Carr v CEPU & Anor

Case [2007] FMCA 1526


FEDERAL MAGISTRATES COURT OF AUSTRALIA

CARR  v CEPU & ANOR [2007] FMCA 1526
INDUSTRIAL LAW – Penalty – breach of civil penalty provision – unlawful industrial action – agreed facts – agreed penalty – consideration of factors relevant to penalty.

Building and Construction Industry Improvement Act 2005 (Cth), ss.3(1), (2)(a), (b), (d), 4(1), 38, 48(2), 49(2)(a), 69

Trade Practices Act 1974 (Cth), s.45D
Crimes Act 1914 (Cth), s.4AA(1)
Workplace Relations Act 1996 (Cth), ss.170NC, 187AB(1), 298K

ACCC v AFMEPKIU [2004] FCA 517
ACCC v Australian Safeway Stores Pty Ltd (1997) 145 ALR 36
ACCC v ABB Transmission and Distribution Ltd (No 2) [2002] FCA 559
ACCC v Colgate-Palmolive Pty Ltd [2002] FCA 619
ACCC v IPM Operations Maintenance Loy Yang Pty Ltd (No 2) [2007] FCA 11
ASC v Forem-Freeway Pty Ltd (1999) 30 ASCR 339
CFMEU v Coal & Allied Operations Pty Ltd (No 2) (1999) 94 IR 231
CFMEU & Ors v Clarke  (2007) 164 IR 299; [2007] FCAFC 87
Commonwealth Bank of Australia & Anor v Finance Sector Union of Australia (2007) 157 FCR 329; [2007] FCAFC 18
Finance Sector Union v Commonwealth Bank of Australia (2005) 224 ALR 467; [2005] FCA 1847
Flattery v Zeffirelli’s Pizza Restaurant [2007] FMCA 9
Furlong v AWU & Ors [2007] FMCA 443
Furlong v Maxim Electrical Services (Aust) v Vic Pty Ltd & Ors [2006] FCA 1705
Kelly v Fitzpatrick [2007] FCA 1080
Leighton Contractors & Anor v CFMEU & Ors [2006] WASC 317
Martino v CEPU & Mooney (unreported, Magistrates Court of Victoria, 7 April 2007)
Mason v Harrington Corporation Pty Ltd [2007] FMCA 7
Minister for Industry, Tourism & Resources v Mobil Oil Australia Pty Ltd [2004] FCAFC 72
Ponzio v B & P Caelli Constructions Pty Ltd and Ors (2007) 158 FCR 543; [2007] FCAFC 65
Seven Network (Operations) Limited v CEPU [2001] FCA 672
TPC v CSR Limited (1991) ATPR 41-076
Applicant: DENNIS CARR
First Respondent: COMMUNICATIONS, ELECTRICAL, ELECTRONIC, ENGINEERING, INFORMATION, POSTAL, PLUMBING AND ALLIED SERVICES UNION OF AUSTRALIA
Second Respondent: KEVIN HARKINS
File Number: LNG 24 of 2007
Judgment of: Lucev FM
Hearing date: 4 September 2007
Date of Last Submission: 4 September 2007
Delivered at: Perth (by telephone link to Melbourne)
Delivered on: 14 September 2007

REPRESENTATION

Counsel for the Applicant: Mr P M O’Grady
Solicitors for the Applicant: Australian Government Solicitor
Counsel for the Respondent: Mr K Farouque
Solicitors for the Respondent: Maurice Blackburn Cashman

DECLARATION AND ORDERS

THE COURT DECLARES THAT:

  1. The First Respondent contravened s.38 of the Building and Construction Industry Improvement Act 2005 (Cth) (“BCII Act”) by engaging in unlawful industrial action constituted by a 24 hour strike of employees in the electrical contracting industry in Tasmania on 14 December 2005.

  2. The Second Respondent contravened s.38 of the BCII Act by engaging in unlawful industrial action constituted by a 24 hour strike of employees in the electrical contracting industry in Tasmania on 14 December 2005.

AND THE COURT ORDERS THAT:

  1. A penalty of…

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AGLC
Carr v CEPU & Anor [2007] FMCA 1526
Case
[2007] FMCA 1526
Decision Date

CaseChat Overview and Summary

In the Federal Magistrates Court of Australia, the case of Carr v CEPU & Anor was heard and decided. The applicant, Dennis Carr, sought a declaration and penalties against the Communications, Electrical, Electronic, Engineering, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) and Mr. Kevin Harkins for contraventions of section 38 of the Building and Construction Industry Improvement Act 2005 (Cth). The respondents admitted to engaging in unlawful industrial action by orchestrating a 24-hour strike of electrical contractors in Tasmania on December 14, 2005.

The primary issue before the court was whether the agreed penalties of $11,000 for the CEPU and $8,800 for Mr. Harkins were appropriate. The court considered the principles concerning agreed penalties and the relevant factors to assess the appropriateness of the penalty. These factors included the nature and effect of the unlawful industrial action, the deliberateness and period of the contraventions, the conduct of senior management, the organisational culture of the contravener, the relevant record of contraventions, co-operation with the Commissioner, contrition, financial position, deterrence, statutory purposes, and the totality principle.

After considering all relevant factors, the court found that the agreed penalties were appropriate and sufficient both for general and specific deterrence. The penalties reflected the seriousness of the contraventions and the relative culpability of the parties. The court also noted that the statutory purposes of the BCII Act, such as improving the bargaining framework and promoting respect for the rule of law, were undermined by the conduct of the CEPU and Mr. Harkins. Finally, the court was satisfied that the total penalty to be imposed on the CEPU and Mr. Harkins was appropriate under the totality principle.

The court declared that the CEPU and Mr. Harkins had contravened section 38 of the BCII Act and ordered the imposition of penalties of $11,000 on the CEPU and $8,800 on Mr. Harkins. The application for disqualification was dismissed, and each party was ordered to bear their own costs.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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