Chevron Australia Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union (No 3)

In the case of Chevron Australia Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union (No 3), the Federal Court of Australia was asked to consider the imposition of penalties for contraventions of section 417(1) of the Fair Work Act 2009 (Cth). The dispute arose from union-organised unlawful industrial action by employees over two days, which resulted in two contraventions of the Act. The legal issues before the court included the interpretation of section 557(3) of the Fair Work Act 2009 (Cth) in relation to the imposition of a single penalty to avoid double punishment and the application of the common law course of conduct principle. The court had to decide whether the contraventions constituted a single course of conduct warranting a single penalty or if they warranted separate penalties.

The court considered the reasoning of the primary judge in Hutchison Ports Second Penalty and the common law course of conduct principle. It found that the union's actions constituted one overall concerted action to exert industrial pressure on the employer, despite the actions occurring in different locations. The court held that the same facts that led to the finding of the union organising the industrial action also led to the finding that the union was involved in employees engaging in the industrial action. Consequently, the court concluded that there was a single course of conduct by which the union organised the industrial action and was involved in employees engaging in the industrial action. The court held that it was appropriate to impose a single penalty to avoid double punishment.

The court made several orders in favour of Chevron Australia Pty Ltd. It ordered that the Construction, Forestry, Maritime, Mining and Energy Union pay damages in the amount of $3,000,000 (inclusive of GST and interest) to Chevron Australia Pty Ltd in compensation for the loss and damage suffered. It also ordered that the union pay a pecuniary penalty of $30,000. Furthermore, the court imposed a 10-year restraint on the officers, officials, and delegates of the Maritime Union of Australia Division and their employees or agents from organising or engaging in any industrial action in or in connection with any project. The court also clarified the terms used in the orders, including definitions of industrial action, involved in, and project, among others.