The McGowan Labor Government is returning up to 660 maintenance workers back in-house to Main Roads.
In 1985, Main Roads employed 2,605 employees, however throughout the 1990s, road maintenance was contracted out and the agency lost hundreds of employees.
By 2001, the number of Main Roads employees had dropped to 819, with the greatest impact felt in the regions.
This had a direct impact on regional towns, with Main Roads losing the ability to train local regional people and employ local workers.
This decision also saw the State Government lose control of assets and in-house expertise, as Main Roads was no longer an ‘informed purchaser’ for many of the services it procured.
Since the election of the McGowan Labor Government, changes have been made to contracts to try and regain a position as an ‘informed purchaser’, including a directly managed model in the Kimberley.
The State Government commissioned a detailed analysis by Ernst & Young in 2021 regarding the future of road maintenance contracts to determine if an in-house delivery model would be value for money, and enable delivery of wider objectives such as increased Aboriginal employment and regional economic growth.
The analysis concluded an in-house delivery model would:
- drive jobs and economic growth in the regions;
- enhance Aboriginal employment and engagement outcomes;
- improve education uptake; and
- increase capacity and capability of Main Roads.
It also found the in-house model of delivery would save more than $25 million a year, producing major economic benefits and increased employment opportunities for regional Western Australia, including increasing gross regional product by up to $335 million over the next 10 years.
Based on this advice, the McGowan Government has determined road maintenance and minor road improvement projects will be delivered by Main Roads employees.
This will create 660 permanent jobs within Main Roads, with 490 in regional WA and 170 in the Perth metropolitan area.
Road workers employed directly by Main Roads will receive better pay and conditions, including increased paid leave and long service leave after seven years, as well as additional training opportunities.
Aboriginal participation will improve, as Main Roads will be able to engage directly with Aboriginal people and businesses to build on previous successes.
This will also mean four new offices and depots being established in regional WA, including Manjimup, Esperance, Karratha and Broome.
Existing depots and offices will also be expanded and improved.
In addition to road maintenance, this decision will cover the delivery of incident response services by Main Roads on the Perth metropolitan road network.
Existing workers employed by the contractors will be offered direct employment with Main Roads, with their previous service recognised for long service leave and parental leave purposes, and a transition team is being established in Main Roads to facilitate this.
Operations will be brought in-house progressively as contracts conclude, with a majority of the work to be completed by March 2024.
The last region will be the Kimberley which will be brought in-house when the current contract ends in January 2026.
As stated by Premier Mark McGowan:
“This initiative is a return to the Government directly employing white and blue collar workers to maintain the State’s road network.
“It is also consistent with Labor’s pre-election commitment that where possible and beneficial to do so, outsourced services will be brought back into the public sector.
“The move will trigger increased regional economic growth and a range of permanent job opportunities, particularly for Aboriginal people and businesses.
“Workers will also be better off with increased pay and leave benefits.”
As stated by Transport Minister Rita Saffioti:
“Today’s announcement means 660 permanent jobs for road workers across Western Australia.
“This will mean better entitlements for road workers, as well as providing a boost to the local regional economies with the establishment of four new offices and depots in Manjimup, Broome, Karratha and Esperance.
“In particular, it will also mean a stronger focus on Aboriginal employment, with Main Roads able to engage directly with local Aboriginal businesses and workers.
“It also helps us to train young people and retain them in the regions.”
