Government ‘pressures’ builders to deal-in CFMEU mates

The militant CFMEU could control every major construction site across the state as part of a new ‘deal’ which could cost taxpayers hundreds of millions of dollars.

Queensland’s militant CFMEU could control every major construction site across the state as part of a new “deal” drawn up by the state government which could cost taxpayers hundreds of millions of dollars, insiders say.

New requirements developed by the Department of Transport require projects $100m and above to include a Best Practice Industry Conditions agreement.

The agreement, supported by left-faction Transport Minister Mark Bailey, requires a building company tendering for a government contract to negotiate with left-leaning unions including the CFMEU.

While it is not compulsory for a contractor to sign the agreement, industry sources say they are being pressured to agree to union enterprise demands or risk missing future government contracts.

Mr Bailey declined to say whether companies were being pressured to sign the industry condition agreement and if they could lose future government contracts on refusal.

The industry conditions agreement will give the CFMEU a greater input in the civil construction of road and tunnels, which had traditionally been the remit of the Australian Workers’ Union (AWU).

Construction industry insiders fear the new conditions agreement will give the CFMEU more say over every major construction project in the state.

The CFMEU could have a presence on every major construction site in the state, insiders say. Picture Glenn Hampson

A senior Labor Party source familiar with the matter said the industry conditions agreement was developed by Mr Bailey, a leading left-faction minister, to “cut in the left-aligned CFMEU”.

“The government is putting a gun to the head of major contractors and saying let the CFMEU in or risk future work,” they said.

“Contractors are saying do we want to go to war with the CFMEU and the government, which controls the purse strings, or do we roll the dice and deal with the CFMEU?”

The party official said the AWU was considered more “rational and reasonable actors to negotiate with” compared to the “chaotic” practices of the CFMEU.

Both the CFMEU and AWU declined to comment.

Negotiations over the industry conditions agreement has created a stalemate at stage three of the $1.04bn Gold Coast Light Rail project.

The Courier-Mail can reveal preferred contractor John Holland Group is refusing to retrospectively apply the industry conditions agreement despite pressure.

It is understood the major building firm is yet to sign the project contract with the state government over fears it would increase the cost and set a precedent for future developments across the state.

Queensland Transport Minister Mark Bailey said the industry conditions agreement ‘ensure contractors adhere to the highest possible safety standards’. Picture: NCA NewsWire / Dan Peled

LNP MP Ray Stevens, who represents Mermaid Beach where light rail will be built, said the industry conditions agreement could also add “wage loading to the tune of some $300m” on the project – which he declared was the “sticking point” for John Holland Group.

“John Holland will be locked in forever on future infrastructure projects if they cop this over-the-top ambit claim,” he said.

A spokesman for John Holland Group declined to comment due to ongoing negotiations with the Queensland Government.

Mr Bailey defended the industry conditions agreement, declaring it beneficial for workers and the economy.

“Our procurement rules create local jobs and encourage use of local suppliers and manufacturers because we want as much of our record infrastructure investment as possible to benefit Queensland workers and businesses,” he said.

“They ensure contractors adhere to the highest possible safety standards and emphasise training opportunities for Queensland workers especially during such a tight labour market period.”