The CFMEU will pay $440,000 in penalties and costs and $120,000 compensation for economic loss after the Federal Court today endorsed the terms of a landmark settlement with the ABCC.
The Federal Court in Melbourne accepted that the CFMEU acted unlawfully by blockading the Melbourne Markets Relocation Project site between 19 May 2010 and 28 May 2010. The blockade occurred despite injunctive orders to restrain the conduct of the CFMEU and its officials, made by the Court at the ABCC’s request.
ABC Commissioner Leigh Johns said he was particularly pleased that compensation would now be paid to the smaller subcontractors affected by the blockade.
“The blockade sought to force an agreement with the CFMEU instead of the AWU,” said ABC Commissioner Johns. “Our industrial relations system allows employers to negotiate agreements with any union that covers their workers.”
“Demarcation disputes threaten productivity, deprive workers of their wages and put hardworking subcontractors at risk.”
Cars, 44-gallon drums and crushed rock were used to restrict entry during the blockade, and union officials attempted to lure kangaroos onto the site to disrupt works, stopping subcontractors from removing equipment for use on other sites.
The action continued for approximately a week after the Federal Court issued orders
restraining the CFMEU from hindering access to the site or from interfering with the
perimeter fencing. Defiance of the injunction led to the substantial contempt penalties.
“The ABCC moved quickly to ensure that the CFMEU was held responsible, through both substantial subcontractor compensation and court-imposed penalties,” said ABC Commissioner Johns.
As a result of the proceeding the CFMEU:
• Will pay a penalty of $100,000 for contravening the Building and Construction
Industry Improvement Act (2005);
• Will pay a penalty of $150,000 for contempt of the injunction;
• Was ordered to pay total of $190,000 in costs to the ABCC;
• Have paid $120,000 in compensation for six contractors.
“This decision underscores that the ABCC and the Courts will hold unions to account for the economic consequences of unlawful industrial action,” said ABC Commissioner Johns.
For more information about this case and copy of the decision see: Alfred v CFMEU