‘Chaos’: Nervousness and warnings as Labor muzzles watchdog

Queensland building companies are nervous about increased union activity, with the Federal Government to strip the construction watchdog of powers.

Queensland building companies are nervous about increased union activity in the wake of the Federal Government’s snap decision to strip the construction watchdog of a range of its powers.

Labor promised to abolish the Australian Building and Construction Commission if it won government, saying it was a “discredited and politicised” organisation, and doing so will require the support of Parliament.

Workplace Relations Minister Tony Burke announced on Sunday morning, ahead of the new Parliament sitting for the first time this week, the Government would used regulation to strip it of a range of powers effective from Tuesday, circumventing the need for legislation.

Workplace Relations Minister Tony Burke. Picture: Liam Kidston

It will also use October’s budget to defund the ABCC.

The Coalition warned it would bring “chaos” to the construction industry, saying days lost to industrial action tripled in 2012 when the ABCC was abolished the first time.

Queensland frequently has the highest amount of alleged unlawful industrial action on construction sites in the country, sparking fears from the industry it will be hit hardest by the changes.

Mr Burke said he was pulling back the powers of the ABCC to “the bare legal minimum”.

“A lot of what it’s been doing can appropriately be done by another regulator,” Mr Burke said.

“We will no longer be spending taxpayers’ money determining what sticker someone’s allowed to put on their helmet … or what flag might be flying at a building site.”

Master Builders Queensland CEO Paul Bidwell said the industry had not been provided any detail about the government’s snap announcement.

“We were resigned to the fact that they were going to abolish the ABCC, but were hopeful there would be something in place to enforce the laws that are impacted,” he said.

“The ABCC has helped curb union misbehaviour. That behaviour increases costs and reduces productivity.”

Master Builders Queensland CEO Paul Bidwell. Picture: Tertius Pickard

Mr Bidwell said Queensland will cop the brunt of any increased industrial action, “if history is anything to go by”.

“Builders big and small have a level of nervousness. Big and small have expressed more concern about what it will look like,” he said.

“Queensland has been at the forefront of that behaviour.”

Opposition workplace relations spokeswoman Michaelia Cash said working days lost rose from 24,000 in 2011-12 to 89,000 in 2012-13 when Labor last abolished the ABCC.

“We can now expect jobs will be lost, one of the nation’s most militant unions the CFMMEU will run riot, building costs will skyrocket and large and small businesses will fold,’’ Senator Cash said.

ETU national secretary Michael Wright said it was a “no-brainer” to scrap ABCC.

“Because of this reform, unions like the ETU will be able to strike deals with employers that lead to safer jobs and stronger workforces that better represent Australia,” he said.

The ABCC won 102 out of 109 of the cases it has taken to court since it was re-established in December 2016, according to its latest data, 28 of which were in Queensland.