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Tuesday, November 10
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Fails & scandalsAustralia

Big Build royal commission hears John Holland was told to settle with the CFMEU or lose Victorian work

A John Holland manager told Victoria's Big Build royal commission on Nov. 10 that a state rail official passed on a view from the minister's office: settle the 2022 CFMEU dispute at the Gap Road level crossing in Sunbury, or win no further work in Victoria.

Joe Aygur, who managed work for the Rail Network Alliance, said Peter Wilkinson, a project director at Rail Projects Victoria, instructed him to meet the union and end the stoppage. Asked by counsel assisting Chris Young KC whether he had been offered any other way out, Aygur answered: "That was the only approach." He testified that Wilkinson attributed the warning to the minister's office, ABC News reported. At the time, John Holland's joint venture was in the running for Melbourne Airport rail work. The testimony as reported did not name a minister.

Work on the level crossing removal stopped on June 6, 2022, and restarted the next day once the union's terms were met. General superintendent Steve Testolin said the CFMEU wanted a health and safety representative of its choosing, BK Labour Hire in place of Zoom Recruitment for labour, and CCL for traffic management. He said union officials promised the company would be looked on well for future projects, Airport Rail among them, if it lined up with the union. The commission heard project costs rose by an estimated A$6 million.

In the run-up, the union issued 8 safety notices between May 25 and 31 and 23 more on June 1 and 2, the commission heard. Testolin said he saw no valid safety problems on site. John Holland called WorkSafe and police on the day of the stoppage; Testolin said WorkSafe would not come out right away and police were reluctant, treating it as a workplace safety matter. A crane operator testified that about a week later, roughly 15 casual workers were told to move to BK Labour Hire and join the CFMEU.

On the first day of hearings, counsel assisting said every theme before the commission is an allegation at this stage and some have been denied. Public hearings run until Nov. 20, eight days before Victoria's Nov. 28 state election. On Nov. 9, Premier Ben Carroll denied knowing about the union's access to ministers and senior officials.

Why it matters: Contractors bidding Victorian public work now have sworn testimony that labour hire, traffic control and safety reps on a state job were set by the union with government backing. Watch whether the commission calls anyone from the minister's office.

Sources

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