 and 1990 to be treated not as a redundancy payment but to be categorised as compensatory because bulk importation of fertilizer meant a permanent and quantifiable loss of work the dockworkers would otherwise have handled and to the Interpretation of Award No. 15/95 made on 22nd March 1996 whereby he declined to change the years for which compensation is awarded to the period after the introduction of bulk fertilizers, varied the Award regarding the extent to which Lautoka Casual Dockworkers who were in the casual pool in 1988, 1989 and 1990 could claim payment and did not make any ruling as to whether any casual dockworker joining the pool after the introduction of bulk importation of fertilizers in January 1991 is covered under the Award and for an Order that the said decisions and all proceedings thereunder be stayed until the hearing and determination of this Judicial Review or until further order of this Court.

The Applicant seeks:

(a) ;&nbssp; dn orf r of certiorari quai quashing the awae award of the Arbitration Tribunal No. 15/95 insofar as it relates to Itef theondenog ofms and the Interpretation thereof;

(b) &nbbsp; a declaration (in any any event) that the Arbitration Tribunal in Award No. 15/95 insofar as it relates to Item 1 of the Respons Loglaimsthe Iretathereof, abused his discretion or exceeded his jurisjurisdictidiction; aon; and

(cp; a declaration that thatAppe Applicant whether per se or as a government-owned corporation does not have any obligation to adopt a broader approach than that required by law to employment issues; and

(d) &nnbsp;; bsp; Such further Declaration or o or other relief as this Honourable Court may deem fit; and

(e) &&nsp;; Cspts.

The grounds upon which the Applicant is seeking relief include error of law on the face of the recn the Award and Interpretatretation of the Arbitration Tribunal where he held:

(a) &nbbsp;& bsp; that "the Authority as a as a government-owned corporation has an obligation to adopt a broader app", by implication, than that required by law to the issues of whether Lautoka casual dual dockworkers have any entitlement to compensation whether by way of redundancy payments or otherwise in connection with the change to the bulk importation of fertilizer; and

(b) that "BeariBeaiing nd mind the casual nature of the work, the loss of income attributable to such factors for the years 1988, 1989 and 1990 the Tribunal awards a figure of $500 for year mploy be treated not as a redundedundancy ancy paymepayment but to be categorised as compensatory because bulk importation of fertilizer meant a permanent and quantifiable loss of work the dockworkers would otherwise have handled"; and

ass=MsoNormal stal style="text-indent: -36.0pt; margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> (c); that because of the bthe iulk importation of fertilizer, there was a permanent and quantifiable loss of work the dockworkers would otherwise have handled for the years 1988, 1989 and 1990.

Further grounds upon which the Applicant is seeking relief are the Arbitration Tribunal in his Award No.15/95 insofar as it s it relates to Item 1 of the Union's log of claims and the Interpretation thereof, exceeded his jurisdiction as follows:

(a) &nnbsp;  p; spp; That thi Arbioration Trin Tribunal in holding as a basis for his decision that the Authority as a government- owned corporation haoblig to aa broader approach to employment issuesssues than that required by law, exceeded eded his jhis jurisdiction in that:-

(i) &nnbsp; he errelaw; and; and/or

(ii) &nnsp;& hsp;cte aarbi rarilrarily and/or unreasonably; and/or;

ass=Mmal style="text-iext-indentndent: -36: -36.0pt; margin-left: 108.0pt; margin-top: 1; margin-bottom: 1"> (iii) &nbssp;&nhsp; ok took into into consideration irrelevant mant matters and did not take into consideration relevant matters; and/or

(iv) he asked himself the wrong question.

;

(b) & p; &nsp; Tsp; That the ArbitratribuTribunal in holding as a basis for his decision that casual workers at Lautoka Port experienced an appreciable and quantifiable drop in income for the years 1988, 1989 and 1990 as a r of tlk importation ofon of fert fertilizers, and in declining in his Interpretation to change his award to the years after 1991 when bulk importation of fertilizer was introduced, exceeded his jurisdiction in that:-

(i)&nbbsp; he actbi arritrarilyaand/oand/or unreasonably in that he had no evidence or no satisfactory evidence on which to so hold; and/or

(ii) &nbbsp;& &nsp; hsp; he took into considonation irrelevant matters and did not take into consideration relevant matters; and/or

ass=Msss=MsoNormal style="text-indent: 72.0pt; margin-top: 1; margin-bottom: 1"> (iii) he asked himself the wrong question.

