Australian Building and Construction Commissioner v Huddy
[2017] FCA 739
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2017-06-30
Before
White J
Catchwords
- INDUSTRIAL LAW - proceedings brought against employees who stopped work during the currency of an enterprise agreement, a union organiser and the union
Source
Original judgment source is linked above.
Catchwords
Judgment (93 paragraphs)
Introduction 1 A dispute arose in September and October 2013 between Laing O'Rourke Construction Australia Pty Ltd (LOR) and certain of its employees (the LOR employees) at the Ichthys LNG Project at Blaydin Point near Darwin in the Northern Territory (the Project). The dispute concerned the time at which the buses transporting the LOR employees to their accommodation should depart from the LOR work site within the Project at the end of each working day. 2 The working hours for the LOR employees were 6.30 am to 5 pm. LOR had implemented a practice by which the buses departed from its worksite within the Project at 5 pm, whereas the LOR employees considered that the buses should depart from the Project site gate, approximately 5.1 km (or 15-20 minutes) away, at that time. If that was the arrangement, the employees would have to finish work activities some 15-20 minutes earlier than was the practice in order to be at the gate by 5 pm. 3 Things came to a head on 22 October 2013. At a meeting of LOR employees during the morning smoko break, those present resolved to stop work for the remainder of the day. They later acted in accordance with that resolution, although some performed some work in the afternoon preparing the LOR area for an approaching storm. 4 At about 8.30 pm on 22 October, LOR obtained an order from the Fair Work Commission (FWC) directing the LOR employees to return to work. The employees did so at the commencement of work (6.30 am) the next morning. 5 By reason of these events, and events associated with them, the Director of the Fair Work Building Industry Inspectorate (the Director) alleges that the respondents, or at least certain of them, contravened five separate provisions in the Fair Work Act 2009 (Cth) (the FW Act). 6 While the former Director commenced and prosecuted these proceedings, I am by reason of cl 19 of Sch 2 of the Building Construction Industry (Consequential and Transitional Provisions) Act 2016 (Cth), to treat the Australian Building and Construction Commissioner (the Commissioner) as replacing the Director as party to the proceedings. I will for reasons of consistency refer in these reasons to the applicant as "the Commissioner". 7 The Commissioner seeks declarations with respect to each contravention and the imposition of penalties. 8 There were originally 69 respondents to the proceedings. The Commissioner discontinued the claims with respect to five respondents, namely, the 17th, 20th, 22nd, 59th and 69th respondents. These reasons concern the claims against the remaining 64 respondents. 9 The third respondent is the Construction, Forestry, Mining and Energy Union (CFMEU). It is an organisation of employees registered under the Fair Work (Registered Organisations) Act 2009 (Cth) (the FW(RO) Act) and, by reason of being so registered, a body corporate (s 27). The CFMEU is an "employee organisation" within the meaning of that term used in ss 12 and 417(2) of the FW Act, an industrial association within the meaning of s 12 of the FW Act, a body corporate within the meaning of s 793 of the FW Act, and a building association within the meaning of s 4 of the Fair Work (Building Industry) Act 2012 (Cth) (FW(BI) Act) (now repealed). 10 The first respondent, Mr Huddy, was from September 2007 until June 2014, employed by the CFMEU in the Northern Territory. His responsibilities included the organising of CFMEU members at the Project. 11 The second respondent, Mr Tait, was at material times an employee of LOR. In July 2013, he was elected as the CFMEU delegate for the LOR employees at the Project and held that position as at 22 October 2013. 12 Each of the remaining respondents was an employee of LOR on 22 October 2013 and was performing work on the Project. Each was a "national system employee" within the meaning of s 13 of the FW Act. 13 Fifty three of the respondents (the Represented Respondents) were represented at the trial. These included Mr Huddy, Mr Tait and the CFMEU. The remaining 11 respondents (the Non-Represented Respondents) did not attend at the hearing. I was satisfied that each had been served with the proceedings. 