Builders fear for apprentices over same job, same pay

Builders have raised concerns that Tony Burke’s same job, same pay reforms could capture apprentices employed through a Group Training Organisation.

Builders have raised concerns that Tony Burke’s same job, same pay reforms could capture appren­tices, increasing costs for businesses and jeopardising the future of the successful training scheme.

Master Builders Australia chief executive Denita Wawn said the industry had been dragged into uncertainty over whether the IR reforms would hit the Group Training Organisation program, a form of labour hire that recruits and trains apprentices.

Ms Wawn said the sector feared that under same job, same pay, GTOs could be impacted by the same layer of regulator compliance as proposed for labour hire companies, as the government moves to clamp down on bosses using cheaper contractors.

A spokesman for the Minister for Employment and Workplace Relations would not say whether the apprentice scheme would be impacted by the government’s policy.

Beardwood Group owner Ash Beardwood said the lack of detail in the government’s policy con­sultation paper had raised ­concerns about how it would ­affect his ­Tasmania-based business, which employs up to 30 ­apprentices through a Master Builders-operated GTO.

“There is only the consultation paper out at the moment. We are wondering how that is going to affect my company as a Master Builders GTO,” he said.

“We’ve used labour hire in the past but we put all our apprentices through the Master Builders so any changes that the new legislation may bring is a concern to us from the ease of use for the GTOs.

“If there is anything that is a detriment to our company, we will directly hire the apprentices and they will lose the benefit of the Master Builders support network.”

First-year apprentice builder Jake Grzona, 17, who began working at the Beardwood Group through a GTO in January, said he enjoyed the variety the working arrangement offered including the support and leave to study at TAFE.

“At Beardwood there’s a great atmosphere, great community,” he said. “I’m really enjoying it, it’s been a really good start and I’m learning something new everyday.”

Ms Wawn said placing extra administrative or cost burdens on GTOs could exacerbate existing labour shortages in the construction sector, as GTOs had a higher rate of completion of traditional apprenticeships and provided a higher standard of training.

Master Builders Australia chief executive Denita Wawn.

“There are already significant stresses in running a GTO to the extent that some GTOs have made the decision that it’s too high risk and closed them down because of health and safety laws,” she said. “That just shows there is already stress in the system in terms of regulation, and this will tip some GTOs further into the red where it is not worthwhile continuing with a GTO at the time the industry can least afford it.

“When it comes to training apprentices we know if you go through one of the Master Builders GTOs, the completion rate is 80 or 90 per cent compared to 50 per cent. That is because of all the additional support they provide the apprentices.”

A spokesman for Mr Burke said labour hire had “legitimate uses in providing surge and specialist workforces” that would be permitted to continue under the IR reforms, but did not respond to specific questions on whether the changes would apply to GTOs.

“What we’re concerned about is the labour hire loophole – which companies deliberately use to undercut agreements they’ve made with their workers,” he said. “They’ve agreed on fair rates of pay with workers, made an enterprise agreement – and then undercut that by bringing in a labour hire workforce being paid less.”