The party has been accused of capitulating to militant unions after it brought forward the abolition of the ABCC and its associated building code.
Relations between businesses and unions will be tested before the September jobs summit after the government expedited theEmployer and construction groups said the shock move would jeopardise the economic recovery by delaying and increasing the cost of vital infrastructure projects, and the opposition said that Labor had once again capitulated to its CFMEU paymasters.
Immediately, the unions gave notice that they would pursue conditions banned under the building code. These include paying labour-hire workers the same as full-time employees performing the same work, and infringing on managerial prerogative by stipulating, for example, who can and cannot be employed on a site, such as the number of apprentices and casuals.
Labor went to the May 21 election promising to abolish the Australian Building and Construction Commission and the building code. The ABCC was introduced by the Howard government, all but abolished by the Rudd government, and reintroduced by the Turnbull government after using it as a trigger for the 2016 double dissolution election.
The ombudsman will take over the ABCC’s continuing litigation. The last time the ABCC was abolished, the Rudd government directed that all cases be settled without going to court. These include “jump-up” EBA clauses for labour-hire or subcontractor employees that require their pay to be the same as direct employees on a project; restrictions on contracting out or hiring casuals; bans on union flags, insignia, and posters at building sites; mandated hiring of full-time employees and apprenticeship ratios; and clauses requiring compulsory union consultation or agreement before management changes.
Australian Constructors Association chief executive officer Jon Davies said an industrial relations landscape that promoted improved productivity of the construction industry was essential, especially given the critical workforce shortages and record investment in infrastructure.
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