Gillard promises new laws to get tough on illegal strikes as employer fears grow

Federal Workplace Minister Julia Gillard has proposed giving the construction industry watchdog new powers to crack down on illegal strike action as mining giant Rio Tinto has become the latest employer to express concerns about the impact of industrial action on exports.

Gillard’s new proposal would allow the Government’s building inspector “to initiate or intervene in proceedings for contempt of court where a person does not comply with a court order”.

The proposal is seen as a way of cracking down on illegal strikes such as that seen last week in Western Australian at Woodside’s Pluto project, where construction workers defied an order to return to work from Fair Work Australia.

“It comes as no surprise that the sort of situations and locations the Government has in mind include the recent unlawful industrial action occurring in northern Western Australia,” Gillard said in a statement.

However, the proposals seem highly unlikely to become legislation, as they are part of Gillard’s wider push to replace the Australian Building and Construction Commission with a new body, Building Inspectorate.

Employers are unhappy with the plans to change the ABCC’s powers and the Opposition and Family First Senator Steven Fielding look certain to block Gillard’s legislation in the Senate.

In a leaked memo obtained by The Australian, Rio Tinto Iron Ore chief Sam Walsh expressed “disappointment” about the action on the Pluto project and has warned that the Government’s new IR laws seems could lead to an increase in industrial unrest across the Pilbara.

Rio, which has not negotiated with the unions since 1993 when it moved to negotiate directly with workers, will start negations with the Construction Forestry, Mining and Energy Union soon in coming weeks.

The eyes of the IR world are firmly fixed on Melbourne today as the Full Bench of Fair Work Australia prepares to hear an appeal against a decision to refuse an agreement made between Woolworths and the shop stewards union because it did not include a clause allowing compulsory arbitration.

The Australian Industry Group, the Australian Chamber of Commerce and Industry, the Australian Council of Trade Unions and the Federal Government have all sought leave to intervene in the appeal, with the employer groups and the Government backing Woolworths.