The sub-contractor responsible for plaster work at the Royal Hobart Hospital redevelopment has had its contract terminated.
Health Minister Michael Ferguson said the government welcomed advice from John Holland Fairbrother, to terminate its contract with Accuracy Interiors.
Last week up to 120 plasters walked off the redevelopment site following allegations they had not been paid for up to eight weeks of work.
A John Holland Fairbrother spokeswoman said Accuracy Interiors had failed to confirm if they were solvent.
“Our priority at the moment is the wellbeing of workers impacted by Accuracy Interiors’ failure to pay, and ensuring those workers have continuing employment with a new contractor,” the spokeswoman said.
“On top of our existing contact requirements, we are proactively auditing every subcontractor employed on the project to ensure every one of their workers is receiving the pay and benefits they are entitled to.”
Mr Ferguson said the redevelopment remained on track for completion by mid-2019.
“With Accuracy Interiors failing to confirm with the Joint Venture that they are solvent, there is now an opportunity to move forward with a new sub-contractor and ensure all workers are paid their entitlements and this critical project is completed on time,” he said.
“The treatment of their employees by Accuracy Interiors has been absolutely unacceptable and it is pleasing that their involvement with the project has been terminated.”