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Nigel Hadgkiss Deputy Commissioner

HR Nicholls Conference The ABCC and unlawful conduct in the construction industry 13 October 2007. Nigel Hadgkiss Deputy Commissioner. Operational Statistics. 1 October 2005 to 8 October 2007 5,603 matters received via 1800 hotline or independently 590 comprising reports

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Nigel Hadgkiss Deputy Commissioner

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  1. HR Nicholls Conference The ABCC and unlawful conduct in the construction industry 13 October 2007 Nigel HadgkissDeputy Commissioner

  2. Operational Statistics 1 October 2005 to 8 October 2007 5,603 matters received via 1800 hotline or independently 590 comprising reports 34 investigations underway 64 prosecutions

  3. Recent referrals to other agencies • 360 enquiries to other Federal and State agencies during July 2006-June 2007, including: • 231 to domestic building authorities • 60 Federal or State IR agencies • 13 matters to other relevant agencies and bodies: • 2 NSW Police regarding organised crime • 1 VIC Police regarding threats to kill ABCC Inspectors • 1 DPP regarding attempting to pervert the course of justice • 1 DPP regarding threatening phone calls to union officials • 2 ATO underpayment of superannuation • 4 Workplace Authority for breach of an award or an agreement • 1 ACCC for breach of the Trade Practices Act • 1 ASIC for breach of the Corporations Act

  4. Unions Legal Practitioners Employer Associations Employees Employers/ Contractors Callers Non-Industry Callers (concerned community govt departments law enforcement informants anonymous)

  5. Misc Sub-contractors Head Contractors Employees Unions Entities Complained Against

  6. Now Then Conduct on Sites and Projects Coercion, threats & Coercion, threats intimidation & intimidation Strike Pay Freedom of Association Freedom of Association Inappropriate payments

  7. Now Then Conduct on Sites and Projects Miscellaneous Coercion, threats & Coercion, threats Miscellaneous intimidation & intimidation Strike Pay Freedom of Association Unprotected Action Freedom of Association Unprotected action Breach of agreement Loss of Work Inappropriate payments Hinder/Obstruct ROE Breach of Order

  8. Remission Syndrome Strike Pay Freedom of Unlawful industrial Association action Hinder/Obstruct Right of Entry 85% of customers considered their issues an ongoing concern Coercion, threats & intimidation Breach of agreement

  9. Definition of “building work” • construction, alteration, extension, restoration, repair, demolition or dismantling of buildings, structures or works that form, or are to form, part of land, whether or not the buildings, structures or works are permanent • installation in any building, structure or works of fittings forming, or to form, part of land, including heating, lighting, air‑conditioning, ventilation, power supply, drainage, sanitation, water supply, fire protection, security and communications systems • includes domestic housing when the building activities are for a multi-dwelling development for construction of at least 5 single-dwelling homes • land includes land beneath water.

  10. ABCC PROSECUTIONS

  11. Significant Results • The ABCC took action against the Federal and NSW branches of the CFMEU, an organiser, Edmond Casper, and a site delegate, Mick Lane, for making false and misleading statements when they told several plastering subcontractors on building sites in Fairy Meadow and Wollongong that they must become union members. In March 2007, Justice Graham imposed $10,000 penalties on both the CFMEU’s Federal and NSW branches. Mr Lane and Mr Casper were ordered to pay $2,000 and $1,250 in penalties respectively. In addition, both branches of the CFMEU were ordered to take out full-page advertisements in the Illawarra Mercury to correct the false and misleading statements. They were also directed to destroy the CFMEU Code of Conduct for Union Delegates. • In June 2003, the AMWU and four AMWU organisers, Ale Mulipola, Fergal Eiffe, Ian Thomas and Steve Mansour engaged in various acts on two construction sites with intent to coerce a contractor to make a certified agreement with the AMWU. The coercive conduct took place in June 2003. The Federal Court fined the AMWU $25,000 and four union organisers Ale Mulipola, Fergal Eiffe, Ian Thomas, and Steve Mansour $1,000, $600, $400 and $400 respectively for coercing a subcontractor to make a certified agreement with the AMWU. • The CEPU and CEPU (ETU) official, Peter Mooney, were penalised for coercing an employer on the Bass Link Project at Loy Yang to enter into a certified agreement. The CEPU official entered the site on 8 November 2005 and prevented four apprentices from performing work on site because their employer did not have a certified agreement with the CEPU. Mr Mooney told the employer that the apprentices would not be permitted on site until the employer signed a certified agreement with the CEPU. The CEPU and Mooney agreed to pay penalties of $13,000 and $2,400 respectively for unlawful conduct involving the exclusion from a building site of four apprentices. • In September 2007, the CEPU (ETU) and Assistant State Secretary, Kevin Harkins were ordered to pay $11,000 and $8,800 in penalties for unlawful industrial action. The proceedings related to a strike of Tasmanian electrical workers on 14 December 2005 when 81 employees of electrical contractors failed to attend for work. Mr Harkins had presided over a meeting at which the vote was taken for workers to withdraw their labour. Harkins also addressed a rally on the day of the strike.

