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High Court of Fiji |
Fiji Islands - Fiji Sugar and General Workers Union v Fiji Sugar Corporation - Pacific Law Materials IN THE HIGH COURT OF FIJI
AT SUVA
APPELLATE JURISDICTION
MISC. APPEAL NO. 0005 OF 1997
BETWEEN:
FIJI SUGAR AND GENERAL WORKERS UNION
AppellantAND:
THE FIJI SUGAR CORPORATION LIMITED
Respondent/p>
Mr. H. Nagin for the Appellant
Mr. B. Sweetman for the RespondentDECISION
The undisputed background to this appeal is conveniently summarised in the written submissions presented before the Sugar Industry Tribunal by the Fiji Sugar and General Workers Union and which, subject to a slight adaptation and renumbering, is set out below:
"1. The Fiji Sugar Tradesmen Union and the FSC concluded a Memorandum of Agreement dated 23rd June 1995 on the Unions Log of Claims for the period 1st August 1994 - 30th September 1995. The parties agreed to a 2% wage increase for the period.
2. The Fiji Sugar Clerks and Supervisors Association and FSC concluded a Memorandum of Agreement dated 18th July 1995 on the Unions Log of Claims for the period 1st August 1994 to 30th September 1995. The wage increase agreed to by the parties was 2%.
3. The Sugar Milling Staff Officers Association and FSC concluded a Memorandum of Agreement dated 21st July 1995 on the Unions Log of Claims for the period 1st August 1994 - 30th September 1996. The parties agreed to a wage increase of 2% for a two year period.
4. Fiji Sugar and General Workers Union disagreed with the offer made as it considered the offer of a same percentage to all employees would be grossly unfair and disadvantages to General Employees.
5. The matter was referred to the Sugar Industry Tribunal and a 3.5% increase was awarded to General Employees apart from other benefits.
6. FSC than decided to give additional increase of 1.5% to the Tradesman, Clerks and Staff effective 1st August 1994 and a general increase to Staff for the period commencing 1st August 1995 consistent with what other employees were to be granted. This was decided upon after the Tribunals award to grant a 3.5% increase to General Employees.
7. The Corporation further granted a 1.5% FNPF supplementation and 2.5% supplementation in line with the General Employees to Tradesmen and Clerks. The Staff continue to enjoy FNPF supplementation of 3% and 5% for 15 and 20 years of service respectively.
8. The Union sought the additional increase of 1.5% wage increase consistent with what was granted to other category of employees.9. The Corporation responded stating its actions were fair and reasonable and that all categories were now to receive 3.5% wage increase."
By a Certificate of Dispute dated the 8th day of February, 1996 the Industrial Commissioner acting pursuant to Section 104 of the Sugar Industry Act (Cap. 206) ('the Act') referred an industrial dispute between the Fiji Sugar Corporation ('the Corporation') and the Fiji Sugar and General Workers Union ('the Union') to the Sugar Industry Tribunal ('the Tribunal') for determination.
The dispute is certified in the following terms:
"It is claimed by the Union that - By granting all other categories of employees (except general employees) 1.5% wage increase across the board in addition to the wage settlement (agreement) for 1994 the Corporation has discriminated and nullified the adjustment in wage increase granted to general employees in Award No. 2 of 1994."
and 'the Union' claims a similar adjustment for its members with effect from 1st August 1994.
After the referral the Tribunal ordered written submissions from the parties and these were finally concluded in January 1997. Thereafter in a 3-page Decision delivered on the 21st of March 1997, the Tribunal declined 'the Unions' application and found in favour of 'the Corporation'.
By a Notice of Appeal filed on the 7th April, 1997 the Union seeks to appeal against the Tribunal's decision on the following six (6) grounds:
"1. THAT the Learned Sugar Industry Tribunal erred in law in holding that the 3.5 per cent award in Award No. 2 of 1995 was out of kilter with the trends established between 1986 - 1995.
