Enforcing the Rule of Law

Corporate Plan

2015-16

ENFORCING THE RULE OF LAW

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TABLE OF CONTENTS

Message from the Director

1. Purpose

2. Operating Environment

3. Capability

4. Corporate Structure

5. Strategic Framework

6. Business Priorities

7. Corporate Performance

8. Risk and Compliance

9. Corporate Governance

10. 2015-16 Snapshot

Message from the Director

I am pleased to present the Corporate Plan 2015-16 (Plan) for the Office of the Fair Work Building Industry Inspectorate, commonly known as Fair Work Building and Construction (FWBC).

The Plan has been prepared in accordance with paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

It expands on the information in FWBC Budget Statements 2015-16 and covers the financial years 2015-16 to 2018-19.

The Plan is the principal planning document of FWBC. It sets out the purpose, activities and priorities we will pursue and the results we expect to achieve. In addition, the Plan describes our operating environment and challenges for the next four years 2015-19, in the context of our vision and our objectives (See Section 5).

FWBC is responsible for enforcing workplace relations laws in the building and construction industryand ensuring compliance with the Building Code 2013. This is performed through the provision of education, assistance and advice and where necessary, undertaking civil penalty litigation in the courts. FWBC also intervenes in court proceedings and makes submissions in matters before the Fair Work Commission.

The building and construction industry is vitally important to the Australian economy and the wellbeing of this nation. The industry is the third-largest contributor to GDP in this country and it employs well over one million people, making up 9 percent of Australia’s total employment.

This Plan creates the framework to drive and monitor our day to day performance, while allowing the agility required to respond to rapidly changing environments. The Plan also allows us to manage our risks, and comply with good business practices, government policy, and legislation.

Importantly, each year the Plan obliges FWBC to produce a comprehensive one year Snapshot (see Section 10), listing the services, projects and initiatives we will be delivering that year. This creates a resource that assists our staff, our Executive, our Minister and oversight bodies to understand our business and our priorities.

Our planning framework (see section 7) cascades FWBC’s key performance measures to every business unit and staff member in the organisation. This means that everyone in FWBC is directly working toward achieving the same goals.

In line with the principles of the PGPA Act, the Plan allows FWBC to be transparent and accountable. It allows managers, accountable authorities, the Minister, the Parliament and the public to use our performance information to draw clear links between the use of public resources and the results we have achieved and plan to achieve.

We will report against this Corporate Plan in the Annual Performance Statements that form part of the FWBC Annual Report, tabled in October each year by the Minister for Employment.

Nigel Hadgkiss

Director

Fair Work Building and Construction

1. Purpose

FWBC enforces workplace relations laws in the building and construction industry through the provision of education, assistance and advice, and where necessary, civil penalty litigation in the courts.This is in accordance with the Fair Work (Building Industry) Act 2012 (FWBI Act), the Fair Work Act 2009 (FW Act) and the Independent Contractors Act 2006. In addition, FWBC ensures compliance with theBuilding Code 2013 (Building Code).

Our Vision is that allAustralian building and construction workplaces are productive and harmonious.

Our Mission is to ensure that the rule of law prevails in the Australian building and construction industry.

Key strategies towards achieving FWBC’s purpose in 2015–16 are to:

• provide ready access to information on relevant workplace laws;
• provide education, assistance and advice to industry participants;
• conduct site visits, inspections and audits to monitor compliance with workplace laws and the Building Code;
• conduct investigations into alleged breaches of workplace laws and the Building Code;
• undertake enforcement action, including civil penalty litigation; and
• intervene in court proceedings and make submissions in matters before the Fair Work Commission.

FWBC has developed a strategic framework that sets out six objectiveswhich enable the agency to achieve its purpose (described in Section 5).

2. Operating Environment

As a regulator within the building and construction industry, FWBC works in a highly complex and constantly shifting environment that significantly impacts the Australian economy.

As at July 2015, FWBC had identified that there were 1,343 sites (valued at $397.8 billion) in their construction phase and 1,091 sites pending construction (valued at $555.90 billion).

Construction activity contributed $30.9 billion to Australia’s economy over the December 2014 quarter, making it the third biggest contributor to GDP at 7.77per cent after mining (8.51per cent) and financial services (8.59 per cent). This figure has grown steadily since 2003 when it was at
5.6 percent. Of particular note, while the mining, oil and gas sectors currently account for 65 per cent of the total value of projects currently in construction, the same sectors currently represent just 36 per cent of projects currently in the pipeline. Conversely, infrastructure projects represent 11 per cent of the total value of projects currently in construction, and 34 per cent of projects in the pipeline.

The construction industry as a whole employs in excess of 1 million people nationally, accounting for over 9 per cent of total employment. In December 2014, the construction industry recorded by far the highest number of working days lost to industrial disputes per 1,000 employees across all industries. This was the 3rd consecutive quarter where the construction industry lost more days per 1,000 employees than any other industry.

FWBC operates within a broader regulatory framework and works closely with other Commonwealth and State Government agencies that also have a role to play in the building and construction industry, including, the Fair Work Ombudsman, the Immigration Department and State work health and safety regulators, among others. FWBC will refer matters to other agencies that are outside its jurisdiction or are better suited for response by another agency.

