Union told to compensate Woolworths for unlawful industrial action

Unlawful industrial action at a Woolworths distribution centre has cost the workers’ union more than $170,000.

Woolworths will receive $$101,539 in compensation over the unprotected industrial action. Picture: Supplied

The National Union of Workers has been ordered to pay $101,539 compensation to Woolworths and pay a $72,900 penalty over unlawful industrial action in Melbourne.

Following legal action by the Fair Work Ombudsman, the Federal Court found the NUW contravened the Fair Work Act by organising unprotected industrial action at distribution centres in Laverton and Broadmeadows.

The industrial action in 2015 was taken to protest a decision by a Woolworths subsidiary operating the Laverton centre, Woolstar Pty Limited, to engage casual workers at the centre through a third-party labour hire agency.

READ MORE: Woolworths redefines self-service with $300m staff pay rort | Kmart pay deal after union super demand dropped | BHP party bust-up sacking upheld |

The court found that the NUW breached workplace laws by organising industrial action at the Laverton distribution centre in contravention of a Fair Work Commission order that the NUW must not organise industrial action at the distribution centre.

More than 200 employees took part in the industrial action at the Laverton centre between August 10 and 13 and more than 50 employees took part in the industrial action at the Broadmeadows centre on August 13.

The NUW also organised pickets between August 10 and 13, which included some employees blocking trucks and people from entering and exiting the Laverton centre and swearing at employees who attended or left work at that centre.

The court dismissed the ombudsman’s allegation that the NUW contravened the general protections provisions of the Fair Work Act by organising the industrial action and pickets with the intent to coerce Woolstar to not engage a third-party labour hire agency.

The NUW, now known as the United Workers Union after merging with United Voice, must pay the ordered compensation to Woolworths to compensate for additional delivery costs incurred as a result of the industrial action.

Fair Work Ombudsman Sandra Parker said enforcing compliance with industrial relations laws is fundamental to maintaining the integrity of Australia’s system.

“All workplace participants have a right to be protected by the Fair Work Act and we are prepared to take enforcement action in response to unlawful industrial action that undermines the industrial relations system,” Ms Parker said.