CFMEU and officials penalised for unlawful conduct
The Fair Work Ombudsman has secured a total of $171,500 in penalties in court against the Construction, Forestry and Maritime Employees Union (CFMEU) and four of its current and former officials for unlawful conduct at construction sites in Melbourne.
The Federal Court has imposed penalties of $144,000 against the CFMEU, $13,000 against James Simpson, $7,500 against Paul Tzimas, $4,000 against James Harris and $3,000 against Jaxson Mahy.
The unlawful conduct occurred at various times while the four officials were exercising their right-of-entry rights at a construction site of three apartment buildings in Alphington and a construction site of a multistorey residential apartment building with retail at Croydon. Ironside Construction Pty Ltd was the head contractor at both sites.
Mr Simpson, and through him the CFMEU, breached the Fair Work Act by acting in an improper manner at the Alphington site in March 2021 by turning off the generator that provided power to the site without authorisation or warning to any of the workers on site.
The other contraventions of the Fair Work Act by Mr Simpson, Mr Harris, Mr Mahy and Mr Tzimas, and through them the CFMEU, occurred at the Croydon site in April and May 2021:
- Mr Simpson acted in an improper manner by failing to comply with a reasonable request to leave the construction zone, being an occupational health and safety requirement that applied to the site.
- Mr Tzimas acted in an improper manner by failing to comply with a request to leave the construction zone and acted in an improper manner by causing an excavator to stop work.
- Mr Harris acted in an improper manner by failing to comply with a request to leave the construction zone.
- Mr Mahy acted in an improper manner by accessing and taking photos of the computer screen of the Site Manager without permission.
Breaches were of sections 499 or 500 of the Fair Work Act.
Justice Craig Dowling found that the contraventions were serious and noted that the CFMEU, Mr Simpson, Mr Harris and Mr Tzimas had committed prior contraventions.
Justice Dowling said the penalties should deter the respondents and others from similar conduct in future.
The legal action against the CFMEU and the four officials was commenced by the Australian Building and Construction Commissioner (ABCC) in April 2022.
Under federal legislation, responsibility for the case transferred from the ABCC to the Fair Work Ombudsman in December 2022.
Fair Work Ombudsman Anna Booth said the court penalties affirmed the seriousness of right-of-entry permit holders failing to comply with the Fair Work Act.
“There is no place for improper conduct by permit holders on any worksite,” Ms Booth said.
“We expect all workplace participants, including unions and their officials, to follow the law at all times.
“Improving compliance across the building and construction sector 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.”
The Fair Work Ombudsman has now secured total penalties of more than $3.8 million in court cases that have been finalised since they were transferred to it in December 2022.
The large majority of these penalties have been secured against the CFMEU or its officials.
All building and construction industry employers, employees and other participants can seek specific workplace information, advice and assistance from the Fair Work Ombudsman.
Employers and employees can also visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50.
