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ABCC v Graauwmans and CFMEU


VIC , Backgrounder 

Release date: 20 July 2011 

Background

Allegations outlined in the ABCC’s statement of claim, these may vary over the course of the proceeding.

1. McConnell Dowell Constructors (Aust) Pty Ltd was the principal contractor on the Barwon Heads Bridge Redevelopment Project (the project).

2. The building works for the project were being carried out by direct employees of McConnell Dowell and various subcontractor employees.

3. The direct employees were performing work in accordance with the terms and conditions of the Barwon Heads Bridge Project Greenfields Site Specific Agreement 2009 (the agreement).

4. McConnell Dowell engaged Elstone Diving Services (Pty Ltd) to carry out specialist works on the site.

5. Between 1.00 pm and 1.30 pm on 24 June 2010 CFMEU official Robert Graauwmans conducted a meeting outside the site with direct employees and subcontractor employees.

6. In that meeting, Mr Graauwmans informed the direct employees and the subcontractor employees that the CFMEU was concerned about Elstone paying their employees in accordance with the Modern Award.

7. Mr Graauwmans facilitated a vote of the direct employees and subcontractor employees not to work with Elstone employees under those circumstances.

8. At approximately 2.00 pm Mr Graauwmans informed McConnell Dowell’s project manager that the employees had passed a vote to the effect that any time Elstone was on site performing work, that the employees would walk off the site.

9. On 17 August 2010, Elstone had some employees return to the site to perform work on the project.

10. At approximately 6.50 am Mr Graauwmans held a meeting outside the site with the direct employees and the subcontractor employees.

11. Following that meeting the direct employees and subcontractor employees failed to perform any building work on the project for the remainder of the day.

Alleged contraventions

12. The ABCC alleges that Mr Graauwmans and the CFMEU contravened:

  • s.38 of the Building and Construction industry improvement Act 2005 by engaging in unlawful industrial action; and
  • s.417 of the Fair Work Act 2009 by organising or engaging in industrial action before the nominal expiry date of an enterprise agreement.
Compensation

The ABCC is seeking orders that compensation be paid for losses to parties that have suffered because of the contraventions, pursuant to section 49(1)(b) of the BCII Act and section 545(2)(b) of the FW Act.

ABCC Civil Litigation Proceedings

13. The ABCC filed a statement of claim in the Federal Magistrates Court at Melbourne on 30 June 2011.

14. A directions hearing will be held on 27 July 2011.

Penalties

15. The maximum penalties for a contravention of the BCII Act are $22,000 for an individual and $110,000 for an organisation.

16. The maximum penalties for a contravention of the FW Act are $6600 for an individual and $33,000 for an organisation.