Victoria's Infrastructure Inquiry Examines CFMEU Influence and Alleged Subcontractor Threats
The royal commission into major public construction projects has commenced public hearings, focusing on union tactics and government ties.
A two-week block of public hearings for Victoria's royal commission into major public and civil infrastructure construction projects has officially commenced, examining allegations of union pressure and political access. The inquiry's first substantive day focused on events surrounding a work stoppage at a Sunbury level crossing removal site in June 2022.
Lead counsel assisting the commission Chris Young KC outlined central themes during Monday's opening session, noting that the inquiry is exploring the conduct of the Construction, Forestry, Mining and Energy Union (CFMEU) on major worksites. Young emphasized that the matters being examined are currently allegations, some of which have been denied by involved parties.
Internal memos from major contractor John Holland, read aloud during the proceedings, detailed concerns regarding the union's relationship with the Victorian government under former leaders Daniel Andrews and Jacinta Allan. Documents suggested the CFMEU enjoyed unprecedented access to government ministers and stakeholders, while project costs at the Gap Road site in Sunbury ultimately blew out by an estimated $6 million following a work stoppage.
The inquiry also heard allegations regarding threats of violence made against subcontractors during the lead-up to the June 2022 disruption. According to transcripts presented by Young, the union pressured Wagstaff Piling not to work, reportedly warning that subcontractors would be smashed during the day if they turned up for shifts.
While police and WorkSafe Victoria were notified of the incidents, the commission heard that Victoria Police took no formal action, treating the situation as an occupational health and safety issue. Contractor representatives noted that police appeared hesitant to intervene in ongoing industrial disputes on major infrastructure sites.
The hearings arrive shortly ahead of the state election scheduled for November 28, drawing intense political scrutiny. Legal representatives for former premiers Daniel Andrews and Jacinta Allan were present at the bar table alongside counsel for the state government, various building contractors, and the union administrator.
Commissioner Chris Kourakis is overseeing the year-long inquiry, which has already gathered more than 110,000 documents from various stakeholders. Young issued a stern warning regarding compliance with compulsory notices to produce documents, noting that delays stemming from internal government approval processes do not constitute a reasonable excuse under the law.
Public hearings are scheduled to continue through November 20, with more than 20 compelled witnesses expected to provide testimony over the course of the investigation.