If you doubted unions still had sway in some workplaces, a recent Australian Workers Union deal for workers on the Melbourne Suburban Rail Loop might give you pause.

Tunnellers on the project are set to earn $360,000 a year, which is said to be the highest paid civil construction agreement in the country.

Tunnelling is a highly skilled component of civil construction, with long hours, and some risk involved, so it’s probably not an unreasonable deal, given the country is still suffering from severe skill shortages in construction.

Mike is joined by HR Expert, Jonathon Woolfrey, who says the construction skills crunch is only set to worsen, particularly in Queensland, in the lead up to the 2032 Olympic Games.

The sunshine state’s desire for workers will drive a nationwide ‘arms race’ for talent, leading to wage escalation and construction delays elsewhere, putting housing targets at risk.