Employers lash Coalition on union merger

Employers have blasted the Coalition for failing to pass laws to stop merger of militant construction and maritime unions.

Master Builders Australia chief executive Denita Wawn said construction companies were disappointed the government ‘didn’t take the opportunities that presented themselves to get the public-­interest test over the line’. Picture: Richard Jupe

Employers have branded the Turnbull government “missing in action” after it failed to stop the merger of the two most militant unions into a left-wing super-union with assets of $310 million and annual revenue near $150m.

Mining and building employers said last night they were considering appealing against the Fair Work Commission decision to ­approve the merger of the ­construction and maritime unions into a cashed up 144,000-member union.

The Australian Mines and Metals Association criticised the Coalition for failing to deliver on its 2016 federal election “priority” commitment to pass laws designed to torpedo the merger by subjecting union amalgamations to a public interest test.

It called for the government to try to get the Ensuring Integrity Bill though the Senate before the amalgamation was due to come into effect on March 27.

“It’s very disappointing that the government has been missing in action on this issue,” said AMMA director of workplace relations Amanda Mansini.

“We can’t imagine two more militant unions with better ­capacity to inflict damage on the Australian economy. This may well develop into a national crisis.”

“If the government can’t get this legislation through the Senate in the next 20 days, they may as well throw it on the scrapheap.”

Workplace Relations Minister Craig Laundy said passing the bill before the amalgamation date would not have an impact on yesterday’s decision because it was not retrospective.

Employers are considering seeking a stay of the merger approval and an appeal to a commission full bench or the Federal Court. The AMMA is seeking support from its members to fund any challenge.

Master Builders Australia chief executive Denita Wawn said construction companies were disappointed the government “didn’t take the opportunities that presented themselves to get the public- ­interest test over the line”.

“We are in discussion with counsel about what are the potential next steps,” Ms Wawn said. “But we will take all appropriate action to stand up for the interests of our members,”

Former employment minister Michaelia Cash announced plans to subject the planned merger, which also includes the Textile Clothing and Footwear union, to a public-interest test in 2016, claiming it would be a “priority election policy”.

 

The government’s bill says the commission must have regard to the compliance record of unions and the impact a merger would be likely to have on employers. The government has yet to put the bill to a Senate vote.

In his decision, commission deputy president Val Gostencnik noted parliament had yet to pass laws that made the compliance record of the unions a bar to approving their amalgamation.

“Lest it be said that … I condone any of the conduct for which any of the applicant organisations or various of their officials have been held to account by the courts, nothing could be further from the truth,’’ he said.

“On no view can it be said that the conduct is acceptable and judicial officers have, particularly over recent years, been unanimous in the strong and unequivocal language used to describe and condemn some of the conduct.

“But if that is to be a bar to the fixing of an amalgamation day in connection with the amalgamation of organisations under the Registered Organisations Act, then it is a matter for the parliament to decide and legislate accordingly. On my reading of the statute, it has not thus far done so.”

Mr Laundy acknowledged the commission had “no option” but to fix a merger date. He said there was limited grounds for the government to intervene in these matters, even when the merger can have a major economic impact.

He defended the government’s decision not to bring on the bill for a Senate vote.

“Late last year the balance of time in the parliament was set aside to deal with the same-sex marriage legislation,’’ he said. “Labor and the Greens were fundamentally opposed to the Ensuring Integrity Bill and don’t believe in the public interest being considered in such significant decisions.”