Gregor v CFMEU

In the Federal Court, Murray Gregor and Michelle Cozadinos brought proceedings against the Construction, Forestry, Mining and Energy Union (CFMEU) and several of its members for contraventions of the Building and Construction Industry Improvement Act 2005 (Cth). The applicants, who are Australian Building and Construction Inspectors, sought penalties for unlawful industrial actions and breaches of certain provisions in the Act. The contraventions in question involved industrial actions at various construction sites in Victoria, including the Royal Children’s Hospital and Victoria Harbour, occurring between October 2008 and February 2009.

The court was required to decide whether the penalties agreed upon by the parties were appropriate. The applicants and respondents had agreed on specific penalties for each contravention. The court considered the nature and extent of the conduct, the circumstances in which it took place, and other relevant factors such as the need for deterrence and compliance with the Act. The court needed to determine whether the agreed penalties were within the permissible range for such contraventions, referencing previous case law on penalty determination.

The court concluded that the agreed penalties were appropriate in all circumstances. The penalties for the CFMEU were in the medium range, reflecting the seriousness of the contraventions. For the individual respondents, the court noted some concerns about imposing penalties on individuals performing their roles in accordance with union policy, particularly in the absence of prior contraventions. However, given the agreement between the parties, the court accepted the penalties as appropriate. The total penalties agreed upon amounted to $415,000, which was deemed suitable considering the nature of the contraventions and the need for compliance and deterrence.

The court ordered specific penalties for the CFMEU and individual respondents for various contraventions, ensuring each penalty was proportionate to the seriousness of the actions. The total penalties were to be paid to the Consolidated Revenue Fund within 28 days of the court's order. The court also noted that each party would bear their own costs for the proceedings.