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More Queensland construction workers to get at least $200k a year

David Marin-Guzman
David Marin-GuzmanWorkplace correspondent

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The Queensland government has increased the minimum pay for the average construction worker on civil projects to more than $200,000 a year and extended its coverage to more works.

The Miles government’s latest Best Practice Industry Conditions for transport will cover rail and road projects worth up to $890 million where it requires contractors pay CW5 construction workers $191,086 a year and up to $201,694 when counting income protection and redundancy fund pay, an industry analysis found.

The transport BPIC will lift pay depending on the project value – the threshold of which has increased from $700 million – cover water projects for the first time, and ensure the rates rise 5 per cent a year until 2027.

Queensland Premier Steven Miles says the rates represent prevailing enterprise agreement rates in the industry. Dan Peled

Queensland Civil Contractors Association CEO Damian Long said the state’s BPIC policy would result in a rise in costs and reduce the number of projects delivered in the state because its rates would indirectly flow on to other projects.

“Since the implementation of BPIC, we have seen an increase in militant union activity on civil construction projects, increased costs and declining productivity,” he said.

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“The Queensland government’s BPIC are not just quarantined to government projects. They overflow into the private industry, adding cost to housing-enabling infrastructure and housing construction at a time when there is a shortage of housing and a cost-of-living crisis.”

However, CFMEU Queensland secretary Michael Ravbar said claims by employer groups that BPIC pushed up construction costs were made “without a shred of evidence”.

“These shameless turncoats drape themselves in maroon while deliberately campaigning to sell out Queensland workers and undercut Queensland businesses,” he said.

The CFMEU argues that BPIC has been “bastardised” on transport and main road projects because it is not mandatory. It claims “cut-price companies deliberately price the job low to win the contract and then price-gouge the government through the life of the project, leading to massive cost blowouts and waste”.

While the transport minister can technically pick which projects are covered by BPIC, Mr Long said tenderers and contractors who wish to be prequalified for government work must declare their workers will benefit from “equal or better conditions”.

If an audit finds that contractors on a BPIC site did not have conditions at least equal to the BPIC they accrue demerit points and could be banned from tendering for state government work under the ethical supplier mandate.

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“BPIC ups the ante for other projects in the industry and will flow on to residential construction,” Mr Long said. “It’s created a monster that is lifting costs for everyone.”

He also disputed the suggestion BPIC projects did not have cost blowouts, pointing to the BPIC-covered $45 million M1 freeway upgrade in South Brisbane that was hampered by disputes with the CFMEU.

‘Best rates and conditions’

Queensland Premier Steve Miles said this week that “the terms and conditions in the BPICs represent the prevailing EBA rates in the industry”.

The Australian Workers Union was last year reported as securing changes to BPIC in an alleged deal to support Mr Miles. But the union’s Queensland secretary, Stacey Schinnerl, denounced the claims as “absolute rot” and “so far from being accurate or being remotely linked to anything that occurred”.

The new BPIC does not require that civil contractors negotiate with the AWU at the expense of its rival the CFMEU but does specify AWU-backed funds such as AustralianSuper and income protection fund Chifley Services for the first time.

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Ms Schinnerl said “agreements made in the civil construction industry under the Transport and Main Roads BPIC are delivering some of the best rates and conditions in the country”.

“The government and major contractors must do everything in their power to stamp out dodgy contractors whenever they appear,” she said.

The Queensland BPIC comes as the West Australian government this year also brought in its own BPIC for main roads that would require labourers be paid 55 per cent more than the award wage.

David Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at david.marin-guzman@afr.com

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