New super agency to be created for Victoria’s major road projects

Victoria’s public sector union boss has hit out at the Andrews government after a plan to scrap two road project authorities to form a super agency put thousands of jobs in doubt.

The boss of Victoria’s public sector union has hit out at the Andrews government’s “disingenuous” plan to abolish two major construction authorities and form one super agency.

The jobs of thousands of workers are now in doubt after it was revealed staff from the West Gate Tunnel Project and North East Link Authority would be moved into Major Road Projects Victoria.

MRPV oversees most other significant road projects, including the Suburban Roads Upgrade packages and improvements to the M80 Ring Road.

But it will now take in government responsibility for the $10.8bn West Gate Tunnels and the North East Link, which is yet to award all contracts but is now valued as high as $18bn.

The change will make the major roads authority similar to Rail Projects Victoria, which oversees the Metro Tunnel, Airport Rail and the Western Rail Plan.

Agencies in charge of the Andrews government’s two biggest road projects will be abolished in a major restructure. Picture: North East Link Project

Community and Public Sector Union secretary Karen Batt said staff across the projects were on Thursday morning assured by departmental officials there would be no job losses.

But Transport Infrastructure Minister Jacinta Allan confirmed jobs were on the line, and the decision was in part due to the government’s budget measure to slash the public service in a bid to save $2.1bn.

The Herald Sun understands every worker will initially be moved under the MRPV umbrella, with corporate job losses and redundancies set to follow once the organisation is able to determine the scale of the workforce it requires on an ongoing basis.

Ms Allan said it was premature to say how many people could lose their jobs in the shake-up.

“It’s reflective of how there is a responsibility on all of us to make sure that we are being efficient in the delivery of our services and how we work through these programs but it is also reflective of where different projects are in their life cycle,” she said.

Community and Public Sector Union secretary Karen Batt said staff across the projects were on Thursday morning assured by departmental officials there would be no job losses.

Ms Batt said the comments made by Ms Allan were at odds with what the union and the workforce had been told.

“What they’ve said to us is they’ve got large numbers of duplication arising from this, but we also have significant vacancies in the various areas arising from the Covid change,” she said.

“Bringing them all together because they’re doing roughly the same type of work ... I think it makes sense, but what doesn’t make sense is a commitment to no job losses but then a public statement from a Minister to say that there will be. It’s incumbent upon the deputy Premier to clarify those comments.

“The government does not need to go into wholesale redundancies to manage the downsizing of the numbers employed. It can be done in a far more humane way. People who are getting close to retirement should be given an opportunity to go with dignity and not have the ignominy of being told that they’re redundant.”

Jacinta Allan insists the future of the North East Link and the West Gate Tunnel Project are not in doubt. Picture: Luis Ascui

Ms Batt said the government should cut private consultancy fees and Labour hire firms “before any hard working Victorian public sector family loses their job and potentially their home”.

The abolition of the NELA comes amid speculation over whether the project will need further government funding or could be delayed.

Federal money provided to the project is tied up in the Albanese government’s 90-day infrastructure review, prompting fears it could be pulled or parts of the project could be pushed back.

The change will make the major roads authority similar to Rail Projects Victoria, which oversees the Metro Tunnel, Airport Rail and the Western Rail Plan. Picture: Aaron Francis

Ms Allan insisted the future of both the North East Link and the West Gate Tunnel Project — which has been plagued by delays and cost blowouts — were not in doubt and the change would not impact service delivery.

“This is simply an administrative change,” she said.

“I want to be really clear, these are workforce arrangements that are giving us the most flexibility and agility to continue to deliver projects — projects under way and the future pipeline that we’ve committed to.”

Opposition transport infrastructure spokesman David Southwick said if the restructure can be done without impacting service delivery, it should have been carried out at the start of the projects.

“With ongoing instances of rorts, ghost shifts and improper conduct on major project sites, the Andrews government must ensure this change will not allow further misconduct to occur,” he said.