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The Forum > General Discussion > Corruption in the construction industry

Corruption in the construction industry

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Sadly others could tell the same storys about health or any industry , NSW government while not industry,is it? would be no different.
Few know unless in side the construction game just how bent it is,and we pay for it.
Contractors,almost every one of them, do not win contracts unless they pay.
Extra plant items, more than needed appear on jobs, much cash changes hands.
Labor hire firms run by ex militant union officials get the contracts and pay old mates for it, another reason I distrust true left unions.
Extras cost over runs, a quick look at contract price and end price will prove my point, we are being over changed.
Share holders, worth a look some former VIP from politics are both share holders and board members of the most often bidder who wins most of the work.
I Believe this is the tip of the ice berg that our country is third world like in bribe taking and giving.
Posted by Belly, Friday, 7 January 2011 5:10:37 PM
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More reason we need to push for more accountability Belly. It is reminiscent of the construction industry in the 70s/80s which led to the deregistration of the BLF.

If the unions are not committed to supporting the ordinary working man/woman then who acts for them? Spiralling costs of construction has a snowball effect throughout society. The NSW governmetn and some councils were criticised for taking 'donations' for lucrative development contracts so if governments are in on the act how can ordinary people like us stop it from happening. We don't have enough people in Australia who will vote outside their usual two party alternatives.

Cheap labour hire is also being accessed by government. Casuals employed via agencies (and paid by agencies) in some occuptions are paid less than permanents per hour and that is with casual loading included. It is rife in call centres, switchboards, data entry, records management areas and in generally the lower ranks like courier, mail sorting etc.

Not really good enough in a developed society.
Posted by pelican, Sunday, 9 January 2011 8:53:48 AM
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pelican I like your style,but you are going to think me quite mad by the end of this thread.
Yes former trade union officials do own run casual labour firms, others work for them, sometimes as managers.
For me this proves some have no right to be part of the union movement from day one.
Sadly, this country's most militant, proudly its web site claims it is the only radical one, signs agreements that even break laws, including Labors fair work ones, and get away with it.
HOWEVER the corruption is not unions, not even close Engineers get to run these projects, a management roll in my opinion not engineering.
The real power is people much like me,a lifetime of earth works experiences plant operating, pipe laying ,constantly showing an interest leads to promotion.
Supervisors foremen even leading hands get big cash rewards under the table for selection of contractors.
Now that Labor hire firm one of 100, run and owned by ex extreme left Union men, its internal links start at the boardroom and every layer after gets a few bob but those at HQ?
I grieve for an Australia that no longer exists.
I am not a rich man, my income at the end was the best I ever had.
I am no hero, but I BELIEVE IN UNIONS.
I have been offered bribes to go away,to close my eyes to not see things.
Like those wages, right now ON RECORD go to fair work or similar, read those one union agreements, that are in force and cover WORKERS THAT UNION HAS NO LEGAL RIGHT TO COVER .
CIVIL CONSTRUCTION LABOUR IS THE PLACE TO LOOK
I dare not name the firms but if you look it will frighten you.
I tell you getting an agreement so awful past the system,an illegal document with LABORS OK stamp sickens me.
I took no bribe including offers of paid Union membership for up to 50 members 50x near $500?
Or once 5 then ten thousand in my pocket.
Posted by Belly, Sunday, 9 January 2011 1:04:52 PM
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This is no minor thing, its impacts are on this country's way of life, we can not with any confidence say it is not nation wide.
NSW no doubt is not alone but if you look you will see our railways have been massive source of criminal theft for two decades maybe more.
Contracts went to brothers sisters or wives of those letting them.
Some for millions ,money paid but no work ever took place.
I KNOW honest contractors who PAID bribes to get work.
Others lost work,, to criminals who HAD BEEN REMOVED FROM RAIL CONTRACT LISTS but came back in other names.
I wait gee I do,, for the new government after March to hear evidence about RTA contract letting, about former RTA Engineers getting, briefly all contracts and going broke owing even the wages , white wash is the tool most used in that management team.
Councils, often failures in state groups are used by these contractors, hard not to like some one who gives you a night in the best seats at football or cricket as other than a mate hard to over look a Friend in need too.
Do not mock Asian business practices we are catching up fast, look at Chemists and Doctors and international drug houses.
Posted by Belly, Sunday, 9 January 2011 1:18:18 PM
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Another thread that seems not to have the general interest to bring posters.
That could be as a result of not understanding the issue.
The old time though that we should not talk about politics or religion has much to answer for.
I want people to understand, this corruption is endemic and not from unionism.
The largess is spread about, more to keep the ship sailing and trouble away.
But some of the biggest players are two steps away from being just a plant operator.
Taken out of the tractor by a boss who wanted a fall guy to do his collecting they won the lottery, got his job.
Not change not just a few cartons but a new house maybe two.
Who pays? why can a multi million dollar contract end up nearly 50% more, over contract?
This country if it wants to save dieing printed media needs true investigative journalism to make a return.
If today, some one looked on the web at my claims two very big labour hire firms, both national, did illegal agreements with one union ,and found out why, who got what for it?
I have doubts we will ever get accountability back for our tax dollars spent.
Posted by Belly, Monday, 10 January 2011 5:05:08 AM
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Belly, you may recall that you and I had some words over this very subject some time ago. I said the Unions were corrupt, you said no way, it's not possible. Of course, you were a Union official at the time and "solidarity, comrade" is the watchword.

