Labour Court says parties must use dispute procedure before industrial action

In 1987, the Labour Court recommended that Wellman International Limited and the Amalgamated Engineering Union and Electrical Trades' Union use the appropriate third-party procedure before taking industrial action. The recommendation was signed on 9 July 1987. The dispute concerned how the grievance and disputes procedure in the company-union agreement should be interpreted. The unions argued that referral to a Rights Commissioner or the Labour Court was optional after conciliation failed; Wellman International Limited said the parties had to refer unresolved issues to one of those bodies first. The Court said “may” allowed a choice between the Rights Commissioner and the Labour Court, but it interpreted the following paragraph as requiring both sides to use the appropriate body before taking industrial action.