Queensland developers speak out about the ‘dangerous’ CFMEU

Some of Queensland’s biggest property developers say the “dangerous” CFMEU has sent costs skyrocketing and damaged productivity - and are living in fear for retaliation.

Thousands of CFMEU union members march in a protest from Queens Gardens to the Federal offices at Waterfront Place. Picture: Lyndon Mechielsen/Courier Mail

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Queensland’s biggest developers and builders say the CFMEU’s grip on the construction sector is so strong that they fear for their safety if they speak out against them.

“They are dangerous,” one large construction industry contractor said.

“Their threats aren’t veiled. They use the law, they use the pretence of safety. It’s got nothing to do with safety. They know if the Labor Party’s in, they’re in control, if the Liberal Party’s in, there’s nothing they can do about them. How do you take them on?”

High-profile industry veterans say union “thugs” have sent costs skyrocketing and damaged productivity across construction but dread retaliation if they were to go on the record.

One Brisbane developer said he had plenty to say, but “it wouldn’t be appropriate to make any comments for the fear of retribution from the thugs in the union”.

Another said he was aware of some developers receiving pictures of their families in their mailboxes, allegedly placed by union members.

One apartment developer said the “CFMEU tax” had made it more expensive to build and dragged out construction time frames.

“In 2013, we were building for $200,000 per unit and selling for $400,000, now we’re building for $800,000 and selling for $1.6m. Same apartment, but that’s the CFMEU tax,” they said.

The Queensland branch of the CFMEU is in damage control after the general manager of the Fair Work Commission on Friday filed an application for the union to be placed into administration to the Federal Court, while the Victorian branch over allegations that underworld figures and bike gang members had infiltrated major constructions projects.

Association of Professional Builders co-founder Russ Stephens said the construction union was undoubtedly adding to building costs and causing delays on all major construction sites.

“It goes as far as organised crime basically running things,” Mr Stephens said.

“They’re controlling access to sites through thugs who use workplace health and safety to allow them access and we see a lot of builders not wanting to go near them. It’s adding to the cost of apartments for all of us – we’re all paying for it.”

Association of Professional Builders co-founder Russ Stephens.

Mr Stephens said some builders were avoiding taking on larger projects because they did not want to attract the attention of the CFMEU.

“The Queensland Labor government has pulled back the powers to bring control and order to construction,” he said. “All they do is put thugs on site with criminal records – people who should be nowhere near a construction site.”

Even the head of Queensland’s biggest building company admits the construction union can be “a pain in the arse” and it would be easier without them, but he said he has never found them to be corrupt.

“It would be easier without the unions, we think, but what system do we use?” Hutchinson Builders chairman Scott Hutchinson said. “It’s a very easy industry to control and influence, but generally, the CFMEU can be worked with. We work with them and they’re not acting up any more than usual on our sites.”

Master Builders QLD chief executive officer Paul Bidwell.

Mr Hutchinson said the meteoric rise in construction costs and the demand for building work was impacting productivity in the industry, not the union influence.

“The industry’s in a mess, but it’s not because of the union,” he said.

“Remember, the unions act on behalf of the workers and if they’re complaining to them about something, they’ve got to address it.

“They’ve got umpteen choices at the moment, they’re getting good pay everywhere, and workers are more pushy than they normally are.

“Building costs have risen 30 to 40 per cent over the last few years and the overwhelming reason for this is demand. The union’s influence isn’t big.”

Master Builders Queensland CEO Paul Bidwell said the group supported the state government’s directive that police look into potential allegations of criminal activity in the construction industry.

“Criminal activity has no place in the building and construction industry and these decisions are the best way for any potential criminal, coercive or corrupt behaviour to be exposed and eradicated and consumer confidence restored,” he said.

Mr Bidwell said the government’s Best Practice Industry Conditions (BPICs) were affecting projects by decreasing productivity and consequently pushing up costs.

“While the Victorian government seemed oblivious to the CFMEU having control over which contractors were involved in their Big Build projects, the same can’t be said in Queensland,” he said.

“Here, contractors are required to adopt BPIC (which is largely the same as the CFMEU EBA conditions) on state government projects worth more than $100m, and since 2018, the state government has unashamedly endorsed this approach.

“This is not about pay or working conditions. The issue here is the significant and enduring impact on productivity as we grapple with a housing crisis, compounded by the soaring cost of living.”

Restrictive CFMEU conditions on Queensland sites include the ability to veto concrete pours and allow stoppages to attend union rallies.

The union’s weather policy states that “concrete pours need to consider blowing out” if lightning is detected 30km away, and that “areas to be concreted must be ready to start pouring by 7am on days where hot temperatures are forecast, or they will not commence”.