Industry concern over new jobs code

Building industry advocates have poured cold water on the Victorian government’s a Fair Jobs Code, claiming that it will deepen the strain on builders who are already being pushed to the limit.

Master Builders Victoria (MBV) and the Victorian Chamber of Commerce and Industry have expressed concern with the Victorian government’s announcement of a Fair Jobs Code, saying it duplicates existing Federal Government laws and will increase the regulatory burden on building and construction businesses.

Promised at the 2018 state election, the Fair Jobs Code enables the Victorian government to use its purchasing power to encourage compliance with industrial relations and occupational health and safety laws and promote Fair Jobs Code Standards, including secure work.

MBV chief executive officer Rebecca Casson said her organisation had consistently raised the point with the Victorian government that the new laws were a duplication of existing requirements, including industrial, OHS laws and the Construction Supplier Register.

“We believe that the new code would increase the regulatory burden on building and construction businesses when many were already struggling with daily supply chain challenges and rising material costs.

“The code will apply to businesses that perform Victorian government threshold contracts or seek a business grant above a specific value.”

The code introduces two new key requirements: A Fair Jobs Code Pre-Assessment Certificate and a Fair Jobs Code Plan.

A Fair Jobs Code Pre-Assessment Certificate must be held by businesses seeking state government contracts of $3 million or more or business expansion grants of $500,000 or more.

For state government contracts of $20 million or more, businesses need a Fair Jobs Code Plan in addition to the Pre-Assessment Certificate.

Any subcontractors working on state government projects will also need a Pre-Assessment Certificate if the subcontract value exceeds $10 million.

The Victorian Chamber of Commerce and Industry also announced they do not support the introduction of the Fair Jobs Code, as represented in their response to the Victorian Fair Jobs Code Stakeholder Discussion Paper in July 2020.

They stand by their position the introduction of this code added an unnecessary layer of cost and complexity to doing business in Victoria, and stated that federal legislation had regulated workplace relations in Victoria for years and that they saw no need to duplicate such legislation, processes and systems at a state level.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra said the state government’s focus should be on removing barriers to Victorian business growth, not creating more.

“Access to government procurement opportunities and business grants should be determined by compliance with existing employment, industrial and workplace health and safety obligations.

“While we support business compliance in adherence with existing workplace laws, this new code contradicts the government’s stated objective to get more businesses engaged in government procurement and will add unnecessary layers of complexity to Victorian businesses at a time when many are struggling to survive.”

The Victorian Chamber’s concerns around the Fair Jobs Code include:

• Business compliance with the code may breach confidentiality requirements.
• Supply chain compliance puts Victorian small and medium enterprises at a disadvantage.
• Requiring a Pre-Assessment Certificate adds an unnecessary burden on business.
• Fair Jobs Code compliance needs to be integrated into existing Victorian government legislation, policy and codes, and
• Code compliance can negate the objective of industry grants.

The Fair Jobs Code will be implemented from December 1 and businesses can apply for pre-assessment now.