Media Release
5 March 2009
Union’s sideshow does not change facts: Industry watchdog should be
retained
Master Builders Australia, the peak body representing the building and construction industry, today criticised
the Construction Forestry Mining Energy Union (CFMEU) for creating a sideshow to distract from the real
industrial relations issues facing the construction industry.
“The CFMEU yesterday took the opportunity to fire pot-shots at the Cole Royal Commission and the resulting
prosecutions, rather than tackling the reforms underway in the industry now,” said Richard Calver, Acting
CEO of Master Builders Australia.
“The CFMEU yesterday released a letter from the Deputy Prime Minister setting out the actions taken as a
result of the terms of the secret volume of the Cole Royal Commission Report.
“These diversionary tactics should be seen for what they are; the CFMEU’s failure to justify its position that
the Australian Building and Construction Commission and the laws it upholds should be dismantled,” said Mr
Calver.
“Nothing in the letter release by the Deputy Prime Minster detracts from the Royal Commissioner’s findings.
“The Cole Royal Commission found a culture of disharmony, lawlessness, bullying and coercion. This
unlawful behaviour was having a negative impact on productivity and was driving up costs in the industry,”
said Mr Calver.
“There was and remains a clear case for special laws in the industry and a watchdog to enforce the laws.
“The work of the Australian Building and Construction Commission (ABCC) has seen the industry experience
an era of unprecedented industrial peace and productivity,” said Mr Calver.
Since the introduction of the ABCC, an independent study shows an economic welfare gain of $5.1 billion to
the community; a 7.3 per cent productivity gain in commercial building relative to residential building since
2004; a 10 per cent addition to labour productivity in the construction industry; and a 10.5 percent out-
performance in construction industry labour productivity compared to predictions based on historical
performance to 2002.
“Infrastructure development underpins almost every aspect of the Government’s plans to revive the
economy. There is a lot riding on the industry’s ability to get on with the job of delivering major infrastructure
for the nation,” said Mr Calver.
“In the current economic climate the last thing we want to risk is a fall in productivity from an increase in
wages and allowances or the reintroduction of restrictive work practices.
“Major changes to the specialist laws governing the construction industry or the watchdog enforcing these
laws would see a return to the days of industrial disputation and would put the productivity gains of the past
few years in jeopardy,” said Mr Calver.
For more information please phone: Richard Calver, Acting CEO 02 6202 8888 or 0422 866 766
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