Office of the Australian Building and Construction Commissioner

Allegations in the ABCC’s statement of claim

1. Australian Paper Pty Ltd owns and operates the Maryvale Paper Mill facility in Morwell, Victoria. During 2007 and 2008, Australian Paper undertook a large expansion project involving various building and construction works at the site, known as the Pulp Mill Project
2. BMC Welding and Construction Pty Ltd (BMC) was contracted to carry out building work at the project.
3. BMC’s workplace agreement stipulated that employees may be required to work shiftwork and overtime on Saturdays.
4. On 15 November 2007 the AWU, CEPU and AMWU withdrew their approval for BMC employees to work shiftwork at the project.
5. At 8:00am on 19 November 2007 AWU organiser Terry Lee and AMWU organiser Steven Dodd told the General Manager of BMC that employees of the company would not be commencing work that day until 11.00am. The majority of BMC employees did not attend work for the remainder of the day.
6. On Friday 23 November 2007, more than four hundred employees of four contractors left the project between 10.45am and 11.20am without the authorisation of their respective employers. The employees attended a mass meeting at the Latrobe City Sport Club. The employees did not return to work at the site that day.
7. After the meeting Mr Lee advised BMC’s General Manager that employees of the four contractors would not return to work at the site until Tuesday 27 November 2007.
8. Mr Lee also told BMC’s General Manager that BMC employees would not comply with any requirement to work overtime on the weekend of 24-25 of November 2007.

Alleged contraventions

9. The ABCC alleges Mr Lee, Mr Mooney, Mr Dodd, the AMWU, the AWU and the CEPU:

a.  Contravened s.38 of the Building and Construction Industry Improvement Act 2005 (BCII Act) by aiding, abetting, counselling or procuring unlawful industrial action; or being knowingly concerned in unlawful industrial action on 23 November 2007.

b.  Contravened s.494(1) of the Workplace Relations Act 1996 (WR Act) by aiding, abetting counselling or procuring unlawful industrial action and being knowingly concerned in unlawful industrial action.

c.  Contravened s.719 of the WR Act by failing to follow the dispute resolution clause in the agreements applying to employees of BMC Welding and Construction Pty Ltd.

10. The ABCC further alleges that Mr Lee and the AWU contravened s.38 of the BCII Act by placing a ban on the performance of building work at the site on 24 and 25 November 2007.

ABCC proceedings

11. The ABCC filed proceedings in the Federal Court at Melbourne on 9 April 2009. The first directions hearing is scheduled for 28 April 2009.

Maximum penalties

12. The maximum penalties for a contravention of the BCII Act are $22,000 for an individual and $110,000 for an organisation.
13. The maximum penalties for a contravention of the WR Act are $6,600 for an individual and $33,000 for an organisation.