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Scrapped building watchdog could have dealt with Gatto intervention: opposition
The federal opposition says Mick Gatto’s intervention in a Melbourne building dispute would have been dealt with by the former construction industry watchdog had it not been abolished by Labor as a national union head called for a financial overhaul of the sector to bring it under control.
Coalition industrial relations spokesperson Michaelia Cash said the government had stripped away the “last line of defence between a vibrant building sector and ... chaos” following revelations Gatto had warned an architect he could cause him “grief” should he not meet him over a stalled project.
Building industry mediator Mick Gatto.Credit: Eddie Jim
“The ABCC [Australian Building and Construction Commission] was always the best body to police the construction industry and the Albanese government has left the industry vulnerable by scrapping it,” Cash said on Monday.
“Certainly, if the ABCC was still in place, the type of behaviour outlined would be much less likely to occur, and if it did, would likely be dealt with by the ABCC.”
Gatto, a former boxer and underworld figure who a jury in 2005 found to have shot a hitman in self-defence, has built a successful career as a building industry mediator. The Sydney Morning Herald and The Age reported on Monday he had spoken to Melbourne architect Joseph Toscano, claiming to represent Cobolt Constructions, a builder with whom Toscano was embroiled in a dispute.
“We can cause you grief,” Gatto told Toscano in an October 5 conversation. “And I know you have enough grief in your life already.”
Gatto told this masthead he tried to resolve disputes quickly and amicably: “We don’t stand over anyone. We don’t belt anyone. We don’t do the wrong thing by anyone.”
Master Builders Australia CEO Denita Wawn did not comment specifically on the matter related to Gatto. However, she said, since the abolition of the ABCC, “we have heard from businesses that they have experienced increased disruptive behaviour on sites”. The a government agency was tasked with policing workplaces in the construction sector.
“The reality is that for the first time in over 20 years, the building and construction industry has been left without any industry-specific protections or an industry-specific regulator to enforce those laws,” Wawn said.
Workplace Relations Minister Tony Burke last year promised to set up the National Construction Industry Forum as a statutory body in place of the controversial ABCC, which Labor accused of acting as a politicised, union-hunting agency targeting the CFMEU construction union.
The forum held its first meeting on October 20, when its members agreed that strengthening the financial viability of the sector would be one of two key areas of focus.
Electrical Trades Union national secretary Michael Wright, a union representative on the forum, said the financial insecurity underscoring the sector bred a culture of distrust, with money being routinely withheld and less powerful entities avoiding legal disputes for fear of being blacklisted.
Wright, also not commenting specifically on this masthead’s report, said an overhaul including security of payments – rules ensuring contractors have smooth access to money owed – would help create a more stable, regulated industry.
“The allocation of risk on that contactual level is what cascades all the way down to construction not being a normal industry for people to work in,” he said.
A spokesperson for the Fair Work Ombudsman, which has taken over the ABCC’s investigative functions since the latter’s abolition, said: “We encourage anyone with specific allegations of non-compliance with the Fair Work Act 2009 to contact us directly. They can visit the contact us page or call the Fair Work Infoline on 131 394.”
When asked about this masthead’s report, Victorian Premier Jacinta Allan referred back to federal agencies. “Those matters are covered by federal industrial relations law and regulations,” she said.
“If there is any evidence of unlawful behaviour, people with that evidence should report it to the relevant authorities.”
Since the interaction with Gatto, Toscano’s efforts to restart his development have stalled, with builders privately claiming they have been warned off the job by unnamed figures in the CFMEU until the dispute is resolved.
A representative of CFMEU national secretary Zach Smith said the union head would not comment. Comment has also been sought from the union’s Victorian branch secretary John Setka.
With Kieran Rooney