Leighton flags attack on workers

March 8, 2006
Issue 

Ian Jamieson, Fremantle

Rail-line construction contractor Leighton-Kumagai has threatened to sack and sue about 430 of its employees — all members of the Construction, Forestry, Mining and Energy Union (CFMEU) — who are working the city end of the $1.56 billion, 72-kilometre Perth to Mandurah rail project.

Leighton has made repeated threats of court action since the workers walked off the job on February 24 after holding a company-authorised meeting to discuss efforts by the Australian Industrial Relations Commission (AIRC) to resolve a dispute over rostered days off, plus a new dispute about changes to work practices under inclement weather conditions. Leighton had imposed the changes without consulting its workers as required by its enterprise agreement.

Angered by breaking news that Leighton had sacked CFMEU shop steward Peter Ballard, the workers walked off the job in protest. Faced with possible individual fines of up to $22,000 under the Building and Construction Industry Improvement Act (2005), the workers did not act lightly.

Since then Leighton has demanded as a condition for Ballard's reinstatement that he, all of its employees and the union drop all of their disputes with the joint venture.

Despite the union's recommendation that the workers return to work to avoid possible massive fines and let the AIRC sort out Ballard's dismissal, the workers have refused to return to work.

Leighton had already pursued damages against the union and obtained from the AIRC in November an order forbidding the union or its members from taking industrial action for the remainder of the life of the project.

With this ruling under its belt, the construction giant thought it could force its work force to work 24/7, forcing some employees to work up to 84 hours per week and 13 days in a row. The company blocked union officials from entering the site. As a result safety standards and working practices quickly deteriorated. A safety audit in December revealed over 80 industrial safety hazards and breaches on the poorly managed project site.

Following the February 24 walk-off, the workers have held two subsequent meetings and have voted, without union officials being present, to continue to withhold their labour until Ballard's dismissal case is heard. As a result, the AIRC has refused to hear the case.

Despite unusual industrial peace elsewhere in the booming WA

construction industry, the city end of the Perth-Mandurah rail project has been plagued with turmoil. Cost blowouts and overruns, major technical difficulties in tunnelling under Perth's CBD, poor management, friction between Leighton and other contractors on site, looming state government completion penalties and obligations to maintain heritage values have led to attempts by Leighton to unreasonably accelerate work schedules.

Leighton admits that it is more than 150 days behind on the project, while only about 30 days have been lost due to disputes with its own employees.

The CFMEU has continued to fully inform its members on the site of the possible consequences of any vote they take and has encouraged them to return to work, but has left the workers to make their own democratic decision. This, however has not stopped Leighton, the West Australian newspaper and the state Liberal Party from calling for legal action against the union.

Labor Premier Alan Carpenter has also weighed in on the dispute, demanding a return to work and predicting a "cataclysmic conclusion" if the workers remain off the job. CFMEU WA assistant secretary Joe McDonald explained to the media on March 2 that the premier's comments could only inflame the situation and called on Carpenter to meet with the workers.

On March 3, the workers began receiving letters from the Howard government's Australian Building and Construction Commission special industry police force stating that it will initiate prosecutions against them after March 11 if they do not voluntarily submit to interrogation. The letters were signed by the ABCC's new western region director, Jeff Radisich, who until last month was the executive director of labour relations for the WA state Labor government.

The current dispute has all the ingredients to become the first major battleground between the federal government and the union movement over Howard's new industrial relations system. Whatever happens, the WA CFMEU and its members need the immediate support of unionists throughout Australia.

From Green Left Weekly, March 8, 2006.
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