Queensland Government Suspends Construction Union Pay Agreement to Save Taxpayer Funds

Tens of thousands of workers march after walking off work sites in protest against the forced administration of the construction arm of the Construction, Forestry, Mining and Energy Union (CFMEU), in Melbourne, Australia on Aug. 27, 2024. William West/AFP via Getty Images

The newly elected centre-right Liberal-National government in Queensland suspended the Best Practice Industry Conditions (BPIC) for major government projects on Nov. 14, a move that has sparked heated debate.

While the government claims the decision will save taxpayers billions, unions have raised concerns about worker safety and rights.

BPIC, introduced in 2018 for the Townsville Stadium project, sets detailed pay and conditions for construction workers. It applies to all major state projects exceeding $100 million (US$65 million) and embeds its provisions into tender and procurement processes.

The updated standards, released in April, included benefits such as $100 weekly allowances for personal device usage, double pay during rain, and 300 percent pay for public holiday shifts. Workers were also entitled to a 5 percent annual pay rise and additional rostered days off.

Deputy Premier Jarrod Bleijie justified the suspension, citing Treasury modelling that estimated BPIC added up to 25 percent to project costs, amounting to $17.1 billion over six years.

Support From Business and Industry

The suspension has gained support from business and industrial bodies.

Frank Parry KC, president of the H.R. Nicholls Society, described BPIC as a “gold-plated system” that benefitted a select few at the expense of broader productivity and affordability.

“BPIC imposed prescriptive requirements that added layers of complexity, limited flexibility, and increased project costs,” Parry told The Epoch Times.

He argued that its suspension fosters competition and encourages innovation.

“Getting $100 a week for using your own phone, double time if it rains, and 300 percent for working over Easter and Christmas—it wasn’t about best practice; it was about pushing the limits of what could be squeezed from the system,” he said.

The Property Council’s Queensland Executive Director, Jess Caire, called the suspension a sensible step during the industry’s challenging time.

“It has never taken longer or been more expensive to deliver projects in Queensland,” she said.

Unions Condemn the Move

Unions, however, have criticised the government’s decision.

The Construction, Forestry, and Maritime Employees Union (CFMEU) accused the government of scapegoating construction workers and the union itself for cost overruns while overlooking systemic issues within the Department of Transport and Main Roads.

CFMEU Queensland’s Civil Construction Coordinator Dylan Howard said the government’s criticisms were theatrical and unfounded.

“It is typical of the LNP to blame construction workers and the CFMEU for infrastructure cost blowouts,” Howard said.

He also pointed out that most of Queensland’s major road and rail projects are not covered by CFMEU enterprise agreements or BPIC.

Balancing Safety and Productivity

Unions have raised concern over potential safety risks following the suspension of BPIC, arguing that the move could lead to hazardous deregulation in the construction sector.

Responding to these concerns, Parry said, “The CFMEU’s assertion that suspending BPIC compromises safety is a blatant attempt to mislead the public. Safety regulations remain untouched. This is about removing an unfair layer that has inflated costs and stifled competition in the industry.”

Caire added, “The Property Council supports safe worksites, and we also support productive worksites. There is no reason we cannot achieve both here in Queensland.”

Calls for Productivity Reform

Despite union objections, business leaders argue that suspension is necessary for broader reform.

Parry noted the importance of restoring the Queensland Productivity Commission to address systemic issues in the industry.

“The restoration of the state Productivity Commission is critical to driving long-term reform. The Commission must focus on systemic changes to reduce over-regulation and restore competitiveness in the construction industry,” he said.

Caire believes that referring BPIC to a newly re-established Queensland Productivity Commission sends a strong message to the industry that the state is serious about being more productive.

A recent report from the Business Council of Australia highlighted Australia’s slipping international competitiveness, noting that productivity growth in the last decade was the worst in six decades.

The report warned that Australia risks losing investment opportunities to countries like the United States, which introduced incentives like the Inflation Reduction Act to attract global investment.

Caire echoed these concerns, stating that Queensland’s reputation as the least productive state needs urgent attention.

“At a time where we need to deliver critical infrastructure and homes, we need to pull all available levers to shed this label,” she said.

Daniel Y. Teng contributed to this report.