ABC Commissioner Leigh Johns today released the terms of reference for the ABCC’s Inquiry and Roundtable into sham contracting in the building and construction industry.
The Roundtable is a crucial first step in addressing the problems associated with sham contracting and labour hire arrangements in the industry.
‘Sham contracting is an unlawful and fundamentally inequitable practice that requires a unified regulatory response,’ said Commissioner Johns.
The discussion paper released today invites submissions about the incidence and impact of sham contracting in the building and construction industry.
‘It is vital for industry stakeholders to engage with government and devise an action plan on sham contracting. Effective regulation of labour hire arrangements in the construction industry is critical to economic growth in Australia.’ Commissioner Johns noted.
The discussion paper sets out the terms of reference for the inquiry and poses key questions for consideration, including:
- What is the extent and nature of sham arrangements in the building and construction industry?
- What factors are relevant in determining whether a construction worker is an employee or a subcontractor?
- How well are the differences between subcontractors and employees clearly understood in the industry?
- To what extent are labour hire arrangements essential to the efficient functioning of the building and construction industry?
- How could the ABCC assist all stakeholders in the building and construction industry to ensure labour hire practices are both fair and efficient?
Roundtable conferences will be held in Sydney, Melbourne, Brisbane, Canberra and Perth commencing in late March 2011, to discuss submissions and examine strategies for tackling sham contracting.
‘Sham contracting adversely affects decent employers, workers and government revenue. This Inquiry heralds a new and necessary spirit of cooperation among government, unions, employer groups, contractors, and individuals,’
‘I am already encouraged by the level of interest from stakeholders. I have scheduled extra consultations to accommodate the strong initial response from the industry,’ said Commissioner Johns.
Submissions to the Inquiry are due on 7 March 2011. For information about the submissions process see: www.abcc.gov.au/shamcontracting