Labor conference: Tough new rules for federal contractors back union rights

Companies tendering for government projects would need to abide by a code that seeks to enshrine union and worker rights.

CFMEU construction division secretary Zach Smith. Picture: Aaron Francis

Companies tendering for federal government projects could face criminal penalties if they do not abide by a new national code that enshrines union and worker rights under a procurement policy endorsed at the Labor national conference.

Delegates on Thursday backed the Secure Australian Jobs Code and on Friday will consider a detailed proposal from CFMEU construction division secretary Zach Smith setting out how the code would apply to projects including public-private partnerships, renewable energy and public housing ventures, and joint federal-state projects.

Under the proposal, companies tendering for projects would have to show they support “best practice workplace relations”, including rights for elected union delegates, apprenticeship ratios, and commitments to collective bargaining and direct employment.

The code would be implemented under the Public Governance, Accountability and Performance Act, with non-compliance to be addressed through “criminal, civil or administrative remedies”.

In a separate CFMEU-led move, Mr Smith said the union would push for delegates to support an outright ban on the manufacture, use and import of harmful engineered stone products.

A proposed amendment committed Labor to “consideration” of a ban but Mr Smith said unions wanted the wording strengthened to outright ban.

Unions, including the Australian Manufacturing Workers Union, will also push on Friday for more union representation on government boards.

Under the code, tenderers for government contracts would have to undertake a certification to ensure compliance with all relevant laws and adoption of best-practice workplace relations and health and safety practices.

Companies would be assessed for their “ethical treatment of workers”, which would be considered alongside other non-financial value-for-money assessments including ethical conduct.

The process would include an initial assessment and ongoing monitoring of successful tenderers for their adherence to the Fair Work Act including the right to bargain collectively and form, join and participate in trade unions; rights for elected union delegates, and; a commitment to direct employment.

It says tenderers should also support fair and reasonable wage and conditions, targeted apprenticeships for First Nations businesses and workers, and strategies to promote gender equality and women’s participation.

The code proposes specific measures for tenderers in the building, construction and manufacturing industries.

The code would be far-reaching, applying to commonwealth-purchased services as well as directly commonwealth-funded projects or where the commonwealth is primary or sole funder.

As well as public-private partnerships, public housing and renewable energy projects, the code would apply to any construction for the benefit of the commonwealth conducted under sale and leaseback or other diversified funding arrangements; fit out and other similar works for properties leased by the commonwealth, property services; transportation and shipping services, and; defence projects and services.

Mr Smith said the key purpose of the code was to ensure taxpayer dollars went to companies with the highest ethical standards.

“That doesn’t mean just in terms of paying taxes or compliance with environmental regulations or compliance with ethical standards but in the way they treat their workers, their track record on safety, how they promote the participation of women and First Nations people in their employment practices,” he said.

“Talking as a construction union official, we want to see the federal government, when it spends money on capital works, however that money is allocated, is directed to those companies that have the highest ethical labour standards,”

Senator Tony Sheldon told delegates Australia should “not be handing over contracts to companies which breach worker health and safety laws”.

“We should not be handing over contracts to companies which engage in union busting, will persecute union delegates, or which profit from insecure work by implementing a secure straight jobs code,” he said.

“Not only can we cut the shonky employees out of public contracts, but we can use the economic power of government to promote good and safe and secure jobs with good wages, skilled productivity boosting jobs.”

Mr Smith said the CFMEU was confident the proposed ban on the manufacture and use of engineered stone would get “across the board” support from delegates.

“This is a Labor Party conference, this is a conference of the workers’ party,” he said. “We would anticipate the conference would support a position of protecting workers’ safety because we know one in four workers using these products are developing silicosis. That will be a very significant outcome. You’d have to go back to the campaign over asbestos to see action such as this.”

Meanwhile, Electrical Trade Union Queensland secretary Peter Ong slammed the federal government’s “disgraceful” decision to sign off on an agreement to bring 400 overseas workers to Australia to work on the ­nation’s biggest electricity transmission project.

“Not one apprentice is in that agreement, no targets for First Nations people, no targets for women in our industry. It‘s an absolute disgrace and it needs to be fixed.”