Competition on basis of labour costs not good for roading

6 September 2013

Competition on basis of labour costs not good for roading industry

An Auckland roading firm in receivership needs to shoulder some of the responsibility for its poor situation, the union for transport and logistics workers said today.

Blacktop Construction was this week placed into receivership, it was reported this morning.

A company spokesperson described systemic problems in the industry, with companies bidding for very low, unprofitable tenders.

FIRST Union Transport & Logistics Secretary Karl Andersen said low wage employers have been driving down rates in contracts.

“The lack of an industry standard in rates of pay has lead to some companies competing on the basis of labour costs.”

“A race to the bottom in wages rates for road construction workers is in no one’s interest.”

“If there are systemic problems in the industry then Blacktop Construction has to shoulder some responsibility for this, rather than looking to blame others in the industry,” he said.

Karl Andersen said FIRST Union didn’t represent any workers at the firm, but said the possibility of people losing their jobs was terrible news, and he sympathised with workers as they faced an uncertain future until the company’s situation was resolved.

ENDS

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