“Astronomically high” wages for government projects in Melbourne are causing Geelong labour shortages, according to Master Builders Association Victoria.
The association’s chief executive officer Rebecca Casson told the Indy wages of almost $200,000 for West Gate Tunnel labourers were drawing workers away from Geelong.
Association members in Geelong and other regional cities were reporting difficulties finding enough qualified workers to meet the demand for local projects, she said.
The skills shortages could prolong building times and increase costs, Ms Casson said.
“(This) can have a devastating effect on smaller builders, who don’t have the ability to weather those kinds of expenses.
“The skills shortages in the regional communities that need them is another one of the consequences of an unsustainable wage framework, that the public doesn’t always see.”
Ms Casson took aim at Construction, Forestry, Maritime, Mining and Energy Union’s “unsustainable” enterprise bargaining agreement (EBA).
“It’s important to understand that (their) EBA establishes a wage structure that is unsustainable,” she said.
“This applies not just to major infrastructure projects, but to any project that falls within the scope of the EBA including apartments, and other commercial work.”
According Master Builders an entry-level labourer working a basic 36-hour week would earn $110,000 per year and $195,000 for an industry standard 56-hour week.
The wages were “sufficiently attractive” to motivate a tradesperson who had completed their training to commute to Melbourne, which typically had more projects, Ms Casson said.
“Victoria’s population is growing faster than any state or territory and this puts pressure on communities like Geelong, as they have to keep up with demand in both residential and commercial building.”
Last week The Age reported “site allowance” payments of up to $9.25 per hour on the West Gate Tunnel, were topping up labourers’ wages by more than $24,000 a year.
But Transport Infrastructure Minister Jacinta Allan told the paper her government’s projects were driving Victoria’s economic growth and creating about 12,000 jobs.
