In conclusion to the ABCC’s longest running proceeding, penalties imposed on the CFMEU, CFMEU (NSW) and two union officials totalling $35,250 have been upheld by the Full Federal Court. Contraventions of the freedom of association provisions of the pre-WorkChoices Workplace Relations Act 1996 (WR Act) led Justice Graham to impose these penalties.
The Full Court of the Federal Court today unanimously dismissed the CFMEU’s appeal against the severity of a $1250 penalty imposed on Mr Edmond Casper. The union previously withdrew its appeal against the $34,000 imposed on the CFMEU, CFMEU (NSW) and Mr Michael Lane.
ABC Commissioner, John Lloyd was pleased with today’s outcome, “Freedom of Association is a workplace right. It is totally inappropriate that the CFMEU direct delegates to make sure that all workers on a site are union members. Each building industry participant has the right to chose whether or not to be a union member” Mr Lloyd said.
In January and February 2004 CFMEU officials Mr Michael Lane and Mr Edmond Casper told subcontractors at Wollongong and Fairy Meadows they could not work on the site unless they were financial members of the CFMEU.
On 14 July 2008 Justice Graham imposed further pecuniary penalties on the CFMEU and Lane after a successful ABCC appeal ruling. Each of the unions was penalised an additional $5000 and Mr Lane was penalised an additional $2000. Mr Lane’s was the maximum penalty provided by the WR Act at the time of the contravention in February 2004.
In his judgement on 26 March 2007, Justice Graham had ordered the unions to destroy all copies of their State and Federal delegate’s Code of Conduct, containing a direction that delegates ensure all workers are union members. The judge had also ruled that the CFMEU and CFMEU (NSW) must also place a full page advertisement in the Illawarra Mercury advising the public that it is each worker’s right to decide whether or not to be a union member.
The Full Court today overturned these orders citing the extended amount of time which has elapsed since the contraventions occurred, and the breadth of the destruction orders. Importantly, the Full Court agreed that Justice Graham had the power to make publication and destruction orders as a response to conduct of this kind.
Mr Lloyd commented “this exceptional case shows that the ABCC has had a significant impact on the culture of the industry, and adherence to the rule of law.”