ETU too Brutal?

Electrical wage pressure could travel well beyond one trade.

Electrical labour is getting more expensive. That affects more than an electrical contractor’s hourly rate. It can influence project budgets, tender conditions, programmes, procurement strategies and the value of resolving problems before construction.

The current ETU bargaining centred on Tier 1 electrical contractors, but its effects may not stay neatly contained.

What We Know

The Australian Financial Review reported 16 July that approximately a dozen Tier 1 electrical contractors had agreed a multi-employer agreement covering projects across NSW and the ACT. Agreement details here from ETU
 https://www.etunsw.asn.au/Website/NewsAndMedia/ETU%20members%20at%20Stowe%20Sydney%20Construction%20keep%20the%20pressure%20up%20and%20WIN.aspx

Employer groups have raised concerns that common Tier 1 conditions could extend higher-cost labour arrangements across different project types and locations, including regional projects. Read the AFR report.

The bargaining process is still developing. The final terms, coverage and cost implications should not be treated as confirmed for anything others than the Teir 1 contractors. However, it is occurring in an industry where wages are already moving due to shortage of trained trades people created by booming demand and large scale retirements.

The Australian Government recorded an average annualised wage increase of 5.8% for construction agreements approved during the March quarter of 2026. That was the highest reported industry result and compared with 4.0% across all approved agreements and Wage Price Index growth of 3.3%. Read the government’s bargaining report.

Importantly, that measure includes quantifiable base-wage increases only. It excludes separate allowances and bonus payments, so it does not represent the complete employment cost.

More Work, Same Workers

A wage increase does not translate directly into the same percentage increase across an electrical package. Labour is only one part of a tender.

The wider effect may appear through:

• higher overtime and supervision costs
• increased allowances and living-away-from-home expenses
• changes to apprentice ratios or workforce composition
• higher subcontractor rates
• shorter tender-validity periods
• greater escalation allowances
• increased regional travel and accommodation costs
• more risk being priced into long construction programmes

The available workforce adds another layer of pressure.

The ETU estimates that Australia could face a shortage of 42,500 electricians by 2030. It says electrical apprenticeship commencements have fallen by 18.8% since 2022 and that 40,000 additional apprentices will be needed over four years. These figures represent the union’s assessment, but they identify a genuine workforce concern. Read the ETU’s workforce assessment.

Infrastructure Australia provides broader evidence of the same pressure. It forecasts that the infrastructure workforce shortfall could exceed 300,000 workers by mid-2027, including a shortage of approximately 126,000 trades workers and labourers. Regional shortages are expected to rise especially sharply. View the Infrastructure Market Capacity Report.

Will Other Trades Follow?

An electrical agreement does not determine the wages paid to mechanical, hydraulic, fire, communications, security or audiovisual workers. There is no confirmed basis for applying the same increase across every building service.

However, specialist trades compete within the same construction market. They work across many of the same major projects and face similar shortages, regional pressures and cost-of-living conditions.

A strong outcome in one trade may become a reference point in later bargaining. That is a risk to assess, not a blanket increase to apply.

Check the Budget Before It Bites

Before relying on a current construction budget or electrical tender, confirm:

• which enterprise agreement and employment conditions apply
• what wages, allowances and overtime assumptions are included
• whether the programme crosses another scheduled increase
• how labour escalation has been treated
• whether the price remains valid for the required procurement period
• whether regional travel and accommodation are allowed for
• whether avoidable installation labour can be removed through design

When labour becomes more expensive, every hour spent resolving an avoidable site problem costs more.

Design a Solution?

The wrong response is to reduce engineering scope and leave more decisions for construction.  A better response is clearer documentation, earlier coordination, simpler service routes, standardised details and timely equipment selections.

Another is the use of prefabricated assemblies and modular systems may also help where the project has enough repetition and the interfaces are resolved early. This may reduce the need to technical team members and reduce on site works.

An expensive labour market increases the value of good engineering and requires alternative thinking.

Our team can help with commercila and technical issues on all services and can be contacted on 02 79034567 or info@haronrobson.com.au

Aologies for the using the phrase "Et tu, Brute?"as our inspiration . It  is a Latin expression that literally translates to "And you, Brutus?" or "You too, Brutus?". It expresses total shock and deep sadness when a trusted friend or close ally turns against you... we thought it was apt.