Peppers, the hotel group that trades under the " Manta " brand, is building a 169 room hotel in Wollongong. It followed the usual practice of calling tenders and the successful builder is now nearing completion.
But - there is a problem. A sub contractor mainly involved in installing plasterboard employed a large number of Chinese workers. Most don't speak English and it has now been revealed that they have gone unpaid for some time - and that no payments into their compulsory superannuation fund have been made.
It is claimed that unpaid wages amount to $ 216,000 and that many of these workers had a miserable Christmas without funds - and that many are facing eviction for unpaid rent.
The CFMEU has entered the battle - and unleashed a new tactic. They are ignoring the sub contractor who actually employed these men - and by-passed the company building the hotel - and made a direct threat against Peppers.
They are demanding that Peppers pay the $ 216,000 within forty-eight hours - or they will picket and disrupt all the Mantra luxury hotels in this country.
It is a signal to the corporate world to beware. No longer will there be a distance between the developer, the contractor and the sub contractors. If a payment problem emerges, the unions will go for the jugular and expect the ultimate customer - the project's owner - to foot the bill.
Expect future contracts to contain some fine print allowing the corporate giants to scrutinise and select every sub contractor that a developer intends to hire !
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