CFMEU Inquiry: Key Allegations and Testimony
A commission of inquiry in Queensland, overseen by Commissioner Stuart Wood KC, is hearing testimony regarding the conduct of the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and its interactions with government bodies and private contractors.
The inquiry, which is expected to deliver a final report to the Queensland government in July, has heard allegations of workplace disruption, improper influence on government policy, and the "capture" of the state's workplace safety regulator.
Project Disruptions and Enterprise Agreements
The inquiry heard that the CFMEU's Queensland branch used enterprise bargaining agreements (EBAs) as a tool for revenue generation and control. Counsel assisting the inquiry, Andrew Meagher KC, alleged the union "weaponized" EBAs to generate recurring annual income and one-off payments. He stated the strategy was not fully disclosed to members or contractors, despite legal requirements to do so.
According to testimony, the CFMEU received $8.8 million in revenue in 2025 from the Queen's Wharf Brisbane EBA.
Allegations were presented that the union improperly used donations intended for financial hardship assistance to pay members' and officials' fines for Fair Work Act breaches. Meagher stated that the union secretly covered personal penalties totaling more than $156,000.
Cross River Rail Delays
On the Cross River Rail project, a 10.2km underground rail network in Brisbane, testimony was heard regarding significant delays and cost overruns. The project is now projected to open in 2029, five years behind schedule, with estimated costs rising from $5.4 billion to approximately $19 billion.
Cross River Rail Delivery Authority chief executive Graeme Newton stated that construction was halted for 148 days between April and December 2024 due to an enterprise bargaining dispute between contractor CPB and the CFMEU.
Newton claimed the union used a strategic approach to site disruption, targeting critical works to maximize negative impacts on the project's delivery program. Accusations included union members pouring concrete into toilets, damaging concrete pumps, and stealing keys from subcontractors. Newton also stated that the CFMEU made unsubstantiated claims regarding poor safety on worksites, which he characterized as a campaign to undermine the project's credibility.
The Queensland branch of the CFMEU stated on social media that it had repeatedly warned the state government about cost-cutting measures and significant safety issues on the Cross River Rail project.
Newton told the inquiry that productivity on the Cross River Rail project has been restored following the placement of all branches of the CFMEU's construction arm into administration in 2024. Major construction works are now being completed on time or ahead of schedule.
Allegations of Intimidation and Hiring Demands
The inquiry heard testimony from directors of Rosenlund Contractors regarding the demolition of the Toombul shopping centre, which was damaged in the 2022 floods.
Counsel assisting, Eddy Gisonda SC, stated that evidence was presented alleging the CFMEU pressured the contractor to hire Trent Broadhurst, a former boxer, as a union delegate.
According to testimony, the company was directed to pay Broadhurst over $60,000 for six months of work. Ryan Rosenlund, a director, testified that Broadhurst allegedly did not perform demolition work, was seen napping, and once allegedly trashed a toilet facility to justify shutting down the worksite. The inquiry also heard that the CFMEU pressured the contractor to hire a union-member cleaner for the toilet block.
Ryan Rosenlund testified that the directive to hire Broadhurst came from CFMEU official Eben Cox during enterprise bargaining agreement negotiations. Rosenlund stated that Cox conveyed a message from assistant secretary Jade Ingham that new pay rates had to be implemented or work would stop.
Neile Rosenlund, another director, testified that union officials attempted to force manager Tim Fraser off the Toombul site. He stated this was due to Fraser having mentioned a name in 2016 correspondence that was reportedly disliked by Jade Ingham. Neile Rosenlund stated he met with Ingham and reached an agreement allowing Fraser to continue working but not speak with union members on site. Neile Rosenlund described dealings with Ingham as extremely difficult, alleging Ingham stated he had the power to make or break companies.
Government Policy and Ministerial Influence
Testimony was heard regarding the Best Practice Industry Conditions (BPIC) policy, introduced by the former Palaszczuk Labor government in 2018. The policy established conditions and remuneration for construction union workers on state projects exceeding $100 million. It included an annual five percent pay increase, double time during rain, a month of rostered days off annually, and a weekly allowance for personal mobile phone use. The current LNP government later rescinded these conditions.
Civil Contractors Federation Queensland chief executive Damian Long testified that the policy was "essentially a CFMEU enterprise agreement" and that union officials were involved in departmental negotiations.
He said the policy led to reduced productivity, higher labor costs, and delays on significant projects. Long stated that in 2020, he and other industry group leaders communicated their concerns in a letter to then-Premier Annastacia Palaszczuk. He testified that the letter was only "noted" without any further response.
Toowoomba Bypass Project
Former project directors from companies involved in the Nexus Infrastructure consortium testified that former Queensland Industrial Relations Minister Grace Grace threatened to terminate the contract for the $1.6 billion Toowoomba Bypass project if the contractor did not make a deal with the CFMEU.
Jose Sanchez, a former Acciona project director, testified that at a February 2018 meeting, Grace showed no interest in safety concerns and stated the government would terminate the contract if the company did not cooperate.
Enrique Blanco, a Ferrovial Agroman regional managing director, testified that Grace said "things could be ugly" and the contract would be taken away if they did not work with the union. Both witnesses acknowledged the CFMEU had legitimate safety interests on the site.
Grace stated: "I'm not going to do a running commentary on the inquiry. I will let the commission continue with its processes and all of the evidence on this issue will come out at the appropriate time."
Allegations of Regulatory Capture
The inquiry heard allegations that Queensland's Workplace Health and Safety regulator (WHSQ) was "captured" by the CFMEU when the Labor party was last in power.
Senior counsel assisting, Patrick Wheelahan, described this as a form of institutional corruption where WHSQ's legitimate objectives became improperly dominated by the CFMEU's interests.
Alleged forms of capture included improper external pressure from the CFMEU, beneficial treatment of the CFMEU compared to other stakeholders, and a culture of fear within the regulator.
A key focus is former director of construction, compliance, and field services, Helen Burgess. It is alleged that under Burgess's leadership, the CFMEU was unduly prioritized regarding health and safety notices and site access. WHSQ operations manager Deborah Dargan testified that the "appetite for prosecution" regarding the union's alleged failure to provide 24-hour right-of-entry notices ceased after Labor came to power in 2015.
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. The CCC stated it would not act on the complaint concerning Minister Grace, finding no evidence of criminal conduct required for it to intervene.
Separate Legal Action
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. 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.