‘Notorious recidivism’: CFMEU penalised $495,000

Heavy penalty for organising unlawful industrial action at the Melbourne University Veterinary School project site.

CFMEU official Kane Cloud Pearson. Picture: AAP

The CFMEU and three of its representatives have been penalised $495,000 for organising unlawful industrial action at the Melbourne University Veterinary School project site.

In his decision, Federal Court judge David O’Callaghan called the union a “serial offender”, and noted the courts had recounted the union’s “notorious recidivism on many occasions”.

The unlawful industrial action occurred on two days in July 2018, during construction of the university’s four-storey learning and teaching building, an extension of the veterinary hospital in Werribee, in Melbourne’s west.

CFMEU official Kane Pearson and shop steward Dario Maloni admitted to two contraventions of the Building and Construction Industry (Improving Productivity) Act, while official Paul Tzimas admitted to one contravention.

On July 13, 2018, Mr Maloni and Mr Pearson led about 35 workers into the site sheds and held the door shut so management could not enter. After about 30 minutes, when the doors were unblocked, the senior project manager told the workers the meeting was unlawful and directed them to return to work. After the majority did so, Mr Maloni physically prevented the rest from leaving the sheds by blocking the doorway.

On July 26, 2018, Mr Pearson, Mr Tzimas and Mr Maloni entered the lunch shed while workers were on a break and held a meeting, after which the workers did not return to work when their break ended at 9.50am.

WorkSafe went to the site after the three raised alleged safety issues. WorkSafe inspectors said there was no reasonable cause for employees to be concerned for their safety and no reason for the work stoppage.

The court imposed $360,000 in penalties on the union and Mr Pearson was penalised $70,000. Mr Maloni received a $50,000 penalty and Mr Tzimas $15,000.

Mr Pearson had been ordered to pay civil penalties in six previous proceedings from 2009 to 2017. But the Australian Building and Construction Commission failed to secure an order making Mr Pearson personally responsible for paying the $70,000 penalty, with the court finding most of his previous unlawful conduct occurred before 2017.

The court said the union’s Victorian secretary, John Setka, in 2020 engaged Brian Lacy, a barrister and former Australian Industrial Relations Commission senior deputy president, to provide training to CFMEU organisers, shop stewards and branch executive members about their legal responsibilities and obligations.

Mr Setka also engaged Mr Lacy in September 2020 to provide training to Mr Maloni, Mr Pearson and Mr Tzimas. Mr Lacy concluded that each understood why their conduct was unlawful and what they needed to do to ensure there was no repeat.

Justice O’Callaghan accepted the union’s submission that the training was to the union’s credit “in so far as specific deterrence is concerned”.