Workplace Relations Minister Julia Gillard unveiled a compromise recently between union and employer positions on the use of tough investigative powers by Labor's new building inspectorate, allowing the coercive powers to be "turned off" if unions can demorstrate good industrial behaviour.

But business groups have warned it is unclear how the exemptions will work and are calling for limits imposed via regulations.

Employer groups including the Australian Mines and Metals Association (AMMA) want previous adverse findings against unions and the views of rival unions to be taken into account by a new independent assessor, who will decide applications by unions for exemptions from the investigative powers.

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