03/04/2009 - 14:28

MBA criticises awards changes

03/04/2009 - 14:28

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The Masters Builders Association says house prices and the costs of commercial construction will rise following amendments to redundancy provisions in the sector.

The Masters Builders Association says house prices and the costs of commercial construction will rise following amendments to redundancy provisions in the sector.

 

The MBA announcement is below:

 

The modern Awards for the building and construction industry released today by the Australian Industrial Relations Commission will increase costs for building and construction industry consumers by millions of dollars. House prices and the costs of commercial construction will rise.

Mr Wilhelm Harnisch, CEO of Master Builders Australia, stated that amendments to the redundancy provisions to include a much broader definition of redundancy to be used in building and construction industry modern awards was based on a mistake by the Full Bench.

"This broad definition was removed from workplace laws in March 2006 and the community standard substituted so that building workers now receive the same redundancy entitlements as all other Australian workers. The commission said it is continuing with current provisions but that is not the case.

"In the building and construction industry, project based work means that workers change jobs frequently. Why should a payment equivalent to redundancy be made when a building worker resigns? There is no good reason.

"The Australian Industrial Relations Commission has ignored the community standard for redundancy in the building and construction industry. The broader definition will cost industry millions of dollars more in payments just because a building has been completed or because a building worker resigns. The proposed amendment is economically irresponsible.

"The decision is at odds with the requirement not to increase employer costs imposed on the Commission by the Government. This criterion has not been met.

"We do not want a roll back of history. The making of modern awards should be about the future, not a process of digging up relics that will cost consumers dearly," Mr Harnisch said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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