This is an update to the ABCC eAlert of 09 February 2007
The Australian Competition and Consumer Commission (ACCC) proceedings against the Communications, Electrical and Plumbing Union (CEPU) and Edison Mission (now called IPM) for anti-competitive behaviour at the Loy Yang power station have now concluded.
Last Thursday the Federal Court imposed a penalty of $120,000 on Edison Mission and ordered it pay costs of $12,000 to the ACCC.
For its part in the anti-competitive conduct, last month the Federal Court fined the CEPU $125,000, ordered it pay $200,000 in costs to the ACCC and made injunctions restraining the CEPU from engaging in similar anti-competitive behaviour for 3 years.
The Federal Court found that in 2001 the CEPU made demands on Edison Mission that only contractors with CEPU certified agreements would be engaged on the construction of a new power station at Loy Yang.
Edison Mission acceded to the CEPU demands. This resulted in Edison Mission ceasing to acquire services from an electrical contractor it regularly used at the Loy Yang site because that contractor did not have a union certified agreement.
This case has clearly shown that those who choose to engage in anti-competitive conduct will risk substantial penalties.
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.
Court Fines CEPU $125,000 for anti- competitive conduct
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.