Second Wave Submission

Introduction

1. The construction industry is one of Australia’s most important sectors. In May 1999 total employment in the industry was 647,700 (PC Austats, Labour Force Table 9I). The industry contributes 6.3% of Australia’s total Gross Domestic Product and is Australia’s fifth largest industry. (Employment Studies Centre, ‘Constructing the Future’, August 1999).


2. The Construction, Forestry, Mining and Energy Union (CFMEU) is the principal union in Australia’s construction industry. As at 30/3/99 the Construction and General Division of the CFMEU had over 100,000 members nationally.


3. This submission will go to those issues in relation to the operation of the Workplace Relations Act 1996 (WRA) and the Government’s proposed amendments to the WRA that impact most directly on the construction industry. Time constraints have meant that not all aspects of the Bill can be reviewed. This is not to say that that the CFMEU in any way supports those parts of the Bill not covered by this submission. Matters which are detrimental to all unions are dealt with comprehensively in the submission of the ACTU.


4. The Sir Robert Kirby Lecture delivered by Senator Meg Lees on September 14 is the most comprehensive response we have from the Democrats on the proposed amendments to the WRA.


5. Before presenting our considered comments on the Government’s proposals and on the operation of the WRA, we wish to comment broadly on the issues and themes raised by Senator Lees in that speech.


6. Senator Lees stated that in 1996 the Democrats moved amendments to reassert the central role of the Commission, and the importance of unions and collective bargaining. The CFMEU submits that the current attacks in those three areas would irretrievably shift the balance in the employment relationship away from workers and towards employers.

The Commission

7. Senator Lees correctly stated that “If passed in full the 1999 reform Bill would significantly reduce the power, standing and independence of the Commission.”


8. It is our view that the vital role of the Commission must be protected. Proposals such as fixed term appointments and removing the ability of the Commission to properly consider applications under WRA s127 must therefore be rejected.

Unions

9. The proposals brought forward by the Government should be seen for what they are; an attack on the legitimate role of unions in the workplace.


10. The WRA introduced onerous right of entry provisions for union officials. The current amendments extend these. The right to be in a union is directly attacked by the closed shop provisions, which are un-workable, unreasonable and un-Australian.


11. The legitimate right to take industrial action is effectively removed. The requirements proposed by the secret ballot provisions making timely and effective action impossible. And as Sir Richard Kirby stated, strike action is not something we should be afraid of. Levels of disputation are currently very low, and would be even lower in the construction industry if the Government acted responsibly and ceased its attempts to provoke the CFMEU.


12. The motivation on the part of the Government is clear, they want to reduce the ability of unions to represent their members. This is something that the Democrats have stated they oppose. Therefore consistency demands that the proposals be rejected.

Collective Bargaining

13. The attempt to prevent so called ‘pattern bargaining’ by the Government is a response to a well organised approach by the CFMEU to agreement making in the construction industry. The Government only supports enterprise bargaining if it is carried out on terms which favour the employers. Despite the stated view of all industry parties that the current model of agreement making is appropriate and effective, the Government continues to seek to impose their rigid, ideological view. The Government’s free market rhetoric is not matched by the reality of this aspect of the Bill.


14. As Senator Lees pointed out in her speech, the WRA has been found to be in breach of ILO Conventions in relation to its failure to promote collective bargaining. This thinly disguised attack on effective collective bargaining in the construction industry would only exacerbate this breach. The Government cannot simply ignore the recent findings of the Committee of Experts. It should discontinue it’s contemptuous attitude to ensuring that our international obligations are met.


15. Other issues were raised by Senator Lees, such as the increase in the use of independent contractors (and the dangers associated with this trend) and the increasing imbalance in the distribution of income. The Government’s proposals to remove the independent contractor provisions from the WRA and remove some controls over the approval of AWAs (where currently only one in five AWAs include a wage increase) would not only fail to address these deficiencies but actually worsen the situation.


16. Senator Lees states that at first glance the Bill appears to contain elements that are unfair, unnecessary or unbalanced.


17. The CFMEU supports this assessment. Further, closer examination of the Bill can only lead to a conclusion that it contains elements that are illogical and unacceptable. We will not allow the conditions of our members to be further eroded by the actions of a Minister who has made no secret of his wish to reduce the wages of building workers.

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.