Energy Qld EBA to add $10k to price of a new home

The price of a new home could jump by $10,000 in Queensland under a union agreement.

Industrial Relations Minister Jarrod Bleijie

The price of a new home could jump by $10,000 under a union agreement with Energy Queensland.

On the eve of the state election, Energy Queensland finalised a contentious enterprise bargaining agreement that significantly expanded contestable works to encompass all contractors and subcontractors working on electrical installations on new subdivisions, public lighting and major customer works.

It will mean non-electrical works that are related to an electrical job, such as excavating trenches and installing retaining walls, will be subject to subcontracting restrictions and increased wages.

Industry bodies, including the Australian Industry Group Queensland and Master Electricians have slammed the EBA process, saying the workforce was not consulted, leaving businesses blindsided by sudden wage increases they cannot afford.

Former energy minister Mick de Brenni has also been accused of ignored warnings about the EBA’s economic repercussions.

Master Electricians chief executive Kate Raymond said: “We tried to voice our concerns to the previous government but did not receive a response.”

Civil Contractors Federation Queensland secretary Damian Long said the changes would allow Energy Queensland workforce to dictate private industry workforce, adding between $2000 and $10,000 to house builds.

“Regardless of who you are or who you work for, EQ are saying that private contractors doing core works, of which now include any sort of electrical works for electrical assets, must pay their workforce according to this EBA,” he said.

Master Electricians CEO Kate Raymond

“They’re also quarantining some of the work from guys who traditionally did the work, which will create a supply and demand issue.”

Mr Long said he too raised the issues with the former Labor government over 12 months ago, but was told there was a loose timeline for the EBA’s implementation.

Businesses affected by the EBA received a letter last August informing them of the upcoming changes that would take effect from September.

Sources told The Courier-Mail that upon receiving the letter, they wrote to Mr de Brenni, but were told caretaker mode was approaching and to write again to the incoming government.

Industrial Relations Minister Jarrod Bleijie confirmed the government had since received the same correspondence, requesting the EBA be reviewed.

He confirmed the EBA would be reviewed by the Productivity Commission.

“Labor’s deal was done without industry consultation prior to the election,” he said.

“While we said before the election that existing contracts will be honoured, the regulation of all future building and construction industry policies will be subject to the Productivity Commission review.”

The Australian Industry Group Queensland has raised concerns about the EBA’s impacts on small and medium-sized businesses employing the bulk of apprentices while the state faces a critical shortage of qualified electricians.

Businesses that employ 200 or fewer tradies currently house more than 76 per cent of Australia’s apprentices.

AIG Queensland head Michelle Farquhar said the EBA’s tight timelines would put too much pressure on smaller companies who would ultimately have to pass the wage increase cost onto new-home buyers.

Former energy minister Mick de Brenni

“The extension of the EBA conditions to contractors and subcontractors will have a seismic impact on the private sector throughout Queensland,” she said.

“The additional cost on housing developments being generated by a government owned entity – Energy Queensland – will ultimately be passed through to those Queenslanders wanting to build a home.

“The focus needs to be on getting a better balance between wages and value for money for Queenslanders, with safety never being negotiable.”

Master Electricians CEO Kate Raymond said poaching of staff by government owned corporations would also likely ramp up under the newly imposed wage conditions.

“While we support the right of workers to seek the best salary possible, we must ensure wages are both fair and manageable for all parts of the sector,” she said.

“Our concern isn’t that EQL agreed to an EBA, but it impacts employees of contractors and subcontractors and was done with zero industry consultation and a complete lack of transparency.”

An Energy Queensland spokesman said the workforce was engaged and voted on the agreements.

“As per the usual practice, external accredited contractors that are working on the electricity network or construct assets that are transferred to Energex apply the same rates for these works,” he said.

“This has been the case for many years. Contractors have been applying these rates new rates since September.”

The spokesman said the new EBA addressed inconsistencies in compliance of the framework and an increase in contractor safety issues, with core work expanded to ensure consistency.

Originally published as Energy Qld EBA to add $10k to price of a new home