National roads group says ‘weaponised’ union thuggery is blowing out major project budgets by 5m per day

The cost of union militancy and poor productivity is adding up to $3 billion for every $10bn of major projects, a peak roads group says.

Up to $3 billion is being added to every $10bn worth of major projects due to “weaponised” industrial relations and poor productivity, a peak transport body says.

In a significant intervention just a few days ahead of the federal election, Roads Australia has called for whoever forms government to address construction woes that are “impacting living standards and putting unnecessary pressure on already constrained government budgets”.

Roads Australia chief executive, Ehssan Veiszadeh, said direct shutdowns of public sector mega projects due to union stop works could cost up to $5m a day.
Overall, productivity problems could cause delays of many months and building giants looking to invest in Australia were adding up to 30 per cent to total budgets as a result.

Mr Veiszadeh pointed the finger at union militancy which has helped cripple productivity, including through the use of intimidation and threats of violence to achieve industrial outcomes.

Workers on site at the Suburban Railway Loop in Box Hill. Picture: Ian Currie

“On major public infrastructure worksites, workplace safety has not only been undermined – it has been weaponised,” Mr Veiszadeh said.

“Often industrial action has targeted critical works such as concrete pours, which can have a cost impact of tens of millions of dollars.

“In the context of an unprecedented shift in geopolitics, a cost-of-living crisis and significant budgetary pressures, it is essential that we have an industrial relations environment that is productive and provides certainty of time and cost.”

Last year the Albanese Government put the CFMEU into administration, with investigators finding the union had been infiltrated by bikies and underworld figures.

The Herald Sun this month revealed that union figures and allies remains in control of the Big Build, which triggered an appeal to construction giants by Victorian Infrastructure Development Authority boss Kevin Devlin to dob in figures of “ill repute” and report bad behaviour.

Mr Veiszadeh said boosting productivity was “not incompatible with fair remuneration and conditions” but required workplaces where mutual respect enabled quick outcomes to be reached between employers and employees.

Thousands of CFMEU members take part in a protest rally in Melbourne. Picture: Darrian Traynor

Mega projects in Victoria have been battered by budget blowouts in recent years.

This includes the West Gate Tunnel, which is $4bn over budget, and the Metro Tunnel, which is $4.5bn over budget.
The North East Link, which is the most expensive road project in Victoria’s history and will connect the M80 in Greensborough to the Eastern Fwy in Bulleen, is set to cost $26.1bn after being initially priced at $15.8bn.

In recent years a pipeline of major projects in Victoria has slowed, albeit from record highs.

“Whether it is transport, housing, health, energy or social services, poor productivity outcomes will leave us unable to pay for the infrastructure our communities need,” Mr Veiszadeh said.

Originally published as National roads group says ‘weaponised’ union thuggery is blowing out major project budgets by 5m per day