Legislative change needed to terminate CFMEU Agreements
Urgent legislative change is needed to terminate CFMEU-backed Enterprise Bargaining Agreements crippling construction projects across Australia.
"The CFMEU scandal has exposed another significant flaw in our industrial relations system, namely, that our construction industry is stuck with shonky, overpriced, non-competitive EBAs," the H.R. Nicholls Society's President Frank Parry KC said.
"Currently, these EBAs cannot be varied or terminated without a vote of employees - but in this industry this effectively means the CFMEU. The legislative framework ensures these agreements will continue in force unless and until the CFMEU agree that they do not - and that won't happen.
"The Federal Government must amend the Fair Work Act to allow for the revocation of EBAs where either party has engaged in corrupt or criminal activity related to that agreement.
"Infrastructure Minister Catherine King's review of Government Business Enterprises is futile under the current legislation. Findings of illegality, criminal involvement, or total non-competitiveness will be inconsequential. Even if they are able to prove an agreement was established through coercion, threats, or preferential tendering, there is nothing the government, or any appointed inquirers, can do without legislative reform.
"The costly, non-competitive agreements with the CFMEU, especially on government projects, will persist. New agreements made with other unions that contain properly-negotiated terms consistent with government contracts will not override these existing EBAs.
"Moreover, these EBAs will set the baseline for labour conditions in the building and construction industry, baking in increased costs into future contracts.
"In essence, despite the scandal surrounding the CFMEU, nothing has changed. Business continues as usual. The CFMEU remains onsite, EBAs are still in effect, and taxpayer dollars continue to be wasted on agreements that were not competitively established."
