NSW Covid: Construction shutdown devastates building industry

Gladys Berejiklian’s construction shutdown has forced some building companies to lay off workers or pushed them to take unpaid leave. Do you think it should end now?

Construction companies across Sydney are laying off workers or forcing them into unpaid leave, with the NSW government’s pandemic building shutdown plunging firms ranging from family-run operations to industry giants into an uncertain future.

Two days in, the unprecedented construction closure has already made its impact felt across Greater Sydney’s businesses with one multinational firm confirming it had hit a number of its metropolitan sites and more than a thousand of its workers.

Building suppliers

Luke Caridi, general manager of major building supplier Sand4U at Sefton, said he had been forced to put the majority of his 24 staff on paid and unpaid leave after the business drastically cut its operating hours.

“We’re just trying to make the best of a difficult situation,” he said.

“I’m stressed, but I’m more stressed for my staff — it’s not just the financial side, it’s the mental side. These people are used to turning up for work and now they don’t have that.”

While Sand4U usually ships out 1000 tonnes of building supplies a week, it was now doing “20 to 30 cubic metres of garden mix” as it ran a skeleton crew to cater for emergency construction stocks.

Mr Caridi, whose business supplies industry heavyweights such as Meriton, Parkview and Multiplex, said turnover was now “nothing” with an estimated 90 per cent of his big-industry clientele forced to shut down.

In fact, Multiplex confirmed the shutdown would impact five of its sites in Sydney, where it had a combined workforce of about 2000 workers.

“The health and safety of our workforce and community is our absolute priority,” a Multiplex spokeswoman said.

“While the enforced shutdown clearly brings many challenges for our industry, we recognise the duty we have in limiting movement and supporting the NSW government’s COVID response plan.”

Tradie Clinton Hood runs CJ Construction in the Sutherland Shire and says the construction shutdown has put pressure on employers and employees. Pictured with wife Kristie and kids Connor, Kayla, Claudia and dog Chico. Picture: Toby Zerna

At the other end of the spectrum, Clinton Hood, the owner of family-run Lilli Pilli building firm CJ Construction, said he feared any extension of the shutdown would mean he’d also have to “pull the pin” on his employees.

“There’s a lot of tradies out here that work and live week-to-week,” he said.

“(The shutdown) will do a lot of damage to a lot to young people that are trying to get ahead.

“If it goes on for too long I’d have to pull the pin, and say I can’t afford to keep you.

“I can’t afford to keep paying when there’s no money coming in.

“I’ve got a few grey hairs, but I can’t do anything about it — I’m stuck with what (the government) say.”

There were also industry concerns about the long-term impacts of the construction ban. Chris Ilias, principal of construction company Modum — which works on residential alterations, additions and new homes — said he was worried about whether it could lead to a potential hike in supplies costs.

“We can be very selfish and say we are disappointed but there are a lot of people doing it very tough,” he said.

“The two weeks itself will have an acute impact but we‘ve been impacted over the past 18 months to a degree.

Constructions sites around Parramatta, including the light rail at Camellia have ground to a halt. Picture: David Swift

“I’m more concerned about what happens long term with this stuff as it has an impact as we go further. We already noticed in the industry that because there has been such an impact on resources and materials, material prices are going through the roof.”

Premier Gladys Berejiklian — who on Tuesday told the construction industry some work could restart on July 31 — justified the shutdown in part by pointing to workplaces which had failed to follow their Covid-19 safety plans, including government projects.

“Yes there were Covid Safety plans on paper but we were finding too many workplaces weren’t implementing them,” the Premier said.

“These are very complex work sites where literally hundreds and hundreds of workers from all across Greater Sydney are coming together.

“When there’s no oversight and proper testing and proper planning, it’s really not a safe environment when you’re in the height of an outbreak.

Constructions sites have been shut down amid the Sydney lockdown. Picture: David Swift

“I am absolutely convinced that on July 31 there will be construction activity.”

The shutdown drew the ire of industry bodies including the Master Builders Association, the CFMEU and the Australian Constructors Association.

“The industry is simply saying we need the entire industry open,” MBA executive director Brian Seidler said.

“The industry has been operating with good, safe work practices and Covid-safety management plans since February 2020.

“Suddenly without any warning, the industry has been shut.

“If you can shut us down without notice, you need to open us without notice.”

The CFMEU’s NSW secretary Darren Greenfield said they were calling daily on the government to reopen as soon as possible or face “disaster”.

“It should never have closed. The damage to business and also the economy of NSW could be huge here,” he said.

“If we do go to Friday week, we need to open Saturday, otherwise our industry will be a disaster.

“The CFMEU and our members do not understand how this decision was made without consultation…everyone was absolutely floored.”

Jon Davies, the CEO of the Australian Constructors Association, said the industry “needs certainty” around the reopening date.

“You can’t just shut off and open up sites like you’re turning on and turning off a tap,” he said.

“We still believe the shutdown was unnecessary, but we have been pleased with the level of collaboration between government and industry to address the issues associated with shutdown and work to get to the speedy reopening of those sites.”