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Construction supply chain in further danger

construction-supply-chain-in-further-danger

30 January 2026

Master Builders Australia (MBA) holds serious concerns regarding the Transport Workers’ Union of Australia (TWU)’s application to the Fair Work Commission for a road transport contractual chain order that would apply to the concrete industry. The application also seeks to capture building and construction companies that rely on the supply of concrete. This follows the MBA’s continued calls for a 25 per cent reduction in red tape to boost productivity and most importantly affordability for homeowners and renters alike.

The proposed orders would set minimum standards that would apply both up and down the supply chain including in circumstances involving building and construction companies who engage suppliers of concrete and when road transport businesses engage or employ employees and contractors to perform concrete cartage work. These arrangements have the potential to add unnecessary pressure, more red tape and increase cost to an already struggling supply chain.

While MBA acknowledges that the consideration of the application is only in its preliminary stages and there a lot of unknowns,  it is likely that any such order would impose obligations both directly on building and construction companies and indirectly through cost impacts as concrete companies look to manage the flow on effects of obligations placed on them under the order, should this application be successful.

MBA CEO Denita Wawn warned in 2023 that the Federal Government’s Closing Loopholes policies would have consequences on the building and construction industry, and this is another example of pandora’s box being opened.

“Adding more constraints on the supply chain will lead to more delays, more costs and more pain on the end user, homeowners and renters, who continue to struggle with cost of living and housing affordability issues.

“The matters raised by the TWU need to be worked through, however there are dispute resolution processes that don’t involve putting a ‘one size fits all’ approach on the entire industry.

“There is a worrying trend of some players in the supply chain appearing to claim urgency unnecessarily to bypass scrutiny and consultation and rush changes through without the full implications being understood,” commented Ms Wawn.

With the Review of the Closing Loopholes legislation due this year, MBA remains highly critical and continues its calls for industry-specific laws, rules and oversight that are fit for purpose and help achieve the desired outcome of more productive and safe workplaces.

“All in the supply chain must be working to end the housing crisis as everyone pays a price when there are higher costs for builders. This review should give the Federal Government an opportunity to hit the reset button and fix a Closing Loopholes system that continues to deliver severe consequences.

“If we are to change ‘the current architecture and culture’ of Australia’s regulatory system’ as recommended by the Productivity Commission and radically reduce red tape by 25 per cent, we must start by subtracting not adding additional headache,” concluded Ms Wawn.

More information regarding the review of the Closing Loopholes Acts is available at www.dewr.gov.au/workplace-relations-australia/review-closing-loopholes-acts.

To read MBA’s original submission from 2023, head to https://masterbuilders.com.au/submission-to-the-senate-education-and-employment-legislation-committee-inquiry-into-the-fair-work-legislation-amendment-closing-loopholes-bill-2023.

Media contact: Dylan Hafey, Media Advisor

0497 330 064 | dylan.hafey@masterbuilders.com.au

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