Cross River Rail contractor could be forced to pay $2.4 million for each day workers failed to turn up

Cross River Rail’s lead contractor has estimated it could be forced to pay subcontractors a whopping figure for each day their workers failed to turn up due to CFMEU industrial action.

Cross River Rail’s lead contractor has estimated it could be forced to pay subcontractors a whopping $2.4 million for each day their workers failed to turn up as the CFMEU relentlessly picketed the project’s entry gates.

The staggering figure, detailed in Federal Court documents obtained by The Sunday Mail after a five-month process, can be revealed as Queensland Housing Minister Sam O’Connor declared on Saturday “sweetheart deals” between the government and the union were over.

CFMEU members pictured blocking Cross River Rail workers from entering the Roma Street station worksite. Brisbane Tuesday 16th July 2024 Picture David Clark

In an affidavit filed last May as part of contractor CPB’s ongoing court action with the union, it was alleged the company and its joint venture partners had received numerous claims from subcontractors seeking payment because their “blue collar employees” were denied site entry.

“The number of blue collar workers who would normally be expected to be on the CRR project sites at this point in the project cycle is approximately 1700 per day,” it was claimed.

“If contractors make claims against CPB and other CPGU JV parties in relation to each of those 1700 blue collar workers, those claims would exceed $2.4 million dollars per day.”

In a separate Fair Work Commission case, fellow CRR contractor UGL has alleged all forms of leave taken by its employees has increased 800 per cent since industrial action began.

In Saturday’s Courier-Mail, the inside story of CPB and the CFMEU’s long-running battle was revealed, including allegations that some union members felt “coerced” to vote for industrial action on the site.

Mr O’Connor said the LNP government said the “sweetheart relationship” with the former government was dead.

“We’ve got a new government in Queensland and we’re making sure that we focus on construction sector productivity, we focus on making sure that workers are safe, that they’re well paid, but that we get that balance right when it comes to contracting with the government,” he said.

“It is clear that even members of the CFMEU are not safe from the thuggery and the bullying tactics of the CFMEU.

“That is not the behaviour that any worker across Queensland should be subjected to, and we certainly don’t stand for it as the government of Queensland and we’re taking action.”

He said the controversial Best Practice Industry Conditions (BPIC) scheme had been paused “indefinitely” while CFMEU members have been removed from influential board positions.

“The Productivity Commission is reviewing the building and construction sector and we know that’s going to lead to much better outcomes for these major projects and much better outcomes for workers across Queensland,” he said.

“Those deals were leading to construction projects of every scale in our state, costing more and taking longer.

“We needed to stop that because it was just an untenable situation for Queenslanders.”

Shadow Treasurer Shannon Fentiman said there was no place for bullying, harassment or intimidation on any worksite or workplace.

“It was a Labor Government that put the CFMEU into administration and I understand the administrators report will come down in the next few months and I look forward to seeing that,” Ms Fentiman said.

Originally published as Cross River Rail contractor could be forced to pay $2.4 million for each day workers failed to turn up