Major city projects in deal with CFMEU amid militancy warnings

CFMEU members working on two of Adelaide’s biggest construction projects have scored lucrative deals after a merger. See what they get here.

The construction firm behind two major city projects has bowed to pressure and signed a generous agreement with the CFMEU amid warnings the militant John Setka-led Victorian branch of the union merger with the SA branch will raise construction costs.

Construction firm Built Pty Ltd has signed an agreement with the CFMEU to operate from June 13 this year until June 30, 2025 for its SA projects.

Artist impression of Walker Corp’s proposed 27 storey tower on Festival Plaza.

It will apply to the $1bn Festival Tower in King William St and the $450m 60 King William St tower on the former Southern Cross site.

The Fair Work Commission agreement seen by The Advertiser includes workers having a nine-day fortnight with a rostered paid day off, a $4.50 per hour site allowance, daily travel allowance, double time overtime, overtime meal allowance, a paid picnic day each December, a paid 10-minute rest each morning, time off to wash before lunch and knock off, a height allowance for multi-storey buildings, first aid allowance for designated officers and a responsibility allowance for team leaders.

Built has been contacted for comment.

Artist's impressions of 60 King William St office development.

Construction industry figures fear the looming abolition of the Australian Building and Construction Commission promised by federal Labor will mean increased pressure to bow to union demands for the sake of industrial peace.

The Master Builders Association state branch has raised concerns over the merger, with chief executive Will Frogley warning “hardline tactics we have seen the union use interstate” may drive up construction costs already under intense pressure.

He warned builders and large subcontractors face having to sign up to exorbitant agreements.

The merger follows years of rivalry between the state branches with Mr Setka calling the SA division “weak c … s” and “f … ing bludgers” in a confrontation that led to the exit of former SA secretary Aaron Cartledge.

Mr Setka was expelled from the Labor Party in 2019 in a move pushed by now Prime Minister Anthony Albanese.

Meanwhile a political row has erupted with Opposition treasury spokesman Matt Cowdrey claiming Mr Setka and two associates were seen in parliament’s garden room on July 4 but the government denied knowledge of any such visit.

“There are huge concerns about the CFMEU’s infiltration of the South Australian construction industry and its leader John Setka,” Mr Cowdrey said.

“We were alarmed earlier this month when alerted that John Setka and two associates used a meeting room at Parliament House unaccompanied.

“The CFMEU is infamous for grubby tactics and appears to have grown much closer to Peter Malinauskas’ Labor Party since the election in March. We need to know if anyone from the Labor Party admitted John Setka into Parliament House and for what reason were they meeting.”

A government spokesman said no-one in government met Mr Setka, had a request to meet him or was aware he was in Adelaide.

“In what is becoming a regular occurrence, the Liberal Opposition is again throwing around baseless and false accusations,” the spokesman said.

“Matt Cowdrey should come clean and advise if he personally saw CFMEU representatives in parliament unaccompanied or was it just a rumour he based these false accusations on.”