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Court imposes $23,500 in penalties for attempting to blacklist subcontractor


NSW , Statement 

Release date: 3 March 2009 

Penalties totalling $23,500 were today imposed on the CFMEU, CFMEU (NSW) and organiser, Peter Primmer. The Federal Magistrates Court penalised Mr Primmer $3,500. The CFMEU and CFMEU (NSW) were penalised $10,000 respectively.

Cameron FM imposed the penalties after finding that Mr Primmer contravened s800(1)(a) of the Workplace Relations Act 1996. The section prevents an industrial association from advising, encouraging or inciting a person to unlawfully terminate a subcontractor because that subcontractor is participating in an industrial proceeding.

In October 2006, Mr Primmer encouraged the head contractor Camarda & Cantrill Pty Ltd to terminate its contract with a subcontractor, Fine Line Painting Pty Ltd. The subcontractor was engaged on a Kiama High School project. Mr Primmer took this action because Fine Line Painting Pty Ltd was participating in a NSW Industrial Relations Commission proceeding.

ABC Commissioner John Lloyd said, “This action had the potential to delay a school building project.”

In handing down the penalty Cameron FM stated:

“Mr Primmer’s conduct was intended to cause prejudice, loss and damage to Fine Line . . . These conversations were serious contraventions of freedom of association rights provided by the Act”.

Cameron FM noted that both unions “demonstrate a history of contraventions of the Act and other legislation”. The Magistrate observed that, “Significantly, none of the respondents provided evidence of contrition or of acknowledgement of wrongdoing. None of the respondents have said that they will not contravene again”.

Commissioner Lloyd welcomed today’s judgement:

“The Workplace Relations Act contains provisions to stop unions from indiscriminately blacklisting subcontractors, causing significant harm to small businesses,” Mr Lloyd said.

“The ABCC will continue to support subcontractors who are targeted.”