The Historic breakthrough for a 36-hour Week

After months of industrial action and turmoil, major employers in the Victorian building and construction industry have accepted a new standard for wages and conditions in our industry.

Following a split in employer ranks - leading to a key group of multinational builders reaching a 'compact' with our union on wages and hours - most employers now see this new standard as the benchmark, and are agreeing to the union's terms to end disputes.

Key features of the new 'compact' will form the basis of new three-year 'Collective Agreements'. These are set to expire in November 2002.

The Victorian Building Industry Agreement (VBIA) is also set to be renewed following further talks. It is expected a new VBIA will run to 2005 with the support of the Victorian Government.

Wages increases

This agreement will provide for a 15% wage increase, delivered as follows:

6%	1 March 2000
5%	1 March 2001
4%	1 March 2002

Having larger increases at the beginning of the agreement puts more dollars in the pay packet during its lifetime. It is agreed to cap wage rises at 3% in 2003 unless the cost of living exceeds that amount. This is to provide for the introduction of a 36-hour week. The agreement also provides increases in Superannuation, travel and site allowances. Additionally, site allowances are spread wider across the industry.

Shorter hours

A stand-out element of the compact is an agreement to introduce a 36-hour week over the next three years. This is an Australian first in construction, and has the potential to become the first industry-wide agreement for shorter hours since 1981.

There will be nine additional Paid Days Off (PDOs) in the years 2001 and 2002. The 22 PDOs for these years are to be taken by an industry calendar.

There will be thirteen additional PDOs by 2003; for a total of 26 in that year. Next years working calendar is on the back page of this pamphlet.

The introduction of 26 PDOs in 2003 will require a new-look calendar and members will be encouraged to express their views on how these PDOs should be distributed. Accumulation of credits for additional days off will commence from 1 October 2000. On a weekly basis, accumulation in 2001 and 2002 will equal 40% of a day per week, moving to 50% of a day in 2003. This is in addition to other benefits.

It is emphasised that this accumulation is paid by the employer to provide 'paid days off' and is not to be paid out except for part-days owing on termination.

Other clauses address inclement weather, with new provisions for soaring summer temperatures.

History of a great victory

In October 1999 thousands of members of the CFMEU and CEPU constructions workers met at the Glasshouse to endorse a campaign for a new round of collective agreements. The meeting also called for the renewal of the Victorian Building Industry Agreement.

During that meeting, all workers agreed that the red hot issue was the introduction of a 36-hour week during the life of any new deal.

They resolved to begin a fighting campaign at the start of 2000.

Into the new millennium, into the blue

On 17 January 2000, the first 36 RDO, many jobs pulled the pin and kicked off the campaign, resolving to take days off and place rolling bans until employers negotiated a new agreement.

On 7 February, the construction industry shut down State wide in support of the claim. Support was overwhelming from members; many jobs were crippled by bans.

The employers began to split. Those employers with their eye on the bottom line - profit - started to talk about our claim. The Peter Reith-inspired MBA continued to threaten legal action to end the dispute. In all, they launched 16 court actions for a net outcome of nothing.

On 12 February, the Master Builders began its ill-fated lockout strategy, issuing lockout notices for Saturday and overtime work. This was quickly withdrawn as it was possibly illegal and had, anyway, fallen apart. Strikes, bans and stoppages continued.

On 15 March, the Master Builders committed industrial hari-kari by announcing it intended to 'lock-out' for three months. While the lockout was largely a fizzer, saner heads cried 'enough!'. Grollo conceded an extra thirteen RDOs, and the 'Compact' with a group of leading builders was born.

This 'Compact' has now become a new benchmark for our industry: 15% on wages, Super up, allowances up, and moving to a 36-hour week by 2003.

While work remains rounding up the stragglers and the shifties, construction workers have won a mighty victory.

Fighting fund

Many workers were kept in the fight by our fighting fund, which received substantial financial assistance from the CFMEU Construction Federal Office and Branches in other States, as well as from on-the-job collections. As a result, over 650 members were assisted by modest payments to help beat the bosses' lockout. $140,000 was distributed. To those who contributed, thanks from Victorian construction workers.

The Victorian 36-hour agreement is another milestone for the industry, which hopefully will spread nationwide over the coming year.

For further information on the agreement, contact the CFMEU Victorian Branch ph:(03) 9341 3444.

United we bargain - Divided we beg.

Contact the National Office, Construction Division at:
Level 12, 276 Pitt Street, Sydney, NSW 2000
Ph: 02 8524 5800
Fax: 02 8524 5801
Email: queries@fed.cfmeu.asn.au

Postal address: PO Box Q235, Queen Victoria Building Post Office, Sydney NSW 1230.