2. THAT the Learned Sugar Industry Tribunal erred in law in holding that there was an informal understanding that increases in salary granted to one union would apply across the board to the other unions in the sugar industry.
3. THAT the Learned Sugar Industry erred in law in holding that if the Appellant's claim was allowed there would be a further cycle of consequential increases.
4. THAT the Learned Sugar Industry Tribunal erred in law in considering that the Respondent is disadvantaged by its inability to pass on costs to the consumer because the price of sugar is determined elsewhere.
5. THAT the Learned Sugar Industry Tribunal erred in law in conceding that the basis for the re-adjustment in Award No. 2 of 1995 ought to have been given more careful consideration.
6. THAT the Learned Sugar Industry Tribunal erred in law in holding that the 1.5% increase awarded to the other unions was not discriminatory."
It will be seen at once that each of the 'grounds' asserts that the Tribunal 'erred in law' and thereafter, each ground sets out the particular manner in which it is said such error arose. On a cursory reading of the 'grounds' however I considered it prudent to seek counsel's assistance on whether the appeal was competent given the Court's jurisdiction on appeal.
In this regard Section 123 of the Sugar Industry Act (Cap. 206) provides:
"(1)Subject to subsection (2) any person or organisation bound by an award may appeal to the Supreme Court (now High Court) against the award or any of the terms of the award on any of the following grounds -
(a) that the tribunal had no jurisdiction or exceeded its jurisdiction in the matter to which the appeal relates;
(b) that the award has been obtained by fraud; or
(c) that the decision of the tribunal is erroneous in point of law,
or by leave of the Supreme Court, if the Supreme Court is of the opinion that the matter is of such importance that, in the public interest, an appeal should lie."
The Court is also empowered under the Section to stay the operation of the Award during the pendency of the appeal [subsection (4)]; (to) admit further evidence and request a report from the Tribunal on any specified matter [subsection (5)]. Subsection 6 sets out the comprehensive nature of the orders that this Court may make on an appeal and Subsection 7 quite unusually, allows the Court to 'dismiss an appeal if it considers that no substantial miscarriage of justice has occurred notwithstanding that ... the appeal might have been decided in favour of the applicant'. Quite plainly the Court has very extensive powers to deal with an appeal against an Award of the Tribunal once it is accepted.
It is immediately obvious that in its appeal the Union is relying only on Section 123(1)(c) of 'the Act'. The threshold question that arises thereunder is: "Does each of the 'grounds' advanced, satisfactorily raise or identify an appealable error of law"?
In O'Kelly v. Trusthouse Forte P.L.C. (1984) 1 Q.B.90 Sir John Donaldson M.R. in considering a provision which permitted an appeal against a decision of an industrial tribunal only 'on a question of law', said at p.123:
"... the fact is that the appeal tribunal has no jurisdiction to consider any question of mixed fact and law until it has purified or distilled the mixture and extracted a question of pure law.
The purification methods are well known. In the last analysis all courts have to direct themselves as to the law and then apply those directions in finding the facts (in relation to admissibility and relevance) and to the facts as so found. When reviewing such a decision, the only problem is to divine the direction on law which the lower court gave to itself. Sometimes it will have been expressed in its reasons, but more often it has to be inferred. This is the point of temptation for the appellate court. It may well have a shrewd suspicion, or gut reaction, that it would have reached a different decision, but it must never forget that this may be because it thinks that it would have found or weighed the facts differently. Unpalatable though it may be on occasion, it must loyally accept the conclusions of fact with which it is presented and, accepting those conclusions, it must be satisfied that there must have been a misdirection on a question of law before it can intervene. Unless the direction on law has been expressed it can only be so satisfied if, in its opinion, no reasonable tribunal, properly directing itself on the relevant questions of law, could have reached the conclusion under appeal. This is a heavy burden on an appellant. I would have thought that all this was trite law."
