Deputy Premier Jarrod Bleijie junks Best Practice Industry Conditions to control blowouts

Queensland’s so-called ‘CFMEU tax’ on large state-funded construction projects has been immediately suspended to control budget blowouts in a move unions are warning will slash tradies’ wages and risk lives.

Queensland Deputy Premier Jarrod Bleijie with QMCA CEO Andrew Chapman. Picture: NewsWire/Tertius Pickard

Queensland’s so-called CFMEU tax on large state-funded construction projects has been immediately suspended to control budget blowouts in a move unions are warning will slash tradies’ wages and risk lives.

New Deputy Premier Jarrod Bleijie announced on Thursday that the union-backed Best Practice Industry Conditions – which sets a high floor on conditions including double pay when it rains – would be paused to increase productivity and housing supply.

Developers have struggled to find tradespeople when competing with major state projects that offer attractive conditions under BPIC, and Mr Bleijie said suspension of the policy would increase competition.

BPICs, introduced by the former Labor government, forces contractors tendering for major government-funded projects to negotiate agreements with unions and sets conditions on worksites.

Under the policy, construction workers are entitled to generous technology and travel allowances and an “orderly cessation of work” when the temperature onsite reaches 35C. It also sets successive 5 per cent pay increases each year until 2027 and 300 per cent loading for working on and between Christmas and New Year’s days.

Mr Bleijie said BPICs on new projects would be paused until the Productivity Commission is reinstated this year and can begin its review into the building industry.

“We need to urgently control the cost blowouts of government-funded construction projects, which ultimately hits the hip-pockets of Queensland families and businesses,” he said.

“Queenslanders shouldn’t have to bear the brunt of this, which is why we’ve ordered this pause and review.

“It will also give subcontractors, especially small and family businesses and regional firms, a greater chance of securing work on government projects ...”

Mr Bleijie said best practice workplace health and safety systems and commitment to apprentices and trainees would remain in force.

A CFMEU spokesman said pausing BPICs was a clear signal the Liberal National Party “wants to cut workers wages and conditions”. “This will lead to a dangerous deregulation of the labour market and more workers dying on construction sites,” he said.

Australian Manufacturing Workers Union state secretary Rohan Webb said BPICs ensured fair wages and safety practices, standards, including crucial heat safety protocols.

“In a year where we’ve already lost lives on Queensland construction sites due to heat illness, these cuts put more lives at risk,” he said.

The pausing of BPICs comes as housing, Olympic, renewable energy, transport and hospital building projects are all competing for workers with Queensland’s infrastructure spend per capita expected to overtake that of NSW and Vic­toria this financial year.

Queensland Major Contractors Association chief Andrew Chapman said BPICs had hiked project costs by 20 to 30 per cent.

“Of that, 30 per cent is related to wages and 70 per cent is related to productivity, and that’s where we need to move the dial.

“By removing the threat of BPIC and its impact, we will hopefully see an improvement in the ability to deliver projects on time and on cost going forward, and that is critical because we have got a massive pipeline in front of us.”