Woodside Burrup Pty Ltd v Construction, Forestry, Mining and Energy Union

In the Federal Court of Australia, Woodside Burrup Pty Ltd sought relief against the Construction, Forestry, Mining and Energy Union (CFMEU) and a union official, Mr McDonald, following unlawful industrial action at Woodside's Pluto LNG Project. The dispute centred around the interpretation of the Building and Construction Industry Improvement Act 2005 (Cth) (BCII Act) and the appropriate recipient of the penalties and compensation awarded. The CFMEU had agreed to indemnify Woodside for certain costs and to pay Woodside compensation and penalties for the unlawful industrial action. The key legal issues were whether the penalties should be paid to Woodside or to the Commonwealth, as per s 49(5) of the BCII Act, and the appropriate quantum of penalties.

The court found that despite the respondents' cooperation in the proceedings, there was no evidence of contrition or remorse for their unlawful actions. The court considered the need for general and specific deterrence, which was underscored by the respondents' extensive history of similar conduct. The agreed penalties of $71,500 for the CFMEU and $14,300 for Mr McDonald were deemed appropriate and within the permissible range. The court rejected the Australian Building and Construction Commission's argument that the penalties should be paid to the Commonwealth, finding that the matter was for the court to decide under s 49(5) of the BCII Act. The court accepted the submissions that an order for payment to Woodside would be the usual order in such circumstances.

The court ordered that the CFMEU permanently restrain from engaging in industrial action related to specific LNG projects and indemnify Woodside for certain costs. It also ordered that the CFMEU pay Woodside compensation of $1,500,000 and penalties of $71,500, and that Mr McDonald pay penalties of $14,300. The court allowed liberty to the parties to apply regarding the costs of the issue concerning the payment of penalties.