Construction companies ‘essentially running a protection racket for the CFMEU’, says industry watchdog

CONSTRUCTION companies are allegedly colluding with the CFMEU, allowing it to “dictate” which subcontractors secure work, in a pattern the industrial watchdog says is of “grave concern”.

Brisbane Magistrates Court CFMEU march through QEII courts to support member Justin William Steele who is appearing in Magistrates court Photographer Philip Norrish NO BY LINE

CONSTRUCTION companies are allegedly colluding with the CFMEU in Queensland, allowing the union to “dictate” which subcontractors secure work, in a pattern the industrial watchdog says is of “grave concern”.

Fair Work Building and Construction says four ongoing court cases involve Queensland head contractors allegedly discriminating against subcontractors over union enterprise bargaining agreements.

These include a construction company accused of withdrawing an offer to a tiling company and getting a less experienced firm – costing $300,000 more – because the original one lacked an agreement with the Construction, Forestry, Mining and Energy Union.

The FWBC claims the first tiling company had tried speaking to the CFMEU about negotiating an EBA with them but was rejected.

In a July 2014 email, ­William Munro of Forest Meiers Construction said the next tender for the Hamilton project had a union-endorsed EBA but cost $300,000 more and had only been in the tiling business “for a short period”.

“Ultimately it will be if we can incur $300k of pain and although legal wise the CFMEU is wrong it will be the rank and file members who will call the shots and this will be twisted and turned around by the CFMEU to their members with withdrawal of labour and this will impact on the project,” he allegedly wrote to his colleagues.

That same day he met with the tiling company, allegedly telling them the CFMEU had threatened action on site if they got the contract and asking them if “they were prepared for issues on site”.

The managing director confirmed they were prepared, yet, four days later, the tiling company was told the job had gone to another firm.

The FWBC launched action against two Queensland companies this week in relation to alleged discrimination against subcontractors.

FWBC director Nigel Hadgkiss.

FWBC director Nigel Hadgkiss said the large concentration of matters in Queensland was of “grave concern”. He said there were cases in which “mum and dad investors” had mortgaged their home to venture into the construction industry, only to be shut out by head contractors who “allow the CFMEU to dictate who gets the work and who doesn’t”.

“When head contractors do this, they are essentially running a protection racket for the CFMEU,” he said.

“It is unlawful and FWBC will thoroughly investigate any claims against contractors who are claimed to have engaged in this behaviour.”

He said it was unlawful for head contractors to discriminate against subcontractors based on the EBAs.

“This type of conduct amounts to head contractors implementing a ‘closed shop’ on behalf of the unions,” he said. “This can be highly destructive for the industry. Not only does it drive up costs for consumers, it has the potential to put subcontractors out of business and workers out of a job.”

The CFMEU could not be reached for comment last night.