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The Prime Minister Scott Morrison has announced that, if re-elected, the Government would allow longer term greenfields agreements for major projects, meaning employers and unions could negotiate longer workplace deals for major resources and energy projects.
AMMA CEO Steve Knott said the Department of Industry shows there are more than 350 major resources and energy projects, in various stages of feasibility and commitment, in Australia’s investment pipeline. If all could be secured, the five-year employment projections would easily exceed 100,000 new jobs.
“These jobs would range from trades and construction through to production roles – all paying salaries well in excess of $100,000 and for most, much more.
Mr Knott said the maximum term for major project greenfields agreements is currently four years, but the construction of large-scale resources and energy projects can often exceed that.
“Even a small increase to six years would make a huge difference to the international investment community that determines which nations they will allocate billions of dollars of major project capital.
“Such agreements could have an inbuilt mechanism to ensure appropriate pay increases throughout the life of the project,” he said.
Innes Willox, Chief Executive of the national employer association Ai Group said if a greenfields agreement entered into for a major project expires at a critical stage during the construction of the project it creates the risk of industrial action and associated project delays.
“Project delays can have a negative impact on safety and quality due to the accelerated catch-up programs that are often implemented to avoid the liquidated damages that are payable by construction contractors if a project is not completed on time.
“The proposal will be good for investment and good for jobs, particularly in the construction and mining industries. The proposal has the strong support of employers throughout all tiers of the construction and mining supply chains.
The Government’s announcement notes:
- The provisions would only apply to greenfields agreements for major projects with a value of at least $500 million;
- A maximum six year term;
- A requirement that the greenfields agreement included annual wage increases at least equivalent to those awarded by the Fair Work Commission in the Annual Wage Review.