Dollar Sweets dispute
Encyclopedia
The Dollar Sweets dispute in 1985 was a small industrial dispute with major legal ramifications in industrial relations where an employer resorted to a common law
verdict and damages in a case in the Supreme Court of Victoria
to resolve a dispute after industrial courts proved ineffective. It was the first time a trade union
was forced to pay common law damages to an employer for losses suffered through picketing in Australia
. The dispute was also significant for boosting the career of the barrister representing the company, Peter Costello
, leading him to stand for federal Parliament and become Treasurer in the Howard Government.
employing 27 people on a 38 hour week basis. The award for the industry specified a 40 hour week. The Hawke Government and the ACTU had entered into a Wages accord which provided employer superannuation, reduced taxation and other social gains in return for unions agreeing to not pursue excessive wage claims. At the same time centralised wage fixing was introduced in September 1983 where indexed wage rises were automatically granted to those workers whose unions undertook to abide by the Arbitration Commission's principles.
Several small unions, including the Federated Confectioners Association of Australia, refused to join the accord.
The company owner, Fred Stauder, proposed an agreement with his employees in November 1983, that if they agreed to abide by the principles of the Arbitration Commission, the company would pay them the proscribed increases. All 27 employees agreed to the proposal.
Stauder offered his 27 employees that if they wished to continue to receive over-award pay for a (below award) 38-hour week, they could do so if they signed a no strike agreement, but if they wanted to work a 36-hour week, they would have to find it elsewhere. Twelve accepted Stauder's offer while the other 15 refused to sign the no-strike agreement and were subsequently sacked by the company with the company employing another 15 workers in their place on existing conditions.
On 22 July 1985 a picket line was established by the sacked workers outside the Dollar Sweets factory. The picket line remained for 143 days, with the company refusing to reinstate the workers.
By October 1985 the company was still refusing to reinstate the sacked workers but through the Concilation and Arbitration Commission had provided "an offer to assist in finding alternate employment within the industry and also to supply references to those people." Commissioner Bain recommended "that those who have been picketing should accept the employer's offer and cease their picketing forthwith."
A number of bomb and arson threats were made against Dollar Sweets and one strike-breaking driver was assaulted and his truck vandalised. At one point phone and telex lines were cut to the factory with Telecom workers refusing to cross the picket line to repair the services.
Dollar Sweets received strong support and assistance from Richard Mulcahy
, chief executive officer of the Confectionery Manufacturers of Australia. By December 1985 it was decided to seek an injunction under common law against the union in the Supreme Court of Victoria
, with solicitor Michael Kroger
engaging junior barrister and future federal Treasurer Peter Costello
hired to represent the company. The case was financed by the Victorian Chamber of Commerce.
The company alleged union interference with contractual relations, intimidation, nuisance, and a conspiracy to injure the plaintiff and sought an injunction and punitive damages. Victorian Supreme Court Justice Peter Murphy gave judgment issued restraining orders on 12 December with the picket ending the next day. In his judgement Justice Peter Murphy described the picketing as "stupid and nihilistic." He ruled that this was not a "lawful form of picketing, but a... nuisance involving obstruction, harassment, and besetting". It was beside the point that there were specialist courts for industrial disputes. "This court is not without power ... and should intervene". He issued an interlocutory injunction against the picket, and ordered the union to pay $175,000 in damages.
Peter Stauder sold Dollar Sweets Holding Limited in 1999, which is now called Snack Foods Limited
.
Peter Costello described the case as "It came to be bracketed with the Mudginberri Abattoir case as a great victory against militant unionism."
Doug Cameron
, the secretary of the Australian Manufacturing Workers Union
, with which the Federated Confectioners Association amalgamated, saw the dispute as a turning point. "It was when the social contract between workers, business and the government started to collapse," and "It became a cause celebre for the big end of town and lawyers started to realise they could make money ripping off the pay and conditions of workers."
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
verdict and damages in a case in the Supreme Court of Victoria
Supreme Court of Victoria
The Supreme Court of Victoria is the superior court for the State of Victoria, Australia. It was founded in 1852, and is a superior court of common law and equity, with unlimited jurisdiction within the state...
to resolve a dispute after industrial courts proved ineffective. It was the first time a trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
was forced to pay common law damages to an employer for losses suffered through picketing in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. The dispute was also significant for boosting the career of the barrister representing the company, Peter Costello
Peter Costello
Peter Howard Costello AC is an Australian politician and lawyer who served as the Treasurer in the Australian government from 1996 to 2007. He is the longest-serving Treasurer in Australian history. Costello was a Member of the Australian House of Representatives from 1990 to 2009, representing...
, leading him to stand for federal Parliament and become Treasurer in the Howard Government.
Background
Dollar Sweets was a confectionery company in the Melbourne suburb of MalvernMalvern, Victoria
Malvern is a suburb in Melbourne, Victoria, Australia, 8 km south-east from Melbourne's central business district. Its Local Government Area is the City of Stonnington. At the 2006 Census, Malvern had a population of 9,422.-History:...
employing 27 people on a 38 hour week basis. The award for the industry specified a 40 hour week. The Hawke Government and the ACTU had entered into a Wages accord which provided employer superannuation, reduced taxation and other social gains in return for unions agreeing to not pursue excessive wage claims. At the same time centralised wage fixing was introduced in September 1983 where indexed wage rises were automatically granted to those workers whose unions undertook to abide by the Arbitration Commission's principles.
