RSS Feed

Creation Date: Tue, 19 Jul 2011 GMT

VIC payrises spark construction concerns

The State Government and the Master Builders' Association have expressed concerns about a 27 per cent pay rise for building workers.

The CFMEU has negotiated a five per cent wage rise for the next four years and workers will get double pay for all overtime.

Finance Minister Robert Clark says increased construction costs mean key infrastructure such as roads, schools and hospitals may be stalled.

"What we've got to make sure is that we can continue to afford the infrastructure that Victorians need and that we don't price ourselves out of future infrastructure," he said.

"We want to use the Victorian Government's purchasing power to get better compliance and boosted productivity."

Lawrie Cross, of the Victorian Master Builders' Association, says the pay increase could force builders to turn work away.

"Our concern is that many projects will not stack up financially," he said.

Bill Oliver of the CFMEU has defended the pay increase.

"Ted Baillieu just hiding behind the fact that he promised the people of Victoria, all these good outcomes," he said.

"Higher wages to teachers, more roads, more hospitals and now they haven't got the money to deliver that.

"He's just jumping on the bandwagon of union bashing and he's blaming the wage increase our members rightly deserve."

Source: www.abc.net.au/news