The CFMEU and the AWU have together been left in charge of all civil construction of any scale in Aiustralia. The big firms, like Thiess and Abigroup, Transfield and Johm Holland, etc, etc, etc, all know that for a project to be run successfully they need the support of the unions, so they buy it. At that level they can buy in at the top, so people like you don't even come into the picture really.

Having been on the project management team of a few major projects, I can vouch for the fact that labour relations are one fo the most important planning considerations and little chance is taken with them. The unions know the same thing and they take full advantage. If you didn't, you were very much the exception, not the rule.

One of the principle things that Engineers bring to a project is the ability to analyse the likely pitfalls in a process. A good project manager is able to ensure that all of those potential problems are taken out of play. Don't blame them for the corruption, blame the unions, whether Left or Centrist. If they were not corruptt the large firms could not buy them.
Posted by Antiseptic, Monday, 10 January 2011 8:12:31 AM
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Belly, corruption is not limited to any organisation or industry and the construction industry certainly has a history.

Where there are human beings there is the risk of corruption but the real problem is in proper checks and balances in the system. Unions collect money from their members and are answerable to their members. The construction industry certainly needs a review but governments should not pander to them either. Such as with the Sydney tunnel which the government not only outsourced to the private sector but then said if it failed to collect enough in tolls they would bail them out. What sort of madness is that?

Many unionists have an odd way of looking at their role. Some think the membership owes them allegiance in the name of 'unionism' without really providing a service or advocacy to those members. A bit like Humphrey Appleby's hospital that would be disrupted if it took in patients.

In the public service the management structure is becoming more and more an inverted triangle. The CPSU does not represent outsourced labour (lower ranks) and other unions that do cannot do much for casuals collectively other than ensure they are paid correctly. The CPSU is becoming a union for management. I suspect with outsourced labour in the construction industry and the rorts and payoffs mean savings have to be made on labour. So who is benefitting?

Some unions are too interested in growing membership rather than representing their membership. I have known a couple of union officials who became public servants and they were the worst for empire building and making cuts at the coalface that affected real services to the public. Many unionists do work hard on behalf of their membership, but no organisation is perfect and should always stand back from time to time and take a good look.

Maybe some of these people start out with genuine intentions but some appear to lose it along the way due to career aspirations including political ambitions and greed. Members should vote with their feet and approach another union that is willing to represent them.
Posted by pelican, Monday, 10 January 2011 8:34:41 AM
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Any area where the normal bidding process is not free is a breeding ground for corruption.

The unions while initially controlling the work to better conditions for their members now also use it to line their pockets, with the resultant casual work business soaring.
Posted by Shadow Minister, Monday, 10 January 2011 10:18:18 AM
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I share a great deal of your views pelican.
I have seen such people in every union and in my view cut my working life short[ it had not been my intention] in defense of my members rights against the wrong man in power and for the wrong reasons in charge.
Please however do not throw stones at unionism, yes THAT union, if you dare call it one, has always been bent.
It offered me a chance to sup on the best meal in the world, revenge, I could have been working for them but dignity and lifetime love of MY UNION was worth standing up for.
10% NO MORE , OF THE CORRUPTION IN TODAYS CONSTRUCTION INDUSTRY IS UNION RELATED AND OF THAT 90% ONE UNION.
Those two firms, sell cheap under paid workers to construction bosses.
Marketing tools are no union members, kick backs, yes former extremist left wing union but now firmly bent firmly anti union.
Now consider this, agreement is nation wide, takes overtime Rights travel and a great deal more away.
yet it passed the boots test, LABORS fair work Australia.
AND THIS it covers workers in civil construction that the union involved has NO LEGAL COVERAGE OF.
This is not fodder for anti union slagging of it is some project managers who feed it.
As for project managers I could name drop here I have mates at the very top here few project managers ever did not see eye to eye with me.
I gained much from the radical union, its best delegates came to me sick of radicals, and site managers knew we did not use storm trooper tactic's.
Posted by Belly, Monday, 10 January 2011 7:53:26 PM
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The thread never made it, maybe I should have remembered it is a hidden problem.
The highlighted fact is most thought instantly of trade unions/workers as the corruption.
And face it not every one knows a great deal about a construction site.
We however take it for granted,some one is watching, this can not happen, well it is it will continue to .
In America some crimes have always been done in building unions names.
gangsters do tax the industry.
But those ex union criminals I highlight here are criminals, not unionists, first victims are those who work for them.
I BELIEVE the corruption is so bad, not LABOR,not Conservative OWNED corruption will thieve 5%, maybe twice that, of every dollar rebuilding Australia after these floods.
From council inspectors to roads contract handlers,to head offices of our biggest construction firms greed wins.
A bottle or two of the best Scotch.
A load if soil in a garden.
To a brand new home keys in hand nothing to pay.
Our country is bleeding.
It will continue to, we are a long way past trust.
One day a story about my time working for my states RTA its massive white washing of fraud and theft its inability to bring any contract in on price will make good reading,if you like tragic folly, if you except those who are its victims being blamed for managements sins.
Posted by Belly, Wednesday, 19 January 2011 5:54:07 AM
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