FWBC liaises with a broad range of stakeholders in the construction industry. The work of FWBC means that the agency routinely interacts with workers, industry associations, companies, contractors, and unions. Our industry stakeholders work in the commercial, engineering and large-scale residential sectors of the building and construction industry.

FWBC’s operating environment is fluid. The need for FWBC’s services changes in line with shifts of the geographical concentration of construction projects and unlawful activity. Stakeholders in the building and construction industry are relatively mobile and points of interaction are constantly changing.

FWBC maintains offices in every state and territory. During times of heightened workloads, agency resources are relocated between states.

3. Capability

The capability of FWBC is described in a range of strategies and plans that the organisation will use to achieve its purpose(as described in Section 1).

FWBC has a key regulatory role within the building and construction industry and it is critical that the organisation engenders a strong leadership culture and empowers staff to deliver excellent service to building industry participants. It is also critical that the organisation has the right staff in the right place at the right time who are adequately trained and supported.FWBC has implemented a Leadership Program for current and future leaders. The program focuses on building leadership capability and developing leaders so they can address complex environmental challenges.

The FWBC Workforce Plan and Annual HR Action Plan assist in building capability through four main areas: recruitment, learning and development, workplace health and safety and workplace relations. In addition, the agency has a number of values-based initiatives that embed a culture of respect and awareness. APS Values and Code of Conduct refresher training continues to be delivered to all staff.

FWBC also has an IT Capability Plan in place to support the delivery of agency services and to increase the productivity of staff. The goals of our IT Plan are to:

-improve ICT knowledge, skills and capacity across the agency to deliver more efficient, effective and improved services;

-simplify and make consistent business processes for common activities across portfolio agencies to standardise approaches to service delivery;

-invest optimally to share resources and services to deliver value and improve efficiency and effectiveness; and

-encourage innovation and increase the usage of digital technologies to improve productivity and agency services.

Capital investment is funded using departmental capital appropriation or internally funded from our own sources. Details of available capital resources appear in the ‘Departmental Capital Budget Statement’ in the Portfolio Budget Statements (Portfolio Additional Estimates Statements).Planned capital investments for the next four years include office fit-outs, replacement of office and ICT equipment and major computer software.

4. Corporate Structure

FWBC has five business groups that deliver components of our strategies and services. Aside from the Office of the Director, each business group is led by a senior executive who reports directly to the Director.

Office of the Director

Reporting to the Director, the Office of the Director Group comprises a variety of functions including strategic planning,media and stakeholder engagement, parliamentary, professional standards and internal audit.

Building Code

Led by the National Manager Building Code, the Building Code Group (BCG) is responsible for ensuring compliance with the Building Code 2013. The BCG is part of the agency’s increased focus on Building Code compliance as a proactive driver of behavioural change on construction projects. Established with specialist operations, legal and education officers, the BCG supports and trains FWBC investigators to conduct Building Code inspections and audits. The BCG also undertakes proactive educational and stakeholder engagement activities to help the industry comply with the Building Code.

Operations

FWBC’s Operations Group is led by a Group Manager and supported by two Executive Directors, in directing the activities of the agency’s ‘frontline’ employees, our investigators.

The Operations Group, who have a presence in all FWBC state and territory offices, actively promote the rule of law on building and construction sites by providing assistance and advice to industry participants regarding their rights and responsibilities under the Fair Work Act 2009, and the Building Code 2013. The Operations Group is also tasked with investigating suspected breaches of the legislation, and preparing briefs of evidence for review by FWBC’s Legal Group.

Legal

FWBC’s Legal Group is led by a Chief Counsel, who is supported by two Executive Directors.

The Legal Group is primarily responsible for the assessment and litigation of alleged or suspected breaches of building and construction industry workplace laws. The Legal Group briefs external counsel to seek advice on prospects of success for potential civil penalty prosecutions and

manages the conduct of agency proceedings, submissions and interventions. The Legal Group also provides internal legal advice to FWBC’s Director and the Executive Board and manages the agency’s Freedom of Information requests.

Corporate

Led by the Chief Operating Officer, the Corporate Group supports the agency through the delivery of human resources, information technology, performance and planning, finance and business support services.

The Human Resources (HR) Team manage Workplace Health and Safety compliance; return to work case management; recruitment and induction of staff; the procurement or provision of learning and development activities andperformance management. Payroll is outsourced to the Fair Work Ombudsman.

The agency’s Information Technology Unit ensures that the agency has the systems and tools required to support the agency’s business. The technology, infrastructure and services are provided by the Shared Services Centre through a Memorandum of Understanding and fee for service.

Data reporting and analysis is provided by the agency’s Planning and Performance Team. This team maintains and develops FWBC’s case management system which records the agency’s investigative activity. They produce reports on agency performance for the Director and Executive Board and also analyse external data sources to produce reports that help inform strategic direction. In addition, the Planning and Performance Team manage the FWBC website and FWBC App.

