The Federal Court has imposed penalties totalling $300,000 against the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union; the Australian Workers’ Union and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia for engaging in a secondary boycott in contravention of the Trade Practices Act 1974.
In proceedings instituted by the Australian Competition and Consumer Commission each union was penalised $100,000 by the court. The ACCC alleged that the unions had breached section 45D of the Act which prohibits secondary boycotts by unlawfully hindering the construction of the Patricia Baleen gas plant near Orbost in Victoria.
It was alleged that between 2 October 2002 and 23 October 2002 the unions maintained a picket at the entrance to the site where the plant was being constructed which prevented construction workers and vehicles delivering materials from entering the site. It was alleged that the unions also encouraged and induced construction workers not to attend at their place of work at the site during the picket.
The unions admitted the allegations and that their conduct breached the Act. In joint submissions made to the court by the parties, the unions also admitted that they engaged in the unlawful conduct because the company which had been engaged to operate the plant post construction had refused to negotiate certified agreements with the unions governing the terms and conditions of its employees and proposed using non-local labour to operate the plant.
In his judgment Justice Gray concluded that "the penalties sought must be at the very highest end of the range appropriate for conduct of this kind".
The court also granted injunctions against the unions restraining them from engaging in similar conduct in the future at land based gas processing plants in Victoria. Justice Gray stated that "the effect of the injunctions as to future conduct is to broaden the range of sanctions, by adding possible penalties for contempt of court". Declarations were also made by the court that the unions had contravened the Act.
The unions were also ordered to implement a trade practices compliance program and publicise in their respective journals a public notice detailing the substance of the orders made by the court.
The orders were made with the consent of the parties.
"This case should serve as a clear warning to unions that they risk substantial penalties being imposed against them if they engage in secondary boycott conduct", ACCC Chairman, Mr Graeme Samuel, said today.
"I also welcome the court making both injunction and compliance program orders as they may reduce the risk of future contraventions and will ensure the unions better appreciate the effect and scope of the Act".
The maximum pecuniary penalty that can be imposed for a breach of section 45D of the Act is $750,000 per contravention.