By Chris Spindler

On May 29, up to 4000 building workers rallied in Sydney against the loss of their travel allowance, which is currently tax exempt. The federal government wants to abolish this exemption retrospectively. Union action had prevented previous Labor governments from cutting the allowance.

The union argues that the allowance is necessary because builders regularly have to change their place of work. The government move will cut workers' pay by up to $30 a week. Some workers will lose $1000 this year if the federal government pushes through its proposal to backdate the tax 10 months.

John Sutton, CFMEU assistant national secretary, reminded the rally of Howard's pre-election pledge that "no worker will be worse off under a Coalition government" and argued that the 20% pay cut for trainees and apprentices, the public sector cuts, the use of non-union labour on the waterfront, the cuts to education and the part privatisation of Telstra give the lie to Howard's promise.

He stressed the need for solidarity across campaigns. Messages of solidarity were read out from the Maritime Union of Australia and NSW Labor Premier Bob Carr.

From Melbourne, Sue Bolton reports that 6000 building workers rallied outside Trades Hall. They voted to strike for 24 hours from midnight on June 11 if the federal government doesn't back down on travel allowances. The rally marched to the Australian Tax Office, on to the Master Builders Association, ending up at Parliament House.

John Nebauer writes from Brisbane that 2000 building workers rallied at the Roma Street Forum on May 30. The Queensland secretary of the CFMEU construction division, Wallace Trohear, said that abolition of the rebates from last July would mean that workers would have to find an average of $1000 each in back taxes, as well as $20 per week to cover the cost of travel.

Trohear said that commercial builders could be hit by a wages campaign to cover the costs of the tax increases.

Australian Manufacturing Workers state secretary and ACTU state president Dave Harrison said that a plan to cut apprentices' pay would "provide the next generation of trade union activists".

"Over the past five years, unions have been a little careless with unity. We've been fighting each other on the job, and we need to put that behind us." He urged the rally to "get out of the lethargy, dust off the sabres and break out of the cobwebs ... we'll be here much longer than Howard and Reith".

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