Collective fines of over $100k against CFMEU after unlawful conduct

The Fair Work Ombudsman has secured a total of $108,980 in penalties in court against the Construction, Forestry and Maritime Employees Union (CFMEU) and three of its officials for unlawful conduct.

The Federal Court has imposed penalties of $95,000 against the CFMEU, $3,990 against Paul Tzimas, $3,330 against Gerald McCrudden, and $6,600 against James Harris for unlawful conduct at a construction site in Melbourne.

The CFMEU, including three of its key officials, Tzimas, McCrudden, and Harris, admitted breaching section 500 of the Fair Work Act by acting in an improper manner at the Mordialloc Freeway extension in Melbourne’s south-east.

While visiting a construction site associated with the project back on 18 November 2020, Tzimas and McCrudden both acted in a way that warranted the unlawful conduct claim.

The conduct involved Tzimas saying to a health and safety manager at the site: “You’re pathetic” and “You’re a disgrace”, with McCrudden chiming in, saying to two health and safety managers at the site: “You’re f---ed this time.”

The unlawful conduct by Harris occurred during a separate visit on 2 December 2020. He visited a site associated with the project, yet instead of a verbal tirade, he settled on blocking three concrete trucks that were trying to complete their concrete pour.

Justice John Snaden described the conduct of Tzimas and McCrudden as “needlessly obnoxious and rude” and Harris’ conduct as “inherently aggressive”, “potentially dangerous”, “disruptive”, and “wildly improper”.

For those very reasons, Justice Snaden found that there was a need to impose penalties to deter similar future conduct from occurring.

Justice Snaden said the penalties imposed would “serve as an appropriate deterrent, specifically and generally, against future contravention of the kinds that are the subject of this matter”.

Fair Work Ombudsman Anna Booth said the court penalties affirmed the seriousness of breaching laws requiring permit holders to act in a proper manner.

“There is no place for improper conduct by permit holders on any worksite,” Booth said.

“Improving compliance across the building and construction industry is a priority for the Fair Work Ombudsman, and we will investigate reports of non-compliance and hold to account those who act outside the law.”

This legal action against the perpetrators and the CFMEU was under federal legislation, which resulted in the responsibility of the case being transferred from the Australian Building and Construction Commission (ABCC) to the Fair Work Ombudsman in December 2022.

The Fair Work Ombudsman has now secured total penalties of more than 3 million in court cases that have been finalised since they were transferred to it from the ABCC in December 2022.