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News
Home›News›ABCC fine protects dodgy developers who withhold payments

ABCC fine protects dodgy developers who withhold payments

By Sean Carroll
August 21, 2020
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The ABCC has fined a Perth subcontractor for unlawful picketing while ignoring the behaviour of the head contractor who withheld progress payments demonstrates how out of touch the regulator is, a move criticised by the CFMEU.

“You know the ABCC’s priorities are out of step with reality when a contractor who is being bled dry cops a massive fine for doing what they can to get workers paid while the developer who withheld payment gets a free pass,” CFMEU national construction secretary Dave Noonan says.

“Yet again we have the ABCC ignoring the unlawful behaviour of a head contractor and instead going after a small business and workers. Even worse, it gives a signal to the worst operators in the industry that they can withhold payments with impunity as the regulator has their back.”

Dave explains that some subcontractors are owed millions in late payments from greedy developers and delay payments by months and sometimes years.

“It is a practice rife in the industry but the ABCC seems blind to it,” he says.

“The subcontractors who do the bulk of the work and employ the majority of workers are being forced to underwrite the profits of big developers who shirk the bill when it comes to paying fairly and on time.”

The ABCC commissioner says the Perth subcontractor should have gone to court to get paid rather than protest at the site.

Dave says that this ignores the fact that courts take years and are incredibly expensive for small businesses.

“It also ignores the findings of the Murray Review into security of payments which made 86 recommendations on reforms that would protect workers and smaller operators in the industry from the bullying behaviour of developers that threatens their viability.

“The Federal Government has been sitting on the Murray Review since May 2018 and the need has only become more urgent as the industry tries to weather the shock of the pandemic crisis.

“The Morrison Government seems more interested in looking after their big developer and property industry donors than protecting small businesses and workers.”

 

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