Company refused certification to work on ACT government projects under new union access code

Since January, construction, security, cleaning and traffic companies who tender for ACT government work must hold a Secure Local Jobs Code certificate, which requires them to be audited at least every 18 months to ensure they have not underpaid their staff.

The companies also have to comply with a code, which requires them to hand over addresses, working hours and contact details associated with the work to a Secure Local Jobs registrar, so unions can exercise their right of entry.

Employers also have to give new employees union membership forms to be code-compliant.

Unions say the code is needed after years of industrial relations problems.

As of May 31, there were 702 code certified companies, 598 of which are in the construction sector.

But The Canberra Times has learnt one company was refused a certificate and banned from re-applying for three months for failing to disclose information about its past compliance with industrial law.

A spokeswoman for Industrial Relations Minister Rachel Stephen-Smith said the company had since reapplied and been granted a certificate after "taking actions and introducing new policies to address concerns".

She said no other company had been denied a certificate although a number had been given shorter term certificates as they had been unable to prove a long term track record of meeting their workplace obligations, either due to the fact that they are newer enterprises or due to previous breaches.

Three companies are under investigation for breaching the code as well.

The minister's spokeswoman said the investigations related to complaints the contractors had non-certified subcontractors on site.

"While the facts of the matter are not in dispute, the complaints guidelines made under the Act require three way conversation between the Registrar, company and the complainant. These investigations are still ongoing," she said.

Unions have provided comments on eight entities that have applied for a certificate, even though Unions ACT or trade unions have no formal role in providing advice on applications, the minister also revealed through a question on notice.

The territory also recently tightened up its definition of subcontractor after finding some companies were not adequately covered by the code because they used associated entities to employ staff.

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In some business group structures, one entity in a group would apply for a Secure Local Jobs Code Certificate and use another one of their entities to employ labour, the spokeswoman said.

"Whilst the process of applying for a Secure Local Jobs Coder Certificate identified associated entities, the lack of formal contracts between these entities mean that those associated entities were not adequately covered by the Secure Local Jobs Code," she said.

"The registrar instructed auditors to identify these companies and ensure they all applied for certificates in order to meet the intention of the policy.

"The change formalises this practice, ensuring that all businesses within a group are covered by the Secure Local Jobs Code and all relevant government contracts are awarded to those who have the highest ethical and labour standards."