FWO commences legal action against CFMEU and officials
The Fair Work Ombudsman has commenced legal action against the Construction, Forestry and Maritime Employees Union (CFMEU) and two of its officials for alleged unlawful conduct in Melbourne.
The legal action has been commenced against the CFMEU and its officials Joel Shackleton and Gerald ‘Gerry’ McCrudden in the Federal Court and relates to conduct allegedly directed towards Indigenous labour hire company Marda Dandhi Downunder Pty Ltd and its two directors between July 2021 and March 2022.
The Fair Work Ombudsman alleges the CFMEU and Mr Shackleton breached the Fair Work Act’s prohibition against coercion.
The Fair Work Ombudsman alleges the CFMEU, Mr Shackleton and Mr McCrudden also breached sections of the Fair Work 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 alleged the unlawful conduct was aimed at discouraging and preventing Marda Dandhi from conducting work on construction sites in Melbourne and discouraging Marda Dandhi from engaging in bargaining with the CFMEU for a replacement enterprise agreement, contrary to Marda Dandhi’s rights to do so.
It is alleged that the unlawful conduct 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 in another instance during a phone call.
It is alleged that the unlawful conduct included Mr Shackleton making threats to one of the Marda Dandhi directors during a phone call, including making statements to the effect that Marda Dandhi won’t be working in Melbourne.
Mr Shackleton allegedly, on a separate occasion, clenched his fists at one of the Marda Dandhi directors and stated words to the effect that Marda Dandhi would not be getting a replacement enterprise agreement, with the intent to coerce Marda Dandhi not to exercise its rights to provide labour hire or to bargain with the CFMEU.
Mr Shackleton and Mr McCrudden, at the Monash Freeway Upgrade Project construction site, also allegedly engaged in a heated discussion with the two Marda Dandhi directors during which the CFMEU officials made unlawful misrepresentations.
The conduct allegedly occurred between July 2021 and March 2022.
Fair Work Ombudsman Anna Booth said the filing of legal proceedings 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,” Ms Booth 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 FWO is seeking penalties in court in relation to multiple alleged breaches of the Fair Work Act. Mr Shackleton and Mr McCrudden face penalties of up to $13,320 per contravention and the CFMEU faces penalties of up to $66,600 per contravention.
The matter is yet to be listed for a first court date.
In February, the Fair Work Ombudsman commenced proceedings against the CFMEU and its former Victorian Secretary John Setka in relation to alleged coercion and adverse action by Mr Setka relating to the AFL and former ABCC Commissioner Stephen McBurney. The case is ongoing.
The Fair Work Ombudsman has secured total penalties of more than $3 million against the CFMEU and its officials in court cases that have been finalised since they were transferred from the ABCC in December 2022.
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.
Media inquiries: media@fwo.gov.au
