Chevron will be paid $3 million in damages if the CFMMEU’s maritime division engages in unlawful industrial action at any of its projects across the next 10 years, following a landmark settlement deal over illegal work stoppages at the Gorgon LNG project in 2012.

The Federal Court orders of last week prohibit MUA officials and delegates from organising or involving themselves in any industrial action except protected action during the normal enterprise bargaining process or as a result of a pending risk to health and safety.

The settlement finalises an eight-year court battle between the MUA and Chevron over the unlawful industrial action at Gorgon LNG.

Four years ago in the Federal Court, Justice Gilmour found the MUA-coordinated stoppages of 2012 over safety were only a “pretext” and the “real reason” for unprotected industrial action was to promote the MUA’s campaign against Chevron’s use of foreign crew on vessels.

Last week Justice Katrina Banks-Smith subsequently fined the MUA $30,000 and ordered that, if the union breached the conditions of the settlement, it must immediately pay Chevron a further $3 million as the penalty after determining the two breaches of the s417 prohibition on taking industrial action during the term of an agreement.

Justice Banks-Smith found the organisation of the industrial action was primarily carried out by Chris Cain, Doug Heath and Wade Eaton, and done with the knowledge and consent of the most senior officials of the MUA, including Paddy Crumlin and Mick Doleman.

Justice Banks-Smith said the action was made under the guise of safety concerns, describing the industrial action as “cynical”, “highly improper” and intended to cause harm to Chevron.

“Safety is a matter of primary importance and raising spurious safety claims has the potential to undermine confidence in the reporting of safety issues,” she said.

In determining the penalty, Justice Banks-Smith also gave “substantial weight” to the need for specific and general deterrence and referred to many of the senior MUA members remaining as officials of the union with a history of s417 contraventions.

“Of particular importance in this matter is the cynical nature of the industrial action embarked upon,” she said.

“It was deliberate, involved some planning and was aimed at causing interruption to Chevron.”

Justice Banks-Smith said the parties came to an agreement as to an amount that the CFMMEU was willing to pay by way of compensation and that Chevron was willing to accept.

She also said an order of this kind is in the public interest, was consistent with the objects of the Fair Work Act and may assist in ensuring “industrial peace on major and important resources projects over many years”.