Searching for damning evidence, Queensland’s CFMEU inquiry is trying to recruit informers

A couple of well-paid barristers are trying to recruit informants from one of Australia’s most ruthless organisations, the CFMEU.

On Wednesday, Stuart Wood KC and Liam Kelly KC gave opening speeches at Queensland’s royal commission-like inquiry into the union.

Explaining the inquiry wants to examine what has been described as a culture of “coercion, intimidation, bullying and violence,” they made a surprising assertion: the CFMEU’s victims includes its members.

“If the legal system is held in disrespect by powerful bodies such as a union, a corporation or wealthy individual, that will have knock on effects,” said Mr Kelly, who acts as the inquiry’s prosecutor.

“Others will copy that unlawful behaviour if they see others getting away with it.

“The people who are suffering are the genuine members of the CFEMU. They deserve a union that respects their rights and protects them.”

Mr Kelly, a Brisbane-based specialist in big commercial disputes, argued that the sham contracts and bribes blamed for driving up costs in Queensland’s construction industry hurt workers by sucking them into a lawless world where criminals benefit at the expense of others.

CFMEU as victims

Mr Wood, who leads the inquiry, said the CFMEU may have been a victim too, a reference to unscrupulous building companies that pay bribes to avoid having to provide union members their legal entitlements.

The conciliatory statements appear designed to convince CFMEU members and officials to cooperate with the inquiry’s investigators. Mr Wood and Mr Kelly are looking for insiders to give evidence — potentially with their identities hidden by a screen — of corruption in an industry that employs 10 per cent of Queensland’s workforce.

Their objective is find people who can describe the inner workings of an organisation that was found to have broken Federal laws 1163 times over five years, according to statistics quoted by Mr Wood.

Formally known as the Construction, Forestry and Maritime Employees Union’s Construction and General Division, the union has been run by a government-appointed lawyer since last August.

While elected officials have been replaced, many still seem to exert influence in the industry. There have been reports of violence against people who cooperate with the union’s administrator.

The focus on witnesses inside or close to the organisation is based on lessons from two previous inquiries. Mr Wood’s staff see the Fitzgerald Inquiry in the late-1980s as successful because of the easy-to-understand way it exposed Queensland police corruption, including identifying officers who extorted brothels for money and sex.

The Heydon royal commission into the trade union movement 10 years ago is seen as an example of failure. While many cases of poor behaviour were found, few were very interesting. The inquiry failed to convince Australians why they should care about union misconduct.

Olympic Games

In the Brisbane Magistrates Court on Wednesday morning, Mr Wood and Mr Kelly tried to avoid that mistake. Both lawyers emphasised the economic damage of corruption in an industry that builds offices, apartment buildings, bridges, hospitals, schools and other structures essential to modern life.

Mr Wood warned about construction costs for the 2032 Brisbane Olympic Games and the national housing shortage, which was underlined by news today that average Brisbane house prices recently passed $1 million. He said unethical agreements described as procurement rules had riven up some costs 25 per cent, where are passed on to customers and taxpayers.

“This inquiry matters for every Queenslander not just those working in construction industry,” he said.

After about 45 minutes of speeches, the hearing ended. When the inquiry will resume is not known, and will likely depend on whether Mr Wood and Mr Kelly believe they have enough information for a strong opening presentation summarising the evidence.

‘Packs of thugs’

Inquiry staff have made 100 legal demands for documents and other information. They can compel people to answer questions in public. If they refuse, the reluctant witnesses can be jailed for contempt of court. The inquiry is not a court. While it can determine that a person has broken the law, it cannot convict anyone.

To build up a case that corruption is endemic to the industry, the inquiry’s lawyers are likely to start with damning evidence from witnesses which will be put to the alleged culprits in a dramatic legal climax.

Mr Kelly implied that he personally intends to subject union officials and others accused of intimidation to tough questioning.

“Those packs of thugs won’t have that advantage when they come before this inquiry,” he said. “They may learn the difference been stacking up on innocent and vulnerable people and experiencing the loneliness of the witness box.”