The Australian Workers' Union has today lodged a landmark tunnelling agreement for Package C of Victoria's Suburban Rail Loop, negotiated with CPB & Acciona. The agreement delivers the highest paid wages and conditions for civil construction workers anywhere in Australia and is a continuation of Victoria's proud tradition of first-class tunnelling agreements.
AWU Victoria State Secretary Ronnie Hayden said the agreement set the benchmark for how major infrastructure projects should treat the workers who build them.
"I am proud to have once again signed off on the highest paid civil construction agreement in the country. If this project is to be successful then we need to make sure the people building it, our members, get paid what they deserve," Mr Hayden said.
"Of course, there will be those screaming from the rooftops that only people with a private school education are entitled to get paid big money, but we are used to that. What was surprising last time a tunnel agreement was lodged in Australia was that other unions complained that AWU members were paid too much. Let's hope that doesn't happen again."
While the AWU has reached agreement with Package C, the Package D consortium, WeBuild & Bouygues Construction, is refusing to agree to the same terms and conditions, despite both packages involving identical tunnelling work on the same project.
Package D is holding out on two clauses already agreed to by Package C: an updated travel time provision and a clause governing the use of subcontractors and labour hire. Of particular concern is Package D's refusal to include proper subcontractor protections. The consortium wants a clause limited to labour hire only, which would effectively give them a green light to engage any subcontractor without scrutiny, including those affiliated with the CFMEU. Package D has raised the prospect of abandoning a project agreement altogether and subcontracting out the entire tunnel build.
The AWU is deeply concerned that, given everything now known about the CFMEU, the consortium appears willing to reward CFMEU-affiliated companies rather than agree to reasonable subcontractor protections. The AWU warns that abandoning a direct project agreement would come at significant additional cost to Victorian taxpayers, with labour hire and subcontractor arrangements typically carrying a 10 to 15 per cent markup compared to direct engagement. Furthermore, no labour hire company or subcontractor has a specific travel time clause in their agreements. Instead, all time worked beyond ordinary hours is simply paid at double time, a far more expensive arrangement for the project and the taxpayer.
Australia's most experienced and skilled tunnellers are AWU members, and we will not accept work under a labour hire company or subcontractor when a project agreement with superior conditions is available on Package C.
Mr Hayden said: "The AWU's position from day one has been clear: both packages should have the same terms and conditions for workers performing the same work on the same project."