Industrial peace looms at building site
The Age
Friday July 31, 2009
THE risk of crippling industrial problems on the desalination plant project have receded after the more union-friendly bidder won and construction unions promised to adopt an unusually co-operative approach.The project will employ 1700 workers, represented by five construction unions, some of which have strained relations.But Victorian Trades Hall Council secretary Brian Boyd said a project agreement was close to being signed with builder Thiess, one of the winning consortium partners."We now think we can finalise the project agreement quickly with Thiess and part of the agreement contains this undertaking by the construc-tion unions that it will deliver this very important infrastructure project to the state on time and on budget," he said.Mr Boyd said the dire water situation in Victoria meant unions were keen for a co-operative relationship.Electrical Trades Union state secretary Dean Mighell said unions preferred Thiess to its rival bidder John Holland €” the contractor for the West Gate project, which has been beset by industrial problems, allegations of violence and intra-union fighting."I think John Holland has been a provocative employer; it has gone out of its way to do single union deals," Mr Mighell said. "It's going to be a much better project under Thiess guidance."Sources said there were still issues to sort out, such as over rostering, housing and union demarcation, although there was confidence a deal could be done reasonably quickly.It is believed that while there is some disagreement around wages, this is less of an issue with the base rate for a typical trades person proposed at about $40 an hour and a project allowance of $5 an hour €” a total of about $85,000 a year.That would be similar to other recent major infrastructure projects, sources said, with Thiess agreeing to pay "market rates" for big projects.Australian Workers Union state secretary Cesar Melhem said unions understood the importance of the project and there was an acceptance by unions and both bidders of the need for a comprehensive industrial agreement."It is such a vital project for Victoria we need to make sure the project is delivered."The unions involved have varying reputations from the militant to the more pragmatic with the Construction, Forestry, Mining and Energy Union, ETU, AWU, Plumbers Union and Australian Manufacturing Workers Union all involved.Tony Shepherd, a spokesman for the winning consortium, Aquasure, said the group was confident of industrial peace."They (Thiess) worked on the EastLink project recently and we didn't lose a single minute to industrial action on that site," he said. "We are very comfortable with the arrangements we are making with the unions down there and we are confident it will be a smooth process."The project is also welcome for the building industry with work drying up. An Access Economics report to be released today, commissioned by the CFMEU, found the building industry has lost 35,000 jobs in the past year with forecasts as many as 81,000 jobs could go in the next three years.Lending practices of the banks were a major problem, the CFMEU's Dave Noonan said, with a need for more help for the building industry. He said predictions of a 10 per cent fall in apprentice numbers were of particular concern.
© 2009 The Age