Electricians’ wage push ‘will cause job losses’

Employers say an ‘unrealistic’ union campaign will drive up cost of hiring licensed electricians.

The cost of employing a licensed electrician could rise.

Employers have warned that an “unsustainable and unrealistic” union wages campaign will drive up the cost of employing licensed electricians in NSW by 40 per cent, causing jobs losses as companies “go to the wall”.

The National Electrical and Communications Association said the Electrical Trades Union claim, which seeks a total of 14 per cent in pay rises by 2022, equated to a 40 per cent jump in labour costs when increases in allowances sought by the union were included.

The NECA bid to hold out against the union campaign had been undermined by three of its prominent members, Fredon, Heyday and Star, agreeing to the union claim, which employers estimate will result in base annual salaries for licensed electricians jumping to $156,783.

NECA chief executive Suresh Manickam acknowledged the three companies were “major players” but denied their support for the union position was indicative of the rest of the industry.

He said it “beggars belief” that companies could agree to the union claims and remain competitive when there was a slowdown in the building and construction sector. “The ETU’s demands in NSW threaten businesses and jobs, and could send the state the same way as Queensland, where contractors are forced to compete on an un­level playing field,’’ he said.

“Ultimately, it is the taxpayers that lose out in these situations, through increased costs to projects, delays to much-needed infrastructure coming online or companies going bust as they are no longer able to compete.”

ETU NSW secretary Justin Page accused the NECA of ­making “disgraceful and dis­ingenuous” claims, saying many of the financial increases were about catching up with pay and conditions enjoyed by electrical workers in Queensland and ­Victoria.

Under the Fredon agreement, an hourly site allowance ranging from $2 to $5.25 depending on the size of the project will apply from December next year. An hourly productivity allowance will increase from $2 to $3.50 by 2022, while daily travel and fares allowances will rise to $25.25 and $16.83 respectively over the life of the agreement.

“The fact that three of the largest electrical contractors in NSW have signed on to these agreements, with many other companies in negotiations, demon­strates broad industry support for what the ETU is seeking to achieve,’’ Mr Page said. “Many of the financial improvements, such as the phasing in of site allowances for major projects over the coming years, are about moving towards parity with interstate contractors, creating a level playing field for the industry.”

Mr Manickam said a 14 per cent rise in wages over three years was one thing but “name me an industry that is getting 40 per cent”, including increases in allowances “for not doing any more work”.

“When you have a declining economy and unrealistic demands for increases in wages, the impact is you are going to have companies go to the wall, which will mean employees won’t have jobs,’’ he said.

“The costs won’t be passed on because the market is stretched. There is no more blood in this stone.

“The problem we have is the union is seeking an extraordinary 40 per cent increase and yet you go out there and look at the wage growth for Mum and Dad in struggle street. The wage rates being sought here are hugely disproportionate to the actual wage increases … in the economy.”

Mr Page said “far from being economically irresponsible, these agreements have been driven by a desire to create a level playing field in the industry. The agreements aren’t just about dollar values, they’re about enhancing worker welfare and the future of our industry, including by improving pay and supervision for appren­tices, enhancing safety and asbestos training, and focusing on preventing suicide,’’ he said.

“When even the Reserve Bank says wage stagnation is posing a major threat, NECA’s efforts to artificially suppress wages aren’t just an attack on workers, they’re an attack on the broader economy.”