Brookfield Multiplex FSH Contractor Pty Limited v McDonald
At a glance
- $61,000
- 1600
What happened
On 15 and 16 February 2013, CFMEU officials Joseph McDonald and Graham Pallot organized strike action at three hospital construction sites in Perth (Fiona Stanley Hospital Project, St John of God Murdoch Hospital Project, and Western Australian Institute of Medical Research Project). Approximately 400 workers attended a meeting where McDonald addressed the workforce. The strike was motivated by support for an injured employee of a subcontractor at another site. Approximately 1,600 workers did not attend work over the two days, causing significant loss and disruption to construction of major public and private hospital projects.
What was decided
The respondents admitted contraventions of ss 348 and 417 of the Fair Work Act (coercion and strike action during a covered enterprise agreement period). The parties agreed a settlement including $250,000 compensation and an injunction against McDonald. Regarding penalties, the court determined: McDonald $9,500, Pallot $3,500, and the CFMEU $48,000. The court considered the context of supporting an injured worker but still imposed substantial penalties.
What it means for employers
Even sympathetically motivated strike action breaches the Fair Work Act if it occurs during an enterprise agreement period and violates dispute resolution procedures. Contractors can seek immediate injunctions and recover losses through settlement and penalties.
What it means for employees
Strike action during an enterprise agreement period, even for sympathetic reasons such as supporting an injured worker, is unlawful and can result in penalties and loss of the strike's effectiveness. Proper dispute resolution procedures must be followed.
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