CFMEU pushing new enterprise agreement that could mean building companies cop $35k hit

Builders in NSW will be forced to pay at least $35,000 to entities associated with the CFMEU for every worker as part of a proposed enterprise agreement being pushed by the construction union. Here’s how it would work.

Under a proposed agreement builders could fork out at least $35,000 to entites associated with the CFMEU

Builders in NSW will be forced to pay at least $35,000 to entities associated with the CFMEU for every worker in the state under a draft enterprise agreement being pushed by the construction union.

The new agreement which the CFMEU has begun demanding builders across NSW sign up to, will also see the long-standing NSW redundancy fund dumped in favour of a fund controlled by the militant Victorian branch of the CFMEU.

The move to dump the Australian Construction Industry Redundancy Trust as the mandated organization to manage NSW workers’ redundancies in favour of Incolink is controversial because whereas ACRIT returns dividends to workers, the Victorian-based fund uses its profits to make grants to organisations at its discretion.

Master builders association of NSW, executive Director, Brian Seidler. Picture: NCA NewsWire / Tim Pascoe

Under the new EA agreement NSW builders will all also have to pay $400 per worker to an entity controlled by the ACT CFMEU to train new starters on the handling of silica and another $400 retraining all existing workers once every three years.

This is despite a ban on the use of silica being due to come into effect in July this year.

Builders will also have to spend $250 per worker on asbestos training and retraining once every three years.

For the first time ever NSW builders will also be obliged to pay $1 a week per worker into a training fund controlled by the NSW Construction Division, which will be collected by Incolink.

This will rise to $2 a week from 2020 for all the 30,000 workers covered by the agreement.

This entity, called Construction and Building Industries Training Ltd, was registered earlier this month.

Building industry sources said they had calculated that across its life the agreement would mandate entities controlled by the CFMEU “at least” $35,000 per worker.

Brian Seidler, Executive Director of the Master Builders Association of NSW slammed the new agreement saying it was the first time the industry in NSW had been forced into a straight-jacket agreement.

Building companies could be hit with a $35,000 fee.

“It the first time that an industry-wide agreement will force employers to give more into a fund that doesn’t return surpluses to workers,” he said.

He said it was troubling NSW workers’ redundancy payments would go to a fund controlled by the militant Victorian branch of the CFMEU and called for transparency on what would happen to the money that was raised in the state.

But a spokesman for Incolink hit back saying the fund’s success was the result of workers and employers making a choice about who to name as their preferred redundancy fund.

“Our success in attracting workers and employers to Incolink is based on our industry leading employee entitlement offering. We generate strong, secure returns, which allow us to fund industry-best services and training,” he said.

He rejected any suggestion NSW funds would be sent interstate saying “all NSW workers funds will be asset backed to support their termination entitlements and remain in the state.”

He said that while it was correct Incolink did not return dividends this did not mean it was inferior.

“Returns on investment are reinvested back into creating a stronger local industry with training, health and other services to NSW workers,” he said.

He said Incolink already had members and direct property investments in NSW.

“Over the past 5 years Incolink has invested more than $130 million in local NSW property construction projects.

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Originally published as CFMEU pushing new enterprise agreement that could mean building companies cop $35k hit