Central Queensland University was fined $7000 this month (Friday April 11)  as a result of a "misunderstanding" of its obligations under its Collective Agreement with employees.

The Federal Court ruled in a case brought by the NTEU, following a decision made last year by the Australian Industrial Relations Commission which found CQU had not followed a consultative condition of its enterprise agreement.

In its ruling the Court said that CQU had not ignored the need for consultation, rather it had merged what was meant to have been a staged consultative process. "It seems this... was the result of a misunderstanding on the precise nature and extent of the consultation obligations assumed by the University under the Collective Agreement," wrote Justice Logan.

"I am pleased that the matter is concluded although it's unfortunate that the case has diverted an enormous amount of attention, time, energy and resources away from teaching and research," said CQU Vice Chancellor and President John Rickard.

In May 2007 the AIRC ruled the University had erred when it announced it would not renew 200 fixed-term employee contracts prior to entering the consultative process as required in the Agreement.

Whilst the court could have imposed up to $99,000 in penalties, Justice Logan wrote it was "hardly a case which call[ed] for the imposition of a maximum penalty."

This outcome does not invalidate CQU's determination to move to more efficient and responsive ways of operating. Nor does it alter the continuing financial realties that exist as a result of a downturn in domestic and international student enrolments.

More than halfway through its restructure, CQU has reduced its overall staff numbers by about 150.

The court did not impose a penalty upon the Vice-Chancellor, saying the breach was not the result of his individual actions.