In a landmark decision by the full Federal Court of 25 June, a Victorian CFMMEU organiser has been ordered to pay $19,500 personally for engaging in unlawful coercive conduct at the Regional Rail Link project in Victoria in 2013. In addition, the CFMMEU was fined $111,000.

The personal cost order follows the High Court decision in February this year, which found that Court may impose fines against union officials for their unlawful breaches of the Fair Work Act 2009 (FW Act) and require those individuals pay the fine personally (i.e. through a personal payment order).

These decisions provided a clear signal that union officials are not above the law. Whilst the Court noted that the personal cost order does not prevent the CFMMEU organiser from raising the funds to pay the penalty imposed on him from other sources, it also noted that:

"However he seeks to raise the money, he will not have the comfort and convenience of using the money of CFMEU members contributed to their union to fund its lawful activities, as opposed to unlawful ones.”

The decision means that in future both unions and officials will, and should, be held liable for breaches of the FW Act. The decision therefore marks a significant step forward in establishing accountability for union officials who chose to break the law in our sector, and bolsters the work of the ABCC in our industry. The next step will be for the victims of such unlawful action to recover the loss and damage caused.

Speaking about the decision, ABCC Commissioner Stephen McBurney stated that:

“The decision of the High Court and Full Court in this case now clears the way for personal payment orders to be sought in appropriate cases currently before the Courts.”

It is understood that the ABCC will be pursuing personal payments in 14 current prosecutions, seven of which are in Victoria.

Members seeking further information should contact the IR Department on (03) 9411 4560.