Watchdog approves CFMEU union-builders deal

A new deal between CFMEU Victoria and builders requires employers to double payments to a worker entitlement fund and lift weekly wages by $200 by 2023.

CFMEU secretary John Setka at ETU headquarters in Melbourne. Picture: Aaron Francis

The building watchdog has ­approved a pay deal between John Setka’s Victorian CFMEU branch and major builders that requires employers to double payments to a worker entitlement fund and lifts average wages by $200 a week by 2023.

The Australian Building and Construction Commission refused in August to approve the agreement, forcing the union and employers to make changes if they wanted to be eligible for ­lucrative federal work.

The ABCC found clauses relating to the union picnic day, flexibility arrangements for major projects and a proposed trial of a 50-hour week limiting Saturday work did not meet the requirements of the building code.

Under federal law, firms must have enterprise agreements that comply with the code in order to tender for work on federally funded projects. Changes were made to the agreement, including an additional sentence that said attendance at the union picnic by employees did not require them to be union members.

The ABCC did not object to clauses requiring employers to double weekly payments to worker entitlement fund Incolink, and forcing them to pay a 75 per cent loading to casuals if they refuse to convert them to permanent ­employment after four weeks.

Doubling of the Incolink payments to $160 a week over the life of the deal has been criticised by the Australian Industry Group.

Employers have agreed to lock in the existing calendar of rostered days off for six years, CPI rises in allowances annually, and 3 per cent annual pay rises, which is lower than the usual annual amount of 5 per cent.

But industry sources said they were satisfied with the agreement, praising the co-operative approach of the CFMEU and the Master Builders Association during the negotiations.

Mr Setka accused the ABCC of dragging out approval of the agreement and delaying workers getting pay rises and entitlements.

He said the “industry” picnic day had been an “ideological ­obsession” of the ABCC for 15 years, and the agreement should have been effective from August 1.

“Off the back of bushfires and the beginning of the COVID pandemic we had a responsibility to seek an EBA agreement that would give employers a clear path for employees’ wages and conditions for the next three years,” he said.

“In doing, so we pursued ­additional benefits for redundancy and superannuation at a time when it was clear there was a greater need for future support.”

Mr Setka said the delays resulted in employees losing up to three months of wage increases, as well as losing improved redundancy and superannuation benefits at a time when both have been relied on.

“Employees returning to work after having been stood down, ­suffering months of financial loss along with the COVID pandemic issues, should have been able to return to work knowing that the EBA agreement was in place, so they could receive the benefits,” he said.

“The frustration with the baseless ongoing delay tactics from the ABCC were especially difficult to understand as throughout this process we have worked with ­employers and governments to ensure the construction industry could remain open and continue productively and safely.”