The CFMEU’s latest wages deal for NSW will increase labour costs by up to 19 per cent in the first year alone, a new analysis finds.
Already a subscriber?The CFMEU’s new NSW wages deal and rising building costs will add 10 per cent to the cost of new apartments, more than double the rate of inflation, threatening the state’s targets to build affordable homes.
Major builders including Lendlease and CPB have signed off on the deal in the past week while second-tier builders such as Built first backed it last month. Mr Seidler said at least half the homes in NSW had to come from apartment construction, which could only be built by large commercial contractors.
“If developers cannot demonstrate a reasonable rate of return, they will not raise capital from investors and the projects will not get built. This means less new housing, more contractor bankruptcies, less employment in the construction industry and perpetual upwards pricing on housing.” “Leaving aside the huge increase in wages and conditions without any productivity offsets, the agreement introduces conditions where the union has complete direction over who the contractor engages in the subcontracting sector.”
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