UPDATED: Fairbrother employees laid off as projects dry up

UPDATED: One of the state’s biggest builders has laid off workers as projects continue to be cancelled or postponed due to the coronavirus pandemic.

A NUMBER of workers in Launceston have been laid off by one of the state’s leading construction firms as the coronavirus pandemic continues to put pressure on the industry.

Fairbrother employees were reportedly told they were out of the job in recent days, and there are growing fears more building companies will be forced to lay off workers as projects dry up.

John Holland Executive manager Trevor Hall and Fairbrother CEO Craig Edmunds on site at the Royal Hobart Hospital Redevelopment. Picture: LUKE BOWDEN

Fairbrother’s CEO Craig Edmunds blamed the weakening of the construction market and the impact of COVID-19 for the “restructuring decision”.

“As a result of the pandemic, we have seen projects cancelled or postponed in all regions of Tasmania,” he said.

“However, we had good work levels in the North-West and the South before the pandemic hit, so the impact hasn’t been as great for us in those regions.

“Unfortunately, the northern market was already in the midst of a slow-down and we were less able to absorb the effects of the pandemic in that division.”

CALLS TO FAST-TRACK TASMANIAN INFRASTRUCTURE PROJECTS

Mr Edmunds said the company’s “bigger concern” was a forecast drop-off in work opportunities six months from now, and onwards.

“We are expecting the drop-off of construction activity to start to have a major effect around that time,” he said.

I believe this is going to require governments to provide some stimulus projects to keep our construction industry going, and to help boost the market confidence for private investment again.”

CFMEU state organiser Kevin Harkins. Picture: NIKKI DAVIS-JONES

CFMEU state organiser Kevin Harkins said the industry would really struggle in about six weeks “if something doesn’t change”.

He said the lead time to get projects from paper to construction meant there would be six to 12 months of “quiet time”.

Mr Harkins said building projects in the North-West were losing momentum due to a portion of the workforce being in quarantine, and the Launceston General Hospital’s Ward 4K redevelopment would be put on hold indefinitely once stage one of the already delayed $20 million project was completed in May.

A government spokesperson said COVID-19 had reduced the availability of materials and subcontractors and disrupted normal work arrangements at the hospital.

Minister for Building and Construction, Elise Archer, said the government was continuing to support the industry to maintain employment levels.

“Our focus is on ensuring that industry continues, whilst it remains safe to do so,” she said.