West Gate Tunnel builders prepare for site shutdown but Premier warns bruising tactics will not work

Premier Daniel Andrews has put builders of the West Gate Tunnel on notice that they will miss out on future government contracts if they push ahead with bruising tactics in their battle with Transurban.

Premier Daniel Andrews has warned the builders of the West Gate Tunnel they’ll miss out on future government contracts if they push ahead with bruising tactics in their battle with Transurban.

Mr Andrews said both sides needed to sort out the dispute that has led to hundreds of staff being sacked by CPB and John Holland.

“My message to the builder is we have a lot of different contracts to award, a lot of different projects to get built,” he said.

“When we make judgments about who should win tenders we of course look to the conduct of those bidders.

“These tactics will not work. These tactics are not right and they potentially have a significant impact on the assessments we will have to make about who we want to build projects for all Victorians in the future.

“That is a clear message, one that should be heard and understood by the builders in question.”

Mr Andrews said there would be no bailout for Transurban.

“Transurban are committed to sitting down with the builder and working through these issues,” he said.

“This stalemate is in no ones interest and particularly for the builders.”

The major consortium building the West Gate Tunnel is considering a brutal strategy to sack up to 100 ­workers a week until it wins a funding boost.

The builders, CPB and John Holland, are war-gaming the extraordinary series of lay-offs, which would only end when Transurban paid for “unexpected cost blowouts” or the project shut down.

A source close to the project said the builders were willing to walk away in the next six months if the standoff was not resolved.

But Transurban, which is managing the project, is refusing to budge.

And the Andrews Government is refusing to bail out Transurban, saying the tolling giant has been given enough money to deliver the $6.7 billion tunnel and knew the costs involved when it signed on.

The dispute could trigger massive delays in the project to take trucks off inner-city roads and deliver a second major route between the CBD and the west, initially slated to finish in 2022.

Under the tunnel building contract, Transurban pays the builders in stages. New funding is only released when work already paid for is completed.

Work on the West Gate Tunnel may come to halt in six months. Picture: Jason Edwards

But the builders have been hit with unexpected costs to dump contaminated soil and delays caused by the pandemic, and claim they aren’t able to finish already-funded work with the allocated cash.

Sources close to the project say talks are under way about how to cut staff ­levels to a skeleton crew while meeting safety regulations.

At least 250 workers have lost their jobs and many fear they will be next as a result of the stand-off.

One senior insider said the West Gate Tunnel had become such an issue for the builders they were prepared to see work stop or walk away from the project entirely. “We are losing money in a way we just can’t afford,” the insider said.

Most staff are being offered redundancies or laid off, rather than stood down, in a sign they may never be able to return.

Earlier this year, CPB and John Holland threatened to tear up their contract to build the toll road because of the extra costs created by difficulties in finding a site to dump soil contaminated by industrial chemical PFAS.

Builders have been hit with unexpected costs to dump contaminated soil. Picture: Jason Edwards

They warned the government they intended to sack up to 600 people, and have laid off workers throughout the coronavirus pandemic.

Another source said employees were discussing how to maintain a safe minimum of people on site once management had whittled away most staff.

“Morale is at rock bottom,” they said.

“This is the worst time be a job seeker and people are now fearing for their livelihoods.”

Another source said employees were discussing how to maintain a safe minimum of people on site once management had whittled away staff.

“Morale is at rock bottom,” they said. “This is the worst time be a jobseeker and people are now fearing for their livelihoods.”

The lay-offs have come at a time when the project was supposed to be reaching peak employment, with two massive tunnel boring machines yet to start digging.

A government spokeswoman said there was no reason for CPB and John Holland to keep sacking workers.

Work on the tunnel was supposed to be kicking up a gear. Picture: Jake Nowakowski

“While businesses across Australia are going to extraordinary lengths to keep staff on, Transurban’s builders sacking more people because they can’t resolve a petty dispute is disgraceful,” she said.

“Transurban entered into a deal with its builders, CPB and John Holland, and they’ve had three years to find a spoil site.

“It’s their failure and they need to fix it.”

A Transurban spokeswoman said there was still a big program of works the consortium was contracted to deliver and plenty of ways to keep staff employed.

“It’s extremely disappointing that they’ve continued to make changes to their workforce,” she said. “The CPB-John Holland joint venture has the necessary approvals to deal with soil already dug up along the project corridor and we expect them to carry on with works while the project parties finalise plans for managing the tunnel soil.”

The consortium declined to comment when contacted by the Herald Sun.

Work is continuing to find a dumping ground for PFAS-contaminated soil, with Maddingley Brown Coal in Melbourne’s west one of three known bidders.

Planning Minister Richard Wynne is considering an application and is talking with Moorabool Shire Council.

MORE WEST GATE TUNNEL NEWS

WEST GATE TUNNEL BUILDER REVEALS BID TO TEAR UP CONTRACT

WEST GATE TUNNEL BUILDERS LAY OFF WORKERS

[e-mail]