Union militants warned: ‘I’m not for turning’, says Michaelia Cash

Employment Minister launches stinging attack on “militant’’ construction union that “pulls strings of the Labor Party’’.

Michaelia Cash

Michaelia Cash has launched a stinging attack on the “militant” construction union that “pulls the strings of the Labor Party” as she claimed Margaret Thatcher as an inspiration in her battle to introduce workplace reforms.

The Turnbull government’s new Employment Minister accused unions of running fraudulent campaigns based on “lies” on matters from the granting of 457 visas for foreign workers to the China Free Trade Agreement and penalty rate reform.

In an interview with The Australian, Senator Cash took aim at Construction Forestry Mining and Energy Union national secretary Michael O’Connor, whose advocacy has helped defeat the Coalition’s attempts to beef up the industry watchdog’s powers, and his brother Brendan O’Connor, Labor’s workplace relations spokesman, saying both “undertake campaigns of fear based on deliberate misinformation”. She vowed to take “very seriously” the findings of the trade union royal commission as she reaffirmed her “fundamental belief” in legislation to curtail union power.

She backed the prospect of changes to unfair dismissal laws and bargaining rules, signalling a desire to put these reforms to the people at the election due next year. On penalty rates, which she declared an “unfair flashpoint” issue in the community, Senator Cash said: “The basic framework of the case is, in 2015, does the work cycle reflect what it did 10, 15, 20 years ago?” Back then, she says, “Sundays were sacrosanct, but we are now in a global society. How do we remain globally competitive?”

She noted that a variation on enterprise contracts proposed by the Productivity Commission, could improve relations between workers and employers. “Looking at individual flexibility agreements and how we can actually beef them up so you do get more of the one on one relationship with the employer,” she said.

“What could we do to ensure that employers and employees can themselves negotiate those flexibilities? ”

Senator Cash said she would hold firm against union scare campaigns in marginal seats and press the case for reform. “Once I am in possession of the further independent evidence … and an independent body has said ‘This may need to be looked at’ ... I can say: ‘This is independent evidence, this is independent advice, I will now consider it.’ Then we will come up with an election policy.”

The two key “triggers” that Senator Cash will rely upon to formulate any new evidence-based reform package include the Productivity Commission review of workplace laws and the final report of the trade union royal commission. This would mirror the approach by Thatcher, the British prime minister who smashed the unions in the 1970s and 80s.

Senator Cash said Thatcher was an inspiration in terms of developing a case for change.

“What inspired me about Maggie Thatcher was that she was literally one of the few female leaders in what was, at that time, well and truly a male world. She didn’t take a step backwards.

“But I would also say that she laid the groundwork before she came to a policy decision.

“ I am going to lay the groundwork, I am going to establish an evidence base before I start determining whether or not I should take new policies to cabinet.’”

The government has so far failed to pass its key industrial relations legislation through the upper house, including its plans to introduce a Registered Organisations Commission and reinstate the Australian Building and Construction Commission.

The government’s plans have been actively opposed by the CFMEU’s Michael O’Connor along with Brendan O’Connor, whom Senator Cash described as “peas from the same pod”.

“Certainly, however, they are both mouthpieces for the CFMEU, and the CFMEU is one of the unions that undertake campaigns of fear based on deliberate misinformation.”

“They are militant, they don’t play by the rules and they should be held accountable — it’s as simple as that.”

She was keeping a close eye on the royal commission, which has already referred at least 26 union and ex-union officials to law ­enforcement agencies and regulators.

At least 19 of those are current or former officials or associates of the CFMEU.

“There has certainly been some exceptionally disturbing evidence coming out of the royal commission in relation to the comings and goings of certain union officials,” she said.