The national construction industry watchdog spent almost $1 million on lawyers in a case that resulted in a union paying only $23,000 in fines.
Workplace Relations Minister Julia revealed yesterday a three-year-long legal action by the Australian Building and Construction Commission against the Construction Forestry Mining Energy Union cost more than $910,000 in legal fees.
The commission began legal action in the Federal Court in 2005 against the union for alleged breaches of the freedom of association and coercion provisions of workplace relations laws.
Union representatives allegedly made false and misleading statements about the obligation of several plastering subcontractors to become union members and threatened industrial action against a plastering contractor.
The Federal Court found against the union in March last year and imposed $23,250 in penalties.
It also ordered the union to take out a newspaper advertisement to correct its statements made to workers about joining a union.
Further matters in the case were determined by the full bench of the Federal Court in March this year.
In an answer to a parliamentary question on notice, Ms Gillard said the commission had incurred solicitors' costs of $697,950, while counsel costs amounted to a further $212,792.
The commission was represented by law firm Freehills and Sydney barristers John Fernon, SC, and Mr Matthew White.
The Federal Court severely criticised the commission earlier this month when it withdrew another prosecution, questioning if it was even-handed, and ruling that the legal action the commission had brought against the Queensland plumbers' union was misconceived and ''completely without merit''.
Established by the Howard government, the commission is reviled by unions for its draconian powers of coercion and powers to jail workers and impose heavy fines.
Despite this, the Rudd Government has committed to keeping the commission in place until at least 2010.
Former federal court judge Murray Wilcox, QC, is heading an inquiry that will recommend what will happen to the commission under the Government's new industrial relations agency, Fair Work Australia. Mr Wilcox will report to Ms Gillard next March.
The union's national construction secretary, Dave Noonan, attacked the commission's ''lack of even-handedness'' and ''vexatious'' approach to litigation.
''The ABCC is receiving in excess of $33 million of taxpayers' money each year, yet focuses entirely on the prosecution of workers and unions, while failing to pursue a single employer for failing to respect the rights of workers, despite having a clear legal obligation to do so'', he said.
''A small group of right-wing law firms have done extraordinarily well from the ABCC.''