The union fear campaign being run against the Howard Government's workplace changes is recognised as highly successful.
It's apparently hurting the Government's electoral support.
Politics is important, but what also needs to be assessed is the impact of the program "on the ground". The changes will be successful if they lead to a better business environment resulting in more economic activity, more jobs, higher worker pay and sustained business profits. If this occurs, there could be a political swing favouring the changes.
WorkChoices has only just come into force. It is not yet possible to assess its impact.
But the commercial construction sector reforms have been operating for nearly nine months. An assessment can be made. What's emerging is a behavioural change on a scale and speed much larger and faster than could have been predicted.
Commercial construction in Australia is a multibillion-dollar industry. It includes construction of skyscrapers, factories, roads and so on. One third of the work is government-funded, and this is where much of the profit is made.
About four years ago, the Federal Government had an inquiry into the industry. The Cole Royal Commission found that the sector was being harmed by corruption, illegality, tax fraud, intimidation and violence. The behaviour of the construction union, the CFMEU, was found to be a major cause of the problems.
Last year the Federal Government was able to fully implement the inquiry recommendations to clean up the industry.
First the Federal Government decided that it would not give construction work to building companies that break a new code of practice. The code said, for example, that construction business and unions are not allowed to force subcontractors to have union agreements. Workers must not be forced to be union members. Union agreements and membership must be voluntary.
Further, companies must not breach the code on any private work and all subcontractors must also comply. This means the code effectively applies to all construction work.
Second, the Federal Government created a "super policeman" for the industry. The Australian Building and Construction Commission has enormous powers to investigate problems and to prosecute. It enforces the code of practice. It can jail people who refuse to attend confidential interviews and answer questions. It can even prosecute a union that has caused commercial losses to a company and obtain compensation from the union for the company.
Several successful prosecutions have already occurred.
For example, in early May this year, the CFMEU was fined $13,500 and a union official $450. The ABCC conducted the prosecution. The CFMEU had breached the new laws when they stopped a worker from a soil testing company doing work in Footscray, because the company did not have a union agreement.
This successful prosecution, and others like it, have sent signals to construction workers and businesses that bullying by the CFMEU and others can be stopped. There's now evidence that when the CFMEU tries illegal bullying tactics, workers and subcontractors are lodging complaints to the ABCC. The rule of law is beginning to apply in the construction sector.
The ABCC has even warned the recently formed Victorian Building Industry Disputes Panel that some of its decisions may have breached Federal laws.
This new environment is affecting large construction firms. If firms want to win government tenders they must comply with the new code of practice.
The current round of tendering for work across Australia is massively different from nine months ago. Companies are doing deals with their workers that remove prohibited union demands. Higher pay can be offered because greater efficiencies are achievable.
Construction firms are undergoing significant change. Businesses that once secured big profits by using union agreements to restrict their competitors are facing new competition.
The current crop of construction projects under union agreements will soon finish. New projects with the new rules are starting up. The industry is set for sudden, dramatic change. Everyone from the bricklayer to the largest firm are needing to do business differently. The intimidation that has been normal is now being suppressed by the ABCC.
It's still early days. The ABCC has yet to come up to full operational strength and effectiveness. But there are early signals of rapid change.
If the change locks in, few people in the industry would want a return to the old days. Fear of the old would create support for the new. If this occurs, then the workplace reforms in the construction sector could become a political positive for the Howard Government.
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