Union workers reap millions in allowances on Victoria’s biggest projects

UNION BOSS John Setka has defended the wage of labourers working on Melbourne’s major transport projects, citing long hours and unusual circumstances for a pay cheque of more than $150,000 a year.

UNION BOSS John Setka has defended the wage of labourers working on Melbourne’s major transport projects, citing long hours and unusual circumstances.

The CFMEU state secretary made no apologies for construction workers’ entitlements and salaries, speaking to 3AW.

“When you’re a member of a good strong union that represents your members you get your money’s worth,” he said.

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Public Transport Minister Jacinta Allan and Victorian Premier Daniel Andrews at the Albert Road Reserve Metro Tunnel site. Picture: AAP/Tracey Nearmy

“The site allowance just makes up for all the disabilities on site … You have got dust flying around, wet concrete and all the hazards.”

“These projects have been going on forever and a day and every time there have been projects there’s always been special site allowance.”

Mr Setka said many labourers worked a minimum of 56 hours a week and that this included overtime, long days and Sunday shifts.

“When you’re out on the site 56 hours is a long time, especially in the cold winter,” he said.

“It is dangerous work and you’ve always got to be careful.”

Premier Daniel Andrews said this morning that the wages of construction workers were all funded through the budgets for each major project.

He said the government was proud of its broad infrastructure agenda.

“I hope that sends a really clear message to lots of young people,” he said.

“If you want a good, well-paying job and good prospects for the future, come to TAFE, go and get one of these free construction courses, because there’s never been more work available than there is right now.”

Mr Andrews said he would not “run a commentary” on whether it was reasonable that the average construction worker was earning nearly as much as a state MP.

“I think that the people who are building the infrastructure we need work very, very hard, they do a great job. I fundamentally respect their skills and the work they’re doing,” he said.

Earlier the Herald Sun revealed a sweetheart pay deal for Victoria’s army of high-vis construction workers is set to see them reap millions in extra allowances for building the state’s biggest transport projects.

The Andrews Government’s signature infrastructure builds the Melbourne Metro Tunnel and West Gate Tunnel are set to be the best paid civil construction jobs in Australian history, with the average worker pocketing more than $150,000 a year under a soon to be finalised deal.

A building disputes panel has already set the site allowances at $8.90 per hour for the $6.7 billion West Gate Tunnel project and $9.20 per hour on the $11 billion Metro Tunnel project.

The generous site allowance, which is calculated on a project’s cost, would see worker’s likely pocket an extra $20,000 to $25,000 a year.

Building industry sources say the eye-watering site allowances could add more than $25 million a year to each project, while the total wage bill could cost hundreds of millions if not billions over the life of the project builds.

Master Builders Victoria CEO Radley de Silva said the allowance decisions were “highly contentious”.

“These sorts of site allowance outcomes, on top of already extraordinarily high EBA wages, are contributing to cost blow outs that are costing taxpayers and the Victorian community.”

“Adding an extra $9.20 or $8.90 per hour on top of these wage rates on projects where the Victorian taxpayer is the ultimate client should be unacceptable to the Victorian community,” he said.

It is understood subcontractors working on the project have agreed to average base rates of between $49-$53 an hour, with the building unions pushing for those pay deals to be standard throughout both projects.

A large chunk of overtime, paid at double time, will also be built into most workers rostered hours.

Opposition Industrial Relations spokesman Robert Clark says the project wages may send future infrastructure costs through the roof. Picture: Mark Stewart

The 24/7 projects will also attract night time loadings likely to be paid at either time and half or double time.

An industry source said the deal is likely to be the “highest paying civil construction project in the country.”

Opposition Industrial Relations spokesman Robert Clark said the project wages could send future infrastructure costs through the roof.

“If Labor lets the unions extort massive pay deals on these projects, ordinary Victorians will end up paying the price through higher tolls, fares and taxes,” Mr Clark said.

Chinese-owned John Holland is leading both Consortia building the West Gate and Metro Tunnel Projects and it is understood negotiations for the Major Project Agreement between it and the Australian Workers’ Union are entering the final stages.

One subcontractor has appealed the Building Industry Dispute Panel decision on site allowances with the Fair Work Commission and could be fighting the allowances in court by November.

The Australian Workers Union and the CFMEU has a sliding scale were workers are paid more based solely on the cost of the project.

The $11 billion Metro Tunnel will see workers dig twin nine-kilometre tunnels underneath the CBD and build five underground railway stations. While the $6.7 billion West Gate Tunnel will link the West Gate freeway to CityLink north of Melbourne’s CBD.

A government spokesman said all industrial relations were the responsibility of subcontractors working the West Gate Tunnel and Melbourne Metro Tunnel.

“Work is well underway on this important project, under EBAs that are held by subcontractors currently engaged to carry out works,” he said.

“We encourage all parties to continue to negotiate in good faith.”

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