Caelli Constructions (Vic) Pty Ltd (Caelli) applied for orders pursuant to s.496 of the Workplace Relations Act 1996 to stop or prevent industrial action at the New Royal Children’s Hospital (RCH) site at Parkville in Melbourne. Caelli is one of the principal sub-contractors engaged on the construction of the new $1 billion hospital.
On 18 February 2009, organisers of the CFMEU formed a picket line at the main gate of the RCH site, which included a blockade of the main site entrance. This had the effect of preventing entry of concrete and other delivery trucks. The picket activity followed earlier disruption to work by Caelli on the site in the form of:
- a picket line and a refusal of Caelli employees to attend at work on 1 December 2008, which resulted in the making of an interim s.496 order, and
- the withdrawal of labour by Caelli employees on various sites, including the RCH site, on 12 February 2009, which resulted in the making of a s.496 order on 13 February 2009
On 20 February 2009, SDP Watson found that whilst the establishment of the picket line and associated blockade and its effect in disrupting normal work was not to be condoned, there was no action by an employee of Caelli of the kind set out in the Workplace Relations Act 1996 that would allow the AIRC to make an order that industrial action stop.
His Honour concluded that there was no power to make the orders sought by Caelli and dismissed the application.
The picket is also the subject of proceedings in the Federal Court