Coercion in the building and construction industry is unlawful. Persons or organisations engaging in such action are liable to be prosecuted.
What is coercion?
Coercion is the act of applying pressure to force a party to cause them to do, or not do, a certain thing or to make a particular decision.
Coercion interferes with a person’s freedom of choice* and is unlawful under the Building and Construction Industry Improvement Act (BCII Act), the Workplace Relations Act 1996 (WR Act) and the Independent Contractors Act 2006 (IC Act).
Coercion in relation to the engagement of or allocation of responsibilities to building contractors or employees
It is illegal to organise or take action, or threaten to take action, with intent to coerce a person to:
employ or not employ a person as a building employee
- engage or not engage a person as a building contractor
- allocate or not allocate particular responsibilities to a building employee or contractor or designate particular duties to a building employee or contractor.
For example it would be considered unlawful coercion for a union to threaten industrial action unless a builder employed a particular shop steward on a work site.
Coercion in relation to agreements
Persons are entitled to make, vary, extend or terminate an agreement. It is illegal to coerce or apply undue pressure to influence a person’s decision on these matters. The coercion or undue pressure may be for the purpose of influencing a person to either make a decision or not make a decision.
Coercion in relation to union membership
It is illegal to organise or take action, or threaten to do so, with intent to coerce a person to become or not become a member or officer of a union, or to remain or cease to be an officer or member of a union.
It is illegal during discussions for a proposed building agreement for an employer to coerce or apply undue pressure to an employee to make, or withdraw, a request for union representation.
Coercion in relation to a superannuation scheme
It is illegal for a person to take or refrain from taking action, or threaten to do so, with the intent of coercing a person to use a particular superannuation fund or scheme for superannuation contributions.
Coercion in relation to independent contracting
It is illegal for a person to take or refrain from taking action, or threaten to do so, with the intent of coercing a person to enter into or not enter into a reform opt-in agreement under the IC Act.
What penalties may be imposed for unlawful coercion?
If the Federal Court finds that unlawful coercion has occurred then it may:
- impose a penalty
- grant an injunction
- require compensation to be paid to a person damaged by the breach or make any other appropriate order.
The maximum penalties are:
- up to $22,000 for individuals and up to $110,000 for a body corporate per breach of the BCII Act
- up to $6,600 for individuals and up to $33,000 for a body corporate per breach of the WR Act or the IC Act.
The maximum penalty amounts do not apply to compensation.
Some other general coercion offences under the WR Act
It is illegal for a union official or member to organise or take action, or threaten or encourage such, with the intent of coercing an employer to:
- become or not to become an officer or member of a union
- take action that would contravene freedom of association laws or
- prejudice an employee because they failed to comply with a direction given by the union.
It is illegal for a union official or member to take or refrain from taking action, or threaten to do so, with the intent of coercing a person to:
- join in industrial action
- discriminate against an independent contractor in relation to union membership or
- pay a bargaining services fee.
Further Information
You can download a printable version of this fact sheet here: Unlawful Coercion (PDF - 158KB)
To make an enquiry or obtain copies fact sheets and other reference material visit the Fact Sheets page of the ABCC website or call the ABCC Hotline: 1800 003 338.
*The Freedom of Association fact sheet contains further detailed information on this topic.
The information contained in this fact sheet is correct as at 26 February 2008.
This material is for general information only. You should seek legal advice in relation to your particular circumstances. The Australian Government, its employees and agents do not accept any liability for action taken in reliance on this document and disclaim all liability arising from any error or omission. ABN 68 003 725 098
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