The Fair Work Ombudsman (FWO) has initiated legal proceedings against the Construction, Forestry and Maritime Employees Union (CFMEU) and two of its officials due to allegations of unlawful conduct in Melbourne. The case, filed in the Federal Court, targets the CFMEU along with officials Joel Shackleton and Gerald ‘Gerry’ McCrudden, focusing on actions purportedly directed at the Indigenous labour hire company Marda Dandhi Downunder Pty Ltd and its directors between July 2021 and March 2022.
According to the Fair Work Ombudsman, the CFMEU and Mr. Shackleton stand accused of breaching the Fair Work Act’s prohibitions against coercion. The allegations extend to knowingly or recklessly making false representations about the workplace rights of others and improper conduct by entry permit holders. The FWO claims these unlawful actions aimed to deter Marda Dandhi from operating on construction sites in Melbourne and from engaging in negotiations for a replacement enterprise agreement, infringing upon Marda Dandhi’s legal rights.
Details of the alleged misconduct include instances of verbal threats, intimidation, and abusive comments made during direct interactions, such as face-to-face meetings at work sites, outside a café, and over the phone. In one notable claim, Mr. Shackleton reportedly threatened a director of Marda Dandhi during a phone call, insisting that the company would not be permitted to work in Melbourne. Furthermore, he allegedly displayed aggressive behavior towards another director, stating unequivocally that Marda Dandhi would not secure a replacement enterprise agreement, thereby attempting to coerce the company from exercising its rights to provide labour hire or negotiate with the CFMEU.
The FWO also highlights a particularly heated exchange that took place at the Monash Freeway Upgrade Project construction site, where the CFMEU officials allegedly made misleading statements to Marda Dandhi’s directors.
Anna Booth, the Fair Work Ombudsman, emphasized the seriousness of the allegations, stating, “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.” She underscored the lawful rights of labour hire companies and their directors to provide services, conduct operations, and engage in negotiations, reiterating the FWO’s commitment to holding all parties accountable.
The FWO is seeking penalties related to multiple alleged breaches of the Fair Work Act. Mr. Shackleton and Mr. McCrudden could face fines of up to $13,320 per contravention, while the CFMEU might incur penalties up to $66,600 for each breach. The case has not yet been scheduled for a court date.
In a related matter, the FWO recently filed proceedings against the CFMEU and its former Victorian Secretary John Setka in February, pertaining to allegations of coercion and adverse actions involving the AFL and former ABCC Commissioner Stephen McBurney. This previous case is still ongoing.
Since transferring oversight of the CFMEU from the Australian Building and Construction Commission (ABCC) in December 2022, the FWO has successfully secured penalties exceeding $3 million against the union and its officials in concluded court cases. The Fair Work Ombudsman remains dedicated to improving compliance within the building and construction sector, ensuring that all parties adhere to the law. Employers, employees, and other stakeholders within the industry can access specific workplace information and assistance through the FWO.
