McDermott Australia Pty Ltd v Australian Workers' Union

McDermott Australia Pty Ltd applied to the Federal Court for an injunction to restrain the Australian Workers' Union (AWU) and certain of its representatives from engaging in industrial action. The industrial action related to the Kipper Tuna and Turrum Project, an oil and gas development project in Bass Strait. The applicant, a leading engineering company, had engaged the AWU's members through a subcontractor, Brunel. Disputes arose between the applicant and the AWU, leading to the AWU members ceasing work. The applicant sought an injunction against the AWU and four of its representatives, arguing they had encouraged or directed the industrial action.

The court had to determine whether the AWU and its representatives had engaged in conduct that encouraged or directed the industrial action, and whether such conduct was identified with the first respondent. The court considered the evidence presented and found that there was a prima facie case that the second to fifth respondents had encouraged or directed the industrial action. However, the evidence was insufficient to establish that their conduct was identified with the first respondent. The court also had to assess whether the applicant would suffer significant loss if the injunction was not granted, which it did find.

The court granted the injunction against the second to fifth respondents, requiring them to cease organising or engaging in, or encouraging, any industrial action involving the Project. The injunction was granted on the basis that the respondents had engaged in conduct that encouraged or directed the industrial action, and that the applicant would suffer significant daily loss as a result of the industrial action. The court reserved liberty to apply for costs and adjourned the application for further hearing.