North East Link workers to earn $320K after Fair Work Commission pay deal approval with generous perks, conditions

Workers on a state government project are set to benefit from a bumper pay deal that includes perks similar to mining and offshore work.

Tunnel workers on the $18bn North East Link will be paid $320,000 a year under a workplace agreement that is being compared to mining and offshore drilling deals.

The Australian Workers Union and the Spark construction group, which is contracted to build the main tunnels for the 26km road, have had the new deal ticked off by the Fair Work Commission with a raft of generous perks and conditions.

Workers will pocket $53 a day as a travel allowance, $10.35 an hour as a special site allowance, and up to $785 a week if they are living away from home.

A base pay rate for mid-level tunnellers is almost $60 an hour but those working 56 hour weeks – the project’s expected shift pattern – will earn double time, meaning most will reap between $11,000 and $12,000 a fortnight, or $280,000-$320,000 a year.

Mid-level tunnellers on the North East Link will get a base pay of almost $60 an hour.

These workers can operate tunnel boring machines and use cranes that lower concrete segments into the tunnel.

The most technical roles, such as mechanical and electrical jobs in the tunnel, are paid even more.

The AWU is saying the deal has the highest rates of tunneller pay in the country and is likening it to those in underground mining and “offshore work” industries, and is in recognition of dangerous work done up to 60m below the surface.

Militant rival union the CFMEU sensationally appealed against the deal in the Fair Work Commission, triggering fresh concerns about industrial relations warfare on major projects in Victoria, as it continues its effort to take over representation of tunnellers.

It has also tried to intervene in tunnelling in South Australia, where the AWU also has traditionally had coverage, but has been rebutted by construction giant CPB.

CFMEU state secretary John Setka said CPB should expect “consequences” in other states as a result of its stance in South Australia.

The AWU says the North East Link deal has the highest rates of tunneller pay in the country.

The Spark consortium building the North East Link, which is expected to open in 2028, includes CPB, as well as WeBuild, GS Engineering and Construction, China Construction Oceania, and Ventia.

But the CFMEU bid was quashed by the Commission, which approved the workplace deal earlier this month.

AWU secretary Ronnie Hayden said the North East Link deal ensured all night shift workers, including those on continuous shift rosters, would be paid double time.

“This is a significant milestone, as it marks the first time such a provision has been included in a tunnelling agreement in Australia,” Mr Hayden said.

The North East Link deal ensures all night shift workers, including those on continuous shift rosters, will be paid double time.

“It is time to challenge the outdated notion that physical labour should be undervalued.

“Our workers possess high levels of skill and dedication, often sacrificing time with their families to complete projects efficiently.”

A new role of Indigenous liaison officer has been created, while generous income protection and redundancy provisions are also included.

It’s likely the deal will set a template for tunnelling projects for the next decade, which will include the $35bn Suburban Rail Loop.

NEL chief executive Duncan Elliott said: “Management of industrial relations is a matter for our construction partners and we expect that they work respectfully to resolve any issues that arise.”