Gold Coast development: Industrial relations experts react to Jewel job losses

A LEADING industrial relations expert has slammed the slashing of jobs at the $1 billion Jewel development at Surfers Paradise, saying it was a sign of things to come.

A LEADING industrial relations expert has slammed the slashing of jobs at the $1 billion Jewel development at Surfers Paradise, saying it was a sign of things to come.

Up to 1000 jobs are at risk, with developer Yuhu group partially breaking its contract with builder Brookfield Multiplex.

At least 50 people were laid off today.

But IR expert Dr Jane Coffey said the subcontracting of the workforce meant such sackings would become increasingly common.

The $1B Jewel

“Unfortunately with the way the legislation is, they can do this and from an IR point of view it relates to concerns about the changing nature of work and there is more subcontractor tenders, fixed-process employment and a highly casualised workforce,” she said.

“This means as we go forward that less and less people will be in secure work.

‘This is going to be the future of the work and there will be little security for people now and how unions will deal with it will be a major problem.”

JEWEL DEVELOPMENT REDUCES APARTMENT PRICES ON GOLD COAST

Jewel’s proposed garden pool area.

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The Curtin University academic, who has more than 30 years of experience in the field, said the workforce was moving to a point where there would be little job security.

“It is something younger workers have to be aware of, particularly in the trades and resources sector, and understanding their employment contracts,”

“Generally all work going forward is going to be insecure.”

Yuhu group say Jewel is ‘about creating jobs’

Yuhu Group spokesman told The Gold Coast Bulletin earlier “The Jewel is about creating jobs and economic opportunity, not costing jobs.

With the lower levels of the towers yet to be finalised, Multiplex were told new tenders would be opened for completion while the project is put on hold.

Adam Merlehan, managing director of the multidisciplinary strategy firm Merlehan Group said the situation was ‘not uncommon’.

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How the project will ultimately look once finished.

“Without knowing the circumstances of this case, it is not uncommon for major building contracts to include a right for the Developer to deduct scope or terminate part of the contract during the project,” he said.

“If that occurs, and a builder terminates its subcontracts, the rights of subcontractors to be paid for goods and materials ordered but not yet installed/delivered to site usually depends on the terms of their subcontracts. There are some other laws that can be relevant, so legal advice is always recommended.”

An early artist impression of Jewel

Mr Merlehan said the State Government’s recently amended building laws gave it the power to regulate new mandatory terms in certain building contacts.

“If the outcome is a poor one for subcontractors here because of the terms of their subcontracts, it will be interesting to see whether the Queensland Government looks to use those new powers to address any perceived contractual imbalances,” he said.

“Personally, I am not in favour of market intervention unless absolutely necessary, however the new laws were clearly passed to leave that door open.”