The Australian Building and Construction Commission

The Australian Building and Construction Commission

GPO Box 9927

Melbourne Victoria 3001

Australia

Telephone: 1800 003 338

Facsimile:

www.abcc.gov.au

Authorised by the Australian Government

(Issued) ** 2017

If you would like to receive this publication in an accessible format please telephone 1800 003 338 or email .

This document is also available in PDF format at www.abcc.gov.au .

Workplace Relations Management Plans

A requirement of the Code for the Tendering and Performance of Building Work 2016

A Workplace Relations Management Plan (WRMP) is required under Section 25 of the Code for the Tendering and Performance of Building Work 2016 (Building Code 2016) on Commonwealth funded building work described in Schedule 2 of the Building Code.

Tenderers must have an approved WRMP for projects where the Australian Government’s contribution to the project:

·  is at least $10 million; or

·  is at least $5 million and this represents at least 50% of the total construction value.

Tenderers should follow the structure of the enclosed Model WRMP when preparing a WRMP.

Contents

Purpose and objectives 3

Compliance and audit 3

MODEL WORKPLACE RELATIONS MANAGEMENT PLAN 5

Part A – Administration 5

Part B – Workplace relations risk and past experiences 5

Part C – Induction 6

Part D – Communication 6

Part E – Subcontractor Management 6

Part F – Conditions of Employment 7

Part G – Labour Productivity 7

Part H – Engagement of Direct Labour 8

Part I – Freedom of Association 8

Part J – Entry to Premises 9

Part K – Grievance Management 9

Part L – Industrial Impacts 9

Part M – Compliance with the Building Code 2016 10

Part N - Fitness for work policy 10

Part O - Security of payments 10

Appendix 1 – Summary of Freedom of Association - Objectives and Prohibitions 12

Appendix 2 – Management of Industrial Impacts 14

Appendix 3 - Fitness for Work/Alcohol and other drugs in the workplace 17

Purpose and objectives

The Building Code 2016 includes workplace relations requirements for building contractors and building industry participants performing, or wanting to perform Commonwealth funded building work.

Head contractors must have an approved Workplace Relations Management Plan (WRMP) for projects where the Australian Government’s contribution to the project:

·  is at least $10 million; or

·  is at least $5 million and this represents at least 50% of the total construction value.

A funding entity will require a tenderer to submit a WRMP with their tender documents. If a tenderer is shortlisted the funding entity will provide the WRMP to the ABCC for approval. The funding entity may need to submit the WRMP to the ABCC on more than one occasion for it to reach an acceptable standard prior to the tender being awarded.

A funding entity must not enter a contract with a tenderer that does not have an approved WRMP.

Compliance and audit

The ABCC has responsibility for monitoring compliance with the Building Code 2016.

The ABCC will conduct audits and inspections as part of its compliance obligations. Where a tenderer is required to have an approved WRMP, and they are the successful tenderer, the ABCC will audit compliance with the WRMP at the project. Tenderers should be aware of this when developing their WRMP.

Sections 7 (b), 8(7) and 34 of the Building Code 2016 require head contractors to comply with their WRMP, and to ensure that, so far as is reasonably practicable, all subcontractors comply with the WRMP on the project.

A failure by a contractor to comply with its WRMP is a breach of the Building Code 2016. A failure by a subcontractor to comply with a WRMP may result in a breach of the Building Code 2016 by the head contractor.

Consequences of breaching the Building Code 2016 may be in the form of a formal warning or an exclusion sanction. An exclusion sanction is a period during which a contractor is not permitted to tender for, or be awarded, Commonwealth funded building work. Sanctions can also be extended to related entities of the contractor.

Content of a Workplace Relations Management Plan

A WRMP must demonstrate how the tenderer proposes to comply with the requirements of the Building Code 2016 on a particular project.

The WRMP must:

·  explain the systems, processes and procedures that the code covered entity has in place (or will put in place) to:

-  clearly and effectively communicate how the requirements of the Building Code 2016 apply to all building industry participants on site, including subcontractors that are engaged by the head contractor; and

-  promote a fair, lawful, efficient and productive workplace; and

-  deliver the project on time and within budget.

