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

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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.   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 cons
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Construction Delays: Almost 40,000 Approved Homes Yet to Break Ground Across Australia

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Developers have yet to start construction on nearly 40,000 homes with planning approval across Australia, including 11,170 in Sydney. According to KPMG’s recent report, the delay is largely attribu ted to high interest rates and rising construction costs . As of December 2023, 15,593 approved dwellings in New South Wales were still waiting for construction to comme nc e , a slight improvement from the previous year at 15,818 .   Victoria faces similar issues, with 7,897 dwellings , yet to break ground. Sydney and Melbourne account for nearly half of the nation’s stalled projects, with townhouses and apartments are representing the majority of unbuilt homes . KPMG urban economist Terry Rawnsley highlights the struggle developers face due to increased material costs and financing difficulties, impacting medium to high-density projects.   Brisbane saw a 3.8% rise in stalled projects, mainly detached houses, while the ACT experienced a near doubling in unstarted approved bu
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Construction Industry Faces Mental Health Crisis Amid Rising Challenges

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The construction industry is currently dealing with high interest rates, rising costs, and labour shortages, but a critical issue often overlooked is the impact on the mental health of tradies and business owners. MATES in Construction, a suicide-prevention organisation, has reported a significant increase in helpline calls, underscoring the severity of the mental health crisis. Research from Central Queensland University indicates that those in the building and construction industry face a higher risk of mental health issues compared to other sectors, compounded by the physical dangers and isolation inherent in these jobs.   James Knight, a Canberra electrician, has faced immense stress from unpaid work due to construction company collapses, worsening his struggles with depression, anxiety, and ADHD. To support their staff's well-being, Knight and his wife Nikki have implemented measures such as reimbursing health-related expenses and encouraging open dialogue about personal cha
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Australian Rent Prices Hit Record Highs, Pushing Renters to Outer Suburbs

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Rents have reached a historic high in Australia, with the national average now at $627 per week . H owever , the comparison between urban centres and regions is stark. City rents have reached an average of $750 per week in Sydney while the region al suburb s average $540 per week. CoreLogic's April 2024 data shows an 8.5% increase in annual rent growth . Eliza Owen, CoreLogic’s Head of Research, highlighted that the fastest growth is seen in regional areas and the outer suburbs, suggesting that affordability is pushing people to these locations.   Perth experienced the highest annual increase among state capitals, with a 13.6% rise, bringing the median rent to $669. Western Australia’s strong net interstate and overseas migration, coupled with employment growth in mining, has driven significant rental demand. Melbourne follows with a 9.6% rise, particularly in Dandenong and Tullamarine-Broadmeadows. Adelaide's median rent reached $580, reflecting a 9.1% increase, with Sa
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Unified Strategy for Carbon Measurement in Australia’s Commercial Construction Sector

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  The ACT Government is introducing a new initiative to establish a unified strategy for carbon measurement across the nation's commercial construction sector. This significant step was agreed upon at a recent national meeting of building ministers, where consensus was reached to implement a standardised method for gauging emissions.   Quoted in World Construction News this week, Rebecca Vassarotti , Australia’s Sustainable Building and Construction Minister, stressed the importance of this agreement. She highlighted that a consistent national framework is essential for the construction of new commercial buildings to achieve net-zero carbon emissions. “Across Australia, new buildings represent 10% of overall carbon emissions . Most of these emissions come from the materials, transport, and construction associated with new buildings , ” Vassarotti said.   Currently, there is no national standard for measuring ‘embodied carbon’—emissions from building materials, transport, cons
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