ACCC launches legal action against Hutchinson and CFMMEU over South Brisbane project

High-profile Queensland builder Hutchinson and the militant CFMMEU are facing court action over an alleged building site boycott.

The ACCC has filed court action against Queensland builder Hutchinson and a major construction union over alleged boycott conduct at a Brisbane site.

The proceedings relate to an alleged agreement in 2016 between Hutchinson and the CFMMEU in which Hutchinson allegedly agreed to terminate the contract of an independent waterproofing subcontractor working on the Southpoint apartments project in South Brisbane.

The ACCC alleges that Hutchinson terminated the subcontractor Waterproofing Industries Qld shortly after it started work on the project to avoid conflict with, or industrial action by, the CFMMEU at the site.

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Hutchinson was the head contractor on the Southpoint A site. The waterproofing subcontractor was not covered by an enterprise agreement with the CFMMEU.

The ACCC alleges that, by making and acting on the agreement, Hutchinson contravened sections 45E and 45EA of the Competition and Consumer Act, which prohibit contracts, arrangements or understandings for the purpose of preventing or hindering the acquisition of goods or services from a supplier.

Alleged boycott conduct at the Southpoint apartments project in South Brisbane is the subject of legal action by the ACCC. Picture: Annette Dew

The CFMMEU allegedly induced or was knowingly concerned in these contraventions.

“Tackling anti-competitive conduct in the construction industry is a priority for the ACCC, and this includes boycotts like the one alleged to have taken place here,” ACCC Chair Rod Sims said.

“Boycotts are extremely detrimental to competitive markets and the economy, and can do great damage to those businesses targeted. Given this, we will take action to detect and deter such conduct whenever we can.”

Hutchinson is one of Australia’s biggest privately owned construction companies with around 1800 staff and over $2.5 billion worth of projects annually.

The CFMMEU is a trade union organisation that represents member employees in a number of industries including the construction industry.

The ACCC said it is seeking declarations, injunctions, pecuniary penalties, orders for findings of fact, compliance training and, against the CFMMEU only, adverse publicity orders.

The union’s state secretary Michael Ravbar said it had not received “fair notice of the proceedings” which were “politically motivated”.

“The CFMEU will not cop trial by media, and looks forward to vigorously defending,

and defeating, this baseless action,” he said.

“The union still has not seen the papers that have been filed in the Court, and the allegations were never put to the union before the proceedings were filed.

Hutchinson has been contacted for comment.