Building Industry Unions Headed for Another Royal Commission?
Wednesday 29 January 2014 @ 10.12 a.m. | Crime | Industrial Law | Legal Research
In a recent post we reported that the new government had introduced legislation to resurrect the Australian Building Construction Commission (ABCC) as it promised to do in the 2013 election to clean up the building industry and weed out alleged union corruption.
The new government began this process by introducing into the House of Representatives the Building and Construction Industry (Improving Productivity) Bill 2013 and the Building and Construction Industry (Consequential and Transitional Provisions) Bill 2013 which to quote the ministers second reading speech of 14 November 2013: ". . . fulfils the Government’s election commitment to re-establish the Australian Building and Construction Commission".
Today following on reports by both the Sydney Morning Herald and the ABC 7.30 Report it is looking like the government is set to take matters further than the reintroduction of the ABCC to the point of establishing a full Royal Commission into the activities of unions like the Construction, Forestry, Mining and Electrical Union (CFMEU) and the Australian Workers Union (AWU).
Background
The Prime Minister is quoted as saying "recent reports of other alleged corruption in the trade union movement meant that a 'full inquiry' was required". The Prime Minister is citing Victoria's desalination plant and the Sydney Barangaroo development as projects in which "companies connected to major crime figures reportedly are involved" going on to say that "new reports of bribery and kickbacks also demonstrated the need for the re-establishment of the ABCC comparing it to a "cop on the beat" who once he is present "improves the whole culture of an industry".
Under the previous Labor government the ABCC was removed and replaced by the Fair Work Inspectorate. The Labor Party and Australian Greens are opposed to the legislation re-establishing the ABCC.
Reaction
Labor's spokesman the shadow employment Minister has taken the view that the police are the best agency to deal with corruption or crime, not public servants or newly formed quasi-judicial bodies. While business organisations like the Master Builders Australia (the MBA) are reported as wanting the ABCC reinstated, pointing out though, that even a commission like ABCC didn't have powers to directly act against criminal behaviour.
The CFMEU National Secretary is reported as saying his union would "act immediately if it was made aware of any improper, illegal, corrupt or criminal activity by officials" and in Victoria the CFMEU is reported to have only recently sacked an organiser on grounds of misconduct.
Reports on this story also indicate that the government may additionally consider examination of the rules relating to union donations to political parties as part of a review of the 2013 federal election, already the subject of a parliamentary committee of inquiry. An interesting aspect considering similar legislation was also introduced in NSW following the election of the NSW state Liberal Government.
Is a Royal Commission the Answer?
Certainly if one reads the editorial in today's Age it would seem that Royal Commissions in this area are neither new nor do they provide the solution. To quote:
"A royal commission is not necessarily the answer. We went down that path more than a decade ago when Commissioner Terence Cole, QC, found 'lawlessness' was rampant throughout the construction industry, involving much more than breaches of workplace laws. It included widespread inappropriate payments, threats and intimidation, tax evasion and the use of phoenix companies. Mr Cole said the industry appeared to operate on 'an understanding and expectation, which reflects the reality, that those engaging in unlawful conduct will not be held to account by criminal proceedings'".
The Cole Commission then "called for an independent entity that would ensure everyone in the building industry - unions, employers, contractors at all levels - complied with industrial, civil and criminal laws". That was then the first ABCC created under the Howard government.
It would not seem that another Royal Commission is needed and in fact by some, the call for a Royal Commission is seen as an "expensive and lengthy route, one that risks being infected, if not entirely swamped, by political agendas". A route to outcomes which are already known and solutions that need only be implemented and enforced.
As the Age editorial says "immediate and heightened focus on the criminality at hand" is needed and the problem would be best handled through the Australian Crime Commission setting up a special unit of investigators operating at federal level using the services of state and federal police as well as investigators from the ATO, ASIC and the ACCC.
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