Big builders saddled with extra costs when subcontractors on their sites collapse want reforms to a slow-moving federal scheme they say prompts the CFMEU to make them, rather than the government, pay entitlements to workers they don’t employ.

The Fair Entitlements Guarantee is a scheme of last resort that pays entitlements of employees of companies that become insolvent. Last year it paid $62.3 million to construction sector employees, nearly one-third of the total $215.4 million it paid out, government figures show.