In a decision handed down on Friday 28 January 2011, the Federal Magistrates Court imposed penalties totalling $45,000 on the Construction, Forestry, Mining and Energy Union (CFMEU) and its official Justin Feehan for engaging in unlawful industrial action on two sites in Adelaide.
Australian Building and Construction (ABC) Commissioner Leigh Johns noted Federal Magistrate Simpson’s findings and stressed the importance of following lawful dispute resolution procedures.
“In respect of safety issues, that the union agreed did not pose an immediate risk to health and safety and were remedied on the day they were identified, each of the collective agreements that the CFMEU was a party to provided a clear and effective framework for these matters to be resolved,” Commissioner Johns said.
“All parties’ rights deserve respect and protection, but with those rights come responsibilities that must be exercised in accordance with the law so all Australians benefit from fair and productive construction work.”
In a statement of agreed facts, CFMEU official Justin Feehan admitted engaging in unlawful industrial action in contravention of s.38 of the BCII Act at the Flinders University Education Building project on 30 May 2008.
The strike took place because Mr Feehan called a meeting offsite, telling employees that as they had left the site their pay would be docked. A motion put to the meeting resulted in 30 employees leaving the site – effectively shutting the $10 million project down for the day.
Mr Feehan further admitted to breaching s.38 of the BCII Act at a construction site at 20 Hindmarsh Square, Adelaide on 15 July 2008.
In a statement of agreed facts Mr Feehan admitted to organising a debate and vote to strike, following which some 12-14 employees left the site for the day effectively halting construction on the retail, residential and commercial mixed-usage complex.
Commissioner Johns said it was unnecessary for work stoppages to be called before proper attempts had been made to resolve the disputes lawfully under the terms of the collective agreements signed up to by the CFMEU.
Federal Magistrate Simpson endorsed the settlement and agreed penalties in both matters, imposing total penalties of $37,000 on the CFMEU and $8,000 on Mr Feehan.
“These breaches were deliberate and I note that, in those circumstances, the Court accepted the penalties suggested by the ABCC,” Commissioner Johns said.
“The unlawful industrial action in this matter served no productive purpose. The resulting court and penalty has meant that in excess of $45,000 of members’ contributions has been wasted by the union and Mr Feehan.