Industry Update

Compensation and penalty payments secured for head contractor and subbies in Qld

Investigations, negotiations and legal action by FWBC helped to secure a $550,000 penalty for a head contractor and $101,930 for 10 subcontractors in Queensland last month.

Seven union organisers were also ordered to pay a $40,000 penalty to the Commonwealth as part of the judgment.

The head contractor, Lend Lease Project Management & Construction (Australia) Pty Ltd, and the 10 subcontractors worked on the Gold Coast University Hospital and Brisbane Supreme Court and District Court projects.

The CFMEU, CFMEUQ and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) admitted to taking unlawful strike action on the projects over 12 days in May 2011, at a cost of around $1.21m to the head contractor alone.

FWBC Chief Executive Leigh Johns said the results mean the lost income is returned directly to the affected head contractor, subcontractors and employees who were impacted by the strikes.

“FWBC has a variety of regulatory options available to it, including the recovery of commercial losses for the industry participants who are affected by unlawful action,” Mr Johns said.

“Too often, small contractors are caught in the middle of disputes between large contractors and unions, which can financially cripple them.

“I am pleased that this outcome has resulted in compensation for those who were just trying to get on with the business of building.”

Further information:

FWBC Media release – FWBC secures compensation for Queensland subcontractors

FWBC Media release – Work stoppages in Gold Coast and Brisbane result in $590k penalty

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