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Stuart v AMWU and Dodd


Applicant:
ABCC Inspector Karen Stuart 
Respondent(s):
AMWU and Steven Dodd 
Date filed:
29 June 2009 
Outcome:

On 28 August 2009 the Federal Court imposed a penalty of $25,000 on the AMWU and $5,000 on Mr Dodd for placing undue pressure on a building contractor to make an industrial agreement.

Background:

In early 2008, Australian Paper Pty Ltd (“Australian Paper”) was expanding the Maryvale Pulp Mill site that it owned at Morwell, Victoria (“the Site”).

At that time, Sandvik Mining and Construction Australia Pty Ltd (“Sandvik”) was seeking to enter into a contract with Australian Paper Pty Ltd to carry out certain building work on the Site.

On 26 February 2008, the Second Respondent told an employee of Australian Paper that Sandvik would need to get their site agreement right before they could start on the Site.

On 28 February 2008 the Second Respondent told an employee of Sandvik that Sandvik needed to have an agreement that was in line with other industrial agreements that were in use at the Site.

Later that day, the Second Respondent threatened to organise unlawful industrial action by contractors on the Site if Sandvik came on to the Site with the intention that Sandvik agree to make a building agreement with the AMWU under Part 8 of the Workplace Relations Act 1996.

On 29 February 2008, the Second Respondent sent an email to Sandvik with a copy of an industrial agreement entered by another employer at the Site.

On 13 March 2008 the Second Respondent told an employee of Sandvik that Sandvik must sign a like agreement before undertaking construction work at the Site.

The threatened action would, if carried out, have been unlawful and constituted a contravention of s.44(1)(a) of the BCII Act because the Second Respondent intended to coerce, or apply undue pressure to, Sandvik to agree to make a building agreement with the AMWU under Part 8 of the Workplace Relations Act 1996.

The conduct of the Second Respondent referred to above was conduct of the AMWU for the purposes of the BCII Act and, as a consequence, the AMWU also contravened s.(1)(a) of the BCII Act.

This proceeding was issued on 29 June 2009 and a hearing will be held on a date to be fixed for the Court to consider the imposition of penalties.