3.3 Body Hire

The large growth in the use of body hire companies to supply labour in the construction industry has also had an impact on the availability of apprenticeships for young Australians. The number of licences granted to body hire operators is an indication of the growth of this sector. Under the New South Wales Employment Agents Act (1996) private employment agencies must be licensed. The number of licences granted has exploded, from 840 at the end of 1992/93 to 2168 in December 1998, a 158% increase.

In the construction industry some sources have suggested that the use of body hire has increased from 14% in 1990 to 21% in 1995 (Building Australia, August 1999 p 18). The same increase is reported on an economy wide basis by the Australian Centre for Industrial Relations Research and Training. (Work Time Life, November,1998) The use of body hire further erodes the direct employment of labour and reduces apprenticeship opportunities.

“Labour hire companies undertake minimal apprentice training (Marshman 1996). Some idea of the significance of these trends is that in the mid-1980s the NSW Government engaged ten per cent of the State’s total annual intake of new building apprentices. By the mid-1990s this had declined to one per cent (Toner 1998).” ( Employment Studies Centre, August 1999, p63)

In June 1999 the CFMEU began a campaign to reduce the use of body hire on major construction sites and encourage direct employment of labour.

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.