Union workers to rake it in on Victorian projects under new pay deal

LABOUR costs in the construction industry are rising faster in Victoria than any other state as the Herald Sun reveals workers on the mega West Gate Tunnel Project and Melbourne Metro Tunnel could be paid more than $150,000 a year under a new deal.

LABOUR costs in the construction industry are rising faster in Victoria than any other state.

The Herald Sun revealed workers on the mega West Gate Tunnel Project and Melbourne Metro Tunnel could be paid more than $150,000 a year under a new deal.

Workers stand to make an extra $8.90 an hour on the $6.7 billion West Gate Tunnel and an extra $9.20 an hour on the $11 billion Metro Tunnel. But the deal has been slammed by building groups and the state opposition as a burden on taxpayers and future projects.

WORKERS REAP MILLIONS IN ALLOWANCES ON VICTORIAN PROJECTS

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A Deloitte report into the state’s construction industry, commissioned by Master Builders, reveals labour costs have been rising faster in Victoria than the rest of Australia over the past decade.

Construction workers under EBAs across the state achieved wage increases about 6 per cent higher than in other jurisdictions.

Surging labour costs also pushed up the price of construction in Victoria, with price increases outpacing the nation.

CFMEU secretary John Setka. Picture: Stuart McEvoy

Subcontractors working on the West Gate Tunnel and Melbourne Metro Tunnel are paying average workers between $49-$53 an hour.

Sunday work on the 24/7 projects averages about $100 an hour while some overnight shift penalties are paid at time and a half or double time.

The average labourer’s likely $150,000 wage on the projects will far outstrip a Victoria Police constable’s salary of $69,849, an entry level paramedic’s $62,103 salary and a teacher’s $67,000. The average full-time Victorian wage is about $83,000 a year, according to ABS figures.

CFMEU secretary John Setka said the labourers worked long hours in hazardous conditions and deserved the hefty pay packet.

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

And Labor MP and former AWU secretary Cesar Melhem backed the deal.

But Master Builders chief executive Radley de Silva said the unnecessary and disproportionate costs chewed up taxpayers’ money.

“Not only does this cost taxpayers, but it costs them in less services and amenities that could otherwise be built using that money.”

State Opposition Leader Matthew Guy said the Andrews Government could not manage major projects or taxpayers’ money.

WE ASKED: SHOULD CONSTRUCTION WORKERS ON MAJOR PROJECTS EARN $150,000?

Nate Talbot works in retail and earns up to $50,000. He says: “I just hope they’re doing the work they’re paid to do. Because they’re building something that’s going to be there for a long time, I’d rather the government spend the money on making these things work right as opposed to just continually upgrading like with the public transport system that doesn’t work right.”

Aaron Mahut, works in marketing, earns $80,000 a year: “I think that the money could be used on things that need it a lot more. For example, teachers don’t get paid enough, so for them to be getting $175k seems excessive considering all the other issues that are going on.”

Nam Nguyen, front-of-house staff, earns $65,000-$70,000: “It encourages people who work there to get the projects done, but on the other hand, I think it’s a bit excessive considering the average wage. That’s more than sufficient (a base wage of $150k). Who needs more than that a year?”

Jack Ives, chef, earns $110,000: “It seems like a lot of money, seriously like a lot of money. It seems well above what they’d normally be paid.”

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