As little as five years ago, the building and construction industry could be characterised as lawless – an industry where the ‘law of the jungle’ prevailed.
Stand over tactics, wildcat stoppages, abuse and thuggery were all endemic to the industry. This behaviour was destroying jobs, undermining industry and even threatening livelihoods.
In the years 2001 to 2004, almost half a million working days were lost to industrial disputes in the building industry.
For decades, industrial action has badly disrupted the building industry, delaying the construction of homes, offices, retail centres and hospitals. Industrial disputes have occurred for a number of reasons, including during Enterprise Bargaining Agreement (EBA) negotiations. In 2000, a dispute arose during the EBA negotiation (in which the CFMEU demanded a 24 per cent pay rise for a 36 hour week); this dispute saw tensions between building unions and building employers come to a head and threatened to disrupt the entire building industry for three months.
In 2001, the former Federal Government ordered a Royal Commission into the Building and Construction Industry. The Royal Commission commenced during a period of heightened industrial action across a number of industries, including the infamous waterfront dispute. Across the nation, industrial unrest across a number of industries was threatening the Australian economy, local businesses and jobs.
During the Royal Commission, Justice Cole heard evidence of bribery, extortion, coercion, assault, destruction of property, threats to life, use of pattern bargaining in wage negotiations, disregard for freedom of association and right of entry laws. Justice Cole stated that:
“Unlawful conduct detected in the Victorian building and construction industry (takes) many forms. On the unions’ side it included assaults, threats of violence, malicious damage to property, breaches of the secondary boycott provisions of the Trade Practices Act 1974 (C’wth), breaches of many of the provisions of the Workplace Relations Act 1996 (C’wth), breaches of orders of the AIRC, the Federal Court and the Victorian Supreme Court and breaches of tort law. On the employers’ side such conduct included underpayment of workers’ entitlements, breaches of OH&S legislation and breaches of the Workplace Relations Act 1996 (C’wth). In the case of employees, it included breach of their contracts of employment, often at the instigation of a union delegate.”
As a direct result of Justice Cole’s Findings, the Commission recommended the creation of an independent Government body which would end the lawlessness on building sites. To be effective, the Commission realised that the body required strong compliance and enforcement powers. This body, now known as the Office of the Australian Building and Construction Commissioner (ABCC), came into force on 1 October 2005. In addition, the Commission recommended the creation of separate legislation which would help address the specific challenges of the industry. The Building and Construction Industry Improvement Act 2005 (BCII Act) monitors and controls the conduct of all building industry participants. Due to the industry’s systemic abuse of the law, the BCII Act carries harsh penalties for illegal activity.
To find out more about the Royal Commission or the ABCC, please click on the links above!
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