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

How Working with Lawyers Can Strengthen Your Legal Position

Engaging experienced lawyers in Melbourne is important when dealing with legal matters. Whether it involves business, property or personal law, the ...

The Role of Cantilever Racking in Handling Long and Bulky Items

In industries that handle oversized materials, finding the right storage system is essential for safety and efficiency. This is where cantilever rac...

Affordable Furniture Movers Perth: How to Get the Best Value for Your Move

Relocating to a new home or office can often feel overwhelming, especially when you have valuable furniture and belongings to move. From organizing lo...

House Builders Melbourne: Expert Craftsmanship for Modern Living

Building a home is more than just a construction project — it’s about creating a space where families grow, memories are made, and lifestyles ev...

Seamless Business Relocations Made Easy with Office Movers in Gold Coast

Relocating an office is a complex process that requires careful planning, coordination, and execution. From moving delicate electronics to arranging f...

DIY Air Conditioning Risks & How to Avoid Costly Repairs

When the scorching Queensland heat kicks in, the urge to grab a screwdriver and tackle your air conditioner fix to yourself is totally understandable...

WooCommerce Website Designer: Building High-Performance Online Stores That Drive Sales

A WooCommerce website designer plays a crucial role in helping businesses create high-performing, visually appealing, and conversion-focused online...

The Importance of Dogging Courses in Australia: How to Get Your Dogman Ticket

In Australia’s construction, mining, and industrial sectors, safety and technical competence are essential for any worker handling heavy loads and l...

Beyond the Hype: Why Breitling Speaks to the Modern Watch Collector

There’s a point every collector reaches when the chase for the latest release gives way to a deeper appreciation for quality. The thrill of new mode...

Elevate your Perth workspace: Sleek tech with managed IT Services

In today's fast-paced business environment, having a reliable and efficient IT infrastructure is no longer a luxury, it's a necessity. For businesse...

7 Ways a Luxury Australian Cruise Transforms Your Travel Expectations

Dreaming of your next holiday? Forget the crowded tourist traps and consider something truly special: a luxury australian cruise. More than just a ...

How Polycarbonate Became the Backbone of Modern Australian Design

The design landscape in Australia has been audacious, innovative and climate-conscious at all times. Design in this area is all about striking a balan...

Affordable Invisalign in Bangkok Why Australians Are Choosing Thailand

More Australians are investing in Invisalign to straighten their teeth, but the treatment in Australia can cost thousands of dollars and often takes m...

Designing a Tranquil Oasis in Your Backyard

Nothing beats a warm summer evening spent in a gorgeous backyard. The backyard is the perfect space to unwind and spend some of the most magical momen...

How a Well-Designed Gym Can Improve Your Performance

Have you ever entered a gym that just feels off and couldn’t focus on your workout? Maybe it’s the layout that was weird, or the lack of natural l...

Wellness Checkups at Work: Key to Employee Happiness and Higher Output

Employee wellness programs are reshaping how companies think about productivity and satisfaction. When people feel healthy, they perform better, sta...

Experience the Elegance of Plantation Shutter Blinds: Enhance Your Décor Today

When it comes to elevating your home’s interior, few window treatments combine sophistication and practicality as effortlessly as plantation shutter...

Common Questions Women Are Afraid to Ask Their Gynaecologist (and Honest Answers)

Visiting your gynaecologist isn’t always easy. Even though reproductive and sexual health are essential parts of overall wellbeing, many women fee...