CFMEU’s history of defying the rule of law must stop

Today’s Federal Court decisions imposing fines and legal costs of $560,000 on the CFMEU highlight the culture of intimidation and coercion that persist in parts of the building and construction industry.

The court was scathing of the CFMEU in the two judgements it delivered.

The behaviour of the CFMEU at the $300 million (Stage 1) Melbourne Market Project in Epping in May 2010 was completely unacceptable and jeopardised the safety and wellbeing of those people affected.

As the Court noted (at paragraph 84 of the main judgement), since the Building and Construction Industry Improvement Act 2005 commenced, the CFMEU has been found to have breached the Act in 28 cases. Twenty-two of those cases have involved breaches by the Victorian branch of the CFMEU.

A staggering $2,711,150 in penalties has been imposed on the CFMEU as a result of breaches of the BCII Act.

Of even greater concern was the court’s observation that the national governing councils of the CFMEU “are either unable or unwilling to curb the unlawful activities of the [Victorian] branch”.

The Victorian Coalition Government agrees with the court (at paragraph 91 of the main judgement) that this represents “a deplorable record of contraventions of the BCII Act and similar legislation”.

Remember that the fines, legal costs and compensation payments represent only the costs borne by the CFMEU. It excludes the enormous losses that employers, contractors, other third parties and the public incur as a result of the CFMEU’s unlawful behaviour.

The CFMEU’s history of unlawful behaviour not only promotes defiance of the rule of law, it adds enormously to the costs of construction.

The Federal Court’s two decisions today also reinforce the strong case for retaining the Australian Building and Construction Commission with all its original powers and focus.

Any diminution in its powers and focus will come at a high price for Victoria.