The Federal Court in Melbourne today ordered LU Simon Builders Pty Ltd to pay penalties of $55,000.
The court found that LU Simon discriminated against a subcontractor because he did not have a particular kind of workplace agreement. This is a contravention of s.45 of the Building and Construction Industry Improvement Act 2005 (BCII Act).
Australian Building and Construction Commissioner John Lloyd was pleased with today’s decision.
“A person has a right to choose the kind of workplace agreement they enter into, and with whom the agreement is made,” said Commissioner Lloyd.
“The substantial penalty imposed by the courts highlights the seriousness of discriminating against a subcontractor because of their choice of workplace agreement.”
In March 2007, LU Simon was the head contractor of a Docklands building site in Melbourne. LU Simon contracted the construction and installation of a glass barrier and steel handrail to Axiom Design. In turn, Axiom Designs engaged Mr Peter Vanderkley to install the glass barrier and steel handrails.
In a statement of agreed facts, LU Simon admitted that:
- it discriminated against Mr Vanderkley because his employees were not covered by a particular kind of workplace agreement;
- on three occasions it refused to allow Mr Vanderkley access to the site to perform work; and
- it terminated or varied Axiom Designs’ contract because Mr Vanderkley’s employees were not covered by a particular kind of workplace agreement.
Half of the ordered penalty has been suspended provided LU Simon does not contravene the BCII Act or the Workplace Relations Act 1996 again in the next 12 months.
Commissioner Lloyd said:
“It is business as usual at the ABCC. We will continue to investigate contraventions of workplace laws in the Australian construction industry.”