Karen Andrews (McPherson, Liberal Party) Share this | Hansard source

I rise to speak against the motion by the member for Wakefield to abolish the Australian Building and Construction Commission. There are many years of history to industrial disputation in the building and construction industry, and there have been a number of investigations and inquiries into that sector over the years.

In the late 1980s—more than 20 years ago—the full bench of the Australian Industrial Relations Commission conducted a review into the building and construction industry. Extensive submissions were made to the full bench by employers and unions on a wide range of industry practices, resulting in the consolidation of a number of awards into the National Building and Construction Industry Award 1990. The full bench found, firstly, that there was inconsistent industrial regulation between the federal and state jurisdictions and that a framework should be developed to deal with those issues; secondly, that the paid rates system should be abandoned in favour of a minimum rate plus a supplementary payment or allowance, which was consistent with the prevailing wage fixation principles; and, thirdly, that a single award should be established with a rationalisation of respondents. This was a step in improving the performance of the building and construction industry, but clearly more work needed to be done on reforming some entrenched practices in the industry.

In early 2001 the government called for an initial report into the building and construction industry. An investigation was undertaken by the Employment Advocate on a wide range of matters such as breaches of freedom of association, including the forcing of construction workers to join a union; the pursuit of contractors to enter into an agreement in possible breach of the Workplace Relations Act; strike pay; and right of entry. This report was the precursor to the Cole Royal Commission into the Building and Construction Industry.

Whilst there were more than 200 recommendations, Commissioner Cole spec­ifically recommended changes to ensure bargaining only at enterprise level, elimin­ating pattern bargaining; mechanisms to 'ensure that any participant in the industry causing loss to other participants as a result of unlawful industrial action is held responsible for that loss'; mechanisms to ensure that disputes are settled in accordance with legislated or agreed dispute resolution procedures 'rather than by the application of industrial and commercial pressure'; and the creation of an independent body which:

… will ensure that participants comply with industrial, civil and criminal laws applicable to all Australians … as well as industry specific laws applicable to this industry only.

The legislation that gave effect to the Cole commission's desire for the implementation of the rule of law included the Workplace Relations Amendment (Codifying Contempt Offences) Act 2004 and later the Building and Construction Industry Improvement Act 2005. The second act commenced in September 2005, with its main object being to provide an improved industrial relations framework:

… to ensure that building work is carried out fairly, efficiently and productively for the benefit of all building industry participants and for the benefit of the Australian economy as a whole.

This act provided for the establishment of the Australian Building and Construction Commission.

The role of the commission is to monitor and promote appropriate standards of conduct throughout the building and construction industries. As well as an education and training role, the ABCC can, and has, instituted proceedings for contrav­entions of laws relating to freedom of association, coercion in agreement making, right of entry, strike pay, sham arrangements and unfair services contracts. Specifically, when the ABCC uncovers a contravention, it will initiate proceedings in the courts or Fair Work Australia, and to date the courts have imposed $4,123,125 in penalties, $698,300 suspended, in successful ABCC cases. From its inception in October 2005 through to 31 May 2011, the ABCC has been successful in 74 cases and unsuccessful in only eight cases. The majority of proceedings have been in Victoria, which has had a long and difficult history with the building and construction industry, including the bitter disputation leading to the deregistration of the Builders Labourers Federation in 1986.

The ABCC has a very positive role to play in monitoring and ensuring compliance with relevant legislation in an industry that has been dogged by practices which, if not unlawful, are precariously close. The greatest risk in the abolition of the ABCC is that the positive progress that has been made to date in reforming this industry will be eroded. If that happens there is a risk that there will be a return to the poor practices that were prevalent during the— (Time expired)

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