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Queensland Inquiry Hears Testimony on CFMEU Conduct, Government Interactions, and Industry Policy

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Queensland Inquiry Examines CFMEU Conduct and Government Interactions

A Queensland commission of inquiry, led by Commissioner Stuart Wood KC, is investigating allegations concerning the conduct of the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), its interactions with government, and the impact of related policies on the state's construction industry. The inquiry has heard testimony from contractors, industry representatives, and government officials. A final report is expected in July.

Allegations of Union Pressure on Contractors

Testimony presented to the inquiry includes detailed allegations that CFMEU officials pressured contractors on major projects.

Directors of Rosenlund Contractors testified that a CFMEU official directed the company to hire a specific union delegate and pay him over $60,000 for six months of work, alleging he did not perform demolition work.

  • Toombul Shopping Centre Demolition: Directors of Rosenlund Contractors stated that during enterprise bargaining negotiations, a CFMEU official directed the company to hire a specific union delegate, former boxer Trent Broadhurst, and to pay him over $60,000 for six months. The directors alleged Mr. Broadhurst did not perform demolition work and that the union also pressured the company to hire a union-member cleaner. One director described dealings with CFMEU assistant secretary Jade Ingham as extremely difficult.

  • Toowoomba Bypass Project: Former project directors from the Nexus Infrastructure consortium testified that at a February 2018 meeting, then-Industrial Relations Minister Grace Grace threatened to terminate the consortium's $1.6 billion contract if it did not cooperate with the CFMEU. One witness described the tone as "very aggressive." The consortium subsequently withdrew an application it had made to the Queensland Industrial Relations Commission challenging CFMEU-issued workplace notices. Both witnesses acknowledged the union had legitimate safety interests on the site.

  • Cross River Rail Project: Graeme Newton, chief executive of the Cross River Rail Delivery Authority, testified that during an industrial dispute, the CFMEU appeared to strategically disrupt critical works to maximize delays. He also raised concerns about "probity" risks, describing "aggressive" meetings where senior union officials attempted to influence tender selection. Mr. Newton stated productivity on the project was restored after the CFMEU's construction arm was placed into administration in 2024.

Allegations Regarding Government Policy and Regulator Conduct

The inquiry has also examined evidence related to government policy development and the operation of the state's workplace safety regulator.

  • Best Practice Industry Conditions (BPIC) Policy: Damian Long, chief executive of the Civil Contractors Federation Queensland, testified that the former Palaszczuk government's BPIC policy was "essentially a CFMEU enterprise agreement." He stated the policy, which included specific pay and condition provisions for state projects over $100 million, led to reduced productivity and higher costs. Mr. Long said a 2020 letter from industry groups expressing concerns received no substantive response from the government.

Counsel assisting the inquiry alleged that the state's workplace safety regulator, WHSQ, was "captured" by the CFMEU during the previous Labor government.

  • Workplace Health and Safety Queensland (WHSQ): Counsel assisting the inquiry alleged that WHSQ was "captured" by the CFMEU during the previous Labor government, meaning the regulator's objectives were improperly dominated by union interests. Alleged forms of capture included beneficial treatment of the CFMEU, a culture of fear within the regulator, and the diversion of resources. A key focus is the conduct of former director Helen Burgess. WHSQ operations manager Deborah Dargan testified that the priority given to union complaints intensified after 2018.

Responses and Related Legal Action

  • Political Responses: Grace Grace, the former minister at the center of several allegations, has declined to comment on the ongoing inquiry, stating she will let the commission process continue. Opposition Leader Steven Miles defended the former government's focus on workplace safety. Premier David Crisafulli described some allegations heard in parliament as "a new low."

  • Separate Legal Proceeding: In an unrelated matter, the Fair Work Ombudsman has initiated proceedings against the CFMEU and two officials for allegedly entering an exclusion zone at a Brisbane worksite without authorization and delaying work in November 2024. The case is scheduled for a court hearing in May.

The inquiry continues to hear evidence, with cross-examinations ongoing.