From: http://www.theaustralian.com.au/index.asp?URL=3D/national/4330908.htm

Reith's $220m reform ultimatum
By MICHAEL BACHELARD

19may99

THE Howard Government has threatened to withdraw its $50 million investment
in Melbourne's Federation Square project if the developer's agreement with
unions on the site is not rewritten.

In a strong rebuff for the unions and the Kennett Government, which oversaw
negotiations for the agreement, Workplace Relations Minister Peter Reith
appears to be using the Government's investment in the $220 million project
as leverage to force reform in Victoria's construction industry.

Mr Reith has described the Victorian industry as the worst in Australia.

But the threat has enraged unions, who have been negotiating for four
months to gain a site agreement with developer Multiplex.

Electrical Trades Union Victorian secretary Dean Mighell said Mr Reith and
the employment advocate, Jonathan Hamberger, had knocked out key parts of a
good agreement for ideological reasons.

He said they had objected to a provision allowing unions to take industrial
action when enterprise-bargaining agreements with individual contractors
came up for renewal during the life of the site agreement.

They had also wanted to allow individual contracts on the site instead of
just enterprise agreements and they had knocked out a hard-fought
productivity provision that included flexible hours and a nine-day
fortnight in return for no restrictions on overtime.

Instead, workers had been offered a $1.30 an hour productivity bonus if the
job was finished on time =AD a provision the unions rejected early in
negotiations.

Mr Mighell said the State Government's Office of Major Projects, which
oversees the project, had obtained legal advice saying the site agreement
was legal.

"I'm really shitty about it ... they are threatening to hold up the funding
because a legal agreement doesn't suit Jonathan Hamberger's and Peter
Reith's ideology," he said.

Mr Mighell said the unions would lodge the agreement in the Industrial
Relations Commission today for certification to try to flush out opposition
to it.

Construction, Forestry, Mining and Energy Union Victorian secretary Martin
Kingham said the Federal Government's changes breached its own legislation
by restricting workers' access to industrial action while negotiating new
enterprise agreements.

He said Mr Reith was trying to "dictate to" Mr Kennett, and called on the
Premier to stand up to the Federal Government and ratify the agreement.

"They want to use Jeff Kennett, they want to embarrass Jeff Kennett. I have
told the State Government to go ahead with the job and tell Reith to pull
his head in," Mr Kingham said.

Neither Mr Reith nor Mr Kennett could be contacted last night.


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