On 20 July, the Victorian Building Industry Disputes Panel issued majority site allowance determinations in relation to the Melbourne Metro Tunnel  and Westgate Tunnel projects, with application to a number of subcontractors. The majority awarded a site allowance of $8.50 per hour from 1 March 2018, rising to $9.20 per hour from 1 August 2018 on the Melbourne Metro Tunnel; and a site allowance of $8.90 per hour on the Westgate Tunnel.

An appeal against the Westgate Tunnel determination has been lodged with the Fair Work Commission by one of the affected subcontractors. It is understood that subject to the outcome of a jurisdictional challenge by the CFMEU, that the hearing will occur in early November.

Master Builders is not aware of any appeal against the Melbourne Metro Tunnel determination. As such, subcontractors named in that determination have an obligation to pay in accordance with the determination as applicable under their enterprise agreement.

Members should note that these determinations are highly contentious. As a result, site allowance is likely to be a major focal point for any future industry-led negotiations leading to a successor to the current CFMEU Pattern EBA 2016-2018 

Members seeking further information are encouraged to contact the IR Department on (03) 9411 4560.