The Office of the Australian Building and Construction Commissioner (ABCC) commenced operations on 1 October 2005. It absorbed the Building Industry Taskforce which operated from 1 October 2002. Under the Building and Construction Industry Improvement Act 2005 (BCII Act), the ABCC has several powers. Its purpose is to reform conduct in the building and construction industry.
Industrial action
Unlawful industrial action in the building industry now incurs a maximum penalty of up to $22,000 for individuals and up to $110,000 for a body corporate. Types of unlawful industrial action that contravene the BCII Act include:
- a secondary boycott
- joint action taken with one or more persons who are not negotiating parties to a proposed building agreement
- action taken for the purpose of supporting claims for employees covered by a building collective agreement, before the nominal expiry date of the agreement
- action taken for a purpose of furthering industrial objectives or disrupting work, imposing bans or restrictions on work practices that conflict with those set out by an industrial instrument, a law or court/body of the Commonwealth or a State
- action that is not protected action under the Workplace Relations Act 1996 (WR Act).
For more information refer to the fact sheet Unlawful Industrial Action in the Building and Construction Industry.
Compliance powers
Under the BCII Act, the ABC Commissioner and the Deputy ABC Commissioner/s can exercise compliance powers to compel people to provide information, produce documents, and/or attend and answer questions at an examination.
Information obtained or derived from what is provided, cannot be used in court against the individual who provides it unless they are prosecuted for:
- failing to comply with a notice to produce
- knowingly providing false/misleading information or documents
- obstructing a Commonwealth public official.
Individuals who provide information, answers, or documents to the ABC Commissioner in good faith receive a broad exemption from civil liability.
A failure to attend an examination, provide information or produce documents as required by a compliance notice can incur a penalty of 6 months imprisonment.
For more information refer to the fact sheet Compliance powers of the Australian Building and Construction Commissioner.
Offences
Offences under the BCII Act include:
- coercion of employers in relation to the engagement and allocation of responsibilities to contractors or employees
- coercion or undue pressure on a person to make, vary, or terminate a building agreement
- coercion in relation to superannuation
- discrimination against an employer in relation to the type of industrial agreement they have
- industrial action for a proposed building agreement that is organised by, or is supported by, a non-negotiating party, including a secondary boycott.
For more information refer to the fact sheet Freedom of Association in the Building and Construction Industry.
Greater penalties
The BCII Act provides the following increased penalties.
- A person who contravenes the BCII Act may incur a maximum penalty of up to $22,000.
- A corporation that contravenes the BCII Act may incur a maximum penalty of up to $110,000.
- Strike pay breaches now incur a maximum penalty of up to $6,600 for an individual or up to $110,000 for a body corporate. These penalties apply to:
- any person who makes a demand for strike pay
- an employee who receives strike pay
- an employer who pays strike pay.
In addition, employers, employees and unions who breach the BCII Act are liable to:
- pay compensation for damage caused by the breach
- give up assets for sequestration
- be held in contempt of court for failing to comply with an injunction, including an interim injunction.
Need to inform the ABC Commissioner
All building industry participants must:
- notify the ABC Commissioner of any court application they make or are involved in that arises under the BCII Act or the WR Act or the Independent Contractors Act 2006 where the proceedings relate to building work, and
- also notify the ABC Commissioner of the outcome of their application.
Failure to notify the ABC Commissioner incurs a penalty of up to $550 for an individual or up to $2,750 for a body corporate.
For more information refer to the fact sheet Power to Intervene in Cases.
National Code
All building industry participants who work on projects funded by the Australian Government must comply with the National Code of Practice for the Construction Industry.
You can download a printable version of this fact sheet here: Industry Reform under the Building and Construction Industry Improvement Act 2005 (PDF - 158KB)
The information contained in this fact sheet is correct as at 26 February 2008.
This material is for general information only. You should seek legal advice in relation to your particular circumstances. The Australian Government, its employees and agents do not accept any liability for action taken in reliance on this document and disclaim all liability arising from any error or omission. ABN 68 003 725 098
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