Work shutout: FWBC targets bosses doing CFMEU side deals

The building industry watchdog is targeting firms that strike side deals with the CFMEU.

The building industry watchdog has opened a new front in its bid to cut the construction union’s power, targeting firms that strike side deals with the union to drive membership.

In another move that threatens union power, the Fair Work Building and Construction inspectorate has begun policing construction companies that agree to promote union membership through “unregistered written agreements” that breach the Building Code.

The Australian has learned the watchdog has already targeted one builder for striking a deal with a union that committed the company to “positively promote union membership at the point of recruitment by strongly recommending that all employees join ... (the) union.”

While the FWBC has focused since its creation on breaches of the Fair Work Act, it has moved to a policy of strict enforcement of the Building Code.

Contractors operating under a side deal outside the scope of their enterprise agreement or the award are breaching the code.

In May, the agency announced it had appointed Cathy Cato to the role of national manager, Building Code.

“The industry can expect to hear a lot more about FWBC ­enforcing the Building Code 2013 as part of our continued efforts to tackle ­unlawfulness on Australia’s building projects,” Ms Cato told The Australian:

She said businesses that struck illegal side deals could be banned from working on Commonwealth-funded projects.

“Where serious breaches occur, we will not hesitate to ­report them to the Code Monitoring Group, which may make recommendations to the minister regarding exclusion sanctions.

“The sanction may include being banned from working on commonwealth-funded projects.”

Ms Cato called on contractors who had signed deals to come ­forward “urgently”.

“Under freedom of association laws, workers must be free to be a member or not be a member of a union,” she said.

“Under the Building Code, building contractors must pro­actively protect freedom of association rights.”

The watchdog previously has signalled it would target firms that “colluded” with unions as part of its rearguard moves to undermine the Construction Forestry Mining and Energy Union.

In July, it announced its first “anti-discrimination” case in the federal court, against Adco Constructions, for agreeing with the CFMEU to “black ban” non-union labour.

The construction union is making a complaint against the FWBC to the UN’s International Labour Organisation, saying it is using its powers to unlawfully ­hinder industrial action.

Labor and the unions are also fighting the government’s ­attempts to pass laws that will ­restore the Australian Building and Construction Commission, a more powerful incarnation of the FWBC.