WAGES – CONSTRUCTION WORKERS – AUSTRALIA

Snowy 2.0 buried in a wage storm

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Original article by Ewin Hannan
The Australian – Page: 1 & 2 : 10-Sep-25

The Australian Workers Union has struck a new enterprise agreement with Snowy 2.0 contractor Webuild that will boost the wages of tunnel workers. The ‘fly-in, fly-out’ workers will receive an upfront pay rise of $6,000 over a six-week roster cycle, plus an additional wage increase of 2.25 per cent every six months for four years; this will boost their annual wage to about $300,000. The wage deal also includes a 62 per cent increase in the tunnel workers’ hourly productivity allowance. The AWU’s NSW secretary Tony Callinan has conceded that the new agreement will result in a significant increase in Snowy 2.0’s labour costs. The renewable energy project is already well over budget and behind schedule.

CORPORATES
AUSTRALIAN WORKERS’ UNION, WEBUILD

New wage deals to drive up costs, RLB says

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Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 7-Feb-24

Consulting firm RLB expects a rising wages bill to be a major contributor to construction industry costs in 2024. The CFMEU is still negotiating new enterprise agreements for construction workers in NSW and Victoria, but Domenic Schiafone of RLB notes that building firms are already factoring in wage rises of at least five per cent into their prices. RLB says other risk factors for the construction industry in 2024 include the impact of supply-chain disruptions on access to imported building materials and rising project financing costs.

CORPORATES
RIDER LEVETT BUCKNALL PTY LTD

Virus slowdown: call to waive penalty rates

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 7 : 9-Jul-20

The Master Builders Association and the Housing Industry Association want the Fair Work Commission to make temporary changes to the construction industry award in response to the coronavirus pandemic. The Construction, Forestry, Maritime, Mining & Energy Union opposes any move to vary the award so construction workers do not receive penalty rates for working outside their regular hours. Richard Crookes Constructions is among the building firms that have expressed support for temporary changes to the award.

CORPORATES
MASTER BUILDERS AUSTRALIA INCORPORATED, HOUSING INDUSTRY ASSOCIATION LIMITED, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, RICHARD CROOKES CONSTRUCTIONS PTY LTD

Rich pay deal on way to approval

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Original article by Ewin Hannan
The Australian – Page: 4 : 24-Aug-17

The Australian Building & Construction Commission’s preliminary assessment of Probuild’s new enterprise agreement has concluded that it complies with the building code. Employment Minister Michaelia Cash and Master Builders Australia have criticised the pay deal, which includes significantly higher penalty rates. Probuild’s in-principle agreement with the Construction, Forestry, Mining & Energy Union will be submitted for approval by the Fair Work Commission. Cash notes that over 860 enterprise agreements now comply with the building code.

CORPORATES
AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, PROBUILD PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. DEPT OF EMPLOYMENT, MASTER BUILDERS AUSTRALIA INCORPORATED, BORAL LIMITED – ASX BLD, DE MARTIN AND GASPARINI PTY LTD

Union pay rises exploit PM’s code

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Original article by Ewin Hannan
The Australian – Page: 1 & 2 : 23-Aug-17

Master Builders Australia CEO Denita Wawn says pay rates in a proposed new enterprise bargaining agreement in the building industry are "unsustainable" and will increase the cost of federally-funded construction projects. The Construction, Forestry, Mining & Energy Union’s in-principle agreement includes a pay rise of five per cent and higher penalty rates, with penalty rates of up to 300 per cent for working during Christmas and Easter. The new pay deal is aimed at compensating CFMEU members for the removal of union-friendly ­conditions from EBAs in order to comply with the Federal Government’s building code.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MASTER BUILDERS AUSTRALIA INCORPORATED, PROBUILD PTY LTD, LEND LEASE GROUP LIMITED – ASX LLC, BORAL LIMITED – ASX BLD, DE MARTIN AND GASPARINI PTY LTD, AUSTRALIA. DEPT OF EMPLOYMENT

Construction work deals blowing out project costs

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Original article by John Slater
Herald Sun – Page: 34 : 16-Sep-16

Construction unions have too much influence on big infrastructure projects, demanding excessive wages for no gains in productivity. The Menzies Research Centre has calculated that inefficient work practices and excessive wages on union-controlled construction sites increase the cost of major infrastructure projects by 20 per cent to 30 per cent. The Wonthaggi desalination plant in Victoria is a good example of union power and its consequences.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, THE MENZIES RESEARCH CENTRE LIMITED

Union deals make project costs double US

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Original article by Rick Wallace
The Australian – Page: 5 : 12-Sep-16

A report produced by the Menzies Research Centre and the HR Nicholls Society highlights the impact that union influence has on construction costs in Australia. The report concludes that the cost of building infrastructure such as hospitals, schools and airports is typically much higher than in the US. It cites a range of factors, including high labour costs and excessive wage claims, the pattern bargaining system and rostered days off. The report supports measures such as reinstatement of the Australian Building & Construction Commission.

CORPORATES
THE MENZIES RESEARCH CENTRE LIMITED, HR NICHOLLS SOCIETY, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, BUSINESS COUNCIL (UNITED STATES), AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, MARITIME UNION OF AUSTRALIA

Building booms but salaries flatline

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Original article by Michael Bleby
The Australian Financial Review – Page: 10 : 19-May-16

Official data shows that wages in the construction industry grew by 1.6 per cent in March 2016, which is the same rate of growth as February. Master Builders Australia’s Wilhelm Harnisch attributes the low growth in wages across the sector to a downturn in wages in mining construction following the end of the resources boom. The strong housing construction market in New South Wales and Victoria resulted in both states recording above-average rises in construction wages.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, MASTER BUILDERS AUSTRALIA INCORPORATED, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIAN CONSTRUCTION INDUSTRY FORUM