The Fair Work Ombudsman has launched Federal Court proceedings against the Construction, Forestry and Maritime Employees Union and two of its officials over alleged unlawful conduct towards an Indigenous labour hire company in Melbourne.
The case names the union alongside officials Joel Shackleton and Gerald ‘Gerry’ McCrudden and centres on interactions with Marda Dandhi Downunder Pty Ltd and its two directors between July 2021 and March 2022.
The regulator alleges the CFMEU and Mr Shackleton breached the Fair Work Act’s prohibition on coercion. It also alleges the union, Mr Shackleton and Mr McCrudden contravened provisions banning knowingly or recklessly making false or misleading representations about another person’s workplace rights, and rules governing the proper conduct of entry permit holders.
According to the Ombudsman, the alleged conduct was aimed at discouraging Marda Dandhi from carrying out work on construction sites in Melbourne and from engaging in bargaining with the union for a replacement enterprise agreement. The behaviour said to have occurred includes verbal threats and intimidation, abusive comments and other improper conduct during face‑to‑face meetings on a work site, outside a café and in a phone call.
In one instance, Mr Shackleton allegedly told a company director the business would not be working in Melbourne. On another occasion, he allegedly clenched his fists at a director and indicated the company would not be getting a replacement enterprise agreement, with the intent to coerce the company not to provide labour hire or bargain with the union. At the Monash Freeway Upgrade Project site, Mr Shackleton and Mr McCrudden allegedly engaged in a heated discussion with the two directors and made unlawful misrepresentations.
Fair Work Ombudsman Anna Booth said the proceedings reflected the seriousness of the allegations. “It is important that we make it clear to all involved in Australia’s workplace relations system that the type of unlawful, coercive and threatening behaviour we are alleging in this matter will not be tolerated,” Ms Booth said.
“Labour hire companies and their directors have a lawful workplace right to provide labour hire services, conduct work on construction sites, and to engage in the process of bargaining for an enterprise agreement. We expect all workplace participants, including unions and their officials, to follow the law at all times. As an independent regulator we will continue to take action to deter unlawful conduct.
“Improving compliance across the building and construction sector is a priority for the Fair Work Ombudsman, and we will continue to hold to account those acting unlawfully.”
The Ombudsman is seeking penalties for multiple alleged breaches. Mr Shackleton and Mr McCrudden face maximum penalties of up to $13,320 per contravention, while the CFMEU faces up to $66,600 per contravention. The matter is yet to be listed for a first court date.
In February, the Ombudsman began separate proceedings against the CFMEU and former Victorian secretary John Setka over alleged coercion and adverse action relating to the AFL and former ABCC commissioner Stephen McBurney. That case remains before the court. Since the transfer of building industry cases from the abolished Australian Building and Construction Commission in December 2022, the Ombudsman says it has secured more than $3 million in penalties against the CFMEU and its officials in finalised matters.
