Wage dispute threatening major delay home builds for months.

Industrial action at the nation’s largest plasterboard manufacturers is expect to cause months of supply issues for entire building sector.

AN “ugly and costly” wage dispute involving one of Australia’s largest plasterboard manufacturers has threatened to delay home builds for months.

Workers at CSR’s Yarraville factory walked off the job in protest over a 2.5 per cent wage offer, but the Housing Industry Association warns it could result in product delays well into next year.

The industrial action has caused big implications for the building sector, even stretching into South Australia which is experiencing severe supply shortages from the Yarraville site.

HIA SA executive director Stephen Knight said the shutdown couldn’t have come at a worst time.

With the industrial dispute ongoing, Mr Knight said that CSR had depleted its current stockpile of plasterboard, halting orders across the border.

“In ordinary times they would have stock they can run down, but because we’ve been so busy in the residential construction industry, as well as the impact of Covid, it’s not the case,” he said.

CSR is one of the nation’s leading manufacturers of plasterboard, which is used to cover the interior walls and ceiling of houses.

Mr Knight said builders had been told they may not receive plasterboard orders until the end of January, but warned backlogs could occur throughout next year due to the popularity of the Home Builder scheme as well as the wider impact that Covid lockdowns have placed on the supply chain.

Builders had been told they may not receive plasterboard orders for months.

“This will further push out completion dates, no wonder customers are becoming angry. This is very frustrating for builders as this is out of their control,” he said.

“The houses will get built but it’ll just take longer. It’s just poor timing. As long as we have this demand for building, we’re going to see delays.”

It comes just months after Victoria’s entire construction sector was shut down for two weeks over fears of rising Covid infections and low compliance levels.

In a statement, the CFMEU said employees were seeking a “modest pay increase to keep up with the cost of living in Melbourne”.

“Just weeks from Christmas, CSR Gyprock in Yarraville has forced workers into an ugly and costly pay dispute,” a spokeswoman said.

“CSR’s response has been disgraceful, with management refusing to pay workers who are taking action against the company’s abysmal offer of a 2.5 per cent pay increase.”

Opposition spokeswoman for industry and manufacturing Bridget Vallence said workers should be arguing their case with Fair Work, rather than “stopping thousands of homes being built just before Christmas”.

“We are seeing supply chain shortages across many industries, the last thing we need now is a halt in supply of essential constructions materials due to strike action,” Ms Vallence said.

Opposition spokesman for housing and planning Ryan Smith said the state government should immediately intervene.

“With Daniel Andrews’ close ties to the CFMEU he could, and should, step in to ensure the current industrial action is brought to a speedy close,” Mr Smith said.

“Ignoring this problem will only add to the shortages.”

CSR was contacted for comment.

Originally published as Wage dispute threatening major delay home builds for months.