(c) &nbssp;&nnbsp;&nsp; Tsp; That the Arbitr TribuTribunribunal stated in his Award that he was "bearing in mind the casual nature of the work", but then in proceeding to hold that such casual workers should be awarded a figur$500 for each of the years ears 1988, 1989 and 1990 to be treated not as a redundancy payment but to be categorised as compensatory because the bulk importation of fertilizer meant a permanent and quantifiable loss of work which the dockworkers would otherwise have handled, exceeded his jurisdiction in that:-

(i) &nnbsp; he erred in lawn lnd/or

(ii)  p; &nsp; he acted arbitrarilyor unrr unreasonably; and/or

(iii) ; he took intoidonsiderationation irrelevant matters; and he did not take into consideration relevant matters; and/or

(iv) & p; hs aske asked lf t lf the wrong question.

&

(d)  p; &nsp; That the Arbitrationunal inal in holding that such casual workers should be awarded a figure of $500 for each of the years 1988, 1989 and 1990 for loss of work,h figas tao represen full loss of income owing tong to the the bulk bulk imporimportation of fertilizer, exceeded his jurisdiction in that:-

(i) & &nsp; he erred in d i; and/or

(ii) & p;&nbbsp; bsp; he acte acted arbitrarily and/or unreasnreasonably; and/or

(iii) &nbbsp;& he tnto into cono cono consideration irrelevant matters and did not take into consideration relevant matters; and/or

ass=Mmal style="margin-top: 1; margin-bottom: 1">

(iv) &nbbsp;& hsp; he aske asked himself the wrong questquestion.

(e)&nnbsp; That tbi ArtioraTron TribuTribunal in not intimating to the parties that he was considering awarding payment not by way of redundancy but by way of compensation for loss of work/income, breached a requirement of Natural Justice in not affording the parties the opportunity to make submissions as to entitlement to compensation for loss of work/income in the non-redundancy context.

The application for leave is opposed. The application is supported by an affidavit sworn on the 30th of May 1996 by Isoa Tuinasaqalau the Manager Human Resources of the Ports Authority of Fiji.

Mr. Tuinasaqalau first records the history of this matter which Il not set out here except for the following (and I refer heer henceforth to the Respondent as "the Union"):

The Union submit log of claims to the Authority on 15 April 1994 seeking a number of changes to the Master ster Agreement covering the employment conditions of both permanent and casual dockworkers employed by the Authority. Item 1 read:

This issue has been the Ports Authority since 1988 and despite the PAF Board'sard's approval on the 26th September 1991, management had lamentably failed to resolve this issue.

It is also important to note that on the 26th of September 1991, the Board also approved that compensation should be based on the total loss of income on all cargoes and not on fertilizers alone.

ass=MsoNormal stal style="margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> Loss of income on fertilizer alone was over $500.00 per dockworker."

On 10th June 1994 the Authority submitted its counteims to the Union, comprising amendments to the Master AgreeAgreement covering the industrial relations between the Authority and the Union.

Negotiations between the parties then took place but were unsuccessful causing the Union to report the existence of a trade dispute to the Permanent Secretary for Labour and Industrial Relations on 25th June 1995 pursuant to the Trade Disputes Act.

After ciation proceedings the matter was referred for hearing in the Arbitration Tribunal and both both parties then filed written submissions.

An oral hearing took place before the Arbitration Tribunal on 20th and 21st of November 1995 at which no witnesses were called and the Union's General Secretary and Mr. Tuinasaqalau spoke to their written submissions.

On 27th February 1996 the Tribunal handed its Award.

Mr. Tuinasaqalau complains that the Tribunal did not at any stage prior to handing down its Award intimate that he was considering making an Award for compensation for loss of income not connected to redundancy payments which was the context in which the Union had raised the claim and on which basis all submissions had been made and accordingly there was no opportunity afforded the parties to be heard on the non-redundancy context before that date.

