copyright  |  disclaimer  |  privacy policy  |  print ready

« back

Validity of no extra claims clauses in certified agreements

Excerpts from this article first published in ‘Human Resources’ Magazine, Issue 86, 9 August 2005

The Federal Court has confirmed that a comprehensive “No Extra Claims” clause in a certified agreement can be relied on to prohibit industrial action in support of claims that are outside the scope of the certified agreement.

The decision put an end to a nine day paperwork ban taken by the Australian Manufacturing Workers Union (AMWU) maintenance workers employed by Norwest Fleet Network Pty Ltd at the aluminum smelter in Portland Victoria.

The industrial action was in support of a claim for a proposed rehabilitation and return to work program for injured workers, which was not a matter covered by the existing certified agreement.

In the earlier Emwest case, a Full Bench of the Federal Court upheld a decision that it was possible for unions and employees to make extra claims about matters not included in an existing agreement and industrial action in support of those claims could be valid.

The Norwest case differed from the Emwest case because the Norwest certified agreement contained a comprehensive clause which provided that the employees, the AMWU or the company would not pursue any extra claims relating to wages or changes in conditions of employment or any other matter related to the employment of the employees, whether dealt with in the certified agreement or not and that the certified agreement covered all matters or claims that could otherwise be the subject of protected action.

In his decision, Justice Merkel held that the Norwest certified agreement was intended to cover the whole field of employment and to be exhaustive of the terms and conditions of the employment relationship. He ordered that industrial action in support of a rehabilitation plan was prohibited for the life of the certified agreement.

HR Tips

Employers should include a comprehensive no extra claims clause in certified agreements to prevent industrial action in support of further claims during the life of the certified agreement. If the parties agree to conclude negotiations for a certified agreement leaving some matters unresolved, it is prudent to list those matters in the certified agreement so that claims may be advanced only in support of the listed matters and nothing else.

Sharlene Wellard
Senior Associate
Australian Business Lawyers