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HR Nicholls Conference The ABCC and unlawful conduct in the construction industry 13 October 2007. Nigel Hadgkiss Deputy Commissioner. Operational Statistics. 1 October 2005 to 8 October 2007 5,603 matters received via 1800 hotline or independently 590 comprising reports

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Presentation Transcript
slide1

HR Nicholls Conference

The ABCC and unlawful conduct in the construction industry

13 October 2007

Nigel HadgkissDeputy Commissioner

operational statistics
Operational Statistics

1 October 2005 to 8 October 2007

5,603 matters received via 1800 hotline or independently

590 comprising reports

34 investigations underway

64 prosecutions

recent referrals to other agencies
Recent referrals to other agencies
  • 360 enquiries to other Federal and State agencies during July 2006-June 2007, including:
      • 231 to domestic building authorities
      • 60 Federal or State IR agencies
  • 13 matters to other relevant agencies and bodies:
    • 2 NSW Police regarding organised crime
    • 1 VIC Police regarding threats to kill ABCC Inspectors
    • 1 DPP regarding attempting to pervert the course of justice
    • 1 DPP regarding threatening phone calls to union officials
    • 2 ATO underpayment of superannuation
    • 4 Workplace Authority for breach of an award or an agreement
    • 1 ACCC for breach of the Trade Practices Act
    • 1 ASIC for breach of the Corporations Act
callers

Unions

Legal Practitioners

Employer

Associations

Employees

Employers/

Contractors

Callers

Non-Industry Callers

(concerned community

govt departments

law enforcement

informants

anonymous)

entities complained against

Misc

Sub-contractors

Head Contractors

Employees

Unions

Entities Complained Against
conduct on sites and projects

Now

Then

Conduct on Sites and Projects

Coercion, threats &

Coercion, threats

intimidation

& intimidation

Strike Pay

Freedom of

Association

Freedom of Association

Inappropriate payments

conduct on sites and projects1

Now

Then

Conduct on Sites and Projects

Miscellaneous

Coercion, threats &

Coercion, threats

Miscellaneous

intimidation

& intimidation

Strike Pay

Freedom of

Association

Unprotected Action

Freedom of Association

Unprotected action

Breach of

agreement

Loss of Work

Inappropriate payments

Hinder/Obstruct

ROE

Breach of Order

remission syndrome
Remission Syndrome

Strike Pay

Freedom of

Unlawful industrial

Association

action

Hinder/Obstruct Right

of Entry

85% of customers

considered their issues

an ongoing concern

Coercion, threats &

intimidation

Breach of agreement

definition of building work
Definition of “building work”
  • construction, alteration, extension, restoration, repair, demolition or dismantling of buildings, structures or works that form, or are to form, part of land, whether or not the buildings, structures or works are permanent
  • installation in any building, structure or works of fittings forming, or to form, part of land, including heating, lighting, air‑conditioning, ventilation, power supply, drainage, sanitation, water supply, fire protection, security and communications systems
  • includes domestic housing when the building activities are for a multi-dwelling development for construction of at least 5 single-dwelling homes
  • land includes land beneath water.
significant results
Significant Results
  • The ABCC took action against the Federal and NSW branches of the CFMEU, an organiser, Edmond Casper, and a site delegate, Mick Lane, for making false and misleading statements when they told several plastering subcontractors on building sites in Fairy Meadow and Wollongong that they must become union members. In March 2007, Justice Graham imposed $10,000 penalties on both the CFMEU’s Federal and NSW branches. Mr Lane and Mr Casper were ordered to pay $2,000 and $1,250 in penalties respectively. In addition, both branches of the CFMEU were ordered to take out full-page advertisements in the Illawarra Mercury to correct the false and misleading statements. They were also directed to destroy the CFMEU Code of Conduct for Union Delegates.
  • In June 2003, the AMWU and four AMWU organisers, Ale Mulipola, Fergal Eiffe, Ian Thomas and Steve Mansour engaged in various acts on two construction sites with intent to coerce a contractor to make a certified agreement with the AMWU. The coercive conduct took place in June 2003. The Federal Court fined the AMWU $25,000 and four union organisers Ale Mulipola, Fergal Eiffe, Ian Thomas, and Steve Mansour $1,000, $600, $400 and $400 respectively for coercing a subcontractor to make a certified agreement with the AMWU.
  • The CEPU and CEPU (ETU) official, Peter Mooney, were penalised for coercing an employer on the Bass Link Project at Loy Yang to enter into a certified agreement. The CEPU official entered the site on 8 November 2005 and prevented four apprentices from performing work on site because their employer did not have a certified agreement with the CEPU. Mr Mooney told the employer that the apprentices would not be permitted on site until the employer signed a certified agreement with the CEPU. The CEPU and Mooney agreed to pay penalties of $13,000 and $2,400 respectively for unlawful conduct involving the exclusion from a building site of four apprentices.
  • In September 2007, the CEPU (ETU) and Assistant State Secretary, Kevin Harkins were ordered to pay $11,000 and $8,800 in penalties for unlawful industrial action. The proceedings related to a strike of Tasmanian electrical workers on 14 December 2005 when 81 employees of electrical contractors failed to attend for work. Mr Harkins had presided over a meeting at which the vote was taken for workers to withdraw their labour. Harkins also addressed a rally on the day of the strike.
64 prosecutions

