CFMEU Cracks Down on Shonky Contractors to Protect Worker Wages
CFMEU Cracks Down on Shonky Contractors to Protect Wages

The CFMEU is holding non-compliant employers accountable. The union remains dedicated to stamping out sham contracting and systemic underpayments through rigorous site monitoring and collective action.

Non-compliance in Construction Remains a Huge Problem

In the last year, the CFMEU has retrieved $6.5 million for members. This is only the tip of the iceberg. So what is the CFMEU doing? The union has hired a new Compliance Officer, who serves as a resource for organisers and delegates to chase underpayments and hold non-compliant employers to account. Organisers and delegates are working hard to ensure every member receives what they are entitled to. They act as the union's eyes and ears, reporting back on non-compliance.

Prosecutions and Enforcement

One prosecution is about to be launched against a builder who has systemically failed to comply with Clause 24 of the Enterprise Bargaining Agreement (EBA). Another prosecution is in the works. Where tenders are won that are substantially lower than all others, organisers will follow up. The CFMEU does not mind contractors winning work on the basis of a cut in their profit margin, but it will not tolerate work being won at the expense of workers. Sub-contractors in each trade are being warned that the days of widespread sham contracting are over. Again, prosecutions will follow where employers win work at the expense of wages and working conditions. The EBA provides for payment of back pay, along with a 75 per cent penalty for sham contracting.

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What Members Can Do

The CFMEU urges every member to be vigilant about what is happening on their job. If a member receives a payslip and their mate does not, they should talk to them about it. If someone is being paid cash, members should ring the office, and they can do so anonymously. If a member is offered cash for overtime, they should again ring the office. Dodging tax may look attractive, but the Australian Taxation Office is looking at the cash economy. Members run the risk of being caught with penalty tax while their boss escapes. The union encourages members to report such activities.

Importance of Membership

Above all, the CFMEU emphasises that members should ensure they are financial members. All the work the union does is paid for by members, no one else. When the union stands up in front of tribunals, its credibility comes from representing workers in the industry. The power of the collective is the only thing that ensures a decent EBA can be secured and enforced. CFMEU membership really does matter.

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