Unions warn workplace battle will lead to lengthy delays of Andrews government’s $6.7 billion West Gate Tunnel project

THE $6.7 billion West Gate Tunnel toll road project could be hit with major construction delays and cost blowouts as the building consortium and unions butt heads over a workplace agreement.

THE $6.7 billion West Gate Tunnel toll road project could be hit with major construction delays and cost blowouts as the building consortium and unions butt heads over a workplace agreement.

Five of Victoria’s powerful unions say the consortium, which includes John Holland and the Spanish-owned CPB Contractors, are refusing to sit down with the groups collectively to negotiate workplace conditions, pay and rosters.

The move has outraged the unions who claim the companies are applying a “divide and conquer” strategy in the bid to secure substandard deals.

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Victorian Premier Daniel Andrews unveiled the West Gate Tunnel project. Picture: James Ross

Australian Workers’ Union Victorian secretary Ben Davis warned it was an attempt to “wait out the clock” and send the issue to the Fair Work Commission.

However, the move was making the project “unpredictable” and this would impact project timelines and also put safety at risk.

“None of us will be party to an attempt to cut industry wages and conditions by signing up to a dud agreement,’’ Mr Davies said.

“This is a big project. Stop trying to use loopholes and sit down with all of us.”

According to the unions the demands are similar to previous workplace agreements but specific details have not been revealed.

Industry sources have disputed this saying the unions are pushing for agreements which could see workers earn well above $150,000 with penalty rates incorporated.

The other unions involved include the Construction, Forestry, Maritime, Mining and Energy Union, Electrical Trades Union and the metal and plumbers unions.

Despite the troubles behind the scenes the Andrews Government has remained positive with the Premier Daniel Andrews and Roads Minister Luke Donnellan regularly making announcements about the project charging ahead.

An artist impression of noise walls for the West Gate Tunnel project.

Government spokeswoman Hayley Bester said: “EBA negotiations for the Westgate tunnel project are entirely a matter for the builder.

“We urge all parties to continue to negotiate in good faith.

“Work is well underway on this urgently needed project under existing enterprise agreements held by subcontractors currently engaged on the project.”

The consortium has a longstanding policy of not commenting publicly, however it is understood they may prepare a response at an upcoming board meeting this week.

The second river crossing is being built under a joint venture with toll giant Transurban in exchange for a 10-year extension of CityLink tolls, to 2045.

Under the agreement the toll company is liable for any cost escalations.

However, the funding arrangement hinges on parliament’s approval of the toll extension, which the Coalition combined with Greens MPs could vote down.

It was announced by the Andrews Government after the 2014 election for the cost of $5.5 billion, which has already been upgraded to $6.7 billion.

If the toll extension is granted Transurban could reap an estimated extra $15 billion from Victorian motorists over the next 28 years.