This article is from the Australian Property Journal archive
VICTORIA'S Ballieu government has threatened to ban Lend Lease from winning contracts in the state, if it finds the company has violated the new construction code by signing a deal with Construction Forestry Mining and Energy Union.
Treasurer Kim Wells said Lend Lease will be forbidden to tender for government contracts in Victoria if the government finds that Lend Lease and CFMEU’s four-year deal, Joint Development Agreement 8 (JDA8), does not comply with the National and Victorian Codes of Practice for the Building and Construction Industry.
The agreement includes provisions to fly union flags on Lend Lease cranes, which is against the rules.
“We have set up a compliance unit and the guidelines will be adhered to and there will be no backing down on this.
“Companies that want to apply for government work need to make a choice. Either abide by our code and if they do they can bid for the jobs. If they don’t then that’s a choice that they will have to make.” Treasurer Wells said.
Late last night Lend Lease issued a response.
Lend Lease’s Australia CEO Mark Menhinnitt said the company is complying with the code.
“The industrial relations system is regulated at a federal level. The workplace agreement we have in place with our employees, JDA8 is National Code compliant, has been approved by Fair Work Australia, and supports the Victorian Building and Construction Code of Practice.
“JDA8 applies only to Lend Lease construction workers employed by our project management and construction business working on our sites around Australia.
“JDA8 is not a project agreement and does not apply to workers not employed directly by Lend Lease. This agreement was approved by Fair Work Australia and is deemed to be compliant with the National Building and Construction Code of Practice by the Department of Education, Employment and Workplace Relations (DEEWR),”
Menhinnitt said that negotiations for JDA8 commenced in January 2012 and were completed in August 2012. This is the eighth JDA agreed between Lend Lease and its workforce over the past 20 years.
“We believe JDA8 is consistent with the Victorian Code of Practice and we look forward to discussing this with the Victorian Government in the near future.
“Lend Lease looks forward to continuing its long and successful history of partnering with the Victorian government to deliver major projects for the state. Most recently, this includes the new Royal Children’s Hospital, the Melbourne Market Relocation and the Melbourne Park Western Precinct Upgrade.” Menhinnitt said.
The union’s state secretary Bill Oliver has also defended the agreement and said it was made under the Federal Fair Work Act.
“If the state government wants to go in and say Lend Lease or any other builder doesn’t get work on state government projects, then the reality would be that no-one would be building in Victoria,” he said.
Oliver said the Ballieu government is engaging in union bashing.
“We have a legal agreement and one of the things that he takes offence to is that on construction sites, our union flag is flown and workers wear apparel with a union sticker on it,” he said.
The union and the state government will meet in the court in the near future, after the government joined Daniel Grollo’s Grocon in its damages legal action against the CFMEU, after the union stop work on Grocon sites across Melbourne for 15 days.
Grocon is suing the union for $10.5 million and the Victorian government is also seeking $4 million in damages over the industrial action last month.
Federal Employment and Workplace Relations Minister Bill Shorten said the Victorian government should not impede unions and companies from making agreements.
“Conservative political parties in Australia can’t have it both ways. They can’t complain when there are disputes and then complain when there are settlements,” Minister Shorten said.
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