SMB To Benefit From Industrial Peace

The productivity gains of commercial building projects relative to residential projects have sky-rocketed since the Coalition Government formed the Australian Building and Construction Commission (ABCC) in 2005 to crack down on militant unionism, according to a report commissioned by the body.The productivity gains of commercial building projects relative to residential projects have sky-rocketed since the Coalition Government formed the Australian Building and Construction Commission (ABCC) in 2005 to crack down on militant unionism, according to a report commissioned by the body.

From its modelling of figures from the Economic Analysis of Building and Construction Industry Productivity report, the ABCC also claims the new ‘union-lite’ environment within the building and construction industry has delivered a $15 billion boost to the national economy.

According to the Econtech study, which collated data from quantity surveyor analysis, the Australian Bureau of Statistics, the Productivity Commission and case studies of selected projects, from 1994 to 2003 costs were on average 10.7 per cent higher in commercial building than in domestic residential building, with this cost gap falling to 1.7 per cent in 2007.

The study found national gross domestic product is 1.5 per cent higher than it otherwise would be and the consumer pricing index is 1.2 per cent lower, leading to a gain in real consumption of 0.8 per cent, lower living costs lead and higher living standards.

It also found gains in labour productivity across the same periods, 1994 to 2003 relative to 2007, were around 9.4 per cent, and construction labour productivity figures for 2006 outperformed historical performance predictions by 9.5 per cent.

The ABCC was formed under the Building and Construction Industry Improvement Act 2005, which was passed in direct response to the Cole Royal Commission into the building industry.

According to companies surveyed in the case studies, the main impacts of the ABCC and associated workplace relations reforms are significant

reductions in days lost due to industrial action, less abuse of occupational health and safety issues for industrial purposes, proper management of

inclement weather procedures, improvement of rostering arrangements increasing the number of working days per annum and cost savings stemming