Submission to The Chief Minister Treasury and Economic Development Directorate. Secure Local Jobs Package

Transcription

1 Submission to The Chief Minister Treasury and Economic Development Directorate Secure Local Jobs Package

2 ABOUT THE HOUSING INDUSTRY ASSOCIATION Introduction General comments Local Jobs Code IRE Certification Labour Relations, training and workplace equity plan New compliance unit Enhanced Compliance and enforcement framework Tripartite advisory committee... 7 Housing Industry Association contact: Greg Weller Regional Executive Director (ACT/SNSW) Housing Industry Association 28 Collie Street, FYSHWICK ACT 2609 Phone: k.burt@hia.com.au - i -

3 ABOUT THE HOUSING INDUSTRY ASSOCIATION The Housing Industry Association (HIA) is Australia s only national industry association representing the interests of the residential building industry, including new home builders, renovators, trade contractors, land developers, related building professionals, and suppliers and manufacturers of building products. As the voice of the industry, HIA represents some 30,000 member businesses throughout Australia. The residential building industry includes land development, detached home construction, home renovations, low and medium-density housing, high-rise apartment buildings and building product manufacturing. The association services the ACT and Southern NSW from the HIA Home Inspirations Centre in Fyshwick, which is a local hub for home building services and advice. HIA exists to service the businesses it represents, lobby for the best possible business environment for the building industry and to encourage a responsible and quality driven, affordable residential building development industry. HIA s mission is to: promote policies and provide services which enhance our members business practices, products and profitability, consistent with the highest standards of professional and commercial conduct. The residential building industry is one of Australia s most dynamic, innovative and efficient service industries and is a key driver of the Australian economy. The residential building industry has a wide reach into manufacturing, supply, and retail sectors. Policy development is supported by an ongoing process of collecting and analysing economic and demographic data, forecasting, and providing industry data and insights for members, the public and on a contract basis. The association operates offices in 22 other locations around the nation providing a wide range of advocacy, business support including services and products to members, technical and compliance advice, training services, contracts and stationary, industry awards for excellence, and member only discounts on goods and services. Page 3 of 7

4 1. INTRODUCTION HIA welcomes the opportunity to respond to the Treasury and Economic Development Directorate s Secure Local Jobs Package Discussion Paper (the Discussion Paper). HIA agrees with the purpose of the Secure Local Jobs Package ( the Package ) to ensure that businesses who undertake work for the ACT Government are those that satisfy high ethical and labour standards. From a regulatory point of view, changes are necessary to ensure that the framework for the assessment of such businesses is enhanced. Ultimately, the changes introduced would result in the ACT Government purchasing services from businesses who satisfy the regulatory requirements to ensure that workers are fairly recompensed for the work they undertake which is in line with the minimum employment and remuneration requirements and to provide a transparent procurement and administration process for undertaking works for ACT Government contracts. The proposed changes to the package will apply to: (a) Contracts that are primarily for labour where the total contract value is above $250,000; or (b) All contracts, regardless of value, for categories identified as Cleaning; Security, Building and Construction; and Courier Services. In regards to the building and construction industry any changes should be focused on processes to ensure that the procurement and contract administration processes are better streamlined, to ensure that the ACT Government Procurement process is fair and equitable and to ensure that those businesses successful in securing ACT Government contracts are compliant, particularly in relation to the regulatory obligations applicable to their workers. 2. GENERAL COMMENTS HIA s response relates primarily to the proposed changes that may apply to contracts between a builder/tradesperson/business and the ACT Government for building and construction works and is not addressed to issues affecting the other industries mentioned in the Discussion Paper. HIA acknowledges the requirement for a contractor tendering to undertake building and construction works for the ACT Government to be audited and deemed as compliant, a requirement that came into effect from 1 July The process for obtaining an Industrial Relations and Employment Certificate (IRE Certificate), that is set out in the Compliance with Industrial Relations and Employment Obligations Strategy for ACT Government Capital Works Projects involves a strict audit process which is undertaken by an authorised auditor to ensure that a person/entity obtaining such certification is compliant with their obligations to their workers. This process was introduced to ensure industrial relations and employment compliance and to create a best practice standard as a part of the culture in the construction industry in the ACT. The proposed changes will add to the existing arrangement, including but not limited to, the timeframe for validity of the certificate, and the provision of information with respect to any related entities. The requirement to develop and submit a Labour Relations, Training and Workplace Equity Plan would add further to the requirements for a tendering entity, particularly in the building and construction industry, and would result in additional red tape to which HIA is opposed. It is HIA s view that where the plan become a mandatory requirement for an entity tendering for ACT Page 4 of 7

