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Australia's largest construction company CIMIC (also a contractor of Melbourne's West Gate Tunnel) caught in underpayment scandal

    Steve McMillan
    By Steve McMillan Replies (9)

    Australia’s largest construction company, CIMIC (one of the contractors of Melbourne's West Gate Tunnel) is accused of underpaying workers, subcontractors and banks in Middle East by more than $500 million.

    Construction Workers' Union CFMEU representing over 100.000 workers, accuses CIMIC of maximising its profits off the back of human misery:

    CIMIC disregards workers’ rights in massive underpayments scandal

    News that Spanish-owned multinational construction giant CIMIC is accused of underpaying workers in its Middle East operations more than $500 million, leaving people stranded and at risk demonstrates this company’s shocking disregard for workers’ rights. According to Wikipedia, 70% of CIMIC is owned by Germany's Hochtief which is in turn owned by Spanish company ACS group.

    “This is CIMIC’s record, a long and callous history of disregard for workers’ rights,” said Dave Noonan, CFMEU National Construction Secretary.

    “The stories of workers who the company has abandoned in Qatar and elsewhere reported in Nine Newspapers today are a disgrace.”

    “Workers stranded in labour camps, afraid to leave due to expired visas, unable to return home because they have no money, and reports of attempted suicides, all reveal the stark human toll of CIMIC’s behaviour.”

    “Workers have been waiting up to a year to be paid and CIMIC has repeatedly ignored their pleas for their rights to be respected. People are sick and living in conditions that are described as meeting legal definitions of ‘modern slavery’. The company is now under criminal investigation for breaches of Qatari law.”

    “This is a company that seems completely content to maximise its profits off the back of human misery.”

    “Only strong union action in Australia has stopped CIMIC from treating workers with such complete contempt in this country.”

    “CIMIC, formerly Leighton Holdings, is one of the biggest construction companies operating in Australia and has been the lead on numerous projects including Brisbane’s Cross River Rail, Melbourne’s Westgate Tunnel, and Sydney’s WestConnex motorway.”

    “CIMIC has a track record of screwing taxpayers over on big infrastructure projects, with cost blowouts and project delays the norm.”

    “The company also cynically tried to pocket more than $20 million in JobKeeper payments during the pandemic despite recording $620 million in profits, before being forced to hand it back following community outrage.”

    “CIMIC’s disgusting treatment of the workers in Qatar and contempt for their rights shows the depths to which the company will sink to deliver fat profits to shareholders.”

    https://cg.cfmeu.org/news/cimic-disregards-workers%E2%80%99-rights-massive-underpayments-scandal

    Is CIMIC washing their hands-off the scandal?

    Meanwhile, CIMIC, in a media release titled "Middle East Update" announced that they have sold their Middle East business in the center of underpayment scandal, inclusing the now-infamous BIC Contracting (BICC).  What strikes most in the media release that the statement claiming "BICC had never been and is not currently controlled by CIMIC". The construction giant reportedly had a 45% share in BICC.

    Media release further states that " CIMIC, its co-shareholder and the acquirer continue to progress the completion of the sale and are working collaboratively through the remaining conditions precedent. Several entities within the BICC Group have been transferred to the acquirer, including the primary Qatar business (LCQ) which has been in receivership since 2020. Prior to the sale, LCQ was owned 49% by BICC and 51% by a local partner".

    CIMIC release basically says they will be paying the workers, but it is not clear how fairly and completely this can be done as probably many workers have returned back to their motherlands (Bangladesh, India, Pakistan etc). In addition, it is not clear how assertive the workers can be to claim their rights in UAE, Saudi Arabia, Qatar...

    https://www.cimic.com.au/en/news-and-media/latest-news/2022/middle-east-update

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