By Andrea Hayward
Union thugs will be back in charge if Labor succeeds in scrapping the building industry watchdog, the federal opposition says.
But unions argue the government hasn't gone far enough in a bill that would allow the federal government to replace the Australian Building and Construction Commission (ABCC) with a new body, the Fair Work Building Industry Inspectorate.
The government says its bill, introduced to the lower house on Thursday, provides "a framework for co-operative and productive relations" in the building industry.
It follows Prime Minister Julia Gillard's indications to caucus last month that the construction industry watchdog could be disbanded and replaced before the end of year.
Opposition workplace relations spokesman Eric Abetz says the new arrangements will leave workers unprotected and unleash industrial unrest on worksites around the nation.
The ABCC was set up by the Howard coalition government in 2005, in response to the Cole royal commission, to clean up the building and construction industry after a run of industrial disputes and allegations of corruption.
"By keeping disputes to a minimum the ABCC has helped to increase productivity and lower construction costs around Australia while ensuring safe and harmonious working environments for workers," Senator Abetz said on Thursday.
The bill would strip away the protections that workers in the industry enjoy and lead to union militancy, he said.
"Make no mistake, this bill will mean unrest on building and construction sites right around Australia and a return to the 1970s with the union thugs in charge of what gets built and when depending on the size of the bribe," Senator Abetz said.
Construction Forestry Mining and Energy Union (CFMEU) national construction secretary Dave Noonan said the legislation was a good start but didn't go far enough in ending the ABCC's attack on workers' rights.
"It is crucial the final legislation not only scraps the ABCC but does not transfer its coercive powers to another organisation," Mr Noonan said.
Mr Noonan said the approaching end of the ABCC had provoked a flurry of misinformation and baseless allegations from "anti-union zealots".
Australian Industry Group chief executive Heather Ridout said the reduction in the maximum penalties from $110,000 to $33,000 for people who broke the law would send entirely the wrong message to the courts.
"Unless a strong, well-resourced regulator and strong legislation is maintained the risks associated with industrial lawlessness will again be priced into construction contracts, at great cost to projects owners and the Australian community," she said.
"It is clear that the ABCC is playing an important and effective role and is needed today as much as ever."
Australian Chamber of Commerce and Industry workplace policy director David Gregory also said shutting down the ABCC and handing down a watered down set of powers to the inspectorate would send all the wrong signals to industry participants.
Mr Gregory added that the ABCC had tackled some of the "worst aspects of behaviour" in the industry and the proposed legislation has the potential to put all that at risk.
The Victorian coalition government launched draft industrial guidelines last month to stamp out what it views as unlawful behaviour by unions on construction worksites that has led to massive cost blowouts on major projects.
A spokesman said the abolition of the commission would give unions a green light for further misbehaviour in the state's construction sector.
"A strong ABCC is critical to containing construction costs, which are escalating in large part because of what is effectively pattern bargaining throughout the building industry and a persistent culture of unlawful industrial action," the government said in a statement.
"The Gillard government has not consulted Victoria on its policy to abolish the ABCC and needs to listen to the states and territories."