Miscellaneous

Employee

Union/

Employer

Union/Union

Offical

Employer

64 Prosecutions

Respondents

64 prosecutions1
64 Prosecutions

By jurisdiction

ACT

TAS

SA

WA

QLD

VIC

NSW

slide15

Suburbia 15

Regional 30

CBD

19

64 Prosecutions

By location

slide16

Prosecuted

  • State Government
  • State President & senior union officials
  • Management personnel
  • Company employees
  • National companies
prosecuted

Edmond Casper

Elias Spernovasilas

ETU

Expoconti

Fergal Eiffe (AMWU)

Firebase Sprinkler Systems

Freshmore

Gerard Benstead (CFMEU)

Gordan Aldin + 106

Grant Thorson

Husein Karupovic

Ian Thomas (AMWU)

Illia Crnac

Joe McGahan (CFMEU)

John Parker

John Setka (CFMEU)

Jose Esteves

Justin Feehan

Kevin Harkins (ETU)

Les Lanscar

Mark Edwards

Mark Gretch

Max Hood

Maxim Electrical Services

Michael Lane (CFMEU)

Michael Powell (CFMEU)

ADCO Constructions

Adrian McLoughlin (CFMEU)

Alan Blevin

Ale Mulipola (AMWU)

Alex Tadic

Alf Di Virgillio

Allan Maher

AMWU

APN Group

Austress Freyssinet

Barclay Mowlem

Barry Hoffman (CFMEU)

Baulderstone Hornibrook

Bob Mates

B&P Caelli Constructions

Bill Oliver (CFMEU)

BVM Builders

Casello Constructions

CEPU

CFMEU (Federal)

CFMEU (NSW)

CFMEU (QLD)

Charles Corbett

CL Godfrey

Colin Stewart (CFMEU)

Daniel Oskam

David Kelly (CFMEU)

David Mier

David Rix

D& E Air Conditioning

Prosecuted

Michael Douglas

Multiplex

Nickolas Papanotas

Peter Costello

Peter Levy

Peter McLean (CFMEU)

Peter Mooney

Peter Primmer (CFMEU)

Phillip Cattenazzi

Robert Bannister (CFMEU)

Roger Aleknivicius

Saied Eshrajhi

Sam Fry (CFMEU)

Schiavello

Scott Wilcox (CFMEU)

Seelite Windows and Doors

Shane Sheedy

SJ Higgins

Steve Allen (CFMEU)

Steve Mansour (AMWU)

Steve Savic

Sunland Constructions

Victorian Government

Walter Molina (CFMEU)

Walton Constructions

WJ Pratt

national companies

Edmond Casper

Elias Spernovasilas

ETU

Expoconti

Fergal Eiffe (AMWU)

Firebase Sprinkler Systems

Freshmore

Gerard Benstead (CFMEU)

Gordon Aldin + 106

Grant Thorson

Husein Karupovic

Ian Thomas (AMWU)

Illia Crnac

Joe McGahan (CFMEU)

John Parker

John Setka (CFMEU)

Jose Esteves

Justin Feehan

Kevin Harkins (ETU)

Les Lanscar

Mark Edwards

Mark Gretch

Max Hood

Maxim Electrical Services

Michael Lane (CFMEU)

Michael Powell (CFMEU)

ADCO Constructions

Adrian McLoughlin (CMFEU)

Alan Blevin

Ale Mulipola (AMWU)

