This article is from the Australian Property Journal archive
AUSTRALIA’s competition watchdog has launched a new lawsuit against the powerful CFMMEU and Hutchinson Builders, after terminating the contract of an independent subcontractor on a Brisbane apartment project.
The Federal Court civil case relates to an alleged agreement in 2016 at the Southpoint A Apartments construction project in South Brisbane.
Hutchinson allegedly terminated the waterproofing subcontractor to avoid conflict with, or industrial action by, the CFMMEU at the site, at which Hutchinson was the head contractor. The waterproofing subcontractor was not covered by an enterprise agreement with the CFMMEU.
Sections 45E and 45EA of the Competition and Consumer Act prohibit contracts, arrangements or understandings for the purpose of preventing or hindering the acquisition of goods or services from a supplier.
Hutchinson is one of Australia’s biggest privately owned construction companies, handling over $2.5 billion worth of projects each year and employing around 1,800 staff.
“Boycotts are extremely detrimental to competitive markets and the economy, and can do great damage to those businesses targeted,” ACCC chair Rod Sims said.
The ACCC was assisted by the Australian Building and Construction Commission during its investigation. The ACCC and the ABCC signed a memorandum of understanding in 2017.
