Construction, Forestry, Mining and Energy Union v Australian Building and Construction Commission: Union censured over unlawful industrial action

The Federal Court in Perth yesterday dismissed the appeal of Construction, Forestry, Mining and Energy Union (CFMEU) against its 2011 decision, in which the Union was ordered to pay up over unlawful industrial action in mid-2009.

The original case saw the CFMEU forced to pay civil penalties for its contravention of the Building and Construction Industry Improvement Act 2005, as well as damages to the company affected by the action, pursuant to s 49(1)(b).

The CFMEU challenged the decision, contending that there was no basis for awarding compensation because the element of causation of damage required under the Act had not been established. It also claimed that the quantum of damage claimed – totalling $97,695.41 – was not supported by the evidence, and that the company had failed to mitigate its losses.

The Federal Court on appeal rejected these submissions, noting that the CFMEU had “failed to make good any of its grounds of challenge to the decision of the primary judge.”

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