Master Builders Australia - Sham Contracting
29 November 2011
Master Builders Australia Supports Recommendation for Study on Sham Contracting
Statement by Wilhelm Harnisch, Chief Executive Officer
Master Builders Australia, the peak building and construction industry association, has welcomed the considered approach taken in the Sham Contracting Inquiry Report issued today by the Australian Building and Construction Commissioner (ABCC), Mr Leigh Johns.
Mr Wilhelm Harnisch, CEO of Master Builders Australia, said, “Master Builders in particular supports Recommendation 2 for a further detailed study into the extent and depth of sham contracting in the industry. This is a sensible move – there is a need to objectively quantify the practice.
“Master Builders pointed out to the inquiry that sham contracting is not commonplace and that the majority of contractors in the industry are bona fide. Most complaints emanate from the unions as they have a direct interest in reducing the number and growth of independent contractors because that activity decreases their pool of potential members.
“Master Builders’ long held view is that clarity in the legal distinction between an employee and contractor across all relevant laws is absolutely essential.
“Master Builders therefore especially welcomes Recommendation 9 of the report that consideration be given to a negative licencing scheme which would allow bona fide individuals to seek registration as a contractor. Such an initiative will go some way to providing greater certainty.
“Contractors want certainty. The status of a contractor is a consequence of the nature of the relationship that is formed. A building industry participant may be a worker for a specific period but then enter into a different relationship that provides them with the status of an independent contractor. This chopping and changing is common in the industry. Hence the system which will be given consideration by the ABCC is based upon self-regulation of independent contractors for the purpose of specific projects.
“Master Builder’s looks forward to assisting the ABCC work through the other recommendations in the Report”, Mr Harnisch concluded.
Contact: Wilhelm Harnisch, Chief Executive Officer Mobile: 0402 039 039
Richard Calver, Director, National Industrial Relations and Legal Counsel 0422 866 766
