A parliamentary question regarding the Southern Gateway Alliance's use of Australian Workplace Agreements and the Minister's alleged interference to promote collective agreements, citing cost blowouts on the Perth-Mandurah rail line. The Minister defends the government's support for collective bargaining and accuses Leighton Contractors of blackmail.

AnsweredQoN 249Legislative Assembly
Asked
17 May 2007
Portfolio
Planning and Infrastructure

QuestionView source ↗

SOUTHERN GATEWAY ALLIANCE - AUSTRALIAN WORKPLACE AGREEMENTS
I acknowledge in the public gallery principal Andrew Newhouse and students from the Foundation Christian College. I welcome them to the Parliament. I refer to the fact that the Southern Gateway Alliance is putting all its workers on Australian workplace agreements because of the disaster that was and is the construction of the Perth-Mandurah rail line and the subsequent cost blow-outs and delays caused by militant unions. (1) Why is the minister interfering by trying to persuade the contractors to engage workers on collective agreements? (2) Has the Construction, Forestry, Mining and Energy Union or any person contacted the minister to influence the Southern Gateway Alliance? (3) Does this put the minister at odds with the federal Labor Party’s recognition of the value of individual contracts? Ms A.J.G. MacTIERNAN

AnswerView source ↗

(1)-(3) Because of the WorkChoices legislation, we were constrained from specifying that we wanted the contractor to deliver collective agreements. We have no shame in saying that we support collective bargaining. We believe very strongly that it is through collective bargaining that we can deliver fair wages and conditions to the workforce. There is nothing new about that. We have supported that principle for the past 100 years. I do not think anyone should be surprised that we have a commitment to that. Because of the WorkChoices legislation there were constraints on what we could put into the contract. This is an alliance contract, which is different from the normal design and construct - DNC - model. Once the contract is awarded, these sorts of things are matters for negotiation. Main Roads has been negotiating for a collective agreement. The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
I refer to the fact that the Southern Gateway Alliance is putting all its workers on Australian workplace agreements because of the disaster that was and is the construction of the Perth-Mandurah rail line and the subsequent cost blow-outs and delays caused by militant unions. (1) Why is the minister interfering by trying to persuade the contractors to engage workers on collective agreements? (2) Has the Construction, Forestry, Mining and Energy Union or any person contacted the minister to influence the Southern Gateway Alliance? (3) Does this put the minister at odds with the federal Labor Party’s recognition of the value of individual contracts? Ms A.J.G. MacTIERNAN replied: (1)-(3) Because of the WorkChoices legislation, we were constrained from specifying that we wanted the contractor to deliver collective agreements. We have no shame in saying that we support collective bargaining. We believe very strongly that it is through collective bargaining that we can deliver fair wages and conditions to the workforce. There is nothing new about that. We have supported that principle for the past 100 years. I do not think anyone should be surprised that we have a commitment to that. Because of the WorkChoices legislation there were constraints on what we could put into the contract. This is an alliance contract, which is different from the normal design and construct - DNC - model. Once the contract is awarded, these sorts of things are matters for negotiation. Main Roads has been negotiating for a collective agreement. The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
(1) Why is the minister interfering by trying to persuade the contractors to engage workers on collective agreements? (2) Has the Construction, Forestry, Mining and Energy Union or any person contacted the minister to influence the Southern Gateway Alliance? (3) Does this put the minister at odds with the federal Labor Party’s recognition of the value of individual contracts? Ms A.J.G. MacTIERNAN replied: (1)-(3) Because of the WorkChoices legislation, we were constrained from specifying that we wanted the contractor to deliver collective agreements. We have no shame in saying that we support collective bargaining. We believe very strongly that it is through collective bargaining that we can deliver fair wages and conditions to the workforce. There is nothing new about that. We have supported that principle for the past 100 years. I do not think anyone should be surprised that we have a commitment to that. Because of the WorkChoices legislation there were constraints on what we could put into the contract. This is an alliance contract, which is different from the normal design and construct - DNC - model. Once the contract is awarded, these sorts of things are matters for negotiation. Main Roads has been negotiating for a collective agreement. The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
