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Go to latestWatch live: Queensland’s inquiry into the CFMEU
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CFMEU inquiry as it happened: Watson returns as commission probes union’s worksite misconduct
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Watson calls for audit of all delegates, leadership elections
By Matt Dennien
Watson is now being asked about potential solutions to the problems he has identified.
He names overhauling the appointment and training of delegates and organisers, and the power to get rid of them, as one.
“I would urge you to contemplate a thorough audit of all of the delegates of the Queensland branch, and a restart,” Watson says.
Consideration of the enterprise bargaining system is another. “That system’s got to be reformed,” he says, and competition authorities – particularly in Victoria – need to look at this.
Another element would be “holding free and fair elections” – not because the best candidates will stand, but so bad ones can be removed. (The inquiry is reminded by Commissioner Stuart Wood about evidence heard last year that there had not been elections in Queensland for four cycles.)
Senior women could fix union’s ‘macho, aggro boys club’, inquiry hears
By William Davis
Having more women in senior roles could help reduce the prevalence of violence and corruption in the CFMEU, Watson tells the inquiry.
He singles out national union figures such as Sally McManus as among the most impressive people he met during his investigation, and cites the experience of the NSW branch, which did have high-ranking women and experienced fewer serious allegations.
“There is absolutely no reason in the world for this to be aggressively male dominated,” Watson says when asked what steps Queensland can take to reduce the risk of corruption returning.
“I just think it was spinning out of control with a macho, aggro boys club.
Millions spent on ‘ghost shifts’ on Melbourne project: Watson
By William Davis
Corruption was so rife in the labour-hire industry that there were no attempts to cover it up, the inquiry hears.
Watson says labour-hire companies would pay a bribe to CFMEU officials, and those officials would then insist they were used on a particular site.
“There was no secret about it … these fellas were just stating it in front of people,” he tells the hearing.
They’re now talking about “ghost shifts”, where labour- hire companies were reportedly paid for staff who never had anything to do with the project.
Watson estimates millions of dollars were spent on “ghost shifts” on one Melbourne project.
“Any system can be corrupted, it just depends on whether you’ve got the people to do it.”
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Inquiry hears labour hire is building industry’s ‘most corrupt’ aspect
By William Davis
The inquiry is back under way after its break for lunch.
Geoffrey Watson is now taking questions on labour hire, which he calls the most corrupt aspect of the entire building sector.
“The acquisition and maintenance of [enterprise bargaining agreements]… is not competitive. That’s one corrupt part of it,” he says.
“[Labour hire in] Victoria was a billion-dollar industry in its own right.”
Hearings break for lunch
By William Davis
Watson blocks out the last over and that’s lunch.
There are no huge twists as that session wraps up, but plenty of new information has emerged today.
The inquiry has heard about bikie and underworld links to the union, how “fake roles” – unwanted or unnecessary delegates and health and safety representatives – were forced onto contractors, the alleged methods Mick Gatto used to extort contractors, and how the allegedly criminal activity of several union figures straddles both Victoria and Queensland.
Testimony will return at 2pm from the Brisbane Magistrates’ Court.
Watson says some union bosses couldn’t care less about workers’ safety
By William Davis
John Setka, the former boss of the CFMEU’s Victoria branch, and other senior leaders “couldn’t care less” about the safety of union members, Watson says.
He tells the inquiry CFMEU leaders with criminal links didn’t share the values of the wider Australian union movement, but were exclusively concerned with self-advancement.
“I’m so sick and tired of all these statements made… by Setka and by others that ‘what we’re most concerned about is bringing those men home safe in the evening’,” Watson says.
“I truly believe Setka couldn’t care less about that.
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‘Fake roles’ included access to Foxtel and betting channels – and no physical labour
By Matt Dennien
Counsel assisting the inquiry Mark Costello, KC, directs questioning to the element of Watson’s report dealing with what he described as “systemic corruption”.
Particularly, Watson talks about “fake roles” – unwanted or unnecessary delegates and health and safety representatives – forced on contractors.
Watson says he has seen records detailing the annual salaries of some in such roles of $200,000 and even more than $300,000.
He says they were often given cars and not required to do physical work on site – or even attend the site. If they did, they had access to an air-conditioned office with access to Foxtel and betting channels.
These were sometimes handed to close associates, friends and family members of more senior CFMEU figures, including the brother-in-law of ousted Victorian leader John Setka.
“I mean full credit to the CFMEU, they negotiated great conditions for their workers,” Watson says.
Those who go to police ‘might have tomahawk man visit you that night’
By Matt Dennien
Commissioner Stuart Wood asks Watson questions directly about the matter of how to stop people with unsuitable backgrounds gaining so much power in the sector.
Wood says there is a difference between coming from a jail term and going to work on a site, and immediately being appointed as a health and safety representative or as a delegate – roles “for which they are probably very likely to be unsuitable”.
“That’s really the policy question,” Wood says.
Watson replies: “I couldn’t agree more… I say that’s an abuse of the system.”
‘Queenslanders caused a lot of trouble’
By William Davis
Watson runs through a long list of alleged bikies and career criminals with links to the CFMEU, claiming Queenslanders were overrepresented in corrupt and violent behaviour across other states.
His testimony centres around Joel Leavitt, who was arrested by Victoria Police overnight in connection to an alleged extortion plot against a contractor.
Watson says the bikie was one of many who moved south from the Sunshine State for alleged sub-legitimate opportunities.
“I don’t want to tread on too many toes, but Queenslanders caused a lot of trouble down there.”
Watson says he has evidence at least three Queenslanders who were investigated have returned to their home state.
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Hurstbridge Line upgrade works ‘headed by a bikie’
By Matt Dennien
Costello takes Watson through the element of his report dealing with what he had described as “the struggle for control of Hurstbridge”.
The $530 million stage-two Hurstbridge Line upgrade in Victoria has been “chock-a-block” with outlaw motorcycle gangs, Watson says.
As such, it was not just used as an example of a public infrastructure project over time and budget, but showed the entanglement of