The Full Court of the Federal Court has dismissed a penalty appeal by the CFMEU after they were fined for threatening a building contractor.
In September 2009 the Court imposed penalties totalling $75,500 on the CFMEU and $10,000 on organiser Bob Mates for unlawful coercion at a Heidelberg construction project.
The Full Bench dismissed the CFMEU’s appeal of the decision on 18 May 2010.
ABC Commissioner John Lloyd says the significant penalties should act as a deterrent to others:
‘The Court has upheld serious penalties. Threatening contractors and telling them they must employ certain people is coercive and it is against the law,’ Mr Lloyd said.
In February 2006 Mr Mates threatened the head contractor saying the project would never recommence and ‘was not going to happen’ if his demands to engage two union shop stewards and an OH&S officer were not met. Mr Mates then attended the site and shut down a crane, contributing to the closure of the site.
The CFMEU appealed the penalties imposed by Her Honour Justice Kenny, and her conclusion that the contraventions arose from more than one course of conduct.
The Full Court judgement noted:
‘The CFMEU had a number of previous contraventions involving similar conduct…having regard to the history of contraventions and the contravening conduct, there was a need for specific deterrence.’
Penalties totalling $75,500 were imposed on the CFMEU and $10,000 on Mr Mates for three contraventions of s.43 of the Building and Construction Industry Improvement Act 2005.
Judgment - Full Court of the Federal Court: Construction, Forestry, Mining and Energy Union v Cahill[2010] FCAFC 39