The Federal Magistrates' Court in Melbourne has handed down penalties totalling $38,500 on the CFMEU and one of its organisers for unlawful industrial action.

On September 26, 2006, Adrian McLoughlin called an unauthorised stop-work meeting for workers at the Yarra Arts Complex in Melbourne. The workers were employed by Bovis Lend Lease, Diso Construction and W&M Excavations.

In handing down his judgement, Federal Magistrate Turner said: "McLoughlin was aware that when he called the meeting during working hours, the employees would be docked four hours pay and would therefore be likely to walk-off the site for the remainder of the day. The Court accepts that McLoughlin chose to conduct the meeting during working hours so as to cause maximum disruption."

The majority of employees who attended the meeting failed to return to work for the rest of the day. McLoughlin and the CFMEU admitted to contravening s.38 of the Building Improvement Act 2005 by taking unlawful industrial action.

The CFMEU was penalised $27,500 and a penalty of $11,000 was imposed on McLoughlin.