Authority to probe dodgy labour deals for West Gate Tunnel

In a new blow to the trouble-plagued West Gate Tunnel project, workers have been underpaid by thousands of dollars amid claims of “sham contracting”.

Workers on the trouble-plagued West Gate Tunnel project have been ripped off by labour hire deals that underpaid by thousands of dollars.

In the latest blow to the Andrews government’s flagship road project, which is running three years late and $3.9bn over budget, claims of “sham contracting” have been unearthed at two WGT sites.

The allegations will be probed by the state’s Labour Hire Authority and have added fuel to fires simmering on the industrial landscape, with the Australian Workers Union accusing the state government of turning a “blind eye” to rogue contractors.

Overtime and other allowances should have earnt workers thousands more than they were paid. Picture: Aaron Francis

The AWU claimed underpayments occurred at the $10.6bn project’s concrete manufacturing plant in Benalla, where 10 Chinese workers were hired from a NSW company and paid $30 an hour for 60-hour working weeks, with no entitlements.

Overtime and other allowances should have earnt them thousands more than they were paid, with payslips seen by the Herald Sun appearing to confirm the ripoff.

The concrete plant was set up by WGT builders John Holland and CPB as LS Precast, which hired builder Rocktown to help finish panels used ­inside the tunnels. Rocktown confirmed it hired workers through a NSW company and “irregular employment practices” had been identified in an internal investigation.

AWU statesSecretary Ben Davis says ‘sham contracting’ should not occur in Victoria. Picture: Arsineh Houspian

A spokeswoman said Rocktown did not knowingly ­illegally hire workers but ­acknowledged “our oversight procedures on engagement of contractors may have had some deficiency” and this was being addressed.

AWU state secretary Ben Davis said “sham contracting” should not occur in Victoria.

“Yet again the state government turns a blind eye to the rogue acts of its contractors,” he said. “On behalf of the taxpayers the state government talks a great game, but then goes missing in action when it really counts.”

Mr Davis said the union had also revealed sham contracting by concrete giant Boral, which hired workers last month through two small firms that allegedly were not registered as labour hire companies, a requirement by law.

He said the hired workers were dressed in Boral uniforms and used on sites while other workers were taking protected industrial action.

Boral said it was unaware of the claims but would now “look into these matters”.

The government and Major Transport Infrastructure Authority said audits had been undertaken and “any underpayments have been repaid”.