Proceedings taken by the Australian Competition and Consumer Commission (ACCC) have resulted in the Federal Court imposing a penalty of $125,000 on the Communications, Electrical and Plumbing Union (CEPU) for anti-competitive conduct.
The CEPU was also required to meet the ACCC costs of $200,000. The Court made injunctions restraining the CEPU from engaging in similar conduct for 3 years.
Justice Young found that in 2001 the CEPU engaged in anti-competitive conduct under the Trades Practices Act 1974 (TPA). The CEPU made demands on contractor Edison Mission that only contractors with CEPU certified agreements would be engaged on the construction of a new power station at Loy Yang.
This resulted in Edison Mission ceasing to acquire services from an electrical contractor it regularly used at the Loy Yang site as that contractor did not have a union certified agreement.
This case is the first prosecution under section 45E of the TPA, which outlaws the boycotting of contractors who use non-unionised workers. Prosecutions under the TPA can result in penalties of up to $750,000 for each breach.
The decision reinforces the fact that all participants in the economy, including unions, must not engage in anti-competitive conduct.
Edison Mission has settled its case with the ACCC and is now awaiting a penalty hearing this month.
We will keep you informed of any developments in this matter.
The ABCC can provide you with information and support regarding your rights and responsibilities on worksites. If you have concerns about unlawful industrial action, right of entry, or feel you are being forced into union or industrial association agreement or membership then contact the ABCC on 1800 003 338.