Future Made in Australia aid ‘not a trough for unions’, says Business Council of Australia

Big business has demanded Labor take action to ensure unions cannot exploit the $22.7bn in industry support set to flow under the government’s flagship Future Made in Australia agenda.

Business Council chief executive Bran Black. Picture: NewsWire / Martin Ollman

Big business has demanded Labor take action to ensure unions cannot exploit the $22.7bn in industry support set to flow under the government’s flagship Future Made in Australia agenda, arguing not enough has been done to ensure the program avoids the problems caused by the CFMEU in the construction sector.

Also calling on the federal government to launch an independent inquiry into the embattled construction union, the Business Council of Australia said a probe would help prevent future unlawful behaviour tied to the $22.7bn in taxpayer funding on offer under Labor’s industry agenda.

BCA chief executive Bran Black told The Australian there needed to be assurances in the Future Made in Australia legislation that trade union involvement was not required for projects that won government funding under the scheme.

“The BCA is concerned that the government’s Future Made in Australia legislation could pave the way for union-mandated agreements,” Mr Black said.

“Recent revelations regarding the CFMEU’s alleged criminal and corrupt conduct mean it will be essential that the principles contained in the Future Made in Australia legislation do not enable an environment in which such conduct can flourish.”

Announced in April, the ­Future Made in Australia plan provides projects – such as critical mineral and green hydrogen production – with subsidies, tax credits and loans to support the net-zero transition and bolster economic security. Solar panel manufacturing and quantum computing development have ­already been pledged $1bn in taxpayer funds via the plan.

But under legislation introduced by Jim Chalmers last month, recipients in line for funding are required to detail how they adhere with several “community benefit principles”, including the promotion of “safe and secure jobs”.

According to the bill’s ­explanatory memorandum, the jobs are characterised by “more stable and certain hours of work and leave entitlements”, “generally involve permanent and direct engagement by the ­entity conducting the enterprise or undertaking” and meet “prevailing sector- or industry-standard pay and conditions”.

These requirements, the BCA argued, risked requiring union endorsement of workplace agreements across Future Made in Australia contracts. “The principles, while positive in the broad sense, do risk ­increasing costs and duplicating other workplace protections ­already in place,” Mr Black said.

“There’s a real risk that setting union-endorsed agreements as part of government procurement requirements can limit competition and subsequently ­increase costs.”

Also raising concern for the BCA was the ability for the Treasurer under the legislation to add additional community benefit principles “to ensure that the principles evolve with community expectations”.

Asked if the Future Made in Australia plan would require union-endorsed workplace agreements, a spokesman for the Treasurer said: “Our Future Made in Australia legislation is all about unlocking private sector ­investment to build a stronger, more diversified and more resilient economy powered by renewable energy that creates secure, well-paid jobs.”

But a government source ­denied the legislation introduced by Dr Chalmers required union workplace agreements on all projects, and claimed such measures were not being contemplated.

Australia is among a host of Western economies that have unleashed a flood of subsidies for green and hi-tech industries to ­assist in the net-zero transition and bolster economic resilience.

However, comparable industry schemes abroad also raised alarm bells for the BCA, as they demonstrated that unions frequently had a role in wage setting before recipients received government support.