Contractors’ bid to cut CFMEU power on projects

The Civil Contractors Federation wants policy changes to reduce labour costs and dilute CFMEU influence.

Contractors want to dilute the CFMEU’s power on projects. Picture: John Appleyard/NewsWire

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Civil contractors are pressing for a raft of policy changes to reduce labour costs and dilute union influence on government projects, insisting further action was required to eradicate coercion and bullying on building sites.

In a pre-election pitch to Labor and the Coalition, the Civil Contractors Federation, which represents over 1900 companies across the construction chain, said placing the CFMEU’s construction division into administration was a welcome first step but substantive reforms to procurement policies, enterprise agreement structures and regulation of union conduct had to be tackled.

In a letter to Workplace Relations Minister Murray Watt, CCF chief executive Nicholas Proud said the current industrial relations framework had, in many instances, enabled restrictive and anti-competitive practices that undermined productivity, inflated costs, and limited access to government-funded projects for small and medium contractors.

The CCF wants the guidelines that mandate above-award pay and conditions across government-funded projects scrapped, and the Fair Work Act amended to allow subcontractors to operate under their own agreements rather than have to comply with the head contractor’s enterprise agreement.

It wants the fit and proper person test criteria for holding a right of entry permit expanded to include evidence of previous threatening or menacing behaviour including intimidation.

It says union officials should be banned from holding office if they cannot hold a right of entry permit. The federation said an eligibility test should be introduced for union agreements that would require a union to show they have majority support of employees, and an independent construction regulator should be re-established.

Senator Watt said on Wednesday the government was committed to fostering a better construction industry for all involved, to deliver the infrastructure and homes that Australians needed, and ensure safe workplaces for construction workers.

Workplace Relations Minister Murray Watt. Picture: Martin Ollman/NewsWire

“The government recognises the importance of industry representatives playing a key role in that reform,” he said. “We’re pleased to work collaboratively alongside the CCF and other industry representatives through the tripartite National Construction Industry Forum, to bring real long-term change to challenges in the industry, including industry culture. Work is well-underway on the NCIF Blueprint which aims to address these challenges.”

Peter Dutton said this week that if the Coalition won the looming federal election, his government would set up a new Australian Federal Police-led taskforce, deregister the CFMEU, reintroduce the building watchdog, tighten the fit-and-proper-person test, increase penalties and bring in changes based on the Racketeer Influenced and Corrupt Organisations laws in the US.

Mr Proud said the Albanese government’s decision to put the CFMEU into administration was welcome but more was required.

“Ahead of the next election with policies in workplace relations to be released there is an opportunity for the next federal government to continue this momentum of reform and consider the steps that will improve the culture on worksites to deliver the enabling infrastructure that brings homes, transport and renewable energy projects that voters are calling for,” he said.

“Over the past year, the federal government has co-operated with industry and unions to strike a balance between worker protections and the need for a competitive, productive, and better-regulated construction industry.

“The events of 2024 highlighted the need for stronger oversight and balanced industrial relations policies that prevent the misuse of bargaining power while ensuring fair outcomes for workers and businesses alike.”

Opposition employment spokeswoman Michaelia Cash said Anthony Albanese and Senator Watt had “spent their entire political careers doing the bidding of the CFMEU. That is why they abolished the ABCC and that is why they won’t bring it back.” she said.

“The CFMEU has spent $11.5 million supporting the Labor Party since Mr Albanese became leader. Only Peter Dutton and the Coalition will deregister the CFMEU, reinstate the ABCC with increased powers and clean up the construction sector.”