ABC Commissioner Leigh Johns has confirmed that the ABCC is investigating claims of worker underpayment on a $13 million government housing project in Northbridge, WA.
The investigation commenced on Monday 17 January 2011, when the ABCC first became aware of the claims. The scope of the investigation includes claims that contractor Proform had failed to pay workers properly for work performed since mid-December 2010.
“All workers are entitled to be paid fairly and promptly for their services, and it is part of the ABCC’s responsibility to ensure that employers who underpay their workers are held to account,” said Commissioner Johns.
”Without prejudging the outcome of this investigation, the ABCC will vigorously pursue employers who attempt to rip off workers. Ensuring a fair day’s pay for a fair day’s work is part of our core operations as the national regulator of workplace relations in the building and construction industry.”
“The ABCC will use the statutory means available to it which to ensure workers receive the compensation they ought to receive.”
The ABCC began investigating underpayment claims in the building and construction industry, following Commissioner Johns’ appointment on 11 October 2010.
Commissioner Johns also noted the fact that the dispute has been held up as an example of the negative effects sham contracting.
“The claims that this situation involves sham contracting are also being examined as part of the investigation,’ Commissioner Johns said.
Sham contracting is the unlawful practice that denies workers genuine entitlements such as leave and superannuation, by misrepresenting those who should be considered employees as contractors.
“It is too early to say if the subject of our investigation, Proform, is engaged in the indecency of sham contracting, however, we are investigating the allegation made by Mr Macdonald of the CFMEU. More broadly the issue of sham contracting will be considered as part of the Inquiry and Roundtable that I have already announced,” Commissioner Johns said.
The purpose of the roundtable is to devise a whole-of-government response to sham contracting, this forum would provide a useful opportunity for the unions to put forward their views about the same.
The ABCC’s Sham Contracting Roundtable and Inquiry will be held in Perth, Adelaide, Canberra, Sydney and Brisbane during March and April 2011. A Discussion Paper has been launched by the ABC Commissioner Johns and is available on the ABCC website. Submissions are due by 7 March 2011