E&OE
Kieran Gilbert
Welcome to the program. The government party room is meeting here in Canberra this afternoon ahead of the first sitting of the Parliament; the 47th parliament since the federal election. One of the big issues already that’s erupted is the scrapping of the construction watchdog. Yesterday, the workplace minister indicated he’d be moving immediately to rein in its powers followed by scrapping it all together. Let’s bring in the Shadow Minister for Employment and Workplace Relations, Michaelia Cash, who’s with me in the studio, thanks so much for your time. Labor says that this move will only see some elements of the construction watchdog go and what they would call the illegitimate functions of the Building and Construction Commission. Everything else will be done by the Fair Work Ombudsman. Why is that not the right course of action?
Senator Cash
Well, I can tell you, Kieran, talking to stakeholder after stakeholder over the last 48 hours, the building and construction industry across Australia are in complete chaos with Labor’s announcement on Sunday. Yes, Labor had said they’d abolish the building watchdog. But the construction industry thought that there’d be consultation and there’d be a transition. To literally be given next to no notice that your industry is being handed back to the most militant union in Australia, says that this government has no respect for the building and construction industry in Australia, but more than that, given everything our economy has been through over the last two years, they are prepared to put at risk the fifth largest industry, 8% of GDP, 1.1 million employees. Why? Because their paymaster the CFMMEU says they have to.
Kieran Gilbert
Was the Building and Construction Commission guilty of overreach at certain times, pursuing unions over logos, over flags, even safety signs brought down because there’s a union logo on it?
Senator Cash
Tony Burke is blatantly misleading the Australian public by saying that. There is no provision in the building code for the ABCC to bring an action against a worker or a union for the displaying of logos excetera. They are however able to bring an action against a contractor that is actually subject to the code. In the case that Tony Burke refers to, it was the Lendlease case. The ABCC did not bring the action, Lendlease did. What Lendlease were allowing on their site was in lunch rooms, stickers, etc. being displayed, “united we stand”, “we support John Setka”, the Eureka flag was being flown on two cranes.
Kieran Gilbert
So why is it inappropriate to have a Eureka flag?
Senator Cash
Because freedom of association rules, which we all believe in in Australia, state you cannot pressure me to join a union. Freedom of association, fundamental to the way our workplace relations system works. The Eureka flag has long been held by courts as a very clear sign: this is a closed workshop, you need to be a member of the Union. So when the one case that Tony Burke refers to, guess what? The courts found in favour of the ABCC in relation to the compliance notice it had issued to Lendlease.
Kieran Gilbert
So why can’t the Fair Work Ombudsman undertake the actions, the provisions? Or the police? If there’s criminal behavior, why can’t the police or the Fair Work Ombudsman pick this up?
Senator Cash
And again, Tony Burke completely misleading the Australian people. Even under Rudd and Gillard, they commissioned Mr. Murray Willcox to do an inquiry into the construction sector way back when they were last in government. Even they understood that because of the unique nature of the building industry across Australia, because of the thuggery, the chaos and the vile behavior, they need a very, very specific building regulator. So even under Rudd and Gillard, although it was pared back, you had the building watchdog. The FWO themselves cannot undertake the current cases that are on foot, and there are some incredibly serious cases and in particular, in relation to vile, vile behavior against women on construction sites. You would actually need to amend the Act to allow the FWO to do this. So when is Labor going to do this? Because they’ve given no indication at all. So there are so many flaws in what Tony Burke is putting forward to the Australian public. But the saddest thing is, at this time the economy can ill afford the abolition of the strong building watchdog.
Kieran Gilbert
If they do amend that legislation, those other bodies, particularly the Fair Work Ombudsman can pursue those cases.
Senator Cash
The Fair Work Ombudsman will need to be properly resourced. They currently do not have the capacity to do this. They do not know how to do this. And again, it goes all the way back to the Willcox inquiry under Rudd and Gillard. Even Mr. Murray Willcox and former Prime Ministers Rudd and Gillard, they realised the harassment, the bullying, the intimidation within the construction sector is so bad. It is like no other industry in Australia, and the harm to the economy as a result of delays, you know, days lost due to industrial action. But more than that, the harm to workers being abused, being bullied, being harassed was such that you must have a strong building regulator in Australia. Fundamentally, your argument is as it has been for a long time, that it can’t be the same rules as every other sector because for those building workers, or the unions, who might be saying, “why can’t we just be ruled under the same rules as everyone else?”. Because the behaviour of the CFMMEU, as found most recently by the High Court of Australia, where they said, they are recidivist breaches of the act. They utilize the fines that are handed down against them as merely the cost of doing business. That is the High Court of Australia.
Kieran Gilbert
And things like drug and alcohol testing.
Senator Cash
I cannot believe they’re getting rid of that you’ve got to be kidding me.
Kieran Gilbert
But Work Safe, wouldn’t that go within the Work Safe laws of a particular state?
Senator Cash
How will they do that? How will they police that? Again, there is a reason that you have a very specific regulator, because court after court have found the behavior of this militant union is such that only a specific regulator, unique to the building and construction industry, will rein them in. But more than that, Kieran. What about the economy? What about the economic impact? Master Builders commissioned a report by Ernst and Young. Ernst and Young have found that the abolition of the ABCC will between now and 2030 see a hit to our economy of $47.5 billion dollars.
Kieran Gilbert
Caused by what?
Senator Cash
No longer having a tough cop on the beat. The chaos that will soon ensue. The bullying, the harassment, the intimidation, the delay in projects, the increased costs, because of the delay in projects.
Kieran Gilbert
Harassment and all those points you you refer to again, why wouldn’t the police be able to undertake any course of action there?
Senator Cash
They don’t have the capacity to do this because it’s breaches of the Fair Work Act. Again, this is very, very specific behaviour that Royal Commission after Royal Commission, court after court have found.
Kieran Gilbert
Surely harassment, isn’t that criminal? If it happens on a repeated basis?
Senator Cash
And it certainly depends on what type of harassment it is. But again, that’s not the point. The point is court after court after Royal Commission after Royal Commission, even former Prime Ministers Rudd and Gillard, they recognized the chaos, the intimidation, the bullying, the thuggery within this industry was such that it needed to be stopped. You stopped it by having the building watchdog. Labor, I mean they take money from the CFMMEU, they are literally handing over this industry tomorrow. The industry is in total disarray today due to the CFMMEU. The economy cannot afford that.
Kieran Gilbert
So when you talk about the the impact on sites and so on, are you talking about the major construction sites? Are you talking about the local house builders and so on?
Senator Cash
Look, there’s 1.1 million employees and anybody who is subject to the building code in Australia. So you’re a building company you want to undertake Commonwealth Government work. The minute you submit the tender, you become subject to the building code, and any work you do become subject to the building code. That will be gone. Those protections afforded to the building industry and workers in Australia will be gone. And quite frankly, it is economic vandalism to do this.
Kieran Gilbert
Shadow Employment and Workplace Relations Minister Michaelia Cash, thanks. Appreciate your time.
Senator Cash
Great to be with you Kieran.
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