Employers urge Gillard to delay watering down of building laws

Employer groups have urged the Rudd Government to delay changes to building industry workplace relations legislation, claiming that the changes could increase costs and lead to more industrial disputes.

Workplace Minister Julia Gillard has announced plans to replace the building industry watchdog, the Australian Building and Construction Commission, with a new, yet-to-be-named building inspectorate.

The Government also wants to change the new body’s powers, including watering down the watchdog’s ability to force employers and employees to give evidence – a power that construction unions dislike.

Under Gillard’s proposed rules, the inspectorate’s coercive powers could be “switched off” for unions with a good record on a building site.

But the Australian Industry Group and Australian Constructors Association are most concerned with this change and argue it goes against the recommendations of a review of the building industry by former Federal Court judge Murray Wilcox.

“It is entirely inappropriate for the legislation to allow the compulsory examination powers of the Fair Work Building Industry Inspectorate to be “switched off”. This would seriously undermine the effectiveness of the laws and is inconsistent with the recommendations of the Wilcox Review on the safeguards required,” AIG chief Heather Ridout said.

The AIG also wants higher penalties for workplace breaches retained and for the new inspectorate to focus on unlawful industrial behaviour and actions, rather than issues such as underpayment of wages.

Her push has been supported by Wal King, chief executive of Leighton Holdings and president of the Australian Constructions Association.

“If the Fair Work Building Industry Inspectorate proves to be ineffective, the risks associated with increased industrial disruption to projects will be substantially heightened,” he said.

“This would lead to a return to the old days, where such higher risks had to be priced into construction contracts, leading to greatly increased costs for project owners…and the Australian community.”