Several small unions, including the Federated Confectioners Association of Australia, refused to join the accord.
The company owner, Fred Stauder, proposed an agreement with his employees in November 1983, that if they agreed to abide by the principles of the Arbitration Commission, the company would pay them the proscribed increases. All 27 employees agreed to the proposal.
The Dispute
In July 1985 the Federated Confectioners Association started a campaign with employers for a 36 hour week. Although this breached Arbitration Commission wage-fixing principles, the union had never agreed to accept those principles. When the union demanded negotiations with Stauder on a 36 hour week Stauder told the union he could not afford to reduce hours and offered to show his accounts to the union. A reduction in hours would have also broken the 1983 agreement Stauder had reached with his employees.Stauder offered his 27 employees that if they wished to continue to receive over-award pay for a (below award) 38-hour week, they could do so if they signed a no strike agreement, but if they wanted to work a 36-hour week, they would have to find it elsewhere. Twelve accepted Stauder's offer while the other 15 refused to sign the no-strike agreement and were subsequently sacked by the company with the company employing another 15 workers in their place on existing conditions.
On 22 July 1985 a picket line was established by the sacked workers outside the Dollar Sweets factory. The picket line remained for 143 days, with the company refusing to reinstate the workers.
By October 1985 the company was still refusing to reinstate the sacked workers but through the Concilation and Arbitration Commission had provided "an offer to assist in finding alternate employment within the industry and also to supply references to those people." Commissioner Bain recommended "that those who have been picketing should accept the employer's offer and cease their picketing forthwith."
A number of bomb and arson threats were made against Dollar Sweets and one strike-breaking driver was assaulted and his truck vandalised. At one point phone and telex lines were cut to the factory with Telecom workers refusing to cross the picket line to repair the services.
Dollar Sweets received strong support and assistance from Richard Mulcahy
Richard Mulcahy (Australian politician)
Richard John Mulcahy , a former Australian politician was a member of the unicameral Australian Capital Territory Legislative Assembly for one term, from 2004 to 2008, representing the Liberal Patry and later as an independent....
, chief executive officer of the Confectionery Manufacturers of Australia. By December 1985 it was decided to seek an injunction under common law against the union in the Supreme Court of Victoria
Supreme Court of Victoria
The Supreme Court of Victoria is the superior court for the State of Victoria, Australia. It was founded in 1852, and is a superior court of common law and equity, with unlimited jurisdiction within the state...
, with solicitor Michael Kroger
Michael Kroger
Michael Norman Kroger is a businessman and a powerbroker within the Victorian division of the Liberal Party of Australia. He was educated at Wesley College, Melbourne.-Early Life :...
engaging junior barrister and future federal Treasurer Peter Costello
Peter Costello
Peter Howard Costello AC is an Australian politician and lawyer who served as the Treasurer in the Australian government from 1996 to 2007. He is the longest-serving Treasurer in Australian history. Costello was a Member of the Australian House of Representatives from 1990 to 2009, representing...
hired to represent the company. The case was financed by the Victorian Chamber of Commerce.
The company alleged union interference with contractual relations, intimidation, nuisance, and a conspiracy to injure the plaintiff and sought an injunction and punitive damages. Victorian Supreme Court Justice Peter Murphy gave judgment issued restraining orders on 12 December with the picket ending the next day. In his judgement Justice Peter Murphy described the picketing as "stupid and nihilistic." He ruled that this was not a "lawful form of picketing, but a... nuisance involving obstruction, harassment, and besetting". It was beside the point that there were specialist courts for industrial disputes. "This court is not without power ... and should intervene". He issued an interlocutory injunction against the picket, and ordered the union to pay $175,000 in damages.
Aftermath
The common law damages claim was settled in April 1988, when the union paid the sum of $175,000 to Dollar Sweets as compensation for the losses it suffered as a result of the picket.Peter Stauder sold Dollar Sweets Holding Limited in 1999, which is now called Snack Foods Limited
Snack Foods Limited
Snack Foods Limited is an Australian snack food company and was officially formed on 25 November 1999, and was owned by the Campbell Soup Company's Australian subsidiary, Arnott's Biscuits Holdings Pty Ltd. Snack Foods Limited owns one of Australia's largest salted snack food companies, Snack...
.
Peter Costello described the case as "It came to be bracketed with the Mudginberri Abattoir case as a great victory against militant unionism."
Doug Cameron
Doug Cameron
Doug Cameron may refer to:*Doug Cameron , Canadian musician*Doug Cameron , Australian politician and trade unionist*Doug Cameron , former 1950s halfback for the Eastern Suburbs football club...
, the secretary of the Australian Manufacturing Workers Union
Australian Manufacturing Workers Union
The Australian Manufacturing Workers Union, or more fully, the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union is an Australian trade union that is registered with the Australian Industrial Relations Commission and is affiliated with the Australian Council of Trade...
, with which the Federated Confectioners Association amalgamated, saw the dispute as a turning point. "It was when the social contract between workers, business and the government started to collapse," and "It became a cause celebre for the big end of town and lawyers started to realise they could make money ripping off the pay and conditions of workers."