CFMEU hit with $131k in penalties for threatening employees

The Fair Work Ombudsman (FWO) has secured a total of $131,100 in penalties in court against the Construction, Forestry and Maritime Employees Union (CFMEU) for unlawful conduct.

The CFMEU and two of its officials have been penalised for unlawful conduct at a construction site in Brisbane. The Federal Court imposed the penalties of $105,000 against the CFMEU while also issuing a $15,000 penalty against Andrew Blakeley and an $11,100 penalty against Dean Mattas.

The unlawful conduct occurred at the Inner City South State Secondary College construction project in Dutton Park. On 21 July 2020, Blakely, a representative of the CFMEU, breached the Building and Construction Industry (Improving Productivity) Act 2016 (BCI Act) by threatening to cause employees of subcontractors at the site to refuse to carry out their work.

The intent of this behaviour was to coerce the site’s head contractor into removing its project manager from the site and, therefore, not allocate him the duties or responsibilities associated with the role.

Justice Darryl Rangiah described Blakeley’s behaviour and conduct as “illegitimate”, finding the threat he made was “grossly disproportionate” to his concerns about the project manager.

Mattas, another representative of the CFMEU, subsequently breached the BCI Act by organising unlawful industrial action at the same site in July and August 2020 by telling the employees of seven subcontractors operating at the site to cease their working operations.

This industrial action was deemed unlawful because Mattas was unable to issue lawful directions to said employees to stop work as he was not a validly appointed health and safety representative.

Justice Rangiah found that some of the industrial action organised by Mattas was, once again, done with the intent to coerce the head contractor to remove the project manager from the site.

According to Justice Rangiah, there were “alternative lawful and legitimate forms of action that Mattas and the union could have taken” to address their concerns.

It was found that both Blakeley and Mattas had not expressed any remorse for their conduct, and there was a need to impose penalties to deter future breaches.

Acting Fair Work Ombudsman Michael Campbell said the court penalties affirmed the seriousness of breaching laws relating to lawful conduct on Australian construction sites.

“There is no place for unlawful conduct aimed at coercing contractors on any worksite,” Campbell said.

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

The FWO has now secured total penalties of more than $3.6 million in court cases that have been finalised since they were transferred to it in December 2022, with a large majority of these penalties having been secured against the CFMEU or its officials.

This, of course, is no secret as the CFMEU has continuously been in the headlines for a number of breaches and allegations that range from threats and coercion right through to corruption and bikie links.

Recently, HR Leader explored – in a podcast episode produced in conjunction with global law firm Dentons – the allegations of corruption, bullying, and lawlessness at the CFMEU, the fallout from recent revelations, and what businesses can and must learn from such workplace relations matters.