Enterprise Unions to Improve Construction Industry Culture

The shocking corrosion in the conduct of the CFMEU and others in the construction industry requires a multi-pronged response.

A response with considerable potential is for the Federal Government to amend the Fair Work Act to facilitate the registration of new and competing unions, such as enterprise unions.

"The culture within the Victorian CFMEU has become so deeply toxic that it's time to break their hold and allow other unions to operate within the building and construction industry," The H.R. Nicholls Society's Senior Research Fellow John Lloyd said.

"Last Tuesday's march highlights how contempt for the law is embedded in the culture of the CFMEU.  A culture of 'us against the world' has taken root within the amalgamated union and the Administrator faces a significant challenge in making lasting changes."

The Federal Government should: -

• Remove the existing organisations and 'more conveniently belong' barriers to the registration of new unions from s 19(1)(j) of the Fair Work (Registered Organisations) Act 2009. 
• Allow new and competing unions, including enterprise unions, to register subject to meeting core obligations such as genuineness, freedom from improper influence, and complying with electoral and financial obligations.  

"Employees who believe that a union is disconnected from their interests would, if so inclined, be able to form an enterprise-specific union. It would have a legal identity and displace the registered organisation from representing the members of the enterprise union," Mr Lloyd said.

"The vast majority of workers in Australia choose not to join a union, with private sector union membership at an all-time low of 8 per cent. Last Tuesday most workers in the Australian construction industry choose to ignore the agitation of union leaders that they down tools to attend rallies.”