Union officials with unchecked power on construction sites force builders to cover costs of insolvent subcontractors, which in turn pushes up costs for home buyers.
Already a subscriber?Big builders saddled with extra costs when subcontractors on their sites collapse want reforms to a slow-moving federal scheme they say prompts the CFMEU to make them, rather than the government, pay entitlements to workers they don’t employ.
that extends to telling builders which subcontractors they can and can’t work with. The CFMEU union has been wracked with allegations of bikie links and criminal infiltration.Once a head contractor has paid out entitlements such as annual leave, long service leave and redundancy payments to the employee of a subcontractor – who they may have no legal responsibility for – the money was lost to a contractor, Mr Davies said.
“The National Construction Industry Forum has established a subcommittee to consider and advise on financial viability in the industry,” a department spokesperson said. “That means hiring some of these subcontractors to bring them on board as part of the delivery team, because we don’t want to miss our deadlines,” Mr Lombardo said.
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