The federal government is replacing the current building and construction industry watchdog with a ‘weaker’ body, to the dismay of many industry bodies.

The Rudd government has approved a bill to abolish the Australian Building and Construction Commission (ABCC), in favour of a new building industry watchdog with less coercive powers.

The legislation will reduce penalties against striking building workers, slow access to the construction watchdog’s coercive powers and allow projects to be exempt from the powers.

The Building Industry Inspectorate will come into force from 1 February 2010 when its functions and capabilities are finalised.

Master Builders Australia (MBA) chief executive, Wilhelm Harnisch, said the move could promote violence and intimidation within the industry and leave employers with no right of review.

“[The change] could create an industrial quagmire and a new battleground for industrial thuggery,” he said. 

Harnish said the new legislation could serve as a “Trojan horse for building unions” that could enable them to “intimidate and coerce” Australian employers.

He believes the safeguards will make processes overly bureaucratic and lead to delays that will weaken the inspectorate’s ability to deal with unlawful behaviour.

Unions, on the other hand, are singing a different tune and are welcoming the lower penalties for industrial action.

Australian Council of Trade Unions (ACTU) secretary, Jeff Lawrence, said it is “unacceptable” for the government to retain discriminatory laws and “over-the-top” coercive powers against workers. 

“The only people that will win from the retention of unfair laws in this industry will be the big building developers and construction companies,” he said.