The Authority then sought an interpretation of the Awath regard to the entitlement of compensation of those not inot in the casual pool in 1988, 1989 and 1990; those who were in the casual pool for only part of those years; and those casual dockworkers in the pool for those years who earned less than $500 stevedoring work per year. The Authority also sought clarification that any casual dockworker joining the pool after the introduction of bulk importation of fertilizers in January 1991 was not covered under the Award, and it requested a meeting of the parties with the Arbitration Tribunal.

The Union responded to the Authority's approach to the Tribunal and inter alia tried to resolve the situation by suggesting "that the three year period of the Award cover 1991, 1992 and 1993 instead of 1988, 1989 and 1990".

That without any further hearing as requested the Arbitration Tribunal rendered its Interpretation on 22nd March 1996. The Tribunal declined to change the years for which compensation was awarded to the period after the introduction of bulk fertilizers, varied the Award of 27th February 1996 to the extent that not all casual dockworkers at Lautoka Port would be entitled to such payments, but did not make any ruling as to whether any casual dockworker joining the pool after the introduction of bulk importation of fertilizers in January 1991 was covered by the Award. He gave his reasons on page 227 of the Award thus:

"The Port Workers and Seafarers' Union Fiji (the "Union")uot;) in its response sought to have compensation paid for the years 1991, 1992 and 1993. As regards the amount itself the Union considered that this had been determined after an exercise conducted by both parties pursuant to a Board decision.

The Tribunal will not vary the period because thse that information was supplied by the Union itself.

As for the clarification, the Authority has raas raised relevant issues. In relation to the first point, casual dockworkers who were not in the casual pool in 1988, 1989 and 1990 cannot claim payment. Casual dockworkers who were in the casual pool for only part of the period 1988, 1989 and 1990 are entitled to payment on a pro rata basis. Finally, those casual dockworkers who were in the casual pool for the years 1988, 1989 and 1990 but who earned less than $500.00 per annum from stevedoring are excluded for the simple reason that they cannot be said to have suffered any appreciable loss of earnings."

Mr. Tuinasaqalau deposes that the Authority submitted to the Arbitration Tribunal that it is a public-owned enterprise and is not in a position to become a trendsetter in matters of employment conditions, particularly when the financial implications of the decision could seriously affect the Government as an employer.

p class=MsoNormal stal style="margin-top: 1; margin-bottom: 1"> He then continues that the move to bulk imtion of fertilizers was the decision of the importing compacompany, South Pacific Fertilizer Ltd. The equipment for bulk loading of such fertilizer belongs to that company, and that such bulk importation was not introduced until 1991 so that there was no loss of work or income to Lautoka casual dockworkers owing to the bulk importation of fertilizer for the years 1988, 1989 and 1990.

He says that all dockworkers at Lautoka Port are employed on a casual basis but that some who lived in the vicinity of Lautoka City tended to be available for work on a more regular basis and tended to regard stevedoring as their main source of income while others who lived in villages further away would only work as casual dockworkers when the fertilizer ships arrived on average about ten times a year, when they could work over three to four days per ship, normally on seven-hour shifts at the end of which they would be paid off and re-engaged for the next ship for which they were rostered. No Lautoka casual dockworkers have been dismissed by way of redundancy. Finally Mr. Tuinasaqalau states that from his experience in industrial relations, casual workers are not generally considered eligible for redundancy payments even if they should be dismissed by way of redundancy.

Even there is a rightedundancy payments, such right is conferred by statute or agreement and is usually subject ject to qualifications criteria such as a period of continuous employment, and such payment is usually calculated on the basis of one or two weeks wages multiplied by the number of years worked and that an award of the full loss of income for three years is in effect treating casual workers as if they had been wrongfully dismissed from fixed term contracts which still had three years to run, with no account being taken of such factors as duty to mitigate by finding alternative employment.

In his submission on behalf of the Authority Mr. Sweetman sayt this application for leave to apply for Judicial Review riew raises, inter alia, fundamental questions of the scope of the jurisdiction of the Arbitration Tribunal under the Trade Disputes Act in the context of the entitlement in law of casual workers to be paid compensation whether by way of redundancy or otherwise for loss of work.

