3.2 Tight Margins

A second reason is the tight margins that many companies in the construction industry are currently operating on. In a recent study one construction industry manager was quoted as saying: “Currently the market is too tight to employ apprentices”. (Employment Studies Centre p94). Later the Report stated:

“One [sub-contractor] said he had some trainees but very few and believed his was a dying trade. He said the competitiveness of the modern industry meant a firm such as his could not afford the full cost of taking on apprentices and trainees.” (p139)

Clearly, tight margins are going to be a factor in the construction industry for the foreseeable future. The challenge is for the industry to stop looking at training as a cost to business and focus on the capital that is created by increasing the collective skills in the workforce.

The CFMEU’s policy of industry training levies would effectively deal with this issue. The proposal is discussed in more detail below.

United we bargain - Divided we beg.

Contact the National Office, Construction Division at:
Level 12, 276 Pitt Street, Sydney, NSW 2000
Ph: 02 8524 5800
Fax: 02 8524 5801
Email: queries@fed.cfmeu.asn.au

Postal address: PO Box Q235, Queen Victoria Building Post Office, Sydney NSW 1230.