CFMEU and organisers in court for ‘no ticket no start’ stance
Background
Allegations as outlined in the ABCC’s statement of claim filed on 7 December 2010. The allegations may change during the course of the proceeding.
1. Akron Roads Pty Ltd was the head contractor for a road construction project on the Bass Highway at Grantville, Victoria (the Site). Akron engaged Scorpion Pty Ltd to fabricate and install railings for a bridge at the Site.
2. Statewide Building Company Pty Ltd was a labour-hire company supplying labour to Scorpion.
3. On 29 October 2009 CFMEU officials Gareth Stephenson and Rob Smits visited the site and informed a representative of Akron that the CFMEU had “issues” with Statewide.
4. At approximately 9.15am Statewide employees engaged by Scorpion arrived at the bridge project to commence work. Mr Stephenson and Mr Smits requested Akron’s assistance to remove Statewide employees from the site.
5. Mr Stephenson and Mr Smits then went to the bridge and directed employees of Statewide to stop work, stating the employees were required to be members of the CFMEU to work at the site.
6. The employees initially refused to comply with the demand. Mr Stephenson and Mr Smit distributed membership applications and told employees they ‘had to sign’.
7. Between 12.00 and 12.30pm Scorpion paid for three members of the workforce to join the CFMEU in order to allow workers to return to work.
8. Mr Stephenson and Mr Smits left the Site when the joining fees had been paid.
Alleged Contraventions
9. The ABCC alleges the CFMEU, Mr Stephenson and Mr Smits contravened:
· s.38 of the Building and Construction Industry Improvement Act 2005 (BCII Act) by imposing a ban or limitation on the performance of work at the Site; and
· s.343 and s.348 of the Fair Work Act 2009 (FW Act) by taking action with the intent to coerce employees at the Site to join the CFMEU.
10. In assessing public interest considerations the ABC Commissioner decided that this was an important matter to litigate because, amongst other considerations, the alleged conduct, involving a work ban and coercion to join a union, was serious.
11. The ABC Commissioner values highly freedom of association. Respecting and protecting a person’s right to join and be a member of a union is not any more important than respecting and protecting a person’s right to decide not to join or be a member of a union. The impact on the workers was that they had their individual rights transgressed, accordingly, the matter illustrates that there is a continuing need for general deterrence, and in this case specific deterrence, when breaches of freedom of association occur.
ABCC Civil Litigation Proceedings
12. The ABCC filed a statement of claim in the Federal Magistrates Court at Melbourne on 7 December 2010.
13. A first directions hearing is scheduled for 9.30am on 3 February 2011.
Penalties
14. The maximum penalties for a contravention of the BCII Act are $22,000 for an individual and $110,000 for an organisation.
15. The maximum penalties for a contravention of the FW Act are $6600 for an individual and $33,000 for an organisation.