Barry OFarrell MP

Premier of NSW
Minister for Western Sydney

MEDIA RELEASE
Tuesday 28 January 2014

STATEMENT ON UNION ALLEGATIONS

NSW Premier Barry OFarrell and Treasurer and Minister for Industrial Relations Mike Baird said allegations about criminal links to unions at the Barangaroo construction site supported the re-establishment of the Australian Building and Construction Commission. Mr OFarrell said he had asked for a report into the allegations relating to a subcontractor engaged at Barangaroo. I am concerned about the associations and the identities allegedly involved, Mr OFarrell said. The preliminary advice to me is that Active Labour has an association with just one of the many subcontractors on the site and concerns a small proportion of an average 600 employees a day working on the Barangaroo site. I am also advised there has been no State Government funding for the placement of Indigenous employees on the site through that arrangement. Matters like this are of serious concern, not just to the NSW Government, but also to the construction sector and to residents across the State. Mr Baird said the allegations should serve as a wake-up call to the Labor Party and Greens frustrating the Federal Governments commitment to re -establish the Australian Building and Construction Commission. The ABCC was the tough cop on the beat, and took a strong stand against union bullying, which included accessing sites under the guise of bogus safety issues, or pressuring companies into signing project agreements that increase costs without any productivity gain, Mr Baird said. Since the ABCC was disbanded by Federal Labor, the unions have stepped up their pressure on construction sites. We are deeply concerned by the allegations of union corruption and criminal involvement in the construction industry. These allegations reinforce the need for the immediate reinstatement of the ABCC. This sends a message to the Labor Party and the Greens that they ought to pass the legislation as a matter of urgency so we can again have confidence in the construction industry, so we can again have confidence that these sorts of deals, backhanders and colourful identities are not dominating construction.

The NSW Government introduced construction guidelines 1 July last year that were intended to fill the gaping hole left by Federal Labors ill-judged abolition of the ABCC. The guidelines prohibit parties from requiring or unduly influencing another party to have particular workplace arrangements in place, as well as banning direct or indirect coercion or pressure on another party to make over-award payments. NSW Government inspectors audit compliance with the guidelines and, if they suspect breaches, refer them to the relevant authority, including police. We were not prepared to sit by and watch taxpayer funds wasted on cost blow -outs caused by illegal activity and side deals, Mr Baird said. ENDS

MEDIA: Cameron Hamilton or Mark Tobin (Premier) 9228 5239 Imre Salusinszky (Treasurer) 0432 535 737