The Fair Work Ombudsman will join airline Qantas in seeking financial penalties against the Transport Workers Union and four of its officials over strike action in March this year.
The Fair Work Ombudsman alleges the industrial action by baggage handlers in Sydney, Brisbane, Adelaide and Perth was unlawful, and has named the TWU, the Queensland brand of the TWU and four officials – Anthony Sheldon, Scott Connolly, John Loader and Rick Burton – as respondents.
Fair Work Ombudsman Nicholas Wilson says the decision to launch the prosecution was made “because workplace laws regarding how industrial action can be lawfully conducted had allegedly not been adhered to”.
FWO claims the industrial action was unlawful because it was conducted before the Qantas baggage handlers’ enterprise bargaining agreement expired in 2011.
The TWU and the TWU Queensland branch each face a maximum potential fine of $33,000 for each alleged breach, while the four TWU officials each face a maximum fine of $6,600 per alleged breach.
Qantas is also seeking fines, injections and compensation, with one report putting the figure sought at $2 million.
TWU official Tony Sheldon has lashed out at the action, describing it as a “vendetta” and accusing the FWO of “lining up with one of the most powerful companies in the country”.
Peter Vitale, industrial relations expert with CCI Lawyers, says the case should be a signal to employers and unions that the FWO is flexing its muscle.
“There was a feeling around at the time the legislation came in that the ombudsman was going to get a lot more active in enforcing aspects of the law other than just underpayments,” he says.
“If this is a true indication of what’s going to happen then both unions and employers can expect to be greeted by an inspector if they are in breach.”
Vitale says legal action over illegal strike action is rare and this case will be watched closely by the IR community. He says he will be interested to see if the FWO’s decision to step in on the side of the employer will be replicated in sectors that are not as nationally important as the transport industry.
“It will be interesting to see whether smaller employees who are hit by wildcat strike will get the same support.”
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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