Labor will back our subbies in Gilmore - Media Release

BRENDAN O’CONNOR MP
SHADOW MINISTER FOR EMPLOYMENT AND WORKPLACE RELATIONS
MEMBER FOR GORTON
 
ANDREW LEIGH MP
SHADOW ASSISTANT TREASURER
SHADOW MINISTER FOR COMPETITION AND PRODUCTIVITY
SHADOW MINISTER CHARITIES AND NOT-FOR-PROFITS
SHADOW MINISTER FOR TRADE IN SERVICES
MEMBER FOR FENNER
 
FIONA PHILLIPS
LABOR CANDIDATE FOR GILMORE
 
LABOR WILL BACK OUR SUBBIES IN GILMORE

Today, Andrew Leigh and Fiona Phillips met with sub-contractors in Gilmore to discuss the benefits of Labor’s Tradie Pay Guarantee.

We heard stories of local tradies even losing their home due to the lack of payment from big companies.

Subbies working on federal government projects will be protected from being left unpaid when dodgy businesses go bust through the implementation of Labor’s Tradie Pay Guarantee.

A Shorten Labor Government will require large Commonwealth construction projects to establish a specially structured account – using a cascading statutory trust - that ensures all businesses down the supply chain get paid on time.

Labor will also: 

  • set up an efficient process for handling disputes
  • establish a federal security of payments legislative regime based on the recommendations of the Murray Review
  • work with the states and territories to harmonise schemes across the country where possible

Further, we will create a $7 million Tradie Litigation Fund for subbies to access justice and see regulators take dodgy bosses to court and win.

Only a Shorten Labor Government will protect the livelihoods of small businesses, workers and subcontractors who fall victim to dodgy building bosses and ensure perpetrators face their day in court. 

The practice of so-called “Phoenix activity” – where dodgy directors deliberately burn companies in an attempt to avoid their obligations to employees, government and honest businesses – is estimated to cost the Australian economy more than $5 billion per year.

Not only will this give tradies their day in court, it will also act both as a punishment and deterrent for dodgy directors. People who deliberately burn their companies should be subject to the full consequences of failing directors’ duties, including being liable for compensation, fines of up to $200,000 or five years behind bars.

If elected to government, Labor will also work with states and territories to cancel the building licenses of companies which have been caught phoenixing, a practise where dodgy directors deliberately burn companies in an attempt to avoid their obligations to employees, government, home owners and honest businesses.

These measures - along with previous commitments such as naming and shaming phoenix directors, a Director Identification Number, and increasing penalties associated with phoenix activity – will help protect Australian jobs and the economy.

It’s time the Morrison Government stopped going soft on corporate crooks, and adopted Labor’s plans to crack down on dodgy phoenix activity.

Only Labor will stand up for tradies in Gilmore and stop dodgy firms ripping off their subbies.

ENDS

Authorised by Noah Carroll ALP Canberra.


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Cnr Gungahlin Pl and Efkarpidis Street, Gungahlin ACT 2912 | 02 6247 4396 | Andrew.Leigh.MP@aph.gov.au | Authorised by A. Leigh MP, Australian Labor Party (ACT Branch), Canberra.