Vic govt waters down its construction code THE Victorian government has eased its crackdown on building unions after a Federal Court ruling that its construction industry code had discriminated against workers. The government said on Monday that pending an appeal against the decision the code will no longer apply to enterprise bargaining agreements (EBAs). Finance Minister Robert Clark said its construction industry watchdog, the Construction Code Compliance Unit (CCCU), will now focus on issues such as sham contracts, unregistered agreements and coercive practices. "The coalition government remains committed to doing everything lawfully within its power to promote law abiding, safe and productive workplaces in the Victorian building and construction industry," Mr Clark said. The Federal Court on Friday ruled the government broke federal workplace laws by threatening not to use builder Lend Lease on the new $630 million Bendigo Hospital project. The government had warned Lend Lease faced being banned from all government work because its agreement with unions was in breach of the code as it placed restrictions on the use of outside labour and required the flying of union flags. "Given the refusal of the Gillard Labor government to take effective action against union disruption and thuggery, these guidelines are a key part of seeking to end the delays and cost blowouts which plagued Victorian major projects under the previous Labor government," Mr Clark said. Victorian opposition industrial relations spokeswoman Natalie Hutchins said the government's announcement was an embarrassing backdown for Mr Clark and Premier Denis Napthine. She said the government's appeal would cost the Victorian taxpayer thousands of dollars in legal fees. "The premier and Robert Clark are happy to waste Victorians' money on expensive legal action to pursue an ideological agenda rather than get on with the job of building infrastructure and creating jobs," she said. The Construction, Forestry, Mining and Energy Union (CFMEU) said the government should disband the CCCU and concentrate on safety initiatives. "This means there is no role for a Code Compliance Unit since the code is redundant," said CFMEU state secretary John Setka. "Rather than waste any more taxpayers' money on a unit that has no role, the government should concentrate improving safety in an industry that has already seen four deaths in Melbourne this year," he said.