5 Government work, that the ACT Government should consider the nature of the development of the required plan and to also consider the requirements and outcomes for this plan, should an entity be successful in securing the tender. 3. LOCAL JOBS CODE The purpose of the Local Jobs Code ( the Code ) is to set out the roles, responsibilities and obligations of both ACT Government entities and those entities tendering to undertake works for the ACT Government. It is HIA s understanding that the Code will apply to all relevant sectors and will mandate the requirement for a Labour Relations, Training and Workplace Entity Plan. Further, the Code will also set out additional requirements which will aim to increase transparency for the works to be undertaken and also provide for the creation of a tripartite body to provide guidance to the Minister regarding the operation of the Code. HIA agrees that a regulatory document needs to be created to set out the rights and obligations of the parties when undertaking works for the ACT Government. This will be useful in clarifying and providing greater transparency throughout the duration of the contract between a principal contractor and the ACT Government. HIA does not agree with the proposed active participatory role for unions in the induction of workers. The entity responsible for worker inductions should be the principal contractor (who has responsibilities under the Code but also as a result of the contract for services) and where required, with supporting guidance, materials, etc. to be provided by the ACT Government. The principal contractor would be responsible for ensuring that these inductions would cover all relevant information, including safety. The unions should not form part of this process. HIA does not oppose the right of entry powers of unions in relation to the Fair Work Act (FW Act) and/or the Work, Health and Safety legislation, but does object to the suggestion for additional powers to be given to the unions, whether this is express or discretionary, to form part of the Code. Depending on the final wording, this might also be contrary to the right of entry provisions contained in the FW Act. HIA agrees that there should be a tripartite body established to provide feedback to the Minister in relation to the operation of the Code to ensure that it is achieving its intended purpose. 4. IRE CERTIFICATION As mentioned above in 2. General Comments, HIA acknowledges the requirement for a contractor tendering to undertake works for the ACT Government to have a valid IRE Certificate. HIA also understands that as a result of introduction of the Local Job Code, further requirements will be introduced that will significantly expand the coverage of the existing IRE Strategy. There are currently 1,404 compliant contractors registered on the ACT Government Procurement and Capital Works website 1. The proposed requirement to demonstrate an entity s history of compliance is recommended and regular reviews of an entity s compliance should be undertaken, however, the process for determining a history of compliance should simple for all parties to manage. HIA would also suggest that where the ACT Government is required to undertake a review of an entity s compliance, that such reviews do not add additional workloads for the entity but are rather a simple and effective means of 1 Page 5 of 7

6 confirming ongoing compliance with the industrial relations and employment obligations in accordance with the Code. The Package would also need to provide guidance to both the ACT Government and an entity tendering to undertake works for the ACT Government as to how periods of validity for IRE Certification are assessed and applied. It is not clear in the Discussion Paper if the period of validity will be determined based on compliance history. It is HIA s recommendation that the process involved for determining the compliance history and the consequent period of validity of the certification should not add to the already onerous requirements on the tendering entity, but should be a consistent application across all relevant industries. HIA agrees with the suggestion for more effective and efficient quality assurance procedures for IRE auditors and the audit process generally. 5. LABOUR RELATIONS, TRAINING AND WORKPLACE EQUITY PLAN As mentioned in 2, HIA opposes the proposal to add to the obligations of the tendering entity to develop and submit a Labour Relations, Training and Workplace Equity Plan ( the Plan ). The Discussion Paper proposes that the development of the plan would be required to be developed with the workforce, as a part of a consultative process and evidence as to this occurring would need to be provided. This proposal would add additional red tape obligations to the tendering entity and might prove prohibitive in practice in terms of being able to consult with all workers, including contractors prior to the project commencing. In circumstances where the plan is to be submitted by a particular time which may be prior to the works commencing, the tendering entity may not have been able to consult with all of the contractors to undertake works on that particular project. 6. NEW COMPLIANCE UNIT HIA agrees to the establishment of a compliance unit (the Unit) to oversee, implement, monitor and review the various measures proposed in the Package. HIA acknowledges that there will be three streams contained in this unit, being: a) Administrative stream; b) Policy stream; and c) Compliance and Enforcement stream. HIA observes that sufficient resources will need to be allocated to the Unit to ensure that not only compliance of tendering entities is regularly reviewed and maintained, but to also ensure the ACT Government is compliant with its obligations, as proposed by the Package. HIA supports the idea of guidance and education as well as investigation and enforcement for noncompliance by either a tendering entity and/or ACT Government. It is also strongly recommended that there needs to be consistency in the application and administration of the compliance Unit s functions. Page 6 of 7

7 7. ENHANCED COMPLIANCE AND ENFORCEMENT FRAMEWORK HIA supports the notion of educating entities to ensure that they are firstly aware of their industrial relations and employment obligations but to also take appropriate action when a tendering entity is found to be in breach of its obligations. HIA notes that the framework cannot be contrary to and should be complementary with existing Territory and Commonwealth legislation to ensure a consistent approach. The basis of the framework will be to set out the minimum standards/requirements of those tendering entities in line with the IRE Certification process already undertaken. HIA notes that penalties may be imposed for breaches. There should also be transparent procedures for the assessment and/or review processes and penalties applicable for IRE auditors who are not found to have completed IRE Certification and/or review processes in accordance with the Package. Further, the introduction of the proposed complaints handling guidelines for dealing with complaints and allegations of breaches of employment obligations again need to be consistent with the relevant Territory and Commonwealth legislation and there should be a process that is effective and efficient for all involved parties. 8. TRIPARTITE ADVISORY COMMITTEE HIA agrees to the establishment of a tripartite advisory committee which will be responsible for providing feedback to the Minister in relation to the operation of the Package, providing independent advice for procurement and will have responsibility for providing feedback as to whether the Package is meeting its objectives at regular review intervals. The terms of reference for this committee will need to be developed so as to ensure that it is aware of the objectives of the committee. HIA, as an employer representative, would be pleased to sit on this committee, when established. Page 7 of 7