Controversial union hit with another penalty
The Federal Court has ordered the Construction, Forestry and Maritime Employees Union (CFMEU) and four of its current and former officials to pay a total of $171,500 in penalties for unlawful conduct on Melbourne building sites.
The CFMEU was fined $144,000, while James Simpson was penalised $13,000, Paul Tzimas $7,500, James Harris $4,000 and Jaxson Mahy $3,000, following breaches of the Fair Work Act at projects in Alphington and Croydon in 2021.
The conduct occurred while the officials were exercising right-of-entry powers at an Alphington apartment development and a mixed-use residential and retail project in Croydon, where Ironside Construction Pty Ltd was the head contractor.
At Alphington in March 2021, Simpson, and through him the CFMEU, acted improperly by turning off the generator supplying power to the site without authorisation or warning to workers. At Croydon in April and May 2021, Simpson, Harris and Tzimas failed to comply with requests to leave a construction zone, while Tzimas also caused an excavator to stop work. Mahy improperly accessed and photographed the Site Manager’s computer screen.
The breaches involved sections 499 and 500 of the Fair Work Act. Justice Craig Dowling described the contraventions as serious and noted that the CFMEU, Simpson, Harris and Tzimas had prior contraventions, saying the penalties should deter similar conduct in future.
The proceedings were originally commenced by the Australian Building and Construction Commissioner in April 2022 before responsibility transferred to the Fair Work Ombudsman (FWO) in December 2022.
Fair Work Ombudsman Anna Booth said the ruling underscored the importance of permit holders complying with workplace laws.
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. We expect all workplace participants, including unions and their officials, to follow the law at all times," said Booth.
“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.”
Since assuming responsibility for the cases in December 2022, the FWO has secured more than $3.8 million in penalties in finalised court matters, the large majority against the CFMEU or its officials.
