Modern Australian
Men's Weekly

.

Labor wants to put the construction union into administration, but last year it axed the cop on the beat. That doesn’t look wise

  • Written by Timothy O'Leary, Lecturer in Construction and Property, The University of Melbourne

The government has backed a move by the Fair Work Commission to place the construction division of the Construction, Forestry and Maritime Employees Union (CFMEU) into administration.

Workplace Relations Minister Tony Burke said on Wednesday there could be “no place for criminality or corruption in any part of the construction industry”. He promised to legislate if necessary.

The commission’s decision to investigate placing the union’s construction division into administration follows allegations of thuggery, kickbacks, standover tactics and the parachuting of senior bikie figures into lucrative union positions aired in Nine newspapers and on the Nine television network.

Burke also promised to use the government’s procurement powers to ensure enterprise agreements used on government-funded projects were genuinely agreed and workplaces were free from intimidation.

But the allegations ought not to have come as a surprise.

Two decades ago, one of Australia’s most expensive and lengthy royal commissions, the 2002 Cole Royal Commission into the Construction Industry, led to the creation of the Australian Building and Construction Commission.

The ABCC, as it was known, was to be the building industry’s “cop on the beat”.

Decades of lawlessnes

Royal Commissioner Justice Terence Cole found “a culture of lawlessness” in the industry, although he didn’t find evidence of organised criminal activity.

Once established, the ABCC monitored and promoted compliance with a number of codes and laws. These included the Code for the Tendering and Performance of Building Work, the Building and Construction Industry (Improving Productivity) Act and the Fair Work Act.

The Code for the Tendering and Performance of Building Work ought not to be confused with the industry’s long-standing National Construction Code, which sets minimum standards for the design and performance of buildings.

When Labor regained power two years ago, Burke, as the newly sworn-in minister, confirmed he would implement Labor’s election promise to shut down what he called a “politicised and discredited organisation”.

A rap sheet covering five states

The commission was abolished as part of Labor’s Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act in February 2023.

The commission had fined the union a total of A$16.1 million over six years.

The rap sheet was long and extended beyond the construction divisions’s traditional stronghold of Victoria to Sydney, Brisbane, the Gold Coast, Adelaide and Perth.

Prosecuting the union and its officials took up most of the commission’s time. It also dealt with countersuits from the union and took action against and was sued by developers in cases in which the union was often a third party.

In 2022, in work commissioned by Master Builders Australia, Ernst & Young estimated the economic costs of Labor proceeding with its plan to abolish the ABCC at $47.5 billion by 2030.

The report foresaw higher costs and lower productivity in construction if the commission was abolished. It said this would act as a “handbrake” on the manufacturing and service sectors, given their dependence on construction.

Two decades on, a fresh crackdown

It is worthwhile asking why, two decades after a lengthy and expensive royal commission that found a culture of lawlessness in the industry, the government thought it was safe to close down the industry watchdog and now feels it necessary to crack down on the union the watchdog policed.

Thousands of construction industry contracts and deals are done each week. The industry has high levels of subcontracting and thin profit margins alongside inherent uncertainty and risks. This makes it an ideal breeding ground for improper industrial behaviour.

There remain too many instances of blatant corner-cutting and coercive behaviours, some of them illegal.

A separate employer-funded Construction Industry Culture Taskforce established in 2018 might help, but the government needs to also show it is committed to the change it has just begun 17 months after abolishing the Building and Construction Commission.

Authors: Timothy O'Leary, Lecturer in Construction and Property, The University of Melbourne

Read more https://theconversation.com/labor-wants-to-put-the-construction-union-into-administration-but-last-year-it-axed-the-cop-on-the-beat-that-doesnt-look-wise-234908

Best POS System Features That Boost Customer Experience

Source: Unsplash Starting and scaling a retail business is unlikely possible without an effective Point of Sale (POS) system. It is the tech heartbe...

Understanding SMSF Setup Online and Why More Australians Are Choosing Digital Fund Establishment

liManaging your own superannuation gives you greater control over investments, retirement planning, and long-term financial decision-making. As inte...

Double Carport: Complete Guide to Design, Cost, and Installation

A double carport provides practical, cost-effective protection for two vehicles whilst adding value and functionality to your property. Whether you're...

How External Blinds and Awnings Improve Comfort, Privacy, and Energy Efficiency

Outdoor comfort and protection are essential for homes and commercial properties, especially in regions with strong sunlight, high UV exposure, and ...

Worksite Comfort Upgrades That Boost Team Productivity

Jobsite productivity doesn’t depend solely on tools, training, or scheduling. It also hinges on something often overlooked: worker comfort. When e...

NDIS Occupational Therapy: Your Complete Guide to Accessing Support and Services

Occupational therapy plays a crucial role in helping NDIS participants achieve their goals and improve their daily living skills. For people with disa...

How to Start Trading Futures in Australia: Markets, Margin and Regulation

Futures trading has become increasingly popular among Australian traders seeking opportunities across global commodities, indices, currencies and ener...

The Importance Of Residential Scaffolding For Safe And Efficient Home Projects

Home construction and renovation projects require reliable access systems that prioritise both worker safety and structural stability. Whether the p...

Understanding All on 4 Dental Implants and Their Benefits for Full Mouth Restoration

Tooth loss can affect daily life in many ways, including chewing difficulties, speech problems, facial changes, and reduced confidence. Modern denti...

Why Removalists Are Essential for a Smooth, Safe, and Hassle-Free Moving Experience

Moving homes or offices can be overwhelming, especially when you’re trying to balance packing, organising, heavy lifting, and time-sensitive deadl...

Understanding Domestic Violence Orders in Queensland

Domestic violence is an issue that affects many households. This article will break down the key aspects of Domestic Violence Orders (DVOs) in Queen...

Why A Smart Lock Is Becoming An Essential Upgrade For Modern Home Security

Homeowners today are placing greater importance on security, convenience and technology in their living spaces. One of the most significant advancem...

Expert-Led Solutions for Clear Complexions

Many people struggle with acne at different stages of their lives, and the journey toward clearer skin often feels overwhelming. Breakouts affect not ...

Is Long-Term Pigmentation Correction Possible?

Many individuals struggle with pigmentation concerns that affect how their skin appears and how they feel about themselves. These darkened patches, sp...

The Value Of Commercial Buyers Agents Melbourne For Smarter And More Strategic Property Purchases

Buying commercial property requires a deep understanding of market conditions, tenancy structures, asset performance and long-term financial impact...

EOR Solutions & Offshore Workforce Arrangements: A Smarter Way to Manage Global Teams

For Australian companies expanding into Asian markets, navigating local employment laws and regulations can be complex. By implementing employer of re...

Beachside Moves: A Guide to Moving to Sydney’s Coastal Suburbs

So, you've finally decided to do it. You're trading your city apartment for the salty breeze of beachside living. Who can blame you? Maybe it’s Bo...

The Most Common Causes of Concrete Deterioration (And How to Prevent Them)

Concrete is known for its strength, longevity, and reliability—but even the most durable surfaces can deteriorate over time if they’re exposed t...