He says also at stake, in this case alone, is approxly one-third to one-half of a million dollars of what, in e in essence, is public money.

Neither party was represented by counsel in pdings leading to the Award and Interpretation and the ArbitArbitration Tribunal did not have the assistance of legal argument.

As therno right of appeal from the decision of the Arbitration Tribunal and the Authority's soliciolicitors have not been able to find any decisions on this aspect of the Tribunal's jurisdiction and on the matters in issue in these proceedings, it is submitted that only leave to apply for Judicial Review will allow these important issues to be given substantive hearing and the necessary authoritative decision.

It is submitted that this Application raises serious issues, with substantial implications for the economy of Fiji, which require authoritative determination by the Courts.

The Union first submits that Awards by the Arbitration Tribunal are revie but only in exceptional cnal cases because it is said that in the Memorandum of Agreement signed by the parties on 17th August 1995 Clause 6 reads:

"That the Union and the Employer agree to abide by the decision of the Arbitration Tribunal."

It is then said that it is in the national interest where there is an industrial disbetween the Union and PortsPorts Authority of Fiji involving such an essential service as work in ports that a quick final and amicable solution is required. It is said that unless an exceptional case is made for judicial intervention to resolve such disputes the Courts should not intervene. I do not agree.

Many years ago Atkin L.J., as he then was, in R. v. Electricity Commissioners,arte London Electricity Joiy Joint Committee Co. (1920) Ltd. [1924] 1 KB 171, 205 said:

p class=MsoNormal stal style="margin-left: 36.0pt; margin-right: 72.0pt; margin-top: 1; margin-bottom: 1"> "Wherever any body having legal authority to determitermine questions affecting the rights of subjects and having the duty to act judicially, acts in excess of their legal authority they are subject to the controlling jurisdiction of the Kings Bench Division exercised in these writs ......"

The Appliagrees that it is desirable that there should be a quick final and amicable solution to anyo any trade dispute, but says that where the decision-making process raises issues capable of attracting the Judicial Review jurisdiction, the jurisdiction of the Court must not be ousted. The Trade Disputes Act does not expressly state that the Arbitration Tribunal's Award shall be final and there is no privative clause. Even if the Act did so provide there can be no doubt the Court's power to quash either on the ground of error of law on the face of the record or excess of jurisdiction is unaffected.

If a Tribunal goes beyond its jurisdiction or fto follow the rules of natural justice or acts unreasonablynably in the Wednesbury sense, any decision it makes in law is simply not a decision.

Professor Wade on page 720 of his Sixth Edition summarises the English authorities as stating that:

"If a statute says that some decision or order `shall be final' orl' or `shall be final and conclusive to all intents and purposes' this is held to mean merely that there is no appeal: judicial control of legality is unimpaired. `Parliament only gives the impress of finality to the decisions of the tribunal on condition that they are reached in accordance with the law'."

I therefore reject the Union's submission under this heading.

As to the claim that Judicial Review should be gd only in an exceptional case, this is not borne out by auty authority. It is true that in Puhlhofer v. Hillingdon London Borough Council [1986] UKHL 1; [1986] 1 All E.R. 467 at p.474 Lord Brightman stated that he was troubled at the prolific use of judicial review in England for the purpose of challenging the actions of local authorities and that only in exceptional cases should judicial review be used to monitor the actions of local authorities under the Housing (Homeless Persons) Act 1977. He went on to say:

"The ground on which the courts will review the exee exercise of an administrative discretion is abuse of power, e.g. bad faith, a mistake in construing the limits of the power, a procedural irregularity or unreasonableness in the Wednesbury sense (see Associated Provincial Picture Houses Ltd v. Wednesbury Corp [1947] EWCA Civ 1; (1947) 2 All E.R. 680, (1948) 1 KB 223), i.e. unreasonableness verging on an absurdity: see the speech of Lord Scarman in Nottinghamshire CC v Secretary of State for the Environment (1986) a All E.R. 199 at 202[1985] UKHL 8; , [1986] 2 WLR 1 at 5."

ass=MsoNormal stal style="margin-top: 1; margin-bottom: 1"> On the material before me I consider that the ration Tribunal has arguably made a mistake in that it cons considered a matter which was not before it for decision namely compensatory payment when the issue referred to it by the parties was redundancy. I so held in Judicial Review No. 3 of 1989 Suva City Council v. Suva City Council Staff Association unreported judgment of 8th January 1990 at page 9.

