Thousands of contractors risk being immediately barred from all new Commonwealth-funded construction work if the Turnbull government brings forward the deadline for compliance with its national building code.
The government on Wednesday introduced a bill to drastically shorten the two-year phase-in period for the strict new building code attached to its revived Australian Building and Construction Commission.
![Hundreds of contractors with union-friendly deals risk missing out on government jobs.](/web/20170208092231im_/http://www.theage.com.au/content/dam/images/g/t/0/z/k/l/image.related.articleLeadwide.620x349.gu8bp6.png/1486538551028.jpg)
Most notably, the code outlaws a litany of union-friendly clauses – such as union consultation provisions, restrictions on the use of labour hire and requirements for non-working site delegates – in order for companies to be eligible for lucrative federal building jobs.
The new amendment, which is now likely to pass the Senate after a surprising backflip by cross-bench senator Derryn Hinch, will cut the so-called "transition period" to just nine months.
![The construction union has condemned Senator Derryn Hinch's 'cowardly' backflip.](/web/20170208092231im_/http://www.theage.com.au/content/dam/images/g/t/1/n/8/2/image.related.articleLeadwide.620x349.gu8bp6.png/1486538551028.jpg)
It will set the clock ticking for building companies with union-friendly agreements across the nation to replace them with new deals that comply with the code.
The Construction, Forestry, Mining and Energy Union said there were more than 3000 contractors nationally who would now be forced to urgently replace non-compliant agreements before they could become eligible for government work.
"There have been lots of contractors getting in touch today concerned about being black-listed by the government, even though they have agreements that are completely lawful under the Fair Work Act," union secretary Dave Noonan said.
Building industry employers on Wednesday said the amendment puts a "tight timeframe" on the renegotiation of thousands of construction industry enterprise agreements.
The Australian Industry Group said all parties needed to work together in order to avoid "widespread disruption".
"There is a massive task ahead in renegotiating thousands of enterprise agreements, having the proposed new agreements assessed by the ABCC, and having the agreements approved," Ai Group chief Innex Willox said.
"The nine-month transition period in the bill commenced late last year and therefore less than seven months remain."
Mr Willox called on unionists to play a constructive role in supporting the varying of enterprise agreements to ensure compliance with the code, "or else the jobs of thousands of their members who work on government projects will be at risk".
Other employer groups have hailed the proposed amendment as a significant win. The Master Builders Association on Wednesday said the previous two-year transition period had unfairly punished companies that had "held out" against union pressure.
"Many of the builders who held out for compliant EBAs have felt the brunt of a sustained and deliberate campaign by the CFMEU to coerce them into signing deals that don't meet code requirements," MBA chief executive Wilhelm Harnisch said.
"Many smaller companies have simply been locked out of work for refusing to dance to the CFMEU tune."
Union officials on Wednesday condemned Mr Hinch's backflip as a "cowardly deal cut in the dead of night with a government in crisis".
Mr Noonan said the new code abolished restrictions on the use of temporary visa workers, and limitations on unpaid overtime, which could compromise workers' safety.
"What Derryn Hinch has announced is that he is going to vote to casualise the construction industry, he's announced he supports workers being forced in excess of 20 hours of unpaid overtime a week ... and that he is voting to get rid of restrictions to allow contractors to put more temporary workers on Australian construction sites," Mr Noonan said.
"These are the policy positions that construction workers will associate with his Justice Party."
Labor's industrial relations spokesman, Brendan O'Connor, said the new bill had caused chaos within the building industry.
"Any company that can't reach new agreements will be barred from Commonwealth-funded projects," he said.
"There has been no consultation regarding these changes and the government has absolutely no idea about the impact it will have on building companies and workers alike."
One of Australia's largest builders, Lendlease, which struck new wage deals with the CFMEU in November, said it had long supported the return of the ABCC and the introduction of the new code.
"We will be taking whatever steps we can to remain compliant," a spokeswoman said.
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