Secret Queensland Labor deal puts unions miles ahead

A secretive industrial deal between two unions over government-funded infrastructure projects has installed Steven Miles as Queensland’s next premier.

Steven Miles will become Queensland’s next premier. Picture: NCA NewsWire / David Clark

A secretive industrial deal ­between two unions over ­government-funded infrastructure projects has installed Steven Miles as Queensland’s next Labor premier.

Just days after Annastacia Palaszczuk resigned, union powerbrokers were quick to stitch up a factional agreement that would secure Mr Miles’s accession to the top job and avoid a drawn out battle that would have followed a contest for the leadership.

Treasurer Cameron Dick and his 18-member Right faction threw their support behind Mr Miles after the deal was struck late on Monday night, cruelling chances of Health Minister Shannon Fentiman who declared her plans to run for the leadership just hours earlier.

Multiple sources briefed on the negotiations said the agreement between United Workers’ Union boss Gary Bullock and Australian Workers Union leader Stacey Schinnerl was centred on the government’s Best Practice Industry Conditions Policy, which forces unions and contractors to negotiate agreements on government-funded civil construction projects worth more than $100m.

Ms Schinnerl had been unsuccessfully lobbying the government for months, anxious the policy gave the militant construction union the CFMEU and its members an advantage in civil construction and road-building projects. Both unions have been battling for industrial coverage on the lucrative taxpayer-funded projects, which traditionally fell into the AWU’s jurisdiction.

Ms Schinnerl finally had the upper-hand when Mr Bullock had to rely on the Right faction as kingmaker to give Mr Miles the numbers in caucus.

According to sources briefed on the negotiations, Mr Bullock offered to relinquish the Left’s hold on the transport and main roads portfolio – currently held by controversy-prone Left minister Mark Bailey – to the Right.

Along with that, there were concessions to the AWU on the BPIC policy that would sideline the factionally unaligned CFMEU and potentially other non-UWU Left unions which had fallen behind Ms Fentiman, including her own AMWU, as well as the ETU.

Queensland Treasurer Cameron Dick. Picture: David Clark

An AWU spokesman said the union supported best-practice industry conditions for workers engaged in the civil construction industry, and “we have been constructively engaging with multiple government departments for years to get the best possible outcome for our members”.

“It’s time for our party to stick together and focus on winning the next election – the stakes are too high for working people for our movement to be divided,” the spokesman said.

The Australian has been told the deal was done before Mr Dick – who has always pushed back against union influence over the parliamentary Labor Party – was in the room. He was saddled with it, and then had to take it to a two-hour telephone hook-up of his Right faction MPs last night.

A deep reshuffle of cabinet is expected later this week, with Mark Bailey, Annastacia Palaszczuk and Stirling Hinchliffe to depart from the ministry, along with potentially more, including Craig Crawford and Mark Furner.

Mr Hinchliffe, who will retire at next October’s state election said he did “not expect a position in a renewed cabinet”.

“I believe the new leadership of Steven and Cameron is the best team to serve Queensland and I wish them all the best in putting together a great team including fresh talent,” Mr Hinchliffe said.

Names tipped to be promoted include Charis Mullen, Bart Mellish and Michael Healy, all from the Right faction.

Ms Fentiman, who withdrew her nomination for leader on Tuesday morning, will retain the health portfolio and said Mr Miles had her “full support”.

“Now is the time for unity, and Labor’s focus must turn to delivering for Queenslanders and retaining government at next year’s election,” she said.

Mr Miles’ elevation to Labor leader secures the influence of Mr Bullock over the parliamentary caucus, which would have been reduced if Ms Fentiman had become premier.

One Labor source said Mr Bullock had been so desperate to remain party powerbroker on Monday, he was offering Mr Dick and the AWU “the world”.

Mr Miles refused to reveal details of the deal between Mr Bullock and Ms Schinnerl when questioned on Tuesday.

“There have been a lot of discussions between a lot of people over the last few days but this is an agreement between Cameron and I,” Mr Miles said. “The arrangement we came to, I asked Cameron to run as my deputy and he agreed and has agreed to support me as premier.”

The new leadership team – which will be sworn in on Friday after Labor caucus meets – used its first press conference to announce a year-long freeze on vehicle registration from July 2024.

“This first decision that Cameron and I have taken together should signal to Queenslanders that we will be absolutely focused on the challenges that they face and for building our state’s future,” Mr Miles said.

He said his priorities as premier would be on cost of living, health, housing, infrastructure, and the 2032 Brisbane Olympics.

In his first act as premier designate, Mr Miles distanced himself from his predecessor’s handling of Games planning by announcing he would reinstate an agency to independently deliver Games infrastructure that was axed under Ms Palaszczuk.

The move is designed to allay growing criticism of the planning and decision-making processes around the Games, headlined by the 170 per cent blowout in the cost of rebuilding the Gabba stadium – from $1bn to $2.7bn – and concern that the $2.5bn committed by the commonwealth for an arena to house the swimming won’t be enough to deliver the technically challenging project.

A former union official, Mr Miles had been Annastacia Palaszczuk’s second-in-charge since 2020. Ms Palaszczuk gave her former deputy a strong endorsement to be her successor in her shock resignation announcement on Sunday.

The new leadership make-up of Mr Miles and Mr Dick marks the first time since 2005 that Queensland Labor has not had a woman as leader or deputy.