‘Held to ransom’: Premier warned union deal would bring cost blowouts and strikes

Premier Steven Miles and a senior minister were warned about soaring construction costs and industrial disputes under a CFMEU-friendly Best Practice Industry Conditions agreement.

Premier Steven Miles and a senior state government minister were warned about soaring construction costs and industrial disputes under a CFMEU-friendly Best Practice Industry Conditions agreement.

The then-deputy premier was warned by a delegation of industry leaders in 2022 about how BPIC would affect productivity and send the cost of government projects sky-high.

There are claims the allowances are adding as much as 30 per cent to the cost of state government projects.

Queensland Major Contractors Association chief executive Andrew Chapman attended the meeting with Mr Miles and, more recently, Housing Minister Meaghan Scanlon. He insists he raised concern BPIC would lead to lower productivity, more industrial disputes and cost increases.

Premier Steven Miles is facing major pressure to cut ties with the CFMEU. Picture: Liam Kidston

The Premier on Tuesday confirmed he had heard from industry stakeholders about BPIC.

“I meet regularly with construction industry figures including leaders of the big construction companies and from time to time they raised with me concerns about their industrial relations,” he said.

“However, their industrial relations practices are governed by the Australian Government’s Fair Work Commission and I have always encouraged them to use those processes to ensure that they can properly manage industrial relations in their workplaces.”

Mr Chapman argued productivity had fallen as a result of BPIC and said it would get worse. Between 2011 and 2015 Queensland’s civil construction industry delivered $675,000 per person employed each year in output, he noted.

However, he said between 2019 and 2023 economic output had fallen to $285,000.

“In the last 12 months we have seen a further drop of 10 per cent as BPIC impacts bite,” he said.

“We have the highest number of days lost to industrial action in the country due to the CFMEU wanting to gain complete control over the construction sector and try to hold clients and contractors to ransom to achieve this.”