  12. Miscellaneous Employee Union/ Employer Union/Union Offical Employer 64 Prosecutions Respondents

  13. 64 Prosecutions By jurisdiction ACT TAS SA WA QLD VIC NSW

  14. Suburbia 15 Regional 30 CBD 19 64 Prosecutions By location

  15. Prosecuted • State Government • State President & senior union officials • Management personnel • Company employees • National companies

  16. Edmond Casper Elias Spernovasilas ETU Expoconti Fergal Eiffe (AMWU) Firebase Sprinkler Systems Freshmore Gerard Benstead (CFMEU) Gordan Aldin + 106 Grant Thorson Husein Karupovic Ian Thomas (AMWU) Illia Crnac Joe McGahan (CFMEU) John Parker John Setka (CFMEU) Jose Esteves Justin Feehan Kevin Harkins (ETU) Les Lanscar Mark Edwards Mark Gretch Max Hood Maxim Electrical Services Michael Lane (CFMEU) Michael Powell (CFMEU) ADCO Constructions Adrian McLoughlin (CFMEU) Alan Blevin Ale Mulipola (AMWU) Alex Tadic Alf Di Virgillio Allan Maher AMWU APN Group Austress Freyssinet Barclay Mowlem Barry Hoffman (CFMEU) Baulderstone Hornibrook Bob Mates B&P Caelli Constructions Bill Oliver (CFMEU) BVM Builders Casello Constructions CEPU CFMEU (Federal) CFMEU (NSW) CFMEU (QLD) Charles Corbett CL Godfrey Colin Stewart (CFMEU) Daniel Oskam David Kelly (CFMEU) David Mier David Rix D& E Air Conditioning Prosecuted Michael Douglas Multiplex Nickolas Papanotas Peter Costello Peter Levy Peter McLean (CFMEU) Peter Mooney Peter Primmer (CFMEU) Phillip Cattenazzi Robert Bannister (CFMEU) Roger Aleknivicius Saied Eshrajhi Sam Fry (CFMEU) Schiavello Scott Wilcox (CFMEU) Seelite Windows and Doors Shane Sheedy SJ Higgins Steve Allen (CFMEU) Steve Mansour (AMWU) Steve Savic Sunland Constructions Victorian Government Walter Molina (CFMEU) Walton Constructions WJ Pratt