The Business Services Unit is responsible forbusiness services, records management, accommodation, fleet management and security.

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FWBC Organisational Chart

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5. Strategic Framework

We exist to enforce compliance with workplace relations laws and the Building Code 2013 on Australian building and construction workplaces.

We can achieve this for the industry by creating a framework that allows us to link everything we do to one of six objectives listed below. FWBC has a core objective, along with five supporting objectives that allow us to respond to rapidly changing environments and assure our business is supported in the long term.

Our sixobjectives are:

Core Objective
Enforcement and Compliance / Ensure compliance with workplace laws and the Building Code 2013
Supporting Objectives
People / Build capability to achieve a culture of high performance
Information and Analysis / Systems to plan, steer and monitor performance
Stakeholders / Engagement to promote high levels of compliance among stakeholders
Finance / Prudent financial management
Governance / Coordinated and aligned decision making that provides oversight and manages risk

6. Business Priorities

FWBC’s priorities are to:

-ensure compliance with workplace laws

-ensurecompliance with the Building Code 2013

-provide advice and guidance to our stakeholders

In addition to our priorities, during 2015-19 we aim to deliver a number of initiatives that will help us to achieve our objectives. These initiatives include:

2015-16

-Proactive and strategic monitoring of construction projects to improve compliance with the Building Code 2013 and the law.

-Ensure FWBC meets the new target set for Budget Statement KPI 2 – File 75% of matters in court within 12 months of a complaint being lodged.

-Increase accessibility to education material through web andmobile application improvements.

-Enhancements to the FWBC Case management system.

-Learning and development initiatives to build internal capability in strategic areas.

-Review Operational Memorandums of Understanding.

2016-17

-Development of a Talent Management Program.

-More effective use of data systems to inform strategy.

-Review Corporate Memorandums of Understanding.

2017-18

-Review Operations Guide.

-Review IT contract with the Shared Services Centre.

2018-19

-Review FWBC Case Management System.

7. Corporate Performance

In developing this four year Corporate Plan, FWBC has had the opportunity to re-assess its strategic framework, and has identified six objectives that will enable the agency to achieve its purpose.

Enforcement and Compliance / Ensure compliance with workplace laws and the Building Code 2013
People / Build capability to achieve a culture of high performance
Information and Analysis / Systems to plan, steer and monitor performance
Stakeholders / Engagement to promote high levels of compliance amongst stakeholders
Finance / Prudent financial management
Governance / Coordinated and aligned decision making that provides oversight and manages risk

This sets the framework for our business which consists of:

1. Corporate Plan:The intended results FWBC needs to achieve its purpose
2. Group Business Plans:The results each group needs to attain, for FWBC to achieve its purpose
3. Individual Plans:The things each individual needs to do, for FWBC to achieve its purpose

FWBC also has a range of functional plans in order to co-ordinate the delivery of organisation wide activities, for example the Work, Health and Safety Plan, Fraud Control Plan and Business Continuity Plan.

While the core objective of each group will be different, every group will need to ensure they:

1. deliver the core business of the group
2. have the right people in the group
3. have the right systems and information to deliver the business of the group
4. effectively liaise with the stakeholders relevant to the group
5. have sufficient resources to deliver the business of the group
6. monitor group performance, and effectively manage risks for which the group is accountable.

By using this approach, everyone in FWBC is focused on achieving the same objectives in a standardised and streamlined way.

Key Performance Indicators

FWBC will measure its performance using the following Key Performance Indicators:

Objectives / Key Performance Indicators / Target2015-16
Enforcement and Compliance
Ensure compliance with workplace laws and the Building Code / Legal proceedings in court within 12 months of complaint being lodged
Contraventions of the Fair Work Act 2009, Independent Contractors Act 2006, Fair Work (Building Industry) Act 2012, agreements, awards and orders. / 75%
% of clients who are satisfied or highly satisfied with the quality and timeliness of advice and assistance provided / 75%
Compliance activities to improve compliance with the Building Code 2013 / 300
People
Building capability to achieve a culture of high performance / % of staff meeting or exceeding performance targets / 95%
Development of a new Workforce Plan / 30/06/2016
Information and Analysis
Systems to plan, steer and monitor performance / % of time AIMS is operational on business days / 95%
% of updates made to case records following quality assurance program / 100%
Stakeholders
Engagement to promote high levels of compliance amongst stakeholders / Formal presentations delivered to stakeholders / 125
% surveyed industry participants satisfied or highly satisfied with contact byFWBC aimed at promoting appropriate standards of conduct / 75%
Finance
Prudent financial management / Expenditure matched to budget (year to date) / +/- 10%
Total revenue matched to budget (year to date) / +/- 5%
Governance
Co-ordinated and aligned decision making that provides oversight and manages risk / Annual Performance Statement submitted to Minister / 31/10/16
Risk Management Framework in place and Enterprise Risk Register reviewed / 30/06/16

KPIs have been selected and targets have been set using research,past performance or legislative and policy requirements. All KPIs are aligned directly to the organisation’s strategic framework. FWBC performance will be evaluated using various methodologies including data analysis and survey results.