Nothing about Canberra's putative light rail network – not its necessity, its construction and operating costs, nor its long-term infrastructure value to the city – has been uncontentious. It was entirely fitting, then, that Tuesday's contract-signing between the ACT Government and the Canberra Metro consortium should be overshadowed by a quarrel about construction labour costs involving on the one hand the Master Builders Association and and on the other, UnionsACT (with the backing from Capital Metro Minister Simon Corbell).
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The MBA, which believes the $698 million cost estimate has been significantly inflated as the result of a memorandum of understanding between Unions ACT and the ACT government on procurement had wanted the contract-signing delayed until "governance matters" were examined more thoroughly. Mr Corbell rejected the claim, however, saying there was "no movement to the cost of this project as result of the employment arrangements between Canberra Metro and the [Construction, Forestry, Mining and Energy] Union".
Unions ACT secretary Alex White was blunter, describing the MBA's call for a delay as "completely mad and highly inappropriate" and accusing subcontractors of wanting to "take the cream off the top" while paying construction workers less for "back-breaking work in dangerous conditions".
It's believed the MOU (described in its introduction as an "agreement to ensure ACT government procurement activity includes fair consideration of the rights of workers) was rejected by the consortium as being in conflict with federal workplace laws. The release on Tuesday of a Unions ACT media release headed "Unions welcome signing of light rail contracts" suggests that if the agreement was indeed absent during contract negotiations, it was there very much in spirit.
First-time workers on the rail project will get $30.23 an hour rising to $42.55 an hour, hardly a king's ransom. However, allowances and loadings – including overtime paid at time and a half for the first two hours and at double time thereafter – are generous by any standard.
That the CFMEU strives to secure the best possible wages and conditions for its members, using methods other unions shy away from, is a matter of pride within senior ranks. The view from other quarters is less charitable. The Royal Commission into Trade Union Governance and Corruption detailed entrenched lawlessness within the union, and a long list of underworld connections. It's alleged that the CFMEU is wont to use its passion for workplace safety as a pretext for undertaking illegal activities like building site blockades and disrupting concrete pours. Similarly, assessment of the MOU is that it is nothing other than union preferment, the costs of which are ultimately borne by taxpayers.
Coincidentally, major infrastructure provision in Australia is high by world standards, higher even than in heavily unionised countries like France. It's surmised that the predilection of governments for over-specifying what they require is one driver of costs: the other is high labour charges. Against that background, claims light rail will be a gold-plated infrastructure project are hard to refute.
