Maritime union fined $125,000 for contempt

The MUA has been penalised after a court found officials showed an “arrogant disregard for the law” during a 2017 dispute.

The maritime union, now part of the merged CFMEU, has been fined $125,000. Picture: Hollie Adams

The maritime union has been penalised $125,000 after the Supreme Court of Victoria found three officials showed an “arrogant disregard for the rule of law” by deliberately defying court orders during an acrimonious dispute at Melbourne’s Webb Dock last year.

The union also faces having to pay hundreds of thousands of dollars in legal costs incurred by lawyers representing Victoria International Container Terminal (VICT) during the contempt proceedings.

The union admitted senior officials Will Tracey, Chris Cain and Joe Italia were in civil contempt of an interlocutory injunction preventing them going within 100 metres of entry points to the terminal.

On December 14 last year, the three officials, who now have positions in the merged Construction, Forestry, Maritime, Mining and Energy Union, went within 100 metres of an access point, addressing picketers for 35 minutes.

Justice Michael McDonald said he was not satisfied the union was guilty of criminal contempt, given the conduct was of a “brief duration”, was away from the public, and no members of the public were inconvenienced.

He also rejected company arguments he take into account previous findings of contempt against the pre-merged CFMEU when considering the penalty.

But said the conduct of the three officials was “incompatible with the due administration of justice” and “involved an arrogant disregard for the rule of law”.

Lawyers for VICT sought a penalty of $1 million to $1.5 million while the union argued for a penalty of $20,000 to $40,000.

Imposing the $125,000 penalty, Justice McDonald said the union made a calculated decision that its industrial interests would be well served by defying the court orders.

“I infer that this decision was made by the three officials, confident that the union would readily be able to meet the expense of any penalty imposed by the court,’’ he said.

“I infer that the MIA made a calculated decision that the risk of financial penalty for engaging in conduct in contempt of court was simply a cost of doing business.”

In fixing the penalty, he said he took into account the impact of a proposed order requiring the union to pay the employer’s legal costs on an indemnity basis.

Stuart Wood, QC, representing VICT, said its costs during the contempt proceedings were $500,000 to $600,000.

Justice McDonald said VICT’s entitlement to costs would be subject to scale and it was unlikely the company would be able to fully recoup legal expenses it incurred.

The dispute flared last year after the MUA accused VICT of targeting an “activist” union member Richard Lunt who was denied shifts after taking action against management for alleged harassment and bullying.

But VICT said Mr Lunt was denied shifts because he did not have a maritime security identification card which is required to work in the terminal’s restricted zone.

Cars and oBikes blocked ­access to more than 1000 containers stranded at the docks. Under the dispute‘s settlement, Mr Lunt was paid to do nothing after VICT agreed to reinstate him provided he not attend the Port Melbourne workplace.

According to today’s judgment, Mr Tracey, the union’s deputy national secretary, told picketers that it was important for escalating the dispute that officials defy the court injunction.

Mr Cain told picketers “there is one union that works on the waterfront”.

“And that is the mighty f..king MUA and…we don’t care who challenges us, whether it be governments, whether it be companies that want to sue us, we’re here today and we’re here to f..king stay,’’ he said

Mr Italia led the picketers in a series of chants including one about Mick O’Leary, a former senior MUA official who works for VICT. “I say O’Leary, you say dog,’’ he said.

Minister for Jobs and Industrial Relations, Kelly O’Dwyer, said the court judgment was yet “another example of the militant law-breaking behaviour of the MUA, now part of the CFMEU mega union”.