Federal Court Justice Gyles today ordered the CFMEU to pay $23,000 in damages plus interest to a subcontractor and $5,500 in penalties for a secondary boycott on a Wollongong building site in 2003. CFMEU official Michael Lane was ordered to pay an $1800 penalty.
ABC Commissioner John Lloyd said: “The judgement confirms that industrial associations and their officials will be held accountable for contraventions of the law.”
In his judgement, Justice Gyles said:
“There is a long and well-documented history of unlawful activity by union organisers and delegates in the building industry in Australia that counsel for the CFMEU acknowledged, but submitted that there has been a considerable change in culture over recent years. This makes it desirable that any return to the bad old days be appropriately penalised.”
“…the penalty in this case … should adequately reflect the systematic nature of the failure of the CFMEU to deter or prevent actions of the kind involved in this case and act as a spur towards effective action by the CFMEU and the State entities connected with it. A penalty of $5,500 will be imposed.”
Mr Lane and two other officials, Peter Primmer and David Kelly, took issue with subcontractor A & L Silvestri Pty Ltd carrying out earthmoving works at the Wollongong site for a variety of reasons, including that Mr Silvestri was not a union member and did not have a union agreement.
Mr Lane prevented Silvestri from working on the site by blocking access for his vehicle. He also threatened the head contractor with industrial action if it did not sign a certified agreement with the CFMEU.
On 13 July 2007, Justice Gyles ruled that the CFMEU, as well as Mr Lane, breached s.45D of the Trade Practices Act 1974 (TP Act) and s.170NC of the Workplace Relations Act 1996 (WR Act) and also induced a breach of the contract between the subcontractor and the head contractor. Mr Primmer and Mr Kelly were found to have breached s45D of the TP Act and induced breach of contract.