Issue No 14 | 21 May 1999 | |
NewsWorkers Sacked for Body HireBy Bernadette Moloney
Workers for a firm which fits out Woolworths and Coles supermarkets have been sacked and replaced by body hire in a bid to cut labour costs.
About 300 CFMEU members today picketed and occupied Woolworths' main city store after 30 joinery shop workers employed by Metro Shoplifting Group were sacked earlier this month. CFMEU state secretary Andrew Ferguson warned that if the dismissals were not reversed, thousands of building workers would be back next week. While the workers were told the company had decided it was no longer going to do this type of work, within a week Metro had employed 20 new casual workers through an employment agency. They also placed a security guard on the door to keep out the sacked workers and their representatives. The sackings would be illegal under reforms proposed by the NSW Labor Council to tie labour hire companies to enterprise agreements that cover the site where the casual workers are placed. CFMEU Eyes Body Hire Clauses in Next Pay Round Revelations of the sackings came as building workers tackle the increasing use of labour hire in their industry by pushing for much more restrictive clauses governing its use in the next round of Enterprise Agreements. CFMEU Construction Division National Secretary John Sutton said that Labour Hire had become so common in the building industry, that "if we don't do something soon there will be hardly anyone left in direct employment in the industry in five years' time". "What began as temporary 'top up' labour is now becoming the norm. And the trend is growing so that big builders and many subcontractors are shedding direct labour crews in favour of body hire," Mr Sutton said. The drivers are both costs and the managerial prerogative. "There is substantial evidence that even the more reputable Labour Hire companies are able to manipulate the system to provide labour at rates about 20 per cent cheaper than direct employment - with little or no risk to themselves," said Mr Sutton. Those who breach awards and hire workers as 'permanent casuals' or under an all-in PPS rate can undercut costs even more. But in the age of downsizing, the managerial advantages of a totally 'flexible' workforce is probably an even greater incentive for construction contractors. Employers are relieved of their legal responsibilities to provide adequate supervision and regular employment for workers and protection against unfair dismissal. "And workers are condemned to a day-to-day existence -- waiting by the phone to discover if they will have work the next day, week or month. If conditions are bad or they are underpaid, they dare not complain for fear they will never get work again," said Mr Sutton. "Body hire merchants don't produce anything. They don't train workers. They don't take responsibility for safety on building sites. "If the trend to use more and more body hire merchants in the construction industry continues, it will wreck the industry. "The CFMEU will not allow this to happen. We will be taking the issue of body hire to our members over the next few weeks with a view to developing a strong campaign to combat this cancer in the construction industry." Reith's Hypocrisy The CFMEU also challenges the hypocrisy of Peter Reith's latest plans to legislate against patter bargaining in the construction. Mr Sutton said such a move would not get through the Senate and would probably breach the government's own Workplace Relations Act which emphasises freedom to bargain. "At the same time as Peter Reith is planning to intervene in this industry with new laws to restrict site and industry agreements, his Employment Advocate Jonathan Hamberger is moving to introduce pattern AWAs. "Peter Reith finds it perfectly reasonable for workers in a hotel in Wagga and workers in a hotel in Bega to have identical AWAs. But it is not acceptable for building industry employers to use industry agreements, so they can get maintain the same level of labour costs as their competitors and not waste precious time negotiating the minutiae of enterprise agreements. "Peter Reith's position shows how little he understands the construction industry. Here's a Government Minister who says he doesn't want third part intervention, but increasingly he is coming in and saying you shall bargain according to the way I tell you," said Mr Sutton.
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Interview: Madame President The new President of the NSW Legislative Council Meredith Burgmann has spent most of her life opposing authority. Now she has a chance to exercise it. Unions: The ACTU Faces the Labour Hire Challenge The enormous growth in labour hire and contracting out employment is creating a big challenge for unions worldwide. History: The Wartime Women�s Employment Board During World War II policy makers were forced to embraqce a unique wage-fixing method. Labour Review: What's New from the Information Centre View the latest issue of Labour Review, Labor Council's fortnightly newsletter for unions. Review: Origlass Biographer Keeps Red Flag Flying The self proclaimed 'ultra-democrat', Hall Greenland, has described his relationship with the Balmain legend Nick Origlass as "Freudian". International: Paddy's Payback But for the Timorese many Australian diggers, like retired wharfie Paddy Kenneally, would have died at the hands of the Japanese during WW2. Now it's time to return the favour... Campus: Tales from the Frontline This week's successful VSU protests seem to have killed off Kemp's ideological agenda. We go live to the protest
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