14 One of the Non-Represented Respondents (Mr Jackson, the 32nd respondent) had formerly been represented by Hall Payne, the solicitors for the Represented Respondents, and that firm had filed a defence on his behalf. I directed, pursuant to r 30.21(1) of the Federal Court Rules 2011 (Cth) (FCR), that the trial proceed in his absence. No notice of acting nor defence had been filed by the remaining 10 Non-Attending Respondents. 15 Thirty seven of the individual Represented Respondents gave evidence in the trial. 16 The Commissioner alleges contraventions of ss 417, 343, 348, 50 and 500 of the FW Act. 17 Section 417 proscribes the organisation of, and engagement in, industrial action while an enterprise agreement is in force. The Laing O'Rourke Construction Australia Pty Ltd Ichthys Onshore Construction Greenfields Agreement (the LOR Agreement) was in force in October 2013. The Commissioner alleges that each of the individual respondents, other than Mr Huddy, engaged in industrial action in contravention of s 417(1) by stopping work on 22 October 2013. The individual Represented Respondents admit these contraventions. By his defence, Mr Jackson denies this allegation. The Commissioner alleges that Mr Huddy, Mr Tait and, by reason of their conduct and s 793 of the FW Act, the CFMEU organised the industrial action. Each of Mr Huddy, Mr Tait and the CFMEU deny these allegations. The Commissioner's pleadings are also capable of being understood as alleging that the CFMEU had, by Mr Tait's conduct, engaged in industrial action, but such an allegation was not pursued at the hearing. That being so, if such a claim was advanced in the pleading, I have taken it to have been abandoned. 18 Section 343 of the FW Act provides that a person must not organise or take, or threaten to organise or take, any action against another person with intent to coerce the other person to exercise, or not exercise, a workplace right. The Commissioner alleges that each respondent contravened this prohibition by organising (in the case of Mr Huddy, Mr Tait and the CFMEU) or taking (in the case of the individual respondents other than Mr Huddy) industrial action with the intent to coerce LOR to exercise, or not exercise, workplace rights under the LOR Agreement, or to exercise them in a particular way. The Represented Respondents and Mr Jackson deny these allegations. 19 Section 348 of the FW Act provides that a person must not organise or take, or threaten to organise or take, any action against another with intent to coerce that person to engage in "industrial activity". The Commissioner alleges that each respondent contravened this provision by organising (in the case of Mr Huddy, Mr Tait and the CFMEU) or taking (in the case of the individual respondents other than Mr Huddy) the stop work action on 22 October 2013 with the intention of coercing LOR to comply with demands concerning the bus departure times. He also alleges that each of Mr Huddy and Mr Tait contravened s 348 by reason of the operation of s 362 of the FW Act. The Represented Respondents and Mr Jackson deny these allegations. 20 The Commissioner alleges that, by reason of s 363 and/or s 793 of the FW Act, the CFMEU is to be taken to have contravened ss 343 and 348 by reason of the conduct of Mr Huddy and Mr Tait said to have constituted the organisation of "industrial action" and "action" respectively. The CFMEU denies the allegations. 21 Section 50 of the FW Act provides that a person must not contravene a term of an enterprise agreement. The Commissioner alleges that each of the LOR employees breached the dispute resolution provision in cl 18.2 of the LOR Agreement. The Represented Respondents and Mr Jackson deny these allegations. 22 Section 500 of the FW Act provides that a permit holder exercising, or seeking to exercise, rights of entry under Pt 3-4 must not intentionally hinder or obstruct any person, or otherwise act in an improper manner. The Commissioner alleges that Mr Huddy acted in contravention of s 500 on 22 October 2013 by acting in an improper manner on the Project site, while exercising a right of entry pursuant to s 484 of the FW Act. He alleges that, by reason of s 363 and/or s 793 of the FW Act, the CFMEU is also to be taken to have contravened s 500. Both Mr Huddy and the CFMEU admit this allegation. 23 Finally, the Commissioner alleges that each of Mr Huddy and Mr Tait was involved (in the meaning used in s 550 of the FW Act) in the contraventions by the individual respondents of ss 348, 343, 417(1) and 50. Each of Mr Huddy and Mr Tait denies these allegations. 24 I directed that the trial proceed in two stages, with the alleged contraventions to be determined in the first stage, and the issues of declarations and penalties in respect of those contraventions which are either admitted or found proved to be addressed in the second stage.