Director of the Fair Work Building Industry Inspectorate v Construction, Forestry, Mining and Energy Union
Citation: [2014] FCA 160
At a glance
- Penalty
- $18,120
- Employees affected
- 20
What happened
The Fair Work Building Industry Inspectorate (the Director) investigated the Construction, Forestry, Mining and Energy Union (CFMEU) and an officer of the CFMEU. The investigation stemmed from events in June 2012 when a CFMEU member and Health and Safety Representative at BD Steel Fixing (SA) Pty Ltd (BDSF), was terminated. The officer allegedly organised BDSF employees to refuse work until his reinstatement and threatened they would not work until he returned, intending to pressure BDSF into rehiring him. The events occurred after the CFMEU member's termination due to reduced workload at a construction project.
What was decided
The Federal Court declared that the CFMEU and the officer contravened section 355 of the Fair Work Act 2009, which prohibits coercive conduct intended to influence employment decisions. The court found they organised employees not to work and threatened further action to coerce BDSF into reinstating the CFMEU member. The CFMEU was ordered to pay a penalty of $16,500, and the officer was ordered to pay $1,320. All other claims made by the Director were dismissed, and neither party was awarded costs.
What it means for employers
Employers should ensure that any employment decisions are not influenced by external pressure or threats from unions or employees. It is important to have clear communication with employees regarding workforce reductions and terminations, ensuring transparency about the reasons behind those decisions. Employers must also be aware of their obligations under workplace laws and avoid actions that could be perceived as coercive.
What it means for employees
Employees should understand the legal limitations on industrial action and refrain from engaging in behaviours intended to coerce employers into specific employment outcomes. While employees have rights to advocate for fair treatment, these rights must be exercised within the bounds of the law.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2014/2014fca0160Want more cases like this?
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →