CFMEU to face legal action over alleged conduct towards Indigenous company

The Fair Work Ombudsman (FWO) has filed proceedings in the Federal Court against the Construction, Forestry and Maritime Employees Union (CFMEU) and two of its officials for alleged unlawful conduct in Melbourne.

The regulator’s action has been brought against the CFMEU and its officials, Joel Shackleton and Gerald “Gerry” McCrudden, over conduct allegedly directed towards Indigenous labour hire company Marda Dandhi Downunder, and its two directors, between July 2021 and March 2022.

The FWO will allege that the CFMEU and Shackleton breached the Fair Work Act’s prohibition against coercion, and that the CFMEU, Shackleton, and McCrudden also breached sections of the act prohibiting knowingly or recklessly making false or misleading representations about the workplace rights of another person, and entry permit holders acting in an improper manner.

It is further alleged, the regulator outlined in a statement, that the unlawful conduct was aimed at discouraging and preventing Marda Dandhi from conducting work on construction sites in Melbourne and discouraging it from engaging in bargaining with the CFMEU for a replacement enterprise agreement, contrary to the company’s rights.

Such alleged conduct, the regulator suggested, included verbal threats and intimidation, abusive comments, and other unlawful and improper conduct made in face-to-face meetings, including on a work site, in one instance outside a café, and on a phone call.

The FWO is seeking penalties in court in relation to multiple alleged breaches of the legislation, while Shackleton and McCrudden could face penalties of up to $13,320 per contravention, and the CFMEU faces penalties of up to $66,600 per contravention.

Speaking about the proceedings, Fair Work Ombudsman Anna Booth said the filing reflected the seriousness of the alleged conduct.

“It is important that we make it clear to all involved in Australia’s workplace relations system that the type of unlawful, coercive and threatening behaviour we are alleging in this matter will not be tolerated,” she said.

“Labour hire companies and their directors have a lawful workplace right to provide labour hire services, conduct work on construction sites, and to engage in the process of bargaining for an enterprise agreement.

“We expect all workplace participants, including unions and their officials, to follow the law at all times. As an independent regulator, we will continue to take action to deter unlawful conduct.

“Improving compliance across the building and construction sector is a priority for the Fair Work Ombudsman, and we will continue to hold to account those acting unlawfully.”

The matter is yet to be listed for a first court date.

The news follows the filing of proceedings, in February, by the FWO against the CFMEU and its former Victorian secretary, John Setka, in relation to alleged coercion and adverse action by Setka relating to the AFL and former ABCC commissioner Stephen McBurney. That matter remains ongoing.

It also follows the filing of proceedings by FWO against a union official in October for alleged unlawful conduct at a construction site in Perth.