Union Accused of Securing Government “Deal” Amidst Construction Industry Turmoil
A significant state inquiry into alleged misconduct within Queensland’s construction sector has heard startling claims that the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) believed it had secured a favourable “deal” with the former Labor government. This alleged agreement, according to Damian Long, chief executive of the Civil Contractors Federation (CCF), was tied to the government’s Best Practice Industry Conditions (BPIC) industrial relations policy, implemented in 2018.
Mr. Long testified before the inquiry, relaying statements attributed to CFMEU officials. He stated that these officials indicated a belief that project costs were secondary, as they were assured of being compensated regardless. The sentiment, as recalled by Mr. Long, was along the lines of, “‘it doesn’t matter what the cost of the project is, you’re going to get paid for it anyway – we’ve done a deal with the government.’” This assertion, detailing a perceived understanding between the union and the government, was initially documented in an April 2023 report from the Department of Transport and Main Roads.
The CCF chief executive went on to elaborate on the detrimental impact he believes the BPIC policy has had on Queensland’s construction industry. He argued that the policy has demonstrably hampered productivity, consequently driving up the cost of vital capital works projects across the state. Furthermore, Mr. Long suggested that the implementation of these conditions fuelled industrial unrest, particularly as the CFMEU engaged in a fierce contest with its rival, the Australian Workers’ Union (AWU).
The inquiry also heard about the broader challenges faced by employers due to the alleged aggressive tactics employed by the CFMEU. Mr. Long highlighted concerns regarding the union’s reputation, which has been marred by persistent allegations of bullying, harassment, and violence. These issues, he explained, created an additional and significant burden for businesses striving to safeguard the mental well-being of their workforce.
“We were concerned because the new provisions for managing psycho-social risks on site laid with the business owner,” Mr. Long told the inquiry. “We were pleading with the government, how do we comply with workplace health and safety when we’ve got people being abused on a daily basis?” This testimony underscored the difficulties employers faced in maintaining a safe and respectful work environment amidst alleged union behaviour.
Legal Scrutiny Intensifies Over Union Conduct
The ongoing state inquiry is also expected to see the recall of barrister Geoffrey Watson KC. Mr. Watson’s previous report, which detailed serious allegations of a pervasive culture of violence and intimidation within the CFMEU’s Queensland division, was instrumental in sparking the current investigation. He is scheduled to be cross-examined after being the first witness to provide evidence in October, a move that is anticipated to shed further light on the union’s alleged practices.
In parallel to the state inquiry, the Fair Work Ombudsman has initiated legal proceedings in the Federal Circuit and Family Court against two CFMEU organisers, Dylan Howard and Cody Budgeon. The action stems from accusations that the organisers defied established safety protocols, leading to the shutdown of a significant, billion-dollar infrastructure project.
The alleged infringements occurred in November at the site of Brisbane’s underground railway station, a key component of the expansive Cross River Rail Project. Mr. Howard and Mr. Budgeon are accused of violating right of entry rules during their activities at the site. Anna Booth, the Fair Work Ombudsman, issued a strong statement regarding the legal action, declaring, “The alleged conduct of the two CFMEU officials on this Brisbane construction site was unacceptable and unsafe. We expect all workplace participants, including unions and their officials, to follow the law at all times.” A directions hearing for this case has been set for May 25.
Union Under Administration Amidst Infiltration Allegations
The broader context of these allegations is the significant upheaval the CFMEU has experienced. In 2024, the union was placed into administration nationwide. This drastic measure followed claims that individuals with alleged ties to bikie gangs and organised crime figures had infiltrated the organisation. As a consequence of the administration, the union’s leadership was removed, and control was handed over to an appointed administrator, signalling a period of intense scrutiny and restructuring for the powerful union.
