China boss’s ‘$130,000 to CFMEU’: inquiry

The CFMEU’s NSW branch has allegedly reaped $130,000 in payments from a Chinese property developer, the union inquiry has heard.

The construction union’s NSW branch has come under renewed scrutiny at the trade union royal commission amid allegations it reaped $130,000 in payments from a Chinese property developer, arranged by state secretary Brian Parker.

The inquiry also heard yesterday that Mr Parker flew to China with another businessman whose company, Foxville, was found by the Federal Court this year to have underpaid its Chinese workers by $150,000 while striking deals with the union to keep it “at bay”.

In the first of two cases mounted yesterday by counsel assisting the commission Sarah McNaugh­ton, Chinese businessman Jian Qiu Zhang, who is director of more than 40 construction and development businesses in Australia, met Mr Parker several times between 2011 and 2014.

Construction Forestry Mining and Energy Union official Yu Lei Zhou testified that Mr Parker and Mr Zhang had met several times.

Mr Zhou, who spoke Mandarin through an interpreter, said Mr Parker had asked him to collect a cheque for $10,000 from Mr Zhang to attend a speaking tour by Sinn Fein deputy leader Mary Lou McDonald.

Mr Zhang, who spoke at a private hearing, also gave $30,000 to a union “fighting fund”, $20,000 toward union picnics and made payments for tickets to union dinners, the inquiry heard.

Asked why Mr Zhang made a $30,000 donation, Mr Parker said: “Because he wants to contribute to decent safety in the industry.”

Asked how Mr Zhang could be sure the money went to safety, Mr Parker said: “Because he can be.”

Ms McNaughton asked why “despite the size of Mr Zhang’s developments, and the number of work areas apparently employed at the sites, the CFMEU has not entered into an (enterprise bargaining agreement) with any of Mr Zhang’s companies”.

She suggested there could be “an agreement between Mr Parker and Mr Zhang pursuant to which the CFMEU would not require Mr Zhang’s companies to enter into EBAs in return for financial gain for the union”.

However, asked if Mr Zhang received “special treatment”, Mr Parker said: “Absolutely not.”

In a second case outlined yesterday, Ms McNaughton alleged the CFMEU received tens of thousands of dollars in “union fees” from construction firm Foxville.

The firm was deemed by the Federal Court this year to have “hidden” behind a labour-hire firm to underpay Chinese workers more than $150,000 in wages and entitlements in 2011 and 2012.

Mr Parker admitted travelling to China with Foxville director George Yan, on “holiday”, and with an “old friend” Nick Cai, director of a plasterboard company.

Ms McNaughton said the inquiry would look at whether Mr Parker had received “secret benefits” from Foxville or associates.

In a May ruling, the Federal Court suggested Foxville struck enterprise agreements between 2011 and 2014 that would “keep the CFMEU at bay”.

The CFMEU yesterday claimed a win after its lawyers were told that police would bring no evidence in a blackmail case against official John Lomax.