Mick de Brenni doesn’t understand why BPIC policy is controversial

The minister who championed the installation of pro-union Best Practice Industry Conditions says he doesn’t understand the controversy as he confirms a new agreement specific to energy projects is ‘close’.

Energy Minister Mick de Brenni on Sunday. Picture: Lyndon Mechielsen

The state government minister who championed the installation of pro-union best practice industry conditions (BPIC) says he doesn’t understand why the policy is controversial.

Energy Minister Mick de Brenni’s comments came as he confirmed a planned BPIC specific to renewable energy projects was “very close” to being finalised, in a move that would affect the state’s $62bn project pipeline.

A draft copy of the renewable energy BPIC circulating among the industry — and seen by The Courier-Mail — revealed conditions and wages similar to construction and civil projects set to be applied to the renewable energy sector.

The procurement policy has been blamed for increasing costs of construction projects by 30 per cent, while generous wages and conditions have made it difficult for private ­industry to compete amid a worker shortage. Mr de Brenni said the BPICs were about putting in place good wages and conditions on renewable ­energy projects.

“I don’t understand why this is a controversial,” he said.

“Our job is to deliver good wages for working Queenslanders – that is our purpose.”

Mr de Brenni, a former public works and procurement minister and senior member of Labor’s Left faction, championed the BPIC policy and helped implement it in 2018.

Probed on concerns about the link between BPICs and productivity losses which slow projects down, Mr de Brenni said the biggest concern for the construction and infrastructure sector was labour shortages.

“Initiatives that attract workers to Queensland to build the energy infrastructure … is I think an important thing for us to do,” he said.

Queensland’s BPICs force contractors tendering for government projects to negotiate with unions from a high starting point, with the policy locking in at least 5 per cent annual pay rises through to 2027.

It means some electricians getting a base rate of just under $3000 per week this year, crane operators $2394, carpenters $1948, painters and glaziers $1855, and roof tilers $1908.

But those base wages – based on a standard 36-hr week – are before a multitude of penalties, overtime rates and allowances.

These include double-time pay for any hours worked over 36 in any week, and a 300 per cent loading for working any day between and inclusive of Christmas Day, New Year’s Day, and Good Friday and Easter Monday.

Originally published as Mick de Brenni doesn’t understand why BPIC policy is controversial