Director, Fair Work Building Industry Inspectorate v Construction, Forestry, Mining and Energy Union
Citation: [2015] FCAFC 59
At a glance
- Penalty
- $150,000
What happened
On 24 to 26 May 2011, employees engaged in unlawful industrial action at three Brisbane construction sites: Queensland Children's Hospital, Brisbane Convention and Exhibition Centre, and Queensland Institute of Medical Research. Union officials including officers of the CFMEU and CEPU were knowingly involved in or party to the industrial action. The parties later agreed to the contraventions and submitted an agreed statement of facts proposing settlement penalties.
What was decided
The Full Court rejected the agreed penalties and imposed its own penalties following Barbaro principles, finding that agreed submissions on penalty should not bind the court. The court imposed $105,000 on the CFMEU and $45,000 on the CEPU. The court emphasised that penalties must reflect deterrence objectives and public interest in compliance with the Building and Construction Industry Improvement Act 2005.
What it means for employers
Agreed penalty submissions, while relevant to demonstrate remorse and cooperation, do not bind the court. Courts will impose penalties independently based on deterrence and public interest. Contractors should understand that industrial action on construction sites will trigger significant penalties on responsible unions.
What it means for employees
Employees who participate in unlawful industrial action may face liability if their union is held responsible. Workers should seek legal advice before participating in unprotected industrial action, as consequences extend beyond the immediate workplace dispute.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2015/2015fcafc0059Want 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 →