Brookfield Multiplex Engineering and Infrastructure Pty Ltd v McDonald

The Federal Court of Australia was asked to decide the appropriate amount of civil penalties for breaches of the Fair Work Act 2009 (Cth) by the respondents, Joseph McDonald, Walter Molina, and the Construction, Forestry, Mining and Energy Union (CFMEU). The breaches occurred during industrial actions taken by the respondents at the Mundaring water treatment plant construction site. The court had to determine whether the penalties were appropriate after considering all the circumstances, including the purposes of punishment, personal and general deterrence, and rehabilitation. The court also had to ensure the penalties reflected the gravity of the contraventions and adhered to the totality principle.

The court found that the parties had reached a settlement agreement on most issues, including the contraventions of sections 346, 348, and 417 of the Fair Work Act. The court acknowledged the public interest in resolving litigation by agreement and considered the agreed-upon penalty ranges. The court concluded that the motivations for the industrial actions were not entirely self-interested, which demonstrated a lower magnitude of wrongdoing. However, the court found that the first respondent's actions, including physically threatening behaviour and defiance of the system of industrial law, added seriousness to the contraventions. The court also considered the cooperation of the respondents in reaching an early resolution of the case.

Ultimately, the court fixed the penalty at $21,000 for the first respondent, the highest end of the agreed range, and $7,000 for the second respondent. The court fixed the penalty at $95,000 for the third respondent, taking into account their cooperation in resolving the case and the serious circumstances that affected the first respondent's penalty. The court ordered the respondents to pay the penalties within 60 days of the order.

The court ordered that the first respondent pay a penalty in the amount of $21,000, the second respondent pay a penalty in the amount of $7,000, and the third respondent pay a penalty in the amount of $95,000. The penalties shall be made by way of cheque, payable to "Brookfield Multiplex Engineering and Infrastructure Pty Ltd", and delivered to the applicants' solicitors within 60 days of this Order.