The CFMEU has suggested a new “worker-focussed” body replace the Fair Work Ombudsman (FWO).
CFMEU National Secretary Zach Smith said FWO has struggled to handle three major issues facing the construction industry. These are wage theft, corporate insolvency and sham contracting.
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“The Fair Work Ombudsman’s priorities are wrong. It is fundamentally broken beyond repair,” Smith said.
“Australian construction workers are facing endemic corporate insolvency, wage theft and sham contracting. But the ombudsman is prioritising the anti-worker ideological fights of the previous Coalition Government.
“We need to scrap the FWO and start again. It’s time to start from scratch with a body that puts workers first.”
Smith suggest a new regulator would:
- Have the ability to address security of payment issues effectively
- Be supervised by a board, half of which would need to be workers’ representatives
- Prioritise compliance and enforcement activity, including workers’ rights and unpaid wage recovery and/or entitlements
- Not prosecute unions and members for activities protected by International Labour Organisation (ILO) conventions
The CFMEU says the FWO received $9.8 million in the 2019/2020 Budget to establish a Sham Contracting Unit. However, the unit has recovered $812,893 according to the CFMEU.
With many trying to claim unpaid work after large companies go under, Independent Senator David Pocock reccomended the Federal Goverment implement the recommendations of the 2017 Murray River Review.
The review suggested a harmonised national security of payment laws to ensure subbies and workers had a higher chance of getting money owed to them.
“We’re seeing Australian builders collapsing regularly,” Pocock said.
“Only last week PBS (Building) went under with millions still owed to contractors and works. But we haven’t heard a peep from the FWO.
“There is no Federal Government agency there to support small business and workers when these catastrophic corporate failures occur.”