Page:Qantas v Transport Workers Union of Australia.pdf/37

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Steward J

33.

of Energy and Minerals[1], it is an employer's "prerogative". In the full passage from which this expression emerges, his Honour said[2]:

"[I]t is within the employer's prerogative to rearrange the organisational structure by breaking up the collection of functions, duties and responsibilities attached to a single position and distributing them among the holders of other positions, including newly-created positions."

Of course, it is no technical legal answer to a contention that adverse action – in the form of dismissal or the like – has taken place in contravention of s 340, to submit that the defence of genuine redundancy is made out. That is a defence to a claim of unfair dismissal; it is not a defence for the purposes of Div 3 of Pt 3-1 of the FWA. But at a practical level, and very much generally speaking, an employer who can demonstrate that a dismissal took place "because of changes in the operational requirements of the employer's enterprise" which resulted in a relevant job being no longer required, to use the language of s 389, should thereby be capable of displacing the presumption arising under s 361 of the FWA in a case where a contravention of s 340 is alleged. The foregoing might not be applicable in a case where some employees are rendered redundant, and others not, and the process for selecting employees is unrelated to the circumstances of redundancy[3]. But where, as here, all employees of a division are rendered redundant, the general observation remains valid. Such a conclusion ensures that the FWA gives effect to "harmonious goals"[4].

Consistently with the foregoing, a distinction has traditionally been drawn by courts between the operative or immediate reason for taking adverse action as against a merely contributing factor or factors for undertaking such conduct. Section 340 is concerned with the former reason for acting and not the latter. Thus,


  1. (1995) 60 IR 304 at 308.
  2. (1995) 60 IR 304 at 308. See also ICI Australia Operations Pty Ltd v Hutton (1993) 47 IR 288 at 296–297 per Bauer, Hill and Peterson JJ; Short v F W Hercus Pty Ltd (1993) 40 FCR 511 at 520–521 per Burchett J; Quality Bakers of Australia Ltd v Goulding (1995) 60 IR 327 at 332–333 per Beazley J; Finance Sector Union of Australia v Commonwealth Bank of Australia (2001) 111 IR 241 at 269–275 [70]–[81] per Moore J; Dibb v Commissioner of Taxation (2004) 136 FCR 388 at 401405 [33]–[44] per Spender, Dowsett and Allsop JJ.
  3. Australia, House of Representatives, Fair Work Bill 2008, Explanatory Memorandum at 247 [1553].
  4. Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 at 381-382 [70] per McHugh, Gummow, Kirby and Hayne JJ, citing Ross v The Queen (1979) 141 CLR 432 at 440 per Gibbs J.