(2) Has the Construction, Forestry, Mining and Energy Union or any person contacted the minister to influence the Southern Gateway Alliance? (3) Does this put the minister at odds with the federal Labor Party’s recognition of the value of individual contracts? Ms A.J.G. MacTIERNAN replied: (1)-(3) Because of the WorkChoices legislation, we were constrained from specifying that we wanted the contractor to deliver collective agreements. We have no shame in saying that we support collective bargaining. We believe very strongly that it is through collective bargaining that we can deliver fair wages and conditions to the workforce. There is nothing new about that. We have supported that principle for the past 100 years. I do not think anyone should be surprised that we have a commitment to that. Because of the WorkChoices legislation there were constraints on what we could put into the contract. This is an alliance contract, which is different from the normal design and construct - DNC - model. Once the contract is awarded, these sorts of things are matters for negotiation. Main Roads has been negotiating for a collective agreement. The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
(3) Does this put the minister at odds with the federal Labor Party’s recognition of the value of individual contracts? Ms A.J.G. MacTIERNAN replied: (1)-(3) Because of the WorkChoices legislation, we were constrained from specifying that we wanted the contractor to deliver collective agreements. We have no shame in saying that we support collective bargaining. We believe very strongly that it is through collective bargaining that we can deliver fair wages and conditions to the workforce. There is nothing new about that. We have supported that principle for the past 100 years. I do not think anyone should be surprised that we have a commitment to that. Because of the WorkChoices legislation there were constraints on what we could put into the contract. This is an alliance contract, which is different from the normal design and construct - DNC - model. Once the contract is awarded, these sorts of things are matters for negotiation. Main Roads has been negotiating for a collective agreement. The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
Ms A.J.G. MacTIERNAN replied: (1)-(3) Because of the WorkChoices legislation, we were constrained from specifying that we wanted the contractor to deliver collective agreements. We have no shame in saying that we support collective bargaining. We believe very strongly that it is through collective bargaining that we can deliver fair wages and conditions to the workforce. There is nothing new about that. We have supported that principle for the past 100 years. I do not think anyone should be surprised that we have a commitment to that. Because of the WorkChoices legislation there were constraints on what we could put into the contract. This is an alliance contract, which is different from the normal design and construct - DNC - model. Once the contract is awarded, these sorts of things are matters for negotiation. Main Roads has been negotiating for a collective agreement. The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
(1)-(3) Because of the WorkChoices legislation, we were constrained from specifying that we wanted the contractor to deliver collective agreements. We have no shame in saying that we support collective bargaining. We believe very strongly that it is through collective bargaining that we can deliver fair wages and conditions to the workforce. There is nothing new about that. We have supported that principle for the past 100 years. I do not think anyone should be surprised that we have a commitment to that. Because of the WorkChoices legislation there were constraints on what we could put into the contract. This is an alliance contract, which is different from the normal design and construct - DNC - model. Once the contract is awarded, these sorts of things are matters for negotiation. Main Roads has been negotiating for a collective agreement. The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
The SPEAKER : I call the member for Avon to order for the first time. Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.
Ms A.J.G. MacTIERNAN : Leighton Contractors, one of the companies involved in the joint venture - I presume Leighton is by far the senior partner in that joint venture - has required us to pay extraordinary amounts of money. It has quantified the risk. It has said quite unbelievably that it would cost something in the order of $45 million to go down this path. That is completely unacceptable. We have not been prepared to do that. Leighton has also approached various unions and suggested that if it could get a deal on package F, maybe it would look more kindly on this sort of thing. We will not sacrifice taxpayers’ interests. We will continue to attempt to negotiate a decent arrangement if we can. We will not be blackmailed by the company which, in our view, is asking for a financial remuneration package that we simply could not justify to take on what it describes as the risk.

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