For this reason also I rejhe Union's submission on this point.

Next the Union submits that the Authority's application before this Court is an attempt to fthe clear intention of the the legislature and to abuse its written commitment to remain bound by the Award and the Interpretation. I am told that as the Authority has exhaustively used the recognised trade dispute procedure, it must not be permitted to re-open the dispute in a forum specially created to deal with such problems. Further on the grounds of equity alone the Court should refuse leave.

In reply to this the Applicant relied on the Fiji Court of Appeal decision in Satish Chandra [1986] 32 FLR 16 where the Court stated on page 22 that where the parties to an industrial dispute agree to abide by the decision of the Arbitration Tribunal this is not more than a submission to jurisdiction. I agree. I also agree with the Applicant that if the Award of the Arbitration Tribunal were not to be amenable to Judicial Review its powers to determine the rights of the subject would be unfettered which the Courts both here and overseas have always rejected. Furthermore I do not accept the submission that the present application is an attempt to re-open the dispute in a forum not specially created for the purpose.

This submission by the Union ovks the basic principle of Judicial Review, namely that its purpose is to review "the dthe decision-making process" and not "the decision". I therefore hold that the application is not vexatious or an abuse of process.

I also consider aa facie case has been made for the proposition that the Award appears to treat casual workeworkers as if they were on fixed term contracts which still had three years to run, rather than a daily contract determinable at the end of each seven-hour shift work, and that to this extent the Award is inconsistent with the Employment Act.

I also consider it arguable that if the Award is allowedtand it could well have flow-on effects not only on casual sual workers employed by the Authority but generally. It is not hard to imagine the likely economic consequences if this were to happen. In my view the Applicant should be allowed to develop this argument also on a substantive hearing.

In Inland Revenue Comrs v. National Federation of Self-Employed and Small Businesses Ltd1) 2 All E.R. 93 at page 11ge 113 dealing with the requirement that an Applicant must show an arguable case before given leave to apply for Judicial Review Lord Scarman said:

"If he fails to show, when he appfor leave, a prima facie caie case, or reasonable grounds for believing that there has been a failure of public duty, the court would be in error if it granted leave. The curb represented by the need for an applicant to show, when he seeks leave to apply, that he has such a case is an essential protection against abuse of legal process. It enables the court to prevent abuse by busybodies, cranks and other mischief makers. I do not see any further purpose served by the requirements for leave."

I do nosider the Applicant here can be described as a busybody, crank or other mischief maker. I a. I am satisfied that this application raises important questions of industrial law and the basic conditions on which Judicial Review is granted namely allegations of error of law or legality, irrationality or unreasonableness in the Wednesbury sense, and breach of natural justice. All these allegations are raised in the grounds on which review is sought. I therefore grant leave to apply for Judicial Review as prayed.

JOHN E. BYRNE

JUDGE

Authorities and cases referred to in Rul/span>

Inland Revenue Comrs v. National Federation of Self-Employed and Small Businesses Ltd. [1981] UKHL 2; (1981) 2 All E.R. 93.

R. v. Electricity Commissioners, ex parte London Electricity Joint Committee Co. (1920) Ltd. [1924] 1 KB 171.

Puhlhofer v. Hillingdon London Borough Council [1986] UKHL 1; [1986] 1 ALL E.R. 467.

Judicial Review No. 3 of 1989 - Suva City Council v. Suva City Council Staff Association unreported judgment of Byrne J. of 8th January 1990.

Re Satish Chandra [1986] 32 FLR 16.

Wade Administrative Law Sixth Edition page 720.

The following additional cases were mentioned in argument:

Fiji Bank Employees Union v. National Bank of Fiji - Judicialicial Review No. 44 of 1991.

State v. The Arbitration Tribunal, ex parte Air Pacific Senior Staff Association v. Arbitration Tribunal - Judicial Review No. 1 of 1992.

Hbj0008d.96s


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