Incolink says Master Builders ‘scaremongering’ on SA CFMEU push

The South Australian construction lobby says a major union is pushing hard to switch workers onto a new compensation scheme run out of Victoria.

A Victorian-based worker entitlement scheme taking over the South Australian construction industry has given millions of dollars to the nation’s construction union, which is insisting the scheme be included in new enterprise agreements.

Australian Electoral Commission disclosures for 2022-23, published this month, show a single receipt for $20.75m and four others for smaller amounts totalling $207,125.

Incolink said the disclosures related to a $21m grant to fund a new Training and Wellbeing Centre in Victoria, and it intended to make similar investments in SA.

The scheme provides redundancy payments and training programs.

CFMEU members gathered in Victoria Square, Adelaide, to rally as part of a national day of action. Thousands of construction workers have walked off the job across the country, demanding a pay rise of at least 7%. Picture: CFMEU SA

SA workers have previously been covered by the state-based BIRST fund, but as of July last year, CFMEU-negotiated agree­ments have mandated Incolink be used as their fund.

Industry leaders have voiced concern over the arrangement, with one saying “the pressure to sign up (to the scheme) is immense”.

“You have to wonder if the CFMEU would be so aggressive if they didn’t get a cut,” they said.

“If there are dividends to be distributed, why can’t they be returned to the workers?”

Master Builders SA policy and communications director Kym Morgan said SA had enjoyed a harmonious industrial environment for 25 years, “where tradies and workers can make an excellent living, but construction costs have remained manageable, and unions and industry worked relatively collaboratively”.

CFMEU members gathered in Victoria Square. Picture: CFMEU SA

“A symbolic mainstay of that era was BIRST, which has equal union-industry representation and has done a strong job of supporting the SA workers who pay into it,” he said.

“Now we’re effectively seeing an attempt to crush BIRST.”

There have also been concerns that employers would be forced to pay weekly Incolink contributions at higher Victorian rates.

But Incolink chief executive Erik Locke said redundancy ­arrangements in SA were based on South Australian EBAs, which currently had contribution rates of “about $80-90 per week”.

“This baseless and breathless scaremongering from the legacy fund, BIRST, is a response to competition from Incolink, which has exposed their failure to invest in the industry,” he said.

Mr Locke said the transition to Incolink was due to the range of services on offer.

“Our success in attracting workers and employers to Incolink around Australia is based on our strong, secure returns, which allow us to fund industry-best training and services like portable sick leave, income protection insurance, free counselling and health programs, to build a stronger industry,” he said.

“The grants program is audited annually, and is in some instances, jointly funded by government. Incolink is proud of its investment in industry training and similar projects to create a stronger, safer, and more viable industry.”