Minns warned of ‘Victorianisation’ of NSW construction industry
Industry leaders fear Victorian union’s growing control over NSW worker payments could siphon millions across the border from taxpayer-funded projects.
NSW Premier Chris Minns is being warned of the looming “Victorianisation” of his state’s $88bn construction industry, amid claims a redundancy firm linked to the Victorian CFMEU is funnelling millions of taxpayer dollars out of NSW.
The state’s peak construction industry body has written to the NSW government over concerns that Incolink, the redundancy fund controlled by the Victorian branches of the CFMEU and Master Builders Association, is hoovering up contractors in the state.
Master Builders NSW executive director Matthew Pollock said there were real concerns payments to the fund from workers on NSW government infrastructure projects were now being siphoned across NSW’s southern border.
It’s understood at least 12 head contractors and dozens of subcontractors in NSW are now signed up to Incolink, with NSW government projects on their books including the redevelopment of Westmead Children’s Hospital, the new Sydney Fish Market, and the Western Sydney Airport Metro.
Mr Pollock said analysis of major projects in NSW and the contractors working on them suggested $20m could flow to the Victorian headquarters of Incolink each year.
“With billions being invested by the Minns government in housing and infrastructure, it would be a disaster for NSW taxpayers if Incolink is a Trojan horse for the ‘Victorianisation’ of the NSW construction sector,” Mr Pollock said.
“If this situation is not urgently addressed, $20m will become hundreds of millions as more NSW construction contractors are forced to sign up to Incolink.”
Mr Pollock said they were calling on the Minns government “to use the powers at its disposal to ensure that NSW worker entitlements stay in NSW and the toxic culture of the Victorian CFMEU has no place in the NSW construction industry”.
A spokesperson for Incolink rejected claims that funds raised in NSW wouldn’t be used in the state, saying the national fund had more than $1.5bn held in trust with more than 50,000 members in four states.
“In choosing Incolink, NSW construction workers and employers have voted with their feet and endorsed our superior scale, performance and service offering,” he said.
“All funds held in trust for workers in NSW are for their benefit, with their own state division outlined in the trust deed.
“NSW members will receive a dividend this year, and have already accessed training vouchers worth more than $200,000.”
He added Incolink had invested $127m in NSW construction projects over the past six years.
A CFMEU spokesperson said new directors to Incolink’s board, appointed by the union’s administrator, had a “responsibility … to ensure that our members’ entitlements are protected and that funds collected in NSW remain in NSW to service members’ needs and for the benefit of industry in that state”.
“Incolink has already delivered more in member health and wellbeing services and member training in NSW than the legacy fund ever did,” the spokesperson said.
“Our members are looking forward to receiving dividends from Incolink later this year, which was supported through our member engagement and advocacy.”
It follows controversy over how Incolink has previously used payments from workers signed up to their scheme.
In September, it was revealed the Victorian CFMEU had received $27m in grants from Incolink to build a workers’ wellbeing and training centre in Melbourne, which was subsequently valued by the union to be worth just $8m.
The funds for the wellness centre follows millions of dollars being distributed via grants to the Victorian Construction Forestry and Maritime Employees Union and to the state’s Master Builders branch.
The entrance of Incolink as the NSW CFMEU’s specified redundancy fund came while the union was under the control of then-state secretary Darren Greenfield, who earlier this year plead guilty to charges of receiving corrupting benefits alongside his son and former deputy leader Michael Greenfield.
Incolink also counted former Victorian CFMEU secretary John Setka as a board member until he resigned last year, amid revelations of alleged criminal activity infiltrating the construction sector, particularly in Victoria.
Master Builders NSW also sits on the board of ACIRT, the former redundancy fund specified by the NSW CFMEU which was replaced by Incolink.
The Australian Securities & Investments Commission, the corporate watchdog, is in the process of beginning to regulate redundancy funds, after years of exemptions.
A NSW government spokesperson said “it is essential that workers’ entitlements are protected, and redundancy trusts have high standards of governance”.
“The commonwealth regulates the terms of enterprise agreements and regulates redundancy trusts,” they said.
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