An urgent investigation is underway into allegations workers charged for ‘ghost shifts’ on a $13 billion (US$8.2 billion) public transport project.
“Anomalies” were identified on time sheets and a probe launched into construction shifts worked on Melbourne’s Metro Tunnel, the Victorian Infrastructure Development Authority confirmed on March 7.
The Age newspaper reports labour hire workers from MC Labour allegedly filled up to millions of dollars worth of ‘ghost shifts’, which refers to payment for work that was not performed.
The Construction, Forestry and Maritime Employees Union (CFMEU) confirmed two delegates had been removed from their position within the union and state secretary Zach Smith said other members should not be “tainted” by the allegations.
“The union has taken action, and we strongly condemn this behaviour,” Smith said in statement.
“This is what the widespread use of labour hire can result in, and I call on the government and the consortium to have workers directly employed.
“There is no place for this behaviour in the industry.”
The development authority said the issue was identified by a construction consortium building the project, the Cross Yarra Partnership Design & Construction Joint Venture.
Major building companies John Holland, Lendlease, and Bouygues Construction Australia are involved in the construction group.
“Any companies or individuals doing the wrong thing will face serious consequences with the potential for allegations to be referred to Victoria Police,” the development authority said in a statement.
MC Labour managing director Marc Lunedei welcomed the investigation and said the company would participate as required, stressing a commitment to uphold integrity and compliance requirements.
“MC Labour has systems and controls in place to ensure that all labour shifts have been authorised according to the pre-existing and agreed authorisation processes,” Lunedei said.
“We remain committed to transparency and accountability and will continue working closely with project partners and authorities to reinforce trust in our operations.”
The Victorian government was made aware of the allegations on March 6 night, minister Natalie Hutchins told reporters on March 7.
“I do want to emphasise contracts that are in place in regards to this contract work mean that taxpayers will not be paying the bill for any of this,” she said.
“The liability for this, if it is found to be true, will fall on the business that has the contract with government.”
A spokesperson for the state’s government said any criminal activity would be referred to Victoria Police.
Costs for the Metro Tunnel have blown out more than 20 percent to $13.48 billion (US$8.5 billion) as of January 2025, with the tunnel set to open later in the year.
Metro Tunnel ‘ghost shift’ allegations first emerged in 2023 and a labour hire firm was stood down from the project, before the Office of the National Rail Safety Regulator substantiated fraud allegations in February 2024.
The project was originally costed at $10.9 billion (US$6.9 billion) when it was announced in 2016 with the figure sitting at $13.48 billion since the latest blow out was detailed in September.