Alex Tadic

Alf Di Virgillio

Allan Maher

AMWU

APN Group

Austress Freyssinet

Barclay Mowlem

Barry Hoffman (CFMEU)

Baulderstone Hornibrook

Bob Mates

B&P Caelli Constructions

Bill Oliver (CMFEU)

BVM Builders

Casello Constructions

CEPU

CFMEU (Federal)

CFMEU (NSW)

CFMEU (QLD)

Charles Corbett

CL Godfrey

Colin Stewart (CFMEU)

Daniel Oskam

David Kelly (CFMEU)

David Mier

David Rix

D& E Air Conditioning

National Companies

Michael Douglas

Multiplex

Nickolas Papanotas

Peter Costello

Peter Levy

Peter McLean (CFMEU)

Peter Mooney

Peter Primmer (CFMEU)

Phillip Cattenazzi

Robert Bannister (CFMEU)

Roger Aleknivicius

Saied Eshrajhi

Sam Fry (CFMEU)

Schiavello

Scott Wilcox (CFMEU)

Seelite Windows and Doors

Shane Sheedy

SJ Higgins

Steve Allen (CFMEU)

Steve Mansour (AMWU)

Steve Savic

Sunland Constructions

Victorian Government

Walter Molina (CFMEU)

Walton Constructions

WJ Pratt

abcc interventions
ABCC Interventions
  • ABCC may intervene in AIRC proceedings as a right & in court proceedings in public interest
  • ABCC has intervened in 63 court and AIRC matters
use of compliance powers

Compliance powers have been used 59 times throughout Australia

5 further hearings before end of this month

Use of compliance powers
slide21

NSW 2

TAS 6

WA 14

VIC 31

QLD 6

Hearings by jurisdiction

examinees

Govt

Officials

1

Management

5

Union Official or

Delegate

7

Worker

46

Examinees
2 613 site visits

SA

ACT

NT

TAS

WA

NSW

QLD

2,613 Site Visits

VIC

565 presentations
565 Presentations

NT

ACT

TAS

SA

VIC

WA

QLD

NSW

econtech findings
Econtech Findings
  • cost gap 10.7% to 1.7%
  • labour productivity 9.4 %
  • labour productivity compared to trend 9.5 %
  • GDP + 1.5%
  • CPI - 1.2%
slide28

Working days lost in the construction sector

due to industrial disputes in Victoria

25000

20000

15000

10000

5000

0

September 2006

September 2005

slide29

Days lost per 1,000 employees in building

and construction

600

WR Act introduced

500

400

300

200

Taskforce institutes

9 prosecutions

Cole Royal Commission

100

ABCC commences

0

2007

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

impact of ir as a constraint on activity mba national survey
Impact of IR as a Constraint on Activity –MBA National Survey

45

40

35

No Impact

30

25

Moderate Impact

20

15

10

Large Impact

5

Critical Impact

0

Mar 04

Mar 05

Mar 07

Mar 06

slide31

Average Weekly Earnings

$1,200

Construction

All Industries

$1,000

$800

$600

$400

$200

$0

1997

2006

slide32

No. of Employees - Construction Industry

33% increase

1000

900

800

700

600

500

Number of Employees '000

400

300

200

100

0

2006

1997

slide33

Change in Total Employment

(1997-2007)

70%

60%

50%

40%

30%

20%

10%

0%

-10%

Retail Trade

Insurance

Finance and

Construction

Storage

Transport and

Manufacturing

-20%

Services

Wholesale Trade

Communications

slide34

Construction Industry Productivity levels

vs USA Productivity levels

140

120

100

80

Percentage of US Productivity Levels

60

40

20

0

2003

1979

1998

labour productivity
Labour Productivity

2.5

2

1.5

Construction

1

% change in Labour Productivity

All Industries

0.5

0

-0.5

-1

2006

2005

2004

slide36

Expenditure on buildings and structures

35000

Court impose

maximum penalty

30000

ABCC launches

50th prosecution

25000

BIT given

compulsory powers

ABCC starts

BIT launches

first prosecution

20000

BIT established

Cole Commission

15000

10000

5000

0

2007

2004

2005

2006

2008

2003

2002

2001

how can the abcc help
How can the ABCC help?
  • website
  • hotline
  • hide behind the ABCC
  • education material
  • legal advice
  • seminars
    • executive
    • site personnel
slide38

Questions

Hotline

1800 00 33 38

7 am – 7 pm

(Monday - Friday)

Website

www.abcc.gov.au