The Supreme Court of the Northern Territory (Australia) said in Wilson v. Lowery [1993] NTCA 127; (1993) 110 F.L.R. 142 in regard to a similarly limited right of appeal at p.146:
"The authorities have been conveniently summarised ... We venture to repeat them:
1. In the process of arriving at an ultimate conclusion a trial judge goes though a number of stages. The first stage is to find the preliminary facts. This may involve the evaluation of witnesses who gave conflicting accounts as to those facts. If the trial judge prefers one account to another, that decision is a question of fact to be determined by him and is not reviewable on appeal. It may be that the reason given for preferring one witness to another is patently wrong. Nevertheless, no appeal lies.
2. Regardless of the trial judge's reasons, if there is evidence which, if believed, would support the finding, there is no error of law.
3. If, on the other hand, there is no evidence to support a finding of fact which is crucial to an ultimate finding that the case fell within the words of the statute ... there is an error of law.
4. But, a finding of fact cannot be disturbed on the basis that it is 'perverse', or 'against the evidence or the weight of the evidence or contrary to the overwhelming weight of evidence'. Nor may this Court review a finding of fact merely because it is alleged to ignore the probative force of evidence which is all one way, even if no reasonable person could have arrived at the decision made, and even if the reasoning was demonstrably unsound: Haines v. Leves (1987) 8 N.S.W.L.R. 442 at 469-470.
5. The second stage is the drawing of inferences by the trial judge from the primary facts to arrive at secondary facts. This is subject to the same limitations that apply to primary facts.
6. If there are no primary facts upon which a secondary fact could be inferred, and the secondary fact is crucial to the ultimate finding as to whether or not the case fell within the words of the statute, there is an error of law. If there are primary facts upon which a secondary fact might be inferred, there is no error of law.
7. It is not sufficient that an appellate court would have drawn a different inference from those facts. The question is, whether there were facts upon which the inference might be drawn. If a tribunal draws an inference which cannot reasonably be draw, it errs in point of law and its decision can be reviewed by the courts: Instrumatic Ltd. v. Supabrase Ltd. [1969] 1 W.L.R. 519 at 521; [1969] 2 ALL E.R. 131 at 132, Lord Denning MR, with whom Edmund Davies LJ and Phillimore LJ agreed; Edwards (Inspector of Taxes) v. Bairstow [1956] A.C.14."
Finally in this regard, reference may be made to the judgment of Rooney J. in 'the first (appeal) to be presented (after) the establishment of the Tribunal under the Sugar Industry Act Section 18' where his lordship in rejecting three (3) of the 'grounds of appeal' presented in that appeal in the following terms:
"2. THAT the Tribunal erred in law in deciding that it had no jurisdiction to reinstate the dismissed officer because the Corporation has not agreed to any terms of reference involving any issue of unfair dismissal;
3. THAT the Tribunal erred in holding that it could not consider the issue of unfair dismissal under the Sugar Industry Act or the Collective Agreement between the Appellant and the Respondent; and
5. THE Tribunal erred in law in holding that the only issue for it was whether tsmissal of the officer Nity Nitya Reddy was lawful or unlawful."
said at (1986) 32 F.L.R. 82 at p.85:
"Grounds 2, 3 and 5 refer to matters of opinion expressed by the Tribunal in its ruling. These opinions may or may not be valid, but they form no part the decision which is the subject of the appeal. Whether or not I accepted as correct the views of the Tribunal of these matters could not affect the decision which I am obliged to make in this appeal ... I do not propose, therefore, to deal with them."
In seeking to answer the 'threshold question' counsel for the Union orally submitted that ground (1) was based upon an observation of the Tribunal (at p.1 para.3) that:
"In reviewing the precedents in wages and salary settlements in the period 1986-1995, the Tribunal notes that the 3.5 per cent award in Award No. 2 of 1995 was (out) of Kilter with the trends established over that period. All four unions received identical wage and salary rises in that time."
Such an 'observation' counsel argues amounts to an interpretation of Award No. 2 of 1995 and accordingly raises a 'question of law'. I cannot agree.
