Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v Queensland Rail [2015] HCA 11

The High Court has unanimously held that Queensland Rail is a trading corporation within the meaning of s 51(xx) of the Australian Constitution in the case of Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia & Ors v Queensland Rail [2015] HCA 11. To this extent, the Court ruled that the relations between Queensland Rail and its employees are governed by Federal industrial relations law and not Queensland industrial relations law.

Facts of the Case

Queensland Rail operates as a labour hire company and provides labour used by a related entity, Queensland Rail Limited, in the operation of rail services in Queensland. Under the Queensland Transit Authority Act 2013, Queensland Rail is not a body corporate. However, it has all the powers of an individual to create and be made subject to legal rights and duties, and it may also sue and be sued in its own name. The Act also provides that the relations between Queensland Rail and its employees would be governed by Queensland Industrial relations law.

An association of organisations and employees challenged the Queensland Act by bring the matter before the High Court. They argued that Queensland Rail is a trading corporation within the meaning of the Constitution and therefore, by the terms of the Federal Fair Work Act 2009, it is an employer subject to the terms of that Act. It was further argued that the relevant terms of the Queensland Act were inconsistent with the federal act and therefore should be ruled unconstitutional under s109 of the Constitution.

High Court Ruling

Judging from the nature and activities of Queensland Rail, the High Court unanimously held that the body was a trading corporation within the meaning of the Constitution. It followed that the provisions in the Queensland Acts which sought to apply Queensland industrial relations law to Queensland Rail and its employees were invalid and unconstitutional. 

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Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia v Queensland Rail [2015] HCA 11