  17. Edmond Casper Elias Spernovasilas ETU Expoconti Fergal Eiffe (AMWU) Firebase Sprinkler Systems Freshmore Gerard Benstead (CFMEU) Gordon Aldin + 106 Grant Thorson Husein Karupovic Ian Thomas (AMWU) Illia Crnac Joe McGahan (CFMEU) John Parker John Setka (CFMEU) Jose Esteves Justin Feehan Kevin Harkins (ETU) Les Lanscar Mark Edwards Mark Gretch Max Hood Maxim Electrical Services Michael Lane (CFMEU) Michael Powell (CFMEU) ADCO Constructions Adrian McLoughlin (CMFEU) Alan Blevin Ale Mulipola (AMWU) Alex Tadic Alf Di Virgillio Allan Maher AMWU APN Group Austress Freyssinet Barclay Mowlem Barry Hoffman (CFMEU) Baulderstone Hornibrook Bob Mates B&P Caelli Constructions Bill Oliver (CMFEU) BVM Builders Casello Constructions CEPU CFMEU (Federal) CFMEU (NSW) CFMEU (QLD) Charles Corbett CL Godfrey Colin Stewart (CFMEU) Daniel Oskam David Kelly (CFMEU) David Mier David Rix D& E Air Conditioning National Companies Michael Douglas Multiplex Nickolas Papanotas Peter Costello Peter Levy Peter McLean (CFMEU) Peter Mooney Peter Primmer (CFMEU) Phillip Cattenazzi Robert Bannister (CFMEU) Roger Aleknivicius Saied Eshrajhi Sam Fry (CFMEU) Schiavello Scott Wilcox (CFMEU) Seelite Windows and Doors Shane Sheedy SJ Higgins Steve Allen (CFMEU) Steve Mansour (AMWU) Steve Savic Sunland Constructions Victorian Government Walter Molina (CFMEU) Walton Constructions WJ Pratt

  18. ABCC Interventions • ABCC may intervene in AIRC proceedings as a right & in court proceedings in public interest • ABCC has intervened in 63 court and AIRC matters

  19. Compliance powers have been used 59 times throughout Australia 5 further hearings before end of this month Use of compliance powers

  20. NSW 2 TAS 6 WA 14 VIC 31 QLD 6 Hearings by jurisdiction

  21. Govt Officials 1 Management 5 Union Official or Delegate 7 Worker 46 Examinees

  22. ABCC EDUCATION

  23. SA ACT NT TAS WA NSW QLD 2,613 Site Visits VIC

  24. 565 Presentations NT ACT TAS SA VIC WA QLD NSW

  25. Implications for industry

  26. Econtech Findings • cost gap 10.7% to 1.7% • labour productivity 9.4 % • labour productivity compared to trend 9.5 % • GDP + 1.5% • CPI - 1.2%

  27. Working days lost in the construction sector due to industrial disputes in Victoria 25000 20000 15000 10000 5000 0 September 2006 September 2005

  28. Days lost per 1,000 employees in building and construction 600 WR Act introduced 500 400 300 200 Taskforce institutes 9 prosecutions Cole Royal Commission 100 ABCC commences 0 2007 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

  29. Impact of IR as a Constraint on Activity –MBA National Survey 45 40 35 No Impact 30 25 Moderate Impact 20 15 10 Large Impact 5 Critical Impact 0 Mar 04 Mar 05 Mar 07 Mar 06

  30. Average Weekly Earnings $1,200 Construction All Industries $1,000 $800 $600 $400 $200 $0 1997 2006

  31. No. of Employees - Construction Industry 33% increase 1000 900 800 700 600 500 Number of Employees '000 400 300 200 100 0 2006 1997

  32. Change in Total Employment (1997-2007) 70% 60% 50% 40% 30% 20% 10% 0% -10% Retail Trade Insurance Finance and Construction Storage Transport and Manufacturing -20% Services Wholesale Trade Communications

  33. Construction Industry Productivity levels vs USA Productivity levels 140 120 100 80 Percentage of US Productivity Levels 60 40 20 0 2003 1979 1998

  34. Labour Productivity 2.5 2 1.5 Construction 1 % change in Labour Productivity All Industries 0.5 0 -0.5 -1 2006 2005 2004

  35. Expenditure on buildings and structures 35000 Court impose maximum penalty 30000 ABCC launches 50th prosecution 25000 BIT given compulsory powers ABCC starts BIT launches first prosecution 20000 BIT established Cole Commission 15000 10000 5000 0 2007 2004 2005 2006 2008 2003 2002 2001

  36. How can the ABCC help? • website • hotline • hide behind the ABCC • education material • legal advice • seminars • executive • site personnel

  37. Questions Hotline 1800 00 33 38 7 am – 7 pm (Monday - Friday) Website www.abcc.gov.au

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