The Full Court of the Federal Court in Melbourne has increased penalties imposed on the CFMEU and three officials by a total of $58,000. The union, divisional Secretary Bill Oliver, Steve Allen and Gerard Benstead admitted to coercing a head contractor to discontinue the engagement of a subcontractor because its employees were on AWAs.
ABC Commissioner John Lloyd encouraged subcontractors to stand up for their rights if confronted with similar coercive or discriminatory conduct. “The current law is designed to deter this kind of unlawful conduct. The ABCC will thoroughly investigate any complaints it receives.
The Court noted that this was another example of conduct that amounted to “…“a calculated indifference” on the part of the Union and its officials to statutory provisions which were introduced to curb such conduct.”
The decision stated:
“A Union is free to adopt any policy which its elected officials and members consider to be appropriate from time to time. The Union is also free to pursue and implement such policies by lawful means. What is not permissible is the pursuit of policy
objectives by means which are unlawful.”
The respondents admitted to contravening the Workplace Relations Act 1996 by encouraging head contractor, Walton Construction, to terminate the services of a subcontractor at the Brunswick Police Station construction site in November 2005.
In setting the penalty, the Court said, “Penalties will serve as a deterrent only when they are fixed at a meaningful level.”
Today’s decision results in penalties imposed on the CFMEU being:
- increased from $18,000 to $50,000 for contravening s.43 of the BCII Act;
- $2000 for contravening s.45 of the BCII Act; and
- $750 for contravening s.298P of the WR Act.
Penalties imposed on Mr Oliver and Mr Benstead were increased:
- from $2000 wholly suspended for twelve months, to $10,000 half suspended for twelve months.
Penalties imposed on Mr Allen were increased:
- from a declaration of contravention to a penalty of $10,000 half suspended for twelve months.
Commissioner Lloyd said, “This successful penalty appeal demonstrates that unlawful coercive conduct will not to be tolerated. The actions of the CFMEU and its officials were serious and the penalties reflect the serious nature of the contravention.”
In December 2007, Walton Constructions admitted to discriminating against the subcontractor and was penalised $50,000, with $25,000 suspended for 12 months.
A copy of today’s judgement and previous media statements are available at the ABCC website: