Model Workplace Relations
Management Plan
Victorian Code of Practice for the Building and Construction
Industry 2014
The Secretary
Department of Treasury and Finance
1 Treasury Place
Melbourne Victoria 3002
Australia
Telephone: +61 3 9651 5111
Facsimile: +61 3 9651 5298
www.dtf.vic.gov.au
Authorised by the Victorian Government
1 Treasury Place, Melbourne, 3002
October 2014
If you would like to receive this publication in an accessible format please telephone
9651 0909 or email mailto:information@dtf.vic.gov.au
This document is also available in PDF format at www.dtf.vic.gov.au
Contents
Purpose and objectives .............................................................................................. 1
Compliance and audit................................................................................................. 2
Track record ............................................................................................................... 3
On time and on budget ........................................................................................................................3
Efficient and productive work practices ..............................................................................................3
Model Workplace Relations Management Plan ......................................................... 4
Part A – Administration ........................................................................................................................4
Part B – Risk assessment ......................................................................................................................4
Part C – Site establishment ..................................................................................................................4
Part D – Subcontractor management ..................................................................................................5
Part E – Conditions of employment .....................................................................................................6
Part F – Recruitment of direct labour ..................................................................................................6
Part G – Induction and mobilisation ....................................................................................................6
Part H – Labour productivity ................................................................................................................6
Part I – Performance metrics ...............................................................................................................6
Part J – Freedom of association ...........................................................................................................7
Part K – Right of entry ..........................................................................................................................7
Part L – Grievance management ..........................................................................................................8
Part M – Management of unlawful industrial action ...........................................................................8
Part N – Audit and review ....................................................................................................................8
Part O – Fitness for Work/Alcohol and other drugs in the workplace .................................................8
Appendix 1 – Summary of freedom of association objectives and
prohibitions ................................................................................................................ 8
Appendix 2 – Management of unlawful industrial action ......................................... 13
Victorian Code 2014 ...........................................................................................................................13
Model Workplace Relations Management Plan
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Purpose and objectives
The Victorian Government wishes to encourage greater flexibility and productivity within
the State’s building and construction industry to ensure that the Victorian Government
maximises value for money on its spending on infrastructure projects. To that end, the
Victorian Government has introduced the Victorian Code of Practice for the Building and
Construction Industry 2014 (Victorian Code 2014) to take effect from 8 October 2014.
Clause 9.1 of the Victorian Code 2014 requires that for projects where the total value of the
construction project is $10 million or more, regardless of the funding source, any tender
response or expression of interest must be accompanied by a Workplace Relations
Management Plan (the WRMP).
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Compliance and audit
The Minister for Finance has overall responsibility for the implementation of the Victorian
Code 2014, and has established the Construction Code Compliance Unit (‘the CCCU’) to,
amongst other things, monitor compliance with the Victorian Code 2014 and receive reports
of any alleged breaches.
The CCCU will conduct both desktop and field audits and inspections as part of its
compliance and assurance obligations. Where a tenderer is required to submit a WRMP, the
CCCU’s primary audit focus will be against the WRMP. Tenderers should be cognisant of this
when developing and implementing their WRMPs.
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Track record
On time and within budget
Clause 9.1(c)(ii) of the Victorian Code 2014 requires that tenderers must demonstrate that
they have a track record for delivering construction projects on time and within budget. In
satisfying this obligation, tenderers should provide a summary of all projects completed in
Victoria over the last three years, indicating the completion cost and date as at the time of
tender, and the actual completion cost and date of completion. Where delay and cost
escalation has occurred as a result of industrial relations matters, the tenderer must advise
details of the reasons for the failure, and the steps that it has taken to address those
failures. Those steps should be specific and measurable, and may be the subject of CCCU
audit and verification.
Efficient and productive work practices
Clause 9.1(c)(ii) of the Victorian Code 2014 also requires that tenderers must demonstrate
that they have a track record for adopting efficient and productive work practices. In
satisfying this obligation, tenderers should provide actual labour productivity data including
labour efficiencies and output per labour hour, or similar objective and precise data which is
verifiable. Tenderers should also provide actual examples where above average labour
productivity has been achieved, and what initiatives underpinned that performance. Where
tenderers are unable to demonstrate previous performance in this area, they should advise
what steps are being taken or are proposed to achieve improved performance. Those steps
should be specific and measurable, and may be the subject of CCCU audit and verification.
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Model Workplace Relations Management Plan
The model Workplace Relations Management Plan (WRMP) is intended to provide tenderers
with an overview of the CCCU’s expectations of an effective and auditable WRMP. It should
be read in conjunction with section 9 of the Victorian Code. Use of the pro forma is not
mandated, but if departing significantly from the suggested layout and content, tenderers
are advised to contact the CCCU to discuss their proposed approach.
Part A – Administration
The purpose of this section is to outline the organisational structure for the project,
including the identification of staff, reporting lines and responsibilities, with particular
emphasis on those roles and responsibilities which affect labour productivity and
compliance with the Victorian Code 2014, including reporting in accordance with clauses
11(b) and 13.1 of the Victorian Code 2014. Where the Project intends to rely on external
support, such as consultants, solicitors or employer associations, the details of those
persons and organisations should be included. Where there is a significant use of
subcontractors, the organisational structure should nominate who is responsible for
subcontractor management in accordance with Part D of the model WRMP.
Part B – Risk assessment
The purpose of this section is to obtain the tenderer’s view on the industrial relations risks
that the project might face. The risk assessment should demonstrate an understanding of
the industrial relations environment, lessons from previous projects and project-specific
issues. Where there is off-site fabrication or modularisation involved in the delivery strategy,
the risk assessment should include industrial relations risk associated with procurement,
including transport. The risk assessment should explicitly identify issues that will affect the
tenderer’s ability to comply with the Victorian Code 2014 and also identify any barriers to
meeting their objectives of efficiency and productivity.
Part C – Site establishment
The purpose of this section is to outline how the tenderer intends to establish the site(s).
Issues that may affect labour productivity will include access control and security, parking
and commuting issues, and how employees will move from the access point(s) to amenities
and to and from the workface. For remote sites, the tenderer should address issues of
accommodation and transport.
The WRMP should show how the tenderer intends to ensure that any preparatory works
including security, site clearance, fencing, utilities supply and the establishment of offices,
amenities and lay down areas are carried out productively and in compliance with the
overall objectives of the Victorian Code 2014.
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The WRMP must outline the systems, processes and procedures the tenderer will
implement to maintain the integrity and security of the site. The tenderer must outline how
it will, as far as reasonably practicable, determine and verify who is on site at any given time
(or who has been on the site at any given time), and ensure only those persons authorised
to be on site are permitted to access it. A purpose of this section is to prevent fraudulent
claims, and ensure persons claiming to work on the site in fact do so. The WRMP must
outline what particular identity and access security management systems will be
implemented to regulate who accesses the site. This should include security measures in the
form of CCTV, a swipe card access system, photographic or biometric security system or
similar. Where it is asserted not to be feasible, reasons in support of the assertion must be
included in the WRMP.
Part D – Subcontractor management
The purpose of this section is to outline how the tenderer will select and manage
subcontractors. The WRMP should outline how the selection and mobilisation of
subcontractors is carried out in accordance with the requirements of clause 9.1(b)(iii) of the
Victorian Code 2014.
The WRMP should demonstrate the process by which subcontractors are pre-qualified, with
an emphasis on demonstrating a track record of compliance, the ability to manage
grievances, disciplinary matters and administrative capability (payroll etc).
The WRMP should outline how subcontractor labour productivity will be measured and
what steps will be taken to improve performance, including commercial incentives that
address and reward productivity.
The WRMP should outline how subcontractor industrial relations issues, including
grievances, are to be managed and reported to the head contractor. The WRMP should also
contain details as to how the head contractor proposes to ensure that the obligations
contained in section 11 and clause 13.1 of the Victorian Code 2014 are given effect,
including ensuring that subcontracts contain provisions that ensure that:
 threatened or actual industrial action is reported to the head contractor, the CCCU and
the client; and
 the subcontractor agrees to take all requisite steps to stop any unlawful industrial action,
and to ensure that any damages or penalties are appropriately pursued (refer to Part M).
The WRMP must describe how the head contractor will ensure subcontractors and their
employees and workers comply with the tenderer's drug and alcohol policy (refer to Part O)
in respect of the project. This must include an explanation of how the tenderer will procure
the agreement of each of the subcontractors' employees to comply with the policy.
The WRMP must confirm that subcontractors will be required to supply to the head
contractor a copy of the subcontractor’s workplace arrangements self-assessment.
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Part E – Conditions of employment
The purpose of this section is to outline how the tenderer will establish terms and conditions
of employment for its direct labour.
The WRMP should include reference to the use of common law contracts, in the form of
offer letters, conditions of employment and the like to reinforce the employer’s
expectations in relation to matters that relate to the Victorian Code 2014, including freedom
of association, grievance management and unlawful industrial action.
The WRMP should attach the head contractor's completed workplace arrangements-self
assessment.
Part F – Recruitment of direct labour
The purpose of this section is to outline how the tenderer will attract, recruit and retain
suitable direct labour. Depending on the size, scope and location of the project, the tenderer
may need to address issues of skills shortages, interstate and off shore sourcing of labour,
training and competency assurance.
The WRMP should include details of how prospective employees are to be assessed and
reference checked to ensure that they meet the labour productivity objectives of the
Victorian Code 2014.
Part G – Induction and mobilisation
The purpose of this section is to outline how the tenderer will ensure that direct and
subcontract employees can be mobilised to the site efficiently and effectively, and with a full
awareness and understanding of the project, and the expectations of the Victorian
Government in terms of safety, productivity and continuity of operations.
Part H – Labour productivity
The purpose of this section is to outline how the tenderer proposes to achieve the labour
productivity and value for money objectives of the Victorian Code 2014. The WRMP should
address how the tenderer proposes to identify and respond to barriers and opportunities to
efficient and timely performance. The WRMP should also outline the key initiatives that will
differentiate the tenderer’s proposed approach to the project from other tenderers.
The WRMP should demonstrate that the tenderer and all subcontractors have the ability to
effectively identify and manage unsatisfactory employee performance, up to and including
termination of employment.
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Part I – Performance metrics
The purpose of this section is to outline how the tenderer will measure and report on labour
productivity, and on other matters required to be measured and reported under the WRMP.
In addition to matters required by other parts of the WRMP, these matters include:
 overall site and labour efficiency;
 lost time and continuity of operations;
 delays and disruptions due to industrial matters, including:
– grievances;
– right of entry; and
– the organisation and/or engaging in of industrial action or other industrial activities.
The WRMP should identify the key performance indicators to be used for measurement and
reporting.
The WRMP should set out how and by whom each indicator will be collected, collated,
reviewed and reported and how and by whom each indicator will be acted upon where
unsatisfactory performance is identified.
Part J – Freedom of association
The purpose of this section is to outline how the tenderer will comply with the freedom of
association objectives of the Victorian Code 2014. Appendix 1 contains a summary of the
agreements, arrangements, conduct, practices and procedures which do not promote
freedom of association and which are inconsistent with the objectives of the Victorian Code
2014.
The WRMP should outline how the tenderer proposes to meet the Victorian Code 2014’s
freedom of association objectives in a holistic and integrated manner. This might include
reinforcing the principles and prohibitions in recruitment and induction processes and
documents, reinforcing employees’ obligations in employment documents, ongoing
education and training, and an inspection and audit programme.
Part K – Right of entry
The purpose of this section is to outline how the tenderer will comply with the right of entry
requirements of the Victorian Code 2014. The WRMP should include an assessment of site
security and access and a requirement that relevant staff are familiar with the right of entry
requirements and procedures provided for under the Fair Work Act 2009 and the
Occupational Health and Safety Act 2004 (Vic), including ensuring that union officials hold
valid permits. The WRMP should explain how the tenderer will ensure that right of entry
standards are maintained and enforced by subcontractors.
The WRMP should also demonstrate how the tenderer will monitor union officials’ activities
and interest in the project/site, and what steps are to be taken where officials breach or
otherwise misuse their right of entry.
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Part L – Grievance management
The purpose of this section is to outline how the tenderer will ensure that employee
grievances and disputes are managed effectively and in accordance with the relevant
industrial instrument and the Victorian Code 2014. The WRMP should include mechanisms
for monitoring and recording the nature and frequency of grievances amongst the direct
workforce and the subcontract workforce. The WRMP should also demonstrate an approach
to ensuring that employees are free to choose whether to be represented and by whom in
relation to a workplace dispute or grievance.
Part M – Management of unlawful industrial action
The purpose of this section is to outline how the tenderer will ensure that the project is set
up and resourced to properly monitor, respond to and report unlawful industrial action,
including ensuring that the costs associated with unlawful industrial action can be
recovered.
The WRMP should consider the issues raised at Appendix 2 in completing this section.
The WRMP should ensure that the prohibition against the payment of strike pay is complied
with and that such compliance can be verified in respect of its own employees and in
respect of subcontractors’ employees. This may include ensuring that the tenderer can audit
the payroll systems and associated records of the subcontractor.
The WRMP should nominate the role(s) responsible for reporting industrial action to the
CCCU in accordance with section 11 of the Victorian Code 2014.
Part N – Audit and review
The purpose of this section is to outline how the tenderer will audit and review the WRMP.
The WRMP should be reviewed regularly over the life of the project, and modified wherever
there is scope for improved performance.
Part O – Fitness for Work/Alcohol and other drugs in the workplace
The WRMP must include detailed information on the tenderer's fitness for work policy,
including the management of drug and alcohol issues that will apply on the project. The
policy must, as a minimum:
 require the use of an objective medical testing method/s to detect the presence of drugs
or alcohol in a worker's system and outline the detection method/s to be used on the
project;
 ensure that all of the following substances are tested for:
– Alcohol
– Opiates
– THC
– Cocaine
– Benzodiazepines
– Amphetamine, and
– Methamphetamine
 provide that a person who returns a positive result for any of the substances listed above
will be deemed not to be fit for work (in respect of each substance listed above, there is a
zero level tolerance);
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 outline how a person who returns a positive result will be prevented from performing
work until they can prove they are fit to return to work, and other processes that will
apply in the event of a positive result or deemed positive result (i.e. a failure to submit to
a test);
 apply to all persons engaged on a project. That is, all persons working on or attending the
project site must be eligible to be tested;
 require frequent and periodic testing (at least once per month) of the workforce (both
construction workers and site office workers) as follows:
– where there are less than 30 workers on site – 10% of the workforce;
– where there are 30 to 100 workers on site – a minimum of 5 workers per month;
– where there are greater than 100 workers on site – a minimum of 10 workers per
month;
 unless the entire workforce is tested at the same time, provide for random selection of
personnel for testing and outline how this will occur;
 have procedures for targeted testing of higher-risk activities, voluntary testing and forcause testing; and
 address how workers who attend for work affected by drugs or alcohol can be counselled
and assisted, apart from any disciplinary process that might apply.
Where a tenderer's policy does not meet these minimum standards, the tenderer must
explain, to the satisfaction of the CCCU, why their proposal nevertheless meets the
objectives of the Victorian Code 2014.
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Appendix 1: Summary of freedom of association
principles – what would not comply with the
Victorian Code 2014
An agreement, arrangement, conduct, practice or procedure (however or wherever
expressed) which does not promote freedom of association is inconsistent with the
objectives of the Victorian Code in section 1 and is therefore not in compliance with this
Victorian Code. This includes, but is not limited to, the agreements, arrangements, conduct,
practices and procedures summarised in the table below:
Item
Prohibition/requirement
Personal
information
Union membership
Providing the names of new staff, job applicants, contractors
or subcontractors to unions other than as required by law.
The display of "no ticket, no start" signs, show card days or
any other similar signs or practices that imply or suggest that
union membership is anything other than a matter of
individual choice, and employers unlawfully encouraging or
discouraging employees to join a union.
Signs
The display of signs that seek to vilify or harass employees
who participate, or do not participate, in industrial activities.
Inductions
Using employee representatives or officers of a union to
undertake or administer site induction processes (a process
which should be undertaken by site management). To the
extent that such an arrangement, agreement, practice or
procedure (however or wherever expressed) is contained in
an existing enterprise agreement made before the application
date of the Victorian Code, any such process must be
overseen by, or also involve, site management.
Discrimination
Discriminating against or disadvantaging elected employee
representatives.
Forms
Using forms requiring an employee to identify their union
status, or requiring employers and contractors to identify the
union status of employees or subcontractors.
Refusal to employ or Refusing to employ an individual, or terminating an employee
terminate
or subcontractor, because of their union status.
Freedom of choice Limiting an employee's freedom of choice in deciding whether
to be represented and by whom in relation to a workplace
dispute or grievance.
Refusal of request
Employers refusing a reasonable request from a workplace
delegate to represent employees in relation to grievances and
to represent
disputes or discussions with members.
Non-working shop
The imposition, or attempted imposition, of a requirement for
any contractor, subcontractor or employer to employ a nonsteward
working shop steward or job delegate or to hire an individual
nominated by a union.
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Section
7.1(a)(i)
7.1(a)(ii), (iv)
7.1(a)(iii)
7.1(a)(v)
7.1(a)(vi)
7.1(a)(vii)
7.1(a)(viii)
7.1(a)(ix)
7.1(a)(x)
7.1(a)(xi)
Item
Prohibition/requirement
Logos and indicia
Requiring union or any other logos, mottos or other indicia to 7.1(a)(xii)
be applied to company supplied property or equipment,
including clothing.
Any requirement that a person pay a bargaining fee, however 7.1(a)(xiii)
described, to an industrial association of which he/she is not a
member, in respect of services provided by it.
Bargaining fees
Section
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Appendix 2: Management of unlawful industrial
action
The Victorian Code 2014
The Victorian Government wishes to encourage greater flexibility and productivity within
the State’s building and construction industry to ensure that the Victorian Government
maximises value for money on its spending on infrastructure projects. One of the major
sources of inefficiency, delay and cost to the industry and to the State is unlawful industrial
action.
The table below summarises the requirements in the Victorian Code 2014 in relation to
industrial action:
Item
Requirement
Dispute
settlement
All reasonable attempts must be made to resolve grievances or
matters under dispute at the workplace between the appropriate
level of management and employees, and where applicable, union
or other representatives.
Reasonable
Participants must take all reasonable steps to resolve industrial
action which adversely affects, or has the potential to adversely
steps
affect, the delivery of a project or other related contracts on time
and within budget.
Reporting
Participants must report any threatened or actual industrial action
that may impact the project, project costs, related contracts or
timelines to the CCCU (or nominee) and the client within 24 hours.
The participant must also provide regular updates to the CCCU and
the client in relation to the steps being taken to resolve the
threatened or actual industrial action.
Legal Response Participants must take all reasonable steps to prevent or bring to
an end unprotected industrial action occurring on, or affecting, the
projects, including taking legal action where possible.
Secondary
Participants must report any request or demand by a union,
whether made directly or indirectly, that the participant engage in
boycotts
conduct that appears to be for the purposes of a secondary
boycott within the meaning of the Competition and Consumer
Act 2010 (Cth) to the CCCU (or nominee) as soon as practicable,
but no later than 24 hours, after the request or demand is made.
Section
6.3(a)
11(a)(i)
11(b)(i)
11(a)(ii)
11(b)(ii)
In developing WRMPs, tenderers should consider the following:
What is unlawful industrial action?
The WRMP should ensure that the concept of unlawful industrial action is properly defined
and that site management and subcontractor management understand what behaviours
constitute unlawful industrial action. For example, a stoppage in relation to an alleged safety
issue that is not in accordance with the terms of the industrial instrument or the
Occupational Health and Safety Act 2004 is likely to constitute unlawful industrial action.
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How is the unlawful industrial action to be recorded?
The WRMP should ensure that any unlawful industrial action is properly recorded. This
should include details as to who is involved, the issues underlying the action, the unions
involved, and the proposed nature and duration of the action. Tenderers will need to ensure
that site management, particularly supervisors of direct and subcontract labour, are able to
properly record the details of the circumstances surrounding the action in a format that is
satisfactory to include in affidavits and witness statements.
Where unlawful industrial action is reported to the CCCU, there will be a specific audit of the
tenderer’s compliance with this requirement.
How will the contractor respond to notification of a rally or other protest
activity involving workers on site, including requests by workers to attend a
rally?
The WRMP should outline how the tenderer proposes to ensure that rallies, protests and
other activities that result in lost time are managed in accordance with the Victorian
Code 2014. This includes taking all reasonable steps to prevent or end the proposed action,
to recover losses associated with the action, and ensuring that workers are not paid strike
pay during a period of unlawful industrial action.
Is the contractor aware of the range of legal options available and properly
resourced to apply those options?
The Victorian Code 2014 requires that contractors take all reasonable steps to prevent and
bring to an end unlawful industrial action. The WRMP should demonstrate that the
contractor has an awareness of the range of options available to counter unlawful industrial
action, including all legislative and common law sources of action. The WRMP should also
identify what resources are available to the tenderer and subcontractors to ensure that legal
responses to unlawful industrial action are prompt and effective.
Identification of losses and costs associated with unlawful industrial action
In order to claim interlocutory relief from unlawful industrial action, tenderers must be able
to promptly identify the costs arising from the action. The WRMP should outline who is
responsible for the collection and collation of this information.
Authority to settle, withdraw or otherwise terminate legal proceedings
Where tenderers or subcontractors initiate legal proceedings following unlawful industrial
action, the contractor should discuss any proposed settlement or withdrawal of the
proceedings with the CCCU. This step should be reflected in the WRMP in order to ensure
compliance with Part 6, sub-clause 1.8 (f) of the Model Tender and Contract Documentation
issued in October 2014.
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