The Union of the largest building will pay increases of up to 24 per cent in four years, triggering warnings employer salary boost creates inflationary pressure and force the Reserve Bank to raise interest rates.
The construction, forestry, mining and Energy Union yesterday revealed he would seek annual salary increases averaging 6 per cent on behalf of construction workers at national level, with the Union to seek agreements for three and four years throughout the industry.
Dave Noonan, National Secretary of the Union's construction Division, said that its members will not accept any conditions being traded off in exchange for amounts payable. "Is a highly productive industry and there are very healthy profits," said the Australian weekend.
But the master builders Australia said that the payment request was not sustainable, which threaten investment and increase the pressure on interest rates if it was successful.
"The claim of the CFMEU comes as no surprise, but it is clearly disappointing for a number of reasons," Chief Executive MBA, Wilhelm Harnisch said. "The first is the unwillingness of the Union to discuss the productivity offsets. Clearly, there is room for it. Without it, increase wages by 18 percent over three years, or 24 per cent in four years is not sustainable.
"The claim is far ahead of where the economy and building and construction industry is in. All this will do is tent investment in this sector.
"The need for unions to accept their responsibility not to raise labour costs to the point that the investment is reduced because everything this can lead to a reduction of jobs".
He said the stimulus program from the federal Government had attended the construction industry.
"The feedback we received from our members is that the claim is not sustainable," he said. "Conditions are mild. The BER program has supported the activity, but there's little about books. This could cause inflationary pressures and forcing the Bank to raise interest rates ".
But Mr Noonan rejected the criticism. "We do not accept the usual hysteria of master builders. I call them the wailing widows of job options. Is entirely predictable.
"We have no doubt that they have an ability to pay. The results of profit are very strong and there are a lot of work getting in the industry.
Mr Noonan said that workers had incurred the cost of living increases, as well as increases in interest rates.
He said that the allegations that vary between different sites and different States.
"There are a number of ongoing discussions, but you can say that our claims are approximately 6 percent per year," he said. "There are some discussions going on for three-year agreements and some discussions going on for four-year agreements".
He said that the granting of credit could not be interpreted as a threat to a leakage of wages.
The Union will push the inserted clauses in agreements that seek to eliminate the so-called "bogus contractor", saying that the practice was threatening the jobs of the members of the Union.
But Mr Harnisch said that employers wanted the Union to be more flexible about rostered days off for workers.
In evidence before the Commission of economy of the House of representatives last week, Reserve Bank Governor Glenn Stevens warned that labour shortages likely to emerge over the next few years would be a test for the Government's labor laws.
The President of the Commission, Craig Thompson, tried to get Mr Stevens said that industrial relations laws of Government were causing any leakage of salary. But Mr Stevens said it was too early to tell.
Mr Stevens "test will come as labour market tightens," he said. "If it does, how we think maybe in the next two years, the question is: come through that reasonably well, as I think I've done primarily on the earnings front two or three years ago? We, as well as that with the changes in the regulations have been made in the meantime?
"The evidence is not really available to give an answer yet.
"We'll find out over the next two or three years".
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