Lend Lease Group (ASX:LLC) is reportedly at risk of being banned from Victorian government contracted work for as long as four years.
According to Fairfax reports, the property developer faces the potential ban after breaking the Victorian governments union rules, more pointedly breaching the industrial relations code for construction contracts.
Earlier this year Lend Lease made an industrial agreement with the Construction, Forestry, Mining and Energy Union with a number of clauses in violation with the code, and now faces a ban from competing for government projects if it does not amend the agreement.
Any possible ban would last for the length of Lend Lease’s agreement with the CFMEU and have a significant impact on the building sector, while costing Lend Lease billions of dollars.
Lend Lease posted a net profit of $503.1 million in the 2012 financial year.
LLC Price at posting:
$9.02 Sentiment: None Disclosure: Held
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