A commission of inquiry in Queensland is investigating allegations of union misconduct, including claims that the Construction, Forestry, Mining and Energy Union (CFMEU) had undue influence on state government policy and allegedly captured the Workplace Health and Safety Queensland (WHSQ) regulator under the former Palaszczuk government. The inquiry has heard testimony regarding the implementation and impact of the Best Practice Industry Conditions (BPIC) policy and allegations of systemic issues within WHSQ.
Inquiry into Best Practice Industry Conditions (BPIC) Policy
The commission of inquiry has focused on the development and implementation of the Palaszczuk government's Best Practice Industry Conditions (BPIC) policy, introduced in 2018. This policy set conditions and remuneration for construction union workers on state projects valued over $100 million. Key provisions included an annual five percent pay increase, double time for some workers during rain, a month of rostered days off annually, and a $100 weekly allowance for workers using personal mobile phones. The current LNP government later rescinded these conditions, citing increased costs and productivity issues on state construction projects.
Damian Long, chief executive of the Civil Contractors Federation Queensland, testified that the policy was "essentially a CFMEU enterprise agreement," with union officials reportedly involved in departmental negotiations. He stated that the former government's consultation process was inadequate, alleging the union had a significant role in BPIC's implementation and that industry feedback was not incorporated.
Damian Long, chief executive of the Civil Contractors Federation Queensland, testified that the policy was "essentially a CFMEU enterprise agreement."
Internal evidence cited by Mr. Long indicated that the conditions led to reduced productivity, at times to as little as two days of work per week, contributed to higher labor costs, decreased labor capacity, and caused delays on significant projects. The inquiry heard that the policy's cost to the state ranged from $13.1 billion to $38.6 billion.
In 2020, Mr. Long, alongside other industry group leaders from organizations including Master Builders and the Infrastructure Association of Queensland, communicated their concerns in a letter to then-Premier Annastacia Palaszczuk. Mr. Long testified that the letter was only "noted" and received no further verbal or written response.
Allegations of Regulatory Capture at WHSQ
Separately, the commission of inquiry has heard allegations that Queensland's Workplace Health and Safety regulator (WHSQ) was subject to "regulatory capture" by the CFMEU during the period when the Labor party was in power in the state, specifically during Grace Grace's tenure as Minister for Industrial Relations.
Senior counsel assisting, Patrick Wheelahan, described regulatory capture as a form of institutional corruption where WHSQ's legitimate objectives allegedly became improperly dominated by the CFMEU's interests, reportedly being used for "illegitimate industrial control purposes" within the construction industry.
Allegations of this alleged capture include:
- Improper external pressure from the CFMEU, such as alleged aggressive and intimidating behavior towards WHSQ inspectors.
- Alleged beneficial treatment of the CFMEU compared to other stakeholders.
- Allegedly allowing CFMEU officials to act in ways not permitted for other industry participants.
- A reported culture of fear within the regulator, where staff acting contrary to CFMEU wishes allegedly faced detrimental employment consequences.
- Alleged diversion of WHSQ resources from high-priority matters to areas of interest to the CFMEU.
A key focus of this aspect of the inquiry is former director of construction, compliance, and field services, Helen Burgess. It is alleged that under Ms. Burgess's leadership, the CFMEU was unduly prioritized and favored regarding health and safety notices and site access. Ms. Burgess is alleged to have been the primary link between the CFMEU and WHSQ, reportedly directing inspectors to prioritize CFMEU issues and assist officials in entering worksites without legal right. She is also accused of collaborating with the CFMEU to pressure inspectors into issuing infringement notices at the union's behest.
WHSQ operations manager Deborah Dargan testified that the emphasis on prosecuting the union for alleged failure to provide 24-hour right-of-entry notices ceased after Labor came to power in 2015, a rule subsequently scrapped by the government. Ms. Dargan stated that union complaints became high priority, intensifying after Ms. Burgess became director in 2018. Inspectors were reportedly expected to interrupt their duties to attend union right-of-entry requests, often finding no genuine risk present, and would spend hours auditing sites following union officials.
Evidence is also expected to show that after the Palaszczuk Government's election and Grace Grace's appointment as minister, WHSQ's culture transitioned from "relaxed and effective" to one marked by alleged "bullying, intimidation and harassment."
Crime and Corruption Commission Complaint
Fourteen WHSQ inspectors filed a complaint with the Crime and Corruption Commission (CCC), alleging systemic bullying, intimidation, and abuse by CFMEU officials, supported by senior WHSQ staff. The complaint also alleged that Minister Grace failed to act on these concerns and allowed significant influence over WHSQ by the CFMEU.
The CCC stated it would not act on the complaint concerning Minister Grace, finding no evidence of criminal conduct required for it to intervene.
Responses from Involved Parties
Opposition Leader Steven Miles defended the former government and Ms. Grace, stating their focus was on ensuring safe workplaces. Ms. Grace declined to comment on the ongoing inquiry, noting that Queensland Labor had placed the CFMEU into administration and supported the inquiry's inception.
Separate Legal Action Against CFMEU
In an unrelated development, the Fair Work Ombudsman has initiated legal proceedings against the CFMEU and two of its officials, Cody Budgeon and Dylan Howard, for alleged unauthorized conduct at a Brisbane work site. The Ombudsman alleges that in November 2024, the officials entered an exclusion zone at the Woolloongabba Cross River Rail station construction site without authorization and refused requests to leave for approximately one hour, thereby delaying work. The individuals face potential fines of nearly $20,000 per contravention, while the CFMEU could face penalties up to $99,000 per contravention. The case is scheduled to be heard in the Federal Circuit and Family Court in Brisbane on May 25.
Inquiry Timeline
Commissioner Stuart Wood KC is expected to submit his final report to the Queensland government in July, with the possibility of an extended deadline.