Industrial reform will drive Australia's construction industry
The Master Builders Australia has backed the Federal Government’s industrial relations reform.
MBA chief executive Wilhelm Harnisch said Australia’s productivity will be boosted by the industrial relations reforms announced yesterday by the Prime Minister.
“The building industry will benefit significantly from urgently needed labour market flexibility.
“The building and construction industry is one of the largest employers in the Australian economy with a record 810,000 people currently employed,” Harnisch said.
He said because of the relatively labour-intensive nature of the sector, the construction industry’s low level of international exposure and low use of information and communication technologies, improvement in productivity in the industry must come through the more efficient and flexible operation of the labour market.
“The building and construction industry suffers from illogical and unproductive practices, such as the rigid way in which unions want to impose a 36 hour week, reflected in the current virulent Queensland industrial campaign mounted by the CFMEU.
“The industrial relations system needs flexibility at the level of agreement making, but with robust enforcement where participants fail to meet appropriate standards of behaviour expected from all Australians,” he said.
Master Builders supports the Government’s commitment to restoring the rule of law in the building and construction industry.
“Flexibility with an appropriate safety net in place does not disadvantage workers. Such a system enables workplace arrangements to be tailored to the individual building site or workplace to increase productivity at the micro-level. Small increases in productivity can compound over time and increase the prosperity of nations.
MBA executive director Graham Cuthbert said the introduction of stronger laws will help curb and end the building and construction industry’s lawlessness.
“ Queensland commercial builders, particularly in the Brisbane CBD, are facing intense pressure as a result of, what we determine to be, unlawful industrial action.
“ Queensland’s current enterprise bargaining agreements officially expire on October 31 2005 but building unions are pushing for new agreements to be signed now before the proposed reforms are passed by the Senate,” Cuthbert said.
The MBA said it has advised its members to resist union pressure to break their current enterprise bargaining agreements arguing that any company that agrees to a new agreement for the sake of short term industrial peace will be signing their own commercial death warrant in the long term. However, Cuthbert said it was tough for some members to resist.
“Unlawful industrial action places intense pressure on head contractors and sub contractors to give in to industrial demands or face severe cost penalties due to delays in completing projects.
“For example on Monday May 9, 23 commercial building projects in south east Queensland were subject to a strike in support of the CFMEU and BLF claim for a nine day working fortnight.
“We estimate that collectively these projects lost the equivalent of almost 20,000 man hours at a cost of over $1 million dollars.
“Tougher laws to prevent unlawful industrial action combined with the introduction of greater freedom and flexibility for employees and employers to negotiate workplace agreements will ensure a fairer balance between business needs and looking after employee rights,” Cuthbert said.
By Kathryn O’Meara / May 27, 2005
MBA chief executive Wilhelm Harnisch said Australia’s productivity will be boosted by the industrial relations reforms announced yesterday by the Prime Minister.
“The building industry will benefit significantly from urgently needed labour market flexibility.
“The building and construction industry is one of the largest employers in the Australian economy with a record 810,000 people currently employed,” Harnisch said.
He said because of the relatively labour-intensive nature of the sector, the construction industry’s low level of international exposure and low use of information and communication technologies, improvement in productivity in the industry must come through the more efficient and flexible operation of the labour market.
“The building and construction industry suffers from illogical and unproductive practices, such as the rigid way in which unions want to impose a 36 hour week, reflected in the current virulent Queensland industrial campaign mounted by the CFMEU.
“The industrial relations system needs flexibility at the level of agreement making, but with robust enforcement where participants fail to meet appropriate standards of behaviour expected from all Australians,” he said.
Master Builders supports the Government’s commitment to restoring the rule of law in the building and construction industry.
“Flexibility with an appropriate safety net in place does not disadvantage workers. Such a system enables workplace arrangements to be tailored to the individual building site or workplace to increase productivity at the micro-level. Small increases in productivity can compound over time and increase the prosperity of nations.
MBA executive director Graham Cuthbert said the introduction of stronger laws will help curb and end the building and construction industry’s lawlessness.
“ Queensland commercial builders, particularly in the Brisbane CBD, are facing intense pressure as a result of, what we determine to be, unlawful industrial action.
“ Queensland’s current enterprise bargaining agreements officially expire on October 31 2005 but building unions are pushing for new agreements to be signed now before the proposed reforms are passed by the Senate,” Cuthbert said.
The MBA said it has advised its members to resist union pressure to break their current enterprise bargaining agreements arguing that any company that agrees to a new agreement for the sake of short term industrial peace will be signing their own commercial death warrant in the long term. However, Cuthbert said it was tough for some members to resist.
“Unlawful industrial action places intense pressure on head contractors and sub contractors to give in to industrial demands or face severe cost penalties due to delays in completing projects.
“For example on Monday May 9, 23 commercial building projects in south east Queensland were subject to a strike in support of the CFMEU and BLF claim for a nine day working fortnight.
“We estimate that collectively these projects lost the equivalent of almost 20,000 man hours at a cost of over $1 million dollars.
“Tougher laws to prevent unlawful industrial action combined with the introduction of greater freedom and flexibility for employees and employers to negotiate workplace agreements will ensure a fairer balance between business needs and looking after employee rights,” Cuthbert said.
By Kathryn O’Meara / May 27, 2005
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