Builders warned over CFMEU by ex-premier’s office
Duncan Murray |
Construction bosses were told by a future state premier’s office if they couldn’t handle a union dispute they wouldn’t get any more government work, a royal commission has been told.
The warning came after union delegates occupied a major public project worksite in June 2022, allegedly issuing threats and citing health and safety concerns, which have come under heavy scrutiny over a week of public hearings by the commission.
At the time, Peter Wilkinson was chief operating officer of Rail Projects Victoria, reporting to then chief executive, Evan Tattersall.
Mr Wilkinson told the commission on Friday he received a message directly from Mr Tattersall regarding feedback he received from the minister’s office, which Mr Wilkinson took to be that of then-transport minister and future premier Jacinta Allan.
“I suppose the words were, if they can’t handle the industrials in Victoria, then they can’t have any more work,” Mr Wilkinson said.
Mr Wilkinson then passed that message to John Holland project manager Joe Aygur, who Mr Wilkinson agreed had “essentially” no choice but to give in to the union’s demands.
At the time, a joint venture between John Holland and CPB Contractors was pursuing a lucrative government contract on the Airport Rail Link.
“He was possibly reaching out to the state, and clearly the state was not in a position to offer any assistance,” Mr Wilkinson said.
The project in question was a level crossing removal at Gap Road Sunbury, northwest of Melbourne, which has been the focus of the commission’s first full hearing week.
The stoppage occurred during a stage of the project in which the rail line was closed and 24-hour works were occurring to limit that disruption – known in the industry as an “occupation”.
Stephen Villella, alliance manager from CPB Contractors, told the commission the union had a history of disruptions during such occupations, when projects were most vulnerable due to time and cost restrictions.
On June 6, 2022, CFMEU delegates entered the Gap Road site, issuing dozens of safety notices, blocking machinery and allegedly threatening workers to down tools.
After a week of evidence probing the validity of safety concerns raised by the union at the time, Mr Villella was forthright in his belief the union had a clear ulterior motive.
“They weren’t genuine safety issues,” he told the commission.
“It was, in my view, obviously designed as a point of leverage to change out our traffic and labour hire.
“It was nasty. It was irrational.”
On June 7, Mr Villella attended a meeting at CFMEU’s office along with John Holland project managers Joe Aygur and Steve Testolin to end the dispute.
Ultimately, Mr Villella said the project managers had made the decision to cede to the union’s demands in order for works to continue.
“The fact that we were being told we had to go there and bend the knee, if you like, was extraordinarily galling for them,” he said.
“Ultimately we were spending taxpayers’ money.
“We were just desperately trying to get the work happening again to stop wasting money.”
Mr Villella said he recalls senior CFMEU official Joe Myles issuing the demands, including that union-aligned traffic control and labour hire companies, and a CFMEU health and safety representative, were placed on the project.
It was also allegedly conveyed by Mr Myles that the CFMEU had influence in government which could impact future work for their companies on major public projects including on the lucrative Airport Rail Link.
“The inference from Mr Myles was that CFMEU had a lot of influence within government and our participation and collaboration with them would help us in future work,” he said.
Mr Villella said having seen what had occurred in the industry over the past decade he was not surprised by the claim.
The royal commission continues.
AAP