THE Baillieu government is set to appoint its own construction industry watchdog in a bid to rein in the power of building unions in Victoria and to counter the Gillard government's decision to abolish the federal building watchdog.
The state's move comes amid a looming threat of industrial chaos on Victorian building sites in response to construction giant Grocon offering its workers a non-union agreement its first such move in a decade.
The new role of Victorian building watchdog has been offered to Nigel Hadgkiss, the man appointed by the Howard government 10 years ago to establish the soon-to-be-disbanded Australian Building and Construction Commission.
A government source confirmed to The Age that Mr Hadgkiss had been approached by the Baillieu government to act as its construction watchdog, with special powers.
Mr Hadgkiss is likely to be responsible for enforcing a new Victorian building code modelled on one introduced by the Howard government that will require bidders on state projects to ban "unlawful or undesirable" workplace practices and respect freedom of association.
Mr Hadgkiss, who declined to comment when contacted by The Age, was appointed to head the Howard government's building taskforce in 2002.
The taskforce was the predecessor to the ABCC and was set up as a result of recommendations made by the Cole royal commission into lawlessness in the building industry.
Mr Hadgkiss was later appointed deputy director of the ABCC, a role he left in 2008. At the time of his resignation, he said: "I applaud the government's commitment to maintaining a 'Strong Cop on the Beat' for the building and construction industry."
Earlier this year, the Gillard government moved to abolish the ABCC, a move applauded by the union movement but slammed by conservative state governments.
The move for a Victorian watchdog comes as Australia's biggest privately owned construction company, Grocon, risks industrial chaos on its Victorian sites by offering its workers a non-union agreement.
Last Thursday, powerful Labor Party-affiliated construction union the CFMEU applied to Fair Work Australia for approval to hold a ballot to begin industrial action against Grocon.
Less than 24 hours later, Grocon launched its move to push through a non-union-endorsed enterprise bargaining agreement by writing to workers and asking them to vote in a secret ballot about whether they wanted to accept the deal.
The decision by Grocon to hold a vote on a non-union agreement looms as the next industrial relations headache for the Baillieu government, which has endured gruelling negotiations with the police and nurses unions. It is understood state and federal ministers have been briefed on Grocon's decision.
The provocative move by the company comes after the breakdown of lengthy negotiations between Grocon and the CFMEU about reaching an agreement on a union-endorsed EBA.
It is understood Grocon senior executives decided to abandon negotiations with the union after it refused to drop demands that Grocon allow members to fly union flags on Grocon sites, employ its stewards and allow union officials unfettered access to building sites.
Existing laws require union officials to give 24 hours' written notice before entering a site.
Grocon's workers will have until the end of this month to vote on the non-union-endorsed deal, which offers them a 24.5 per cent pay rise, including increases in overtime, superannuation and other benefits. The CFMEU declined to comment when contacted by The Age.
A source close to Grocon said the company's move was about ensuring its operations were not dictated by unions. "This is not about wage increases or reaching a fair agreement because Grocon is offering both. It is about Grocon refusing the union demands about how it runs its business."
Frequently Asked Questions about this Article…
What is the Baillieu government proposing with a new construction industry watchdog in Victoria?
The Baillieu government plans to appoint a state construction industry watchdog to rein in the power of building unions in Victoria and to counter the federal government's move to abolish the Australian Building and Construction Commission (ABCC). The watchdog will have special powers and is intended to enforce a Victorian building code that targets unlawful or undesirable workplace practices.
Who is Nigel Hadgkiss and what role has he been offered in relation to the Victorian building watchdog?
Nigel Hadgkiss, who helped establish the ABCC under the Howard government and later served as its deputy director until 2008, has been approached to act as Victoria’s construction watchdog. He would likely be responsible for enforcing the new Victorian building code and would operate with special powers.
Why is Victoria modelling its new building code on the ABCC-style rules?
The proposed Victorian building code is modelled on one introduced by the Howard government and the ABCC era to require bidders on state projects to ban ‘unlawful or undesirable’ workplace practices and to respect freedom of association. The state move aims to fill the enforcement gap after the Gillard government moved to abolish the federal ABCC.
What has Grocon done on its Victorian sites and why could this matter to investors?
Grocon has offered its workers a non-union enterprise bargaining agreement and asked them to vote in a secret ballot — its first such move in a decade. The company’s decision risks industrial unrest on Victorian sites, which the article describes as a looming threat of industrial chaos. For everyday investors, that kind of disruption can affect construction timetables and operations, which are material to company performance.
What are the key terms of Grocon’s non-union offer to workers?
Grocon’s non-union-endorsed deal offers workers a 24.5% pay rise, including increases in overtime rates, superannuation and other benefits. Workers were given until the end of the month to vote on the offer.
Why did negotiations break down between Grocon and the CFMEU?
Negotiations broke down after the CFMEU insisted on demands Grocon refused to accept, including allowing union members to fly union flags on sites, employing union stewards, and giving union officials unfettered access to building sites. Grocon said the move was about how it runs its business rather than wages, since it was offering pay increases in its deal.
What action has the CFMEU taken in response to Grocon’s non-union bargaining move?
The CFMEU applied to Fair Work Australia for approval to hold a ballot to begin industrial action against Grocon. The union declined to comment to the media when contacted for the story.
Are there existing rules about union access to building sites mentioned in the article?
Yes. The article notes that existing laws require union officials to give 24 hours' written notice before entering a building site, a point Grocon cited when rejecting the union’s demand for unfettered site access.
Call 1300 880 160
Start a chat
Schedule a call
