“Good Faith” Pay Increases Are a Breach of the Building Code 1

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Thursday, July 21st, 2016
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FWBC is aware that some contractors may be considering “good faith” pay rises outside the scope of their enterprise agreements.

Contractors are reminded that they must not bargain in a way that breaches the Building Code 2013.

Unregistered and informal agreements, also known as side deals, contain terms and conditions that are in addition to those outlined in an award or enterprise agreement.

The Building Code has a specific section which deals with unregistered agreements.

Under the Building Code, contractors cannot bargain for, or make an agreement that provides for terms, conditions or benefits for the contractor’s employees unless that agreement is going to be registered.

If a contractor is operating under a side deal, outside the scope of their enterprise agreement or the award, this is a breach of the Building Code.

Specifically, enacting a “good faith” pay increase that is not part of a registered enterprise agreement is a breach of section 10 of the Building Code 2013.

Companies or subcontractors found to be in serious breach of the Building Code can be sanctioned. The sanction may include being banned from working on Commonwealth funded projects.

Companies and subcontractors who are approached with a request to enter into a “good faith” arrangement should report the matter to FWBC.

Anyone can contact the FWBC hotline on 1800 003 338 to seek further guidance and assistance in relation to this issue.

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  1. Bill Nash

    Good on FWBC for standing up and enforcing this. There is not much point in having a Code if you are going to allow ways around its provisions.

    If side deals are allowed, unions will exploit this to effectively water down the Code's effects.