Three Federal Court decisions in one week showed how CFMMEU bullying deliberately targets small business, sabotages the economy and hurts the community.
“In each case the CFMMEU was found to have deliberately targeted small sub-contracting businesses that did not have a deal with the union by bullying construction contractors to deny them and their employees the opportunity to earn a living,” Denita Wawn, CEO of Master Builders Australia said.
In the most recent decision a $38,000 penalty was imposed on a Brisbane construction contractor by the Federal Court after finding it was bullied by the CFMMEU to reject the best and preferred tender because it didn’t have a union deal in place. The sub-contractor eventually who was eventually engaged because they did not have a union EBA submitted a less competitive tender which the Judge found forced up construction costs.
The head contractor was found to have rejected the most competitive and desirable tender when they said in an email said, ‘we would like you to do the job but you don’t have an EBA agreement’. Instead, they hired another subcontractor at a substantially higher rate because of ‘threats of delay and disruption’ by the CFMMEU.
In handing down the judgment, Justice Jarret said:
“There is no doubt that Devine was faced with a difficult situation arising from the conduct of the CFMEU at this project site. Mr Blore and Mr Tucker both had difficult situations facing them. The relevant conduct took place in an environment in which the CFMEU were making threats of delay and disruption and engaging in coercive conduct.”
He went on to say:
“I accept…that the respondents’ conduct against Craig’s Engineering has the potential to perpetuate a culture of submission in the building and construction industry where economic duress is able to be applied to sub−contractors to force them to become covered by an enterprise agreement that also covers a union. If that potential is realised, the freedom of association provisions in the Fair Work Act will be subverted.”
“Earlier this week another Federal Court found that another contractor who also bullied by the union do deny work by a sub-contractor without a union deal increased the cost of the project by $300,000 when it engaged a union approved sub-contractor,” Denita Wawn said.
Denita Wawn said, “CFMMEU bullying puts construction contractors in an invidious position, with the viability of their business being threatened if they stand up to the union some unfortunately decide it is better to pay more for a sub-contractor, and in the process break the law, than have to deal with the repercussions of hiring a sub-contractor without a union deal.”
“This outcome is the objective of the CFMMEU’s unrelenting and unrepentant strategy of bullying and thuggery,” she said.
“Only last week the CFMMEU gave evidence to a Senate Inquiry into the Ensuring Integrity Bill saying that unions don’t drive up the cost of construction. Well, these judgements are irrefutable evidence of the cost impact of building union bullying and coercion on construction projects across the country,” she said.
“Only when these laws pass might building unions see that Australians deserve better than to pay up to 30% more for construction projects because of the unions bullying and stand-over tactics,” Denita Wawn said.
