Building watchdog spat costs taxpayers $85k

Taxpayers have forked out more than $85,000 in legal bills to one of the country’s most prestigious law firms.

Director of Fair Work Building and Construction Nigel Hadgkiss. Picture: Tom Huntley

Taxpayers have forked out more than $85,000 in legal bills to one of the country’s most prestigious law firms, vigorously fighting a court claim from a senior lawyer at the construction regulator against her bosses.

The Fair Work Building and Construction agency has paid top employment law firm Ashurst to defend legal officer Susan Haslam­’s application, lodged in February last year, against the agency after she was demoted following a workplace spat.

The legal bills amassed by FWBC, formally known as the Fair Work Building Industry Inspecto­rate, include $11,000 to object to the release of court documents relating to the incident that were requested by The Australian, Fairfax Media and ALP senator Doug Cameron, and heard by the court last month.

Ms Haslam’s law suit named agency head Nigel Hadgkiss — before she agreed to amend it in November following an objection by the agency. The respondent is now named as the office of the “director” of the agency.

Mr Hadgkiss referred Ms Haslam to an Australian Public Service code of conduct investigation following an alleged argument with a junior staff member.

The investigation resulted in Ms Haslam’s demotion and an $18,000 pay cut. It is understood from agency sources that Ms Haslam “lost it” with the more junior colleague after months of in-fighting, and bullying and harassment within the agency.

An FWBC spokesman said: “The agency makes no apology for upholding the APS conduct of conduct and will vigorously defend its position.” He defended the decision to block public acces­s to the documents, quoting judicial comments that they contained “hearsay with no basis for the material in it at all”.

“FWBC has a duty of care to the employees named in these documents to prevent the public­ation of such potentially defamatory material. This is a duty of care we take seriously. FWBC has made an application for its costs to be reimbursed for this matter.” The FWBC stands at the centre of the Turnbull government’s industrial relations agenda, as the Senate decides the fate of a bill to restore the more powerful Australian Building and Construction Commission regulatory body.

The Australian revealed last year that FWBC spent close to $50,000 on legal bills to Ashurst in three months alone last year, defending the Haslam matter.

FWBC has aggressively pursued the militant Construction, Forestry, Mining and Energy Union, winning a ­record number of court cases against the union and its officials