Unions face court tests

The Construction, Forestry Mining and Energy Union is facing legal action on at least five fronts in Western Australia and that number is expected to increase despite the resolution of the recent dispute on the Mandurah rail project.

Traditionally, employers have used the threat of legal action to help resolve industrial disputes, quietly dropping the threats once they achieve their industrial goals.

But in the current environment, firms like Leighton Contractors, John Holland and Broad Constructions have vowed to pursue legal action to the end.

The federal government’s Australian Building and Construction Commission is expected to launch its own action against the CFMEU and union members once it gathers enough evidence.

Adding to the weight of legal action is the Australian Competition and Consumer Commission, which last year instituted proceedings against the CFMEU in the federal court alleging contraventions of the secondary boycott provisions of the Trade Practices Act.

Chamber of Commerce and Industry director employee relations Bruce Williams said legal remedies should be pursued to ensure the union and its members were held accountable for their actions. “The union and striking workers appear to have taken unlawful action and sooner or later they must face the consequences,” Mr Williams said.

He said the ABCC was required to pursue the legal breaches that occurred on the Mandurah rail project, which was shut down despite an earlier ground-breaking ruling by the Australian Industrial Relations Commission that prohibited industrial action on the site.

“CCI now expects the ABCC to bring the matters to court to ensure the law is upheld,” he said.

Leighton subsidiaries John Holland and Broad commenced damages claims against the union and various organisers last year but the matters have yet to reach court. John Holland also obtained an injunction against the union and is pursuing a contempt charge because it believes the union did not abide by the terms of the injunction.

Broad managing director Kari Rummukainen has vowed to pursue the two separate damages claims, which related to industrial disputes mid last year. “We’re not going to give up on them,” he said.

Leighton joined the trend last month when it instituted a claim for unspecified damages against the CFMEU and its secretary Kevin Reynolds.

Construction companies are watching closely to see when the ABCC commences legal action against the union and the 430 workers who walked off the trouble-plagued city tunnel section of the rail project.

One industry source said the ABCC faced a difficult task. 

“There is a tonne of law around but the trick is getting the evidence to make it stick,” the source said.

They believe the ABCC will ensure it has a very strong case before taking action. “They might not bite regularly but when they do bite they will bite hard.”

The process of gathering evidence included sending letters to striking workers asking them to explain their absence from work.

The ABCC is also expected to test the claims by Mr Reynolds  and CFMEU assistant secretary Joe McDonald that they played no role in the recent strike.