The Housing Industry Association expressed profound disappointment with Senate's decision this week to pass the Government's Bill to abolish the Australian Building and Construction Commission (ABCC), saying it will be an open invitation for a return to the building site lawlessness of the past.
According to Master Builders Australia, it marks a mourning period for the industry’s industrial relations and the broader community.
"The ABCC was a sound and effective independent regulator that helped re-establish the rule of law to the construction industry," said HIA's industrial relations spokesman David Humphrey today.
"Moreover, economic benefits have flowed to the community at large from its law enforcement work over the last seven years."
"But the unfortunate reality is that the ABCC's work is far from finished and a culture of coercion and bullying subsists throughout much of the industry. Its abolition is certainly not welcomed by the housing industry."
The fact that the Government has gone much further than simply merging the functions of the ABCC into an inspectorate division of the Fair Work Ombudsman is of additional concern, said Mr Humphrey.
"The legislation that passed last night dramatically waters down the penalties for illegal conduct and allows for parties to that wish to avoid scrutiny to have the laws 'switched off' for certain projects."
"Worryingly, the new regime also permits those that engage in unlawful conduct to go unpunished when a so-called 'settlement' has been reached. These new laws, which potentially allow a lawbreaker to escape punishment by intimidating their victim into silence, benefit no-one but the unions in the building and construction industry."
HIA calls on the Government to now ensure that any regulations required to the support the legislation enhance rather than further water down the powers of the new body.
"The new Fair Work Inspectorate must be appropriately funded and resourced to ensure that right of entry abuses, standover tactics, and coercive pattern bargaining do not once again become stock standard in the industry," concluded Humphrey.
Master Builders chief executive Wilhelm Harnisch backed up the sentiments:
“As sure as night follows day unless the building unions change their entrenched practices there will be the need for another major inquiry into the industry’s unlawful industrial conduct because the practices that are only just being quelled now will return and once again become common place,” he said.
“The old practices of stopping concrete pours, overtly coercing and bullying subcontractors and creating an environment of fear are just around the corner. According to the ABCC’s latest Annual Report coercive practices remain an endemic issue. The new regulator will have fewer powers and lower sanctions to apply to this unacceptable practice. In 2010-11 the Courts imposed a total of $2.570 million in penalties across a range of unlawful behaviour, including unlawful industrial action, right of entry, sham contracting and coercion.
"The latest amendment which will prohibit the new Inspectorate from pursuing potential breaches of the law where an agreement between the contractor and the unions is reached further adds to the lack of power for dealing with unlawful industrial behaviour in the industry.
“Master Builders will now work co-operatively with Government to assist with the transition to a new regulator,” Harnisch said, “but at every step of the way we will be reinforcing the message that this unnecessary change is a huge and damaging mistake,” concluded Harnisch.
