Stellar Call Centres Pty Ltd v CEPU [2001] FCA 106

Stellar Call Centres Pty Ltd v CEPU [2001] FCA 106

Stellar was not a successor, assignee or transmittee of Telstra's business or part of Telstra's business. Telstra's business was providing telecommunications services, and taking or responding to customer calls was an activity supporting that business rather than a distinct part of the business. Telstra continued to operate its own call centres, no Telstra call centre employees or facilities were transferred to Stellar, and Stellar merely undertook overflow call handling under contract. Accordingly ss 149(1)(d) and 170MB(1) did not bind Stellar to Telstra's awards or certified agreements.

Jurisdiction
Australia
Judgment Date
21 February 2001
Procedural Posture
Industrial Law Appeal Concerning Whether Awards and Certified Agreements Binding on Telstra Also Bound Stellar as a Successor, Assignee or Transmittee / Appeal to the Full Court of the Federal Court From Orders and a Declaration Made on 3 September 1999
Outcome
Appeals allowed; the orders and declaration of 3 September 1999 were set aside and the applications dismissed.
Legal Topics
['transmission of Business' 'awards' 'certified Agreements' 'workplace Relations Act 1996 (cth) Ss 149(1)(d) and 170 Mb(1)' 'outsourcing and Call Centre Services']
['industrial Law' 'employment Law'] ['transmission of Business' 'awards' 'certified Agreements' 'workplace Relations Act 1996 (cth) Ss 149(1)(d) and 170 Mb(1)' 'outsourcing and Call Centre Services']

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Procedural Posture

Industrial Law Appeal Concerning Whether Awards and Certified Agreements Binding on Telstra Also Bound Stellar as a Successor, Assignee or Transmittee / Appeal to the Full Court of the Federal Court From Orders and a Declaration Made on 3 September 1999

Legal Issues

  1. 1 ['Whether Stellar was a successor, assignee or transmittee of the business or part of the business of Telstra for the purposes of s 149(1)(d) of the Workplace Relations Act 1996 (Cth).' "Whether Stellar was a successor, transmittee or assignee of the whole or part of Telstra's business for the purposes of s 170MB(1) of the Workplace Relations Act 1996 (Cth)." "Whether the taking and responding to Telstra customer telephone calls was itself the business or part of the business of Telstra, or merely an activity supporting Telstra's telecommunications business." 'Whether substantial identity between the work performed by Stellar employees and work performed by Telstra employees was sufficient to establish transmission of business.']

Ratio Decidendi

Stellar was not a successor, assignee or transmittee of Telstra's business or part of Telstra's business. Telstra's business was providing telecommunications services, and taking or responding to customer calls was an activity supporting that business rather than a distinct part of the business. Telstra continued to operate its own call centres, no Telstra call centre employees or facilities were transferred to Stellar, and Stellar merely undertook overflow call handling under contract. Accordingly ss 149(1)(d) and 170MB(1) did not bind Stellar to Telstra's awards or certified agreements.

Court Disposition

Appeals allowed; the orders and declaration of 3 September 1999 were set aside and the applications dismissed.

Orders

  • ['In N 978 of 1999, the appeal be allowed.' 'In N 978 of 1999, each of the orders of 3 September 1999 be set aside and in lieu thereof the application be dismissed.' 'In N 1298 of 1999, the appeal be allowed.' 'In N 1298 of 1999, the declaration of 3 September 1999 be set aside and in lieu thereof the application be...