·  include a Fitness for Work policy. The Fitness for Work policy must address the matters set out in Schedule 4 of the Building Code 2016; and

·  include details of the processes that are or will be put in place to ensure that all applicable laws and other requirements relating to the security of payments that are due to persons in respect of building work will be adhered to throughout the life of the project.

The ABCC may also require a WRMP to address a number of additional matters set out in Schedule 3 of the Building Code 2016. Tenderers will be advised by the funding entity whether the ABCC requires any of the matters outlined in Schedule 3 to be addressed in the WRMP for the project.

Tenderers are requested to follow the WRMP Model when preparing a WRMP.

MODEL WORKPLACE RELATIONS MANAGEMENT PLAN

Note: This model includes reference to those matters listed in Schedule 3 of the Building Code 2016.

A WRMP may not be required to address all of these matters. Tenderers will be advised by the funding entity which sections need to be addressed.

Tenderers may choose to voluntarily address all of the matters set out in Schedule 3 as a matter of best practice.

Part A – Administration

This Part should outline the organisational structure for the project including the identification of staff, reporting lines and responsibilities. Particular emphasis should be given to those roles that will be responsible for monitoring and delivering labour productivity, subcontractor management, grievance management and compliance with the Building Code 2016[1], including notification of a breach or a suspected breach, in accordance with section 17 of the Building Code 2016.

Tenderers should consider their approach to relationship management with employees, subcontractors and officers, delegates and other representatives of building associations, including but not limited to the approach to and process for communicating with the workforce[2].

If no individuals have yet been identified for the functions in question, the WRMP should outline the existence of the role and outline the functions that the person who assumes that role will undertake[3].

Part B – Workplace relations risk and past experiences

The risk assessment should address how workplace relations risks will be identified and the proposed approaches for managing those risks. The risk assessment should demonstrate an understanding of the industrial relations environment in which the tenderer will operate, and that it has strategies in place that will enable it to deal with risks that may impact on its ability to deliver the project on time and within budget. These strategies should reflect the unique characteristics of the project to which the WRMP relates[4].

Tenderers should provide a summary of current and completed projects in Australia within two years of the date of tender. This summary should include the estimated and actual completion costs and completion dates for the projects. Where completion delay or cost escalation has occurred the tenderer should provide a summary of the causes, factors or reasons for the delay or cost escalation. Where workplace relations management issues caused or were a factor in the cost escalation or delay, the tenderer should provide an explanation of what steps have been, and will be, taken to prevent similar issues impacting on productivity, project costs or the completion schedule[5]. Those steps should be specific and measurable, and may be the subject of an ABCC audit.
This information will be required for projects of significant value or importance[6].

Part C – Induction

This Part should outline how site induction processes will be managed to reinforce Building Code 2016 principles. These principles include, but are not limited to freedom of association[7].

This Part should also outline

·  the roles responsible for performing inductions[8] (noting that the responsibility for undertaking induction processes rests with whoever has management of the site)[9]

·  how the tenderer will ensure that officials, delegates or other representatives of building associations do not undertake or administer induction processes (unless there is a requirement in an existing enterprise agreement)[10]; and

·  how the tenderer will ensure that ‘secondary’ inductions conducted by representatives of building associations do not occur[11].

Part D – Communication

This Part should outline how the tenderer will clearly and effectively communicate how the requirements of the Building Code 2016 apply to all contractors and building industry participants on site, for example by providing education and training to employees and subcontractors, discussing the Building Code 2016 during on-site meetings and by confirming subcontractor compliance at subcontractor meetings[12].

Part E – Subcontractor Management

This Part should outline the processes and procedures for selection, engagement and management of subcontractors, with an emphasis on demonstrating how they will comply with the Building Code 2016[13].

This Part should outline how the tenderer will ensure that subcontractors are not discriminated against or coerced, unduly influenced or unduly pressured to make above-entitlements payments or to contribute to a particular fund or scheme, or support a particular product, service or arrangement[14].