The Tribunal's 'out-of-kilter' remark was clearly based on its assessment of wage settlement statistics over a defined period where the uniform trend or established practice was: 'that all four Unions in the Sugar Industry consistently received identical wage and salary rises'. That assessment is entirely a 'matter of fact' for the Tribunal to determine on the materials provided and, as I understand counsel's submission, remains unchallenged i.e. the established trend.
In ew the Tribunal's remark was more in the nature of a comparison than an interpretatietation of an existing Award, and offends no legal principle. At most it was a statement of opinion. As for ground (2) learned counsel for the Union conceded that the offending 'holding' concerning an inter-partes 'informal understanding' with regard to wage increases, had been taken 'out of context' and this ground was accordingly abandoned.
In Ground (3) counsel complains that the Tribunal in deciding the present dispute took into account an 'irrelevant matter' namely, the uncertain future contingency of a 'cycle of consequential increases'. For his part, Counsel for the Corporation submits however that the Tribunal '... was entitled to draw this inference from the facts. History predicted such a further cycle would occur'.
In order to resolve this issue it is necessary to briefly consider the nature, purpose and jurisdiction of the Tribunal conferred under 'the Act'. In this regard Rooney J. said in Sugar Milling Staff Officers Association v. Fiji Sugar Corporation (1986) 32 F.L.R. 82 at p.87:
"The powers referred to in Section 26 and the duties prescribed by Sections 28 and 30 make it abundantly clear that the Tribunal is more than a Court of Law."
and more specifically at p.89 his lordship said:
"The legislative purpose of the Tribunal is to enable employers and employees to obtain redress without resort to industrial action which would be damaging to an industry which is vital to the economy of Fiji. The Tribunal is there as a substitute to resolve industrial disputes without the risk of such disruption. If it is to serve its purpose the Tribunal must have and must exercise all the powers necessary to achieve the same results as might otherwise be attained by strikes and lock-outs. To hold otherwise would be to assume that the legislature intended, not only to suppress the rights of the parties to take industrial actions, but to curtail their right to achieve their legitimate objectives by other means."
A similar view was expressed of the Tribunal's powers by the Fiji Court of Appeal when the above case went on appeal in Civil Appeal No. 74 of 1986 (unreported) where it said at p.3:
"We find on a reading of the provisions of the entire Act and considering the scheme of the Act as a whole that the Act vests in the Tribunal amplitude of power which must be deemed to include the power of reinstatement."
and later at p.6 the Court of Appeal said:
"There is no limitation imposed by the Act on the Tribunal as to its powers of settling disputes in the interests of the Sugar Industry."
Finally and more recently, Pathik J. in upholding the Tribunal's 'return-to-work' order in the face of a 'lawful strike' in Fiji Sugar and General Workers Union v. F.S.C. Misc. Appeal No. 12 of 1997 (unreported) said at p.12:
"My interpretation of the Act is, and I have no doubt about it, that to avoid this very type of situation which has arisen in this case that this far-reaching piece of legislation came into being to govern all aspects of the industry and giving, inter alia, the Tribunal the widest possible powers ..."
In light of the foregoing judicial dicta and the express provisions of 'the Act' which requires the Tribunal, amongst other things "... (to) carefully and expeditiously hear, inquire and investigate the matters in dispute and all matters affecting the merits of the case and the just settlement of the matters in dispute ..." [Section 105(2)(a)]; and, where the 'public interest' is affected, "... to have regard to the state of the national economy and the likely (future) effect on the national economy of any award that the Tribunal may make .." [Section 105(2)(b)]; and, further to "... act according to equity, good conscience and the substantial merits of the case without regard to technicalities and legal forms" [Section 109(1)(c)], I am satisfied that the Tribunal was perfectly entitled to consider the 'likely (disruptive) effect' of granting the 'adjustment' sought by the Union more so as such an 'effect' was clearly evidenced in the correspondence leading up to the Corporation's unilateral decision to grant the increases to the three (3) Unions not covered by Award No. 2 of 1995 in the first place. This ground raises no 'error of law'.
