The Australian Industrial Relations Commission (AIRC) has been tasked by the ALP Government to create "modern awards" in a tight timeframe. The Commission has been given the impossible task of seeking to both ensure employees are no worse off and employers incur no greater cost by the imposition of a new modern award.

The construction industry modern award was examined in Stage 2 of the process. The AIRC rejected the Master Builders of Australia submission that "the building and construction industry would be best served by having three Awards that cover on-site construction, the civil sector and an off-site award".

The result is that on-site and civil construction are proposed to be covered by the same award!

Building, metal and civil construction group

The AIRC's award modernisation statement of progress was handed down on 23 January along with its "Stage 2" draft exposure awards, including:

  • Electrical, Electronic and Communications Contracting Industry Award 2010
  • Plumbing and Fire Sprinklers Contracting Industry and Occupational Award 2010
  • Joinery and Building Trades Award 2010

The AIRC has pointed out that during the consultation stage, the industry participants did not argue out the content of the exposure draft, preferring to await an indication as to the number and proposed scope of operation of exposure drafts for the industry.

As a consequence, the exposure drafts published are stated to be at a preliminary stage and will benefit from a more detailed input from industry participants. Input is currently being provided by employer associations, unions and other stakeholders but it is not too late for submissions from industry participants.

Scope of coverage

The Building and Construction Modern Award will replace the National Building and Construction Industry Award 2000 (NBCI Award), the Australian Workers' Union Construction and Maintenance Award 2002 (AWU Award), and the National Metal and Engineering On-site Construction Industry Award 2002. The exposure draft also covers other activities currently subject to separate award regulation – for example, landscaping, joinery work, mobile crane work and geomembrane and geotextile installation where undertaken in the building and construction industry.

The AIRC has not included the asphalt, bitumen and pre-mixed concrete industries subject to further consideration in respect of possible separate awards or integration into the building and construction industry, cement and concrete products or quarrying awards.

The AIRC was conscious of the need to avoid an "off-site" construction award crossing over with the manufacturing activity, which it decided would be more properly regulated by the Manufacturing Modern Award. The exposure draft of that award incorporates elements of the draft off-site award proposed by the CFMEU, specifically clay articles, glazing and gypsum and plasterboard manufacturing. The cement and concrete products industry will be considered in Stage 3.

The AIRC also published an exposure draft of a Quarrying Industry Award 2010. The minimum wages are those found in the Quarry Industry-Victoria-Award 2000 and are not dissimilar to rates in awards and NAPSAs applying generally in the industry although they are significantly lower than the New South Wales rates.

Redundancy Funds

The redundancy provision in the exposure drafts also requires input in light of current award provisions. Most, but not all, construction awards contain the provision peculiar to the construction industry, which defines redundancy more broadly than the "genuine redundancy" definition arising from Commission test cases and reflected in the NES, and apply the Lower, pre-2004 scale to all businesses (including with less than 15 employees) and to employees even with less than a year's service. The building industry awards also permit an employer to offset its obligations under the redundancy provision by making contributions to a redundancy pay scheme. This is reflected in the draft Construction Modern Award but with a partial sunset clause in 2014.

Will this result in requests/demands by employees and their representatives for redundancy fund contribution in the civil construction industry?

Your opportunity to have a say

Written comments and other material in relation to the exposure drafts are required to be lodged with the Commission and the Commission will sit for final consultations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.