This Part should outline how the tenderer will ensure:

·  expressions of interest or requests for tender (howsoever described) for building work require subcontractors to comply with the Building Code 2016[15].

·  agreements with subcontractors require the subcontractor to act consistently with the Building Code 2016[16].

·  subcontractors meet the eligibility requirements of section 23 of the Building Code at the time of lodging their expression of interest or tender (including that they are not covered by an enterprise agreement that does not meet the requirements of section 11 of the Building Code 2016)[17];

·  subcontractors comply with the WRMP that applies to the head contractor in relation to the building work (subcontractors should not be required to have their own WRMP)[18];

·  subcontractors report grievances, disputes and industrial action to the head contractor[19];

·  subcontractors agree to take steps, to the extent reasonably practicable, to prevent or bring to an end any unprotected industrial action taken by employees of the subcontractor[20].

The WRMP should also outline the approaches that will be adopted to ensure compliance with statutory workplace rights on the project, including what processes will be implemented to ensure Commonwealth industrial instruments are complied with, and that underpayments (and similar) do not occur[21].

Part F – Conditions of Employment

This part of the WRMP relates to the employment relationship between the tenderer and its direct labour. The WRMP should outline how the tenderer will regulate and monitor compliance with the terms and conditions of employment in Commonwealth industrial instrument/s)[22].

Part G – Labour Productivity

This Part should outline the approaches that have been, or will be, adopted by the tenderer to develop and maintain a productive workforce, ensuring optimal use of labour requirements (e.g. the approach to managing inclement weather and heat, rostered days off and how the head contractor will maintain the ability to determine when, where and by whom work will be performed to meet operational requirements[23]

The WRMP should address how the tenderer proposes to objectively measure, monitor and record labour productivity[24]. This applies to all aspects of the project, including subcontractors, and will allow the head contractor, the funding entity and the ABCC, to accurately monitor productivity on the project. It is expected that the WRMP will identify the key performance indicators that are relevant to the labour productivity initiatives that are identified as part of the WRMP and indicate how they will be collected and reported. The adequateness of the resources dedicated to the measurement and the monitoring and recording of productivity on the project should also be addressed, including the identification of the parties responsible for both undertaking these tasks and ensuring that any findings are acted upon in a timely and effective manner. This Part ensures that processes are in place to objectively determine and record productivity on Commonwealth funded building work[25].

Part H – Engagement of Direct Labour

This Part should outline how the tenderer will recruit and select direct labour for the project. The tender should outline its processes and procedures for recruitment and selection of direct labour, including reference checks[26].

The tenderer may outline how it will meet the labour market testing requirements in section 11F of the Building Code 2016 by providing details of the resources it will utilise when recruiting direct labour, for example advertisement on the jobactive.gov.au website, seek website, newspapers or similar including the geographical target audience[27].

Part I – Freedom of Association

This Part should outline how the tenderer will comply with the freedom of association objectives of the Building Code 2016. Section 13 of the Building Code 2016 contains the freedom of association objectives and prohibitions provided for by the Building Code 2016. The WRMP should outline how the tenderer proposes to meet these objectives[28]. This might include reinforcing the principles and prohibitions in recruitment and induction processes and documents; ongoing education and training; and an inspection and audit programme.

Refer to Appendix 1 – Summary of Freedom of Association objectives and prohibitions.

Part J – Entry to Premises

This Part should outline how the tenderer will comply with the entry to premises requirements detailed in section 14 of the Building Code 2016[29].

The WRMP should outline how all relevant persons on site will be made familiar with the right of entry provisions that will apply to the project, including steps that should be taken to ensure that access to premises occurs only in strict compliance with all legislative requirements in Part 3-4 of the Fair Work Act 2009 or a work health and safety law, including permit and notice requirements. The WRMP should set out how right of entry and the requirements of the Building Code 2016 will be monitored and implemented on the project (including by subcontractors). The WRMP should also demonstrate how the tenderer will monitor and deal with unauthorised entry.