Union officials arrested over sham contracting - cfmeu

Media Conference
Construction, Forestry, Mining and Energy Union
82 Royal St East Perth WA 6004 9221 1055 www.cfmeuwa.com
4.2.2011
Union officials arrested over sham contracting
investigation.
CFMEU assistant secretary, Joe McDonald and union organiser Mat Waters have today been
arrested whilst discovering a host of sham contracting arrangement on the Diploma Constructions
site at 1178 Hay Street, West Perth. McDonald and Waters were acting on a complaint made by
workers on the site that they were not being paid correctly. The site was also being investigated
by the union for a series of safety concerns.
Sham contracting is rife on many sites in Perth, in many instances these contractors do not
comply with the national building code. Builders can be struck off the federal government tender
list if found to not comply with code. It is a priority of the federal government, the Australian
Building and Construction Commission and this union to stamp out sham contracting which sees
workers paid a lowly flat rate with no other entitlements that they are entitled to have by law such
as superannuation, long service leave, holiday leave pay etc There is a view that sham contracting
also encourages tax avoidance.
With sham contracting workers are made to work under an abn number as a self employed
contractor when in effect they are predominately employees with most if not all of their income
being derived from one single source.
Media Conference 2 pm today
There will be a media conference today held by Kevin Reynolds at 2 pm at the CFMEU office, 82
Royal Street East Perth in relation to charges faced by Joe McDonald and Mat Waters and
widespread Sham contracting rorts within the building industry.
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Further information please contact:
Kevin Reynolds
State Secretary
CFMEU C&G WA
92211055
Mobile phone: 0417 916 743
.
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