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Court backs ABCC action with $170,000 penalties


VIC , Statement 

Release date: 8 March 2011 

White v CFMEU, Edwards, Graauwmans, Hill, Long, Murphy, Powell, Reardon, Stephenson and Tadic

The Federal Court in Melbourne yesterday imposed penalties totalling $170,000 on the CFMEU and nine of its officials.

The penalties were imposed on the union and organisers after the Court accepted the statement of agreed facts submitted by the ABCC and the respondents, detailing coercive behaviour and unlawful industrial action that occurred during May 2008.

“The quantum of penalties reflects the seriousness of the conduct, which involved 20 contraventions of the Building and Construction Industry Improvement Act,” Australian Building and Construction (ABC) Commissioner Leigh Johns said today.

“Coercive and unlawful behaviour is not an acceptable method of doing business, and in this case it has resulted in excess of $170,000 of union members’ money being wasted.”

The dispute occurred during May 2008, when Abigroup Contractors Pty Ltd (Abigroup) were engaged on three road building projects in Victoria known as the Geelong Project, the Monash Project and the Southern Link Project.

On 14 and 15 May 2008, Abigroup told 13 employees on the Geelong Project they would be made redundant.  CFMEU organisers Michael Powell and Maurie Hill requested those employees be transferred to the Monash project.

Abigroup rejected the requests, resulting in unlawful industrial action taking place at three sites on the Geelong and Monash projects on 16 May 2008, and at eight sites across all three projects on 28 May 2008.

The Court endorsed the penalty submission made by the ABCC and respondents, ordering that:

  • The CFMEU pay $105,000;
  • Ralph Edwards pay $13,000;
  • Robert Graauwmans pay $5,000;
  • Maurie Hill pay $8,000;
  • Stephen Long pay $5,000;
  • Brendan Murphy pay $5,000;
  • Michael Powell pay $11,000;
  • Shaun Reardon pay $5,000;
  • Gareth Stephenson pay $5,000; and
  • Alex Tadic pay $8,000.

“When added to the $87,750 in penalties imposed last week for action that occurred around the same time, it becomes clear that the cost of repeatedly breaking the law adds up,” Commissioner Johns concluded.

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