The Federal Court has imposed a penalty of $125,000 against the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) for aiding and abetting in contraventions of sections 45E and 45EA of the Trade Practices Act 1974.
Australian Competition and Consumer Commission, Chairman, Mr Graeme Samuel said the case has yet again reinforced that all participants in the economy, including unions, are subject to the provisions of the Trade Practices Act.
The ACCC alleged that in 2001, the Electrical Trades Union Division (Victorian Branch) of the CEPU made demands on Edison (IPM Operation and Maintenance Loy Yang Pty Ltd, formerly known as Edison Mission Operation and Maintenance Loy Yang P/L ) which resulted in the company ceasing to acquire services from an electrical contractor it regularly used at the Loy Yang B site as that contractor did not have a union certified agreement.
The Court found that the CEPU had made its signing of a construction site agreement, which was needed to allow construction of the Peaker project to commence, subject to a number of demands including the requirement for contractors at the Loy Yang B site to have a current certified agreement with the union. The agreement with Edison was found by the Court to have been undertaken or directed by Mr Dean Mighell, the Secretary of the Victorian Branch of the Electrical Trades Union.
The Court found that the CEPU not only instigated the agreement but also induced Edison to give effect to it. Further the Court found that the CEPU made both a broader arrangement and a heads of agreement with Edison that precluded Edison from engaging contractors who did not have a current certified agreement with the union.
On the question of penalty Justice Young concluded "that the appropriate level of penalty which reflects the deliberate and serious nature of the contravention, the requirement of deterrence, and other factors…is $125,000".
In addition to imposing a pecuniary penalty of $125,000, the Court also made:
- Declarations that the CEPU had by its conduct aided/ abetted and procured contravention of both S45E and S45EA by Edison
- Injunctions restraining the CEPU from engaging in future such conduct for 3 years, and
- Awarded costs at an agreed figure of $200,000 against the CEPU to the ACCC.
Both penalty and costs were ordered payable on or before 21 February 2007.
As the CEPU was contesting the case allegations, its case was heard separate and prior to the Edison case. The Edison case is set down for a penalty hearing in the Federal Court in Melbourne on 9 February 2007 before Justice Tracey.