Director of the Fair Work Building Industry Inspectorate v Construction, Forestry, Mining and Energy Union
Citation: [2015] FCA 353
At a glance
- Penalty
- $43,000
What happened
Element Five Pty Ltd (E5) was head contractor for a building project in Hawthorn, Victoria. The CFMEU wanted E5 to enter into an enterprise agreement. E5 resisted. CFMEU official Danny Berardi made threats to site managers and took action against E5 on 28 June 2013 and 31 July 2013, threatening disruption to scheduled work. Shaun Reardon, another CFMEU official, was involved in the 28 June conduct. The threats and action were intended to coerce E5 into signing an enterprise agreement.
What was decided
The Court found Berardi contravened sections 340 (adverse action), 343 (coercion to exercise workplace right), and 348 (coercion to engage in industrial activity) on both dates. Reardon contravened section 343 on 28 June. The CFMEU was liable under section 363 (deeming provision). Penalties: CFMEU $20,000 (28 June) and $8,500 (31 July); Berardi $6,000 (28 June) and $2,500 (31 July); Reardon $6,000.
What it means for employers
Unions and union officials cannot use threats, coercion or adverse action to force employers to enter into enterprise agreements. Employers have the right to resist union pressure and refuse to bargain if they choose.
What it means for employees
Union officials acting in their official capacity are subject to the Fair Work Act. Industrial tactics involving threats and coercion may breach the Act and result in penalties.
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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