Australian Building and Construction Commissioner, Leigh Johns, has welcomed the outcome of discussions between ABCC officers, union officials, workers and their employers at a site on Hay Street, Perth earlier today.
“Early this morning around 100 workers walked off the site, in support of claims that they were not being paid and that some workers were engaged in sham contracting arrangements,” said Commissioner Johns.
“Our Director of Field Operations for WA accepted an invitation made by the CFMEU to attend the site and address the workers.
“I am pleased to report that our officer explained the situation, took questions from the workers, and productive work was able to resume.
“Sham contracting is rife in sectors of this industry, it represents just over one-third of the cases our inspectors and lawyers are working on at present.
“That is why I want to work cooperatively with unions to develop durable solutions to the problem.
“However, adversarial conduct does nothing to resolve the underlying issue. Productive work need not stop while matters are in dispute.
“I am encouraged by the collaborative approach taken today, which allowed productive building work to resume while we get on with our job and investigate the claims.”
The ABCC commenced an investigation into payment matters at the site in September last year.
“I won’t be taking any pre-judgments in this matter. However, I have directed my legal team in Perth to provide me with further advice on this particular matter. I will comment on the specifics of that case only after I have that advice and if it is possible to do so under the strict confidentiality obligations imposed on me by law.”
Sham contracting occurs where employees are disguised as independent contractors so employers can avoid their lawful obligations to pay and entitlements such as superannuation.
“It is unfair to the workers and their families, and it hurts decent employers who are at a competitive disadvantage by doing the right thing by their employees,” Commissioner Johns said.
“It also affects a company’s tax liabilities – and that hurts everyone.
“The ABCC is convening five sham contracting roundtables in Perth and other capital cities, starting in late March and continuing through early April.
“My aim is to get all players together in a room for the first time, with a view to stamping out sham contracting,” Commissioner Johns said.
“I also urge people to visit our sham contracting website (www.shamcontractinginquiry.gov.au) to make a submission and ensure their voice on this issue is heard.”