Building Industry Royal Commission
Abbott lets cat out of bag

In a letter to construction corporation, Multiplex, Workplace Relations 
Minister Tony Abbott noted that the main focus of the Cole Royal Commission 
into the building industry was not fraud but the culture of compulsory 
unionism or "closed shop" industry practices — an indirect reference to 
trade union practices.

The Royal Commission was launched last year in the lead-up to the Federal 
elections.

Mr Abbott said that the Royal Commission was not "inquiring into any 
particular company, but into coercive and collusive conduct into the 
building industry generally".

When setting up the Commission the government claimed that its aim was to 
investigate alleged corruption and fraud in the building industry. The 
letter makes it clear that the government's real target is the trade union 
movement, in particular the "culture" of trade unionism in the building 
industry, which the Minister's letter confirms.

The letter was used by Multiplex to defend its reputation following 
suggestions in the British media that it was under specific scrutiny for 
"improper and illegal activity". Multiplex was under scrutiny after winning 
a contract at Wembley in England.

"A key focus of the Royal Commission is the closed shop which generally 
operates within the building industry and the rorts, rackets and rip-offs 
arising from breeches of freedom of association principles", Mr Abbot said.

"It is not a 'fraud commission' although it is certainly interested in any 
culture of illegality in the industry."

The opening statements of Counsel assisting the Commission, Dr John Bishop, 
on February the 6 were equally revealing.

Dr Bishop launched a stinging attack on the Australian Industrial Relations 
Commission (AIRC). He claimed the AIRC had failed to hold up the purposes 
of the Workplace Relations Act and had rubber-stamped faulty wage 
agreements.

"The Commission is guilty of first degree negligence", said Mr Bishop.

The attacks on the AIRC and trade union practices are consistent with the 
government's approach to what it calls "third party" intervention.

By third parties it means trade unions and tribunals such as the AIRC. The 
government is also strongly opposed to collective bargaining by trade 
unions.

Its aim is for a deregulated system where employers deal with workers on a 
one to one basis, with no role for arbitration or trade union 
representation, let alone collective action.

In the government's eyes, "improper and illegal activity" involves such 
things as measures to ensure workplaces are unionised, protection of 
workers' interests and trade union rights.

The government is due to table five Workplace Relations bills in parliament 
this week. The accusations before the Royal Commission will no doubt prove 
handy to the government in defending its bills.