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Draffin v CFMEU, Allen, Benstead, Oliver and Walton Constructions


Applicant:
Assistant ABC Commissioner John Draffin 
Respondent(s):
CFMEU, Steve Allen, Gerard Benstead, Bill Oliver, Walton Construction 
Date filed:
20 March 2007 
Outcome:

On 10 December 2007 Walton Constructions Pty Ltd (Walton) admitted to breaching s45 of the Building and Construction Industry Improvement Act 2005 (BCII Act) by discriminating against the building contractor and to breaching s.298K of the Workplace Relations Act 1996 (WR Act) by terminating the building contractor’s engagement. Walton was penalised a total of $50,000, half suspended for 12 months.

On 17 March 2009 the Federal Court imposed penalties totalling $24,750 on the CFMEU and CFMEU officials Bill Oliver, Steve Allen and Gerard Benstead.

The respondents admitted that they intended to coerce Walton, not to engage Monjon Pty Ltd to provide traffic management services on a Brunswick building site in Victoria in November 2005.

The respondents also admitted to having contravened the WR Act by encouraging Walton to terminate Monjon’s contract. All respondents contravened the BCII Act by discriminating against Monjon on the basis that its employees were covered by a particular kind of industrial agreement.

Penalties imposed on the CFMEU were:

  • $18,000 for contravening s.43 of the BCII Act,
  • $2,000 for contravening s.45 of the BCII Act, and
  • $750 for contravening s.298P of the WR Act.

Penalties imposed on the CFMEU officials:

  • $2,000 imposed on each of Mr Oliver and Mr Benstead. These penalties will be suspended for 12 months.

On 10 September 2009 the Full Court of the Federal Court imposed penalties increasing the previous total penalty amounts by $58,000.

The decision results in penalties imposed on the CFMEU being:

  • increased from $18,000 to $50,000 for contravening s.43 of the BCII Act,
  • $2000 for contravening s.45 of the BCII Act, and
  • $750 for contravening s.298P of the WR Act.

Penalties imposed on Mr Oliver and Mr Benstead were increased:

  • from $2000 wholly suspended for twelve months, to $10,000 half suspended for twelve months.

Penalties imposed on Mr Allen were increased:

  • from a declaration of contravention to a penalty of $10,000 half suspended for twelve months.
Background:

The alleged conduct related to actions against a company that was engaged by Walton Constructions Pty Ltd to perform traffic management at the Brunswick police station, Melbourne in November 2005.

There are several allegations involved in this matter:

  • that the CFMEU and its officials coerced Walton not to engage, designate or allocate duties to the company as a building contractor
  • that the CFMEU and its officials coerced or unduly pressured the company to make a pre-reform certified agreement with the CFMEU
  • that the CFMEU, its officials and Walton discriminated against the company on the ground that its employees were covered by AWAs
  • that the CFMEU and its official encouraged Walton to breach the pre-reform WR Act by ceasing to use the company to provide traffic management services at the site, and
  • that Walton unlawfully terminated the company's engagement for the reason that it was bound by AWAs