CFMEU's Influence on Construction Costs and Labour Shortages Amidst Allegations of Criminal Behaviour

Recent media reports have exposed allegations of criminal behaviour within the CFMEU’s construction sector, including intimidation, coercion, and bribes. While these revelations have drawn significant attention, the broader impact on everyday consumers and workers is more complex. According to industry leaders, the union’s collective bargaining has driven up construction costs, even in suburban areas where the CFMEU is not directly involved. Denita Wawn, CEO of Master Builders Australia, suggests that union activities can increase costs on construction sites by up to 30% costs which are inevitably passed on to clients.

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The union has also negotiated high wages and expensive conditions for workers on major projects like skyscrapers and transport infrastructure. This has led to labour shortages in smaller-scale construction, driving up prices and causing delays. The recruitment of skilled tradespeople to large, long-term projects, coupled with rising material costs and supply constraints, has exacerbated the situation. Phil Dwyer of the Builders Collective of Australia points to the significant wage increases for tradespeople as a major factor in the current housing construction slowdown, with insolvencies in the building industry on the rise. As the sector grapples with these challenges, the CFMEU's influence remains a contentious issue within Australia's construction landscape.

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Read the full article here https://www.abc.net.au/news/2024-07-18/has-cfmeu-union-increased-construction-costs/104108724