Vic: Unions caused project to run $15m over budget, commission
The Cole royal commission into the building industry's heard Victoria's building unionscaused construction of a $130 million distribution warehouse for Woolworths to run $15million over budget.
Counsel assisting the commission, JAMES RENWICK, says construction of the warehousein Melbourne's north in 1998 was delayed by more than seven months.
He says the delay was caused by industrial action by the Construction, Forestry, Miningand Energy Union and the Australian Manufacturing Workers Union.
Dr RENWICK says in comparison, the same warehouse was built by Woolworths in New SouthWales, on time and within budget.
The commission's been told Woolworths made a $50,000 payment to the Victorian TradesHall Council training fund in a bid to resolve union issues on the building site.
But Dr RENWICK says investigations by the commission have found $35,000 of the paymentwas passed on to seven union-nominated former workers, and $15,000 was paid into the TradesHall Council's Building 2000 fund.
The hearing continues.
AAP RTV ce/szp/gfr/smb/rp
KEYWORD: COLE (MELBOURNE)
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