ABCC bill could shut out companies

Companies risk being banned from working on federal projects because of deals that breach a proposed building code.

Employment Minister Michaelia Cash continues to resist employer calls to have the code apply only to deals made after the ABCC bill passes.

Thousands of companies risk being banned from working on commonwealth projects because they struck union-friendly workplace deals that breach a proposed national building code.

Analysis by The Australian of union “pattern deals” in Queensland and Victoria show they have many pro-union clauses that do not comply with the code that will take effect if the Australian Building and Construction Commission bill becomes law.

Contractors are warning of chaos if the federal government sticks with its plan for the code to apply to enterprise agreements struck since 2014. Companies must have agreements that comply with the code to tender for commonwealth work.

Last night Employment Minister Michaelia Cash continued to resist employer calls to have the code apply only to deals made after the ABCC bill passes.

Workplace lawyers, employers and union officials confirmed as many as 15 clauses across three pattern union agreements do not comply with the 2014 code.

The Construction Forestry Mining and Energy Union template agreement in Queensland gives the union the power to veto any employer measure to improve productivity, and requires subcontractors to pay their employees the same as the head contractors if the latter are paid more. The deal, which has been signed by at least 350 contractors, allows unions to hold stop-work meetings for up to four hours on full pay, requires employers to give unions employee details and gives union representatives a “standing invitation” to enter sites without notice or need to comply with right-of-entry laws.

The Electrical Trades Union pattern deal in Victoria says working hours can be changed only with union approval and requires employers to promote union membership to workers.

The CFMEU Victorian agreement, which has been agreed by 600 contractors, says employees cannot be employed as casuals for more than six weeks and potentially restricts payment for an annual picnic day to union members.

To become compliant with the new code, contractors would have to reach agreement with unions or employees to vary or terminate the deals. A new agreement would require a vote of employees and Fair Work Commission approval.

University of Adelaide law professor Andrew Stewart said it was likely the government would have to back down on insisting the code apply to deals struck in the past 2½ years.

However, Senator Cash told The Australian last night the new code had been available since April 2014.

“The government is confident that there are many building companies that will choose to comply with the code in order to be eligible to tender for commonwealth government work,” she said.

CFMEU construction division national secretary Dave Noonan said the unions considered where agreements had been struck lawfully “those agreements should prevail”.

Mr Noonan said the union was “not interested in the whole system collapsing’’ and was prepared to have talks with the government and employers about issues facing the industry, including safety.

Senior industry figures have been reluctant to publicly criticise the government’s position because they are concerned criticism would undermine its attempts to pass the ABCC bill. However, industry sources said the government had to shift ground.

“If they don’t, there won’t be anyone to build projects because there will be so many non-compliant contractors,’’ one senior employer figure told The Australian.

However, other contractors warned if the government caved in, the industry would be struck with the restrictive enterprise agreements until 2019.