Heyman v CFMEU

Case [2011] FMCA 145


FEDERAL MAGISTRATES COURT OF AUSTRALIA

HEYMAN v CFMEU & ORS [2011] FMCA 145
INDUSTRIAL LAW – Penalty hearing – unlawful building industrial action – admitted contraventions – considerations on penalty – agreed penalty.
Building and Construction Industry Improvement Act 2005 (Cth) ss.37, 38, 69
Stuart-Mahoney v Construction, Forestry, Mining and Energy Union [2008] FCA 1426
Ponzio v B & P Caelli Constructions Pty Ltd (2007) 158 FCR 543
Construction Forestry Mining & Energy Union v Coal & Allied Operations Pty Ltd (No.2) (1999) 94 IR 231
Australian Ophthalmic Supplies Pty Limited v McAlary-Smith (2008) 165 FCR 560
A & L Silvestri Pty Ltd v Construction, Forestry, Mining and Energy Union [2008] FCA 466
NW Frozen Foods Pty Ltd v ACCC (1996) 71 FCR 285
Wells v Locarno Management Pty Ltd [2008] FCA 1034
Hills v Sutton (2007) 169 IR 327
Minister for Industry Tourism & Resources v Mobil Oil Australia Pty Ltd [2004] FCA FC 72
Applicant: SHAD HEYMAN
First Respondent: CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION
Second Respondent: NOEL WASHINGTON
Third Respondent: MATTHEW HUDSON
Fourth Respondent: ELIAS SPERNOVASILIS
File Number: MLG 465 of 2010
Judgment of: O'Sullivan FM
Hearing date: 8 March 2011
Date of Last Submission: 8 March 2011
Delivered at: Melbourne
Delivered on: 8 March 2011

REPRESENTATION

Counsel for the Applicant: Mr R.Dalton
Solicitors for the Applicant: Trindade Farr & Pill Lawyers
Counsel for the First, Second, Third and Fourth Respondents: Ms E. Walters
Solicitors for the First, Second, Third and Fourth Respondents: Construction, Forestry, Mining and Energy Union

ORDERS

  1. A penalty of $6,000.00 be imposed on the second respondent for his contravention of s.38 of the Building and Construction Industry Improvement Act 2005 constituted by his conduct on 21 May 2008 when he banned work on a tower crane at the Royal Children’s Hospital site at Parkville, Victoria.

  2. A penalty of $5,000.00 be imposed on the third respondent for his contravention of s.38 of the Building and Construction Industry Improvement Act 2005 constituted by his conduct on 21 May 2008 when he banned work on a tower crane at the Royal Children’s Hospital site at Parkville, Victoria.

  3. A penalty of $30,000.00 be imposed on the first respondent for its contravention of s.38 of the Building and Construction Industry Improvement Act 2005 arising from its vicarious liability for the contravening conduct of its officials, the second and third respondents.

  4. The penalties be paid to the Consolidated Revenue Fund within


    28 days of the date of this Order.

  5. The proceedings otherwise be dismissed with no order as to costs.

FEDERAL MAGISTRATES
COURT OF AUSTRALIA
AT MELBOURNE

MLG 465 of 2010

SHAD HEYMAN

Applicant

And

CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION

First Respondent

NOEL WASHINGTON

Second Respondent

MATTHEW HUDSON

Third Respondent

ELIAS SPERNOVASILIS

Fourth Respondent

REASONS FOR JUDGMENT

  1. Shad Heyman (“the applicant”) is an inspector appointed pursuant to s.57 of the Building and Construction Industry Improvement Act 2005 (“the BCII Act”). On 1 April 2010 the applicant commenced these proceedings against the Construction Forestry, Mining and Energy Union…

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Details
AGLC
Heyman v CFMEU [2011] FMCA 145
Case
[2011] FMCA 145
Decision Date

CaseChat Overview and Summary

The case of Heyman v CFMEU was heard in the Federal Court of Australia. The dispute arose from an industrial action at a construction site for the Royal Children's Hospital in Parkville, Victoria, where certain work was banned by union officials. The plaintiffs, represented by Mr. Heyman, sought penalties against the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and two of its officials for contravening section 38 of the Building and Construction Industry Improvement Act 2005. The plaintiffs alleged that the defendants' actions in banning work on a tower crane on May 21, 2008, constituted an unlawful industrial action.

The primary legal issues before the court were whether the defendants had contravened section 38 of the Act and, if so, what penalties should be imposed. The court had to consider the nature and extent of the defendants' actions, the statutory provisions governing industrial activities in the building and construction industry, and the appropriate penalties for such contraventions. The plaintiffs argued that the defendants' actions were unlawful as they constituted unprotected industrial action, while the defendants claimed the actions were protected by the Act.

In its judgment, the court found that the defendants had indeed contravened section 38 of the Act. The court held that the banning of work on the tower crane was not protected industrial action under the provisions of the Act. The court also determined that the first respondent, the CFMEU, was vicariously liable for the actions of its officials, the second and third respondents. The penalties were assessed based on the seriousness of the contraventions and the need to deter similar conduct in the future. The court imposed penalties of $6,000 on the second respondent, $5,000 on the third respondent, and $30,000 on the first respondent. The court further ordered that these penalties be paid to the Consolidated Revenue Fund within 28 days of the date of the order and dismissed the proceedings with no order as to costs.

Orders

Orders of the court

1.

A penalty of $6,000.00 be imposed on the second respondent for his contravention of s.38 of the Building and Construction Industry Improvement Act 2005 constituted by his conduct on 21 May 2008 when he banned work on a tower crane at the Royal Children’s Hospital site at Parkville, Victoria.

2.

A penalty of $5,000.00 be imposed on the third respondent for his contravention of s.38 of the Building and Construction Industry Improvement Act 2005 constituted by his conduct on 21 May 2008 when he banned work on a tower crane at the Royal Children’s Hospital site at Parkville, Victoria.

3.

A penalty of $30,000.00 be imposed on the first respondent for its contravention of s.38 of the Building and Construction Industry Improvement Act 2005 arising from its vicarious liability for the contravening conduct of its officials, the second and third respondents.

4.

The penalties be paid to the Consolidated Revenue Fund within

28 days of the date of this Order.

5.

The proceedings otherwise be dismissed with no order as to costs.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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