Then Counsel for the Union complains in Ground (4) that the Tribunal 'erred in law' when it observed (at p.2 para.3):
"The Corporation is further disadvantaged by its inability to pass on costs to the consumer because the price of sugar is determined elsewhere."
If I may say so it is difficult to understand how such an observation can give rise to any appealable 'error of law'. The observation (at p.2 para.3) is made in the context of the Tribunal's consideration of the Corporation's 'ability to pay' the increase being sought by the Union, and relates to a factor previously considered relevant in earlier awards granted by the Tribunal, and was referred to in the Corporation's written submissions.
There is no suggestion that this notorious factor is irrelevant and the Tribunal's consideration of it amongst many others gives rise in my view to no appealable error.
Ground (5) is based on a 'concession' by the Tribunal (in p.2 para. 4): "... that the basis for the readjustment in Award No. 2 of 1995 ought to have been given more careful consideration". Counsel for the Union submits that by its own admission the Tribunal accepts that it erred in making Award No. 2 of 1995 and that amounts to an 'error of law'. Again I cannot agree.
Whilst Award No. 2 of 1995 features prominently in the 'background' to the present dispute, it was never directly before the Tribunal for 'cancellation, variation or suspension' [Section 121(1)] and indeed was in no way mentioned or affected by the Tribunal's actual award in the current referral. Needless to say both parties were bound by the Award and neither had sought in the 21 days given, to appeal against it.
Therefore whatever observations or concessions the Tribunal might have made concerning Award No. 2 of 1995 are at best 'obiter dictum' based on hindsight gathered from a fuller consideration 'in a deliberative manner' of the parties respective submissions which fully and comprehensively addressed the Corporation's grant of the disputed wage increase.
The sixth and final 'ground of appeal' is specifically directed at the Tribunal's Award wherein it '... finds that the 1.5 per cent increase awarded ... is not discriminatory'. Counsel's fairly simple argument on this ground is that such a finding entails 'an analysis of an issue of fairness' (whatever that might mean) and therefore raises an issue of law.
The Union's written submission of its case before the Tribunal more clearly puts its argument where it writes (at p.4):
"That the corporation by granting increases to the other category over and above its obligation of 2% has demonstrated discriminatory treatment against General Employees ..."
at the same time however, the Union accepts (at p.9):
"There was no obligation on the Corporation to pay the 1.5% wage increase to other categories as agreement with the various Unions were concluded for the period in question."
The Corporation for its part forcefully argued before the Tribunal that its decision to unilaterally grant pay increases to the Unions not covered by Award No.2 of 1995 was prompted by its desire to maintain and ensure 'internal relativity' as a 'guiding principle in the determination of wage increases in the Corporation' and '(to) avert another disastrous disruption to the 1995 crushing season'.
As for the seemingly 'discriminatory treatment' in not awarding the Unions members the unilateral increase, the Corporation writes (at pp.8/9):
"The Union's tendency to compare wages of general employees with that of the more skilled and professional categories lacks any basis in objectivity. ... It has to be kept in mind that the base wages/salaries of the different categories are different to reflect the differences in the value of the jobs. Since the bases are different, the absolute monetary increases would be different as well."
The Tribunal in explaining its finding said (at p.2 para. 2):
"... upon reflection the case the Corporation has made about relativity will be upheld. The wage and salary scales which exist reflect the levels and degree of skill and expertise of the respective categories. They are also a measure of the degree of responsibility that accompany those categories. To actively make direct and bald comparisons is a little like comparing apples and oranges."
Quite plainly the Tribunal preferred the Corporation's submissions on this issue which it was entitled to do, and no error on a 'point of law' can be said to arise therefrom.
Given this Court's conclusion that none of the 'grounds of appeal' raises any arguable 'error of law', the Notice of Appeal is dismissed as being incompetent.
D.V. Fatiaki
JUDGEAt Suva,
13th February, 1998.Hba0005d.97s
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