Bovis Lend Lease (BLL) is the principal contractor for the construction of the New Royal Children’s Hospital at Parkville in Melbourne. The construction work is managed and supervised by BLL which contracts with a number of subcontractors, which perform the construction work. BLL has very few direct workers on the site and the work is mostly performed by subcontractors’ employees. The main subcontractor to BLL is Caelli Constructions (Vic) Pty Ltd (Caelli), which has over 200 employees at the site.
On 18 February 2009 CFMEU officials blockaded the entry to the site with motor vehicles and prevented building materials and supplies entering the site. As a consequence of the blockade, contractors were unable to perform their work and concrete pours had to be cancelled.
On 19 February 2009 BLL applied to the Federal Court for an injunction to end the blockade. Following a hearing Marshall J ordered that the union stop obstructing access to the site and move vehicles that had blocked the entrance to the site.
On 20 February BLL made a further application alleging contempt of court on the basis of disobedience of the court order because access to the site was still being obstructed by motor vehicles, gazebos and CFMEU officials.
In a decision of 4 March 2009 Justice Tracey found the CFMEU guilty of contempt on one of two charges of not complying with the orders made by Marshall J. On 19 June 2009, Tracey J ordered the CFMEU to pay a $75,000 penalty for its contempt plus half of the company's costs of the contempt hearing and the full costs of the penalty hearing, both on an indemnity basis, i.e., full reimbursement.
Arising out of a series of mediations conducted by the Court’s District Registrar, BLL and the union reached a settlement. The proceedings were formally discontinued on 15 April 2010.