Royal Commission sets impossible conditions

by Anna Pha

The Royal Commission into the construction industry got off to an 
extraordinary start in Melbourne last Thursday. Commissioner Terence Cole 
directed those wishing to appear before the Commission to produce 
incredibly detailed information in writing on or before October 31.

The information sought virtually required the employers and trade unions to 
carry out the investigation for the Commission.

Not only war the direction beyond the resources of the unions but the 
deadline — on the eve of the Federal election — was impossible.

His three pages of directions made it a condition of appearance that the 
written statements detail all unlawful, industrial and inappropriate 
workplace and industrial practices.

Justice Cole demanded that the written statements include detailed 
descriptions of the conduct and its effects on productivity in the 
workplace, available work time and cost of construction. He also directed 
that all sources of the information be provided.

John Maitland, National Secretary of the Construction, Forrestry, Mining 
and Energy Union (CFMEU), described the Commissioner's requirements as 
"outrageous".

He said the Commissioner was imposing conditions on parties that under 
normal conditions and circumstances it would not be able to do to someone 
in the witness box.

"We told the Commission that we have a moral and natural justice right to 
be there but we were not going to accept any conditions that he sets down."

John Maitland told The Guardian that "members give us information 
expecting confidentiality but we are supposed to be naming people and 
naming dates. 

"We are essentially supposed to be exposing all the confidential and 
private discussions that have taken place allowing us to gather a whole 
host of information to be able to carry out our job."

Mr Maitland pointed out that the Commissioner's interpretation of the terms 
of reference was extremely narrow. His directions make no mention of 
business practices.

"Whilst we were critical of the Government's decision to call the Royal 
Commission and while we were cognisant of the fact that it was being called 
for political purposes, we thought that we may be able to direct the 
Commission in dealing with some of the business practices in the industry 
which are illegal and unacceptable ... 

"This is an obvious and glaring example of their attempt to narrow the 
focus down to simply what workers are doing and not really deal with a 
whole host of things that are really wrong with the industry."

The Secretary of the SA United Trades and Labor Council Chris White, 
expressed similar concerns. "Unions will do their utmost to try and steer 
the inquiry away from union-bashing and onto the real issues that plague 
the industry", said Mr White.

These issues include tax avoidance, widespread use of "phoenix" (go bust 
and re-emerge) companies, appalling safety records, massive underpayment of 
statutory entitlements, underpayment of workers' compensation premiums, 
chronic skill shortages and serious unemployment.

The Unions and some employer organisations (including Multiplex 
Constructions, Baulderstone Hornibrook and Theiss) 

were stunned by the Commissioner's demands and indicated that they could 
not participate under such conditions.

As a result Commissioner Cole adjourned the hearing to the next day by 
which time he had backed down considerably on his original conditions, 
admitting the possibility of legal difficulties with his directions.

However, he rejected lawyers' arguments against setting any conditions of 
appearance and replaced his previous conditions with six new ones. These 
included a commitment from trade unions not to disturb or disrupt the 
Commission.

He used as an excuse the large peaceful demonstration of building and 
construction workers outside the Commission on the first day of the 
hearings in Melbourne.

As the Commission was holding a hearing in Adelaide, 400 SA construction 
workers held a rally to express strong resentment at being used as a 
political football by the Howards and Abbotts of this world.

The first hearing in Sydney is due on October 22 at Level 7 City Centre 
Tower, 55 Market Street.

As The Guardian goes to press the unions are considering their position. 
They have not yet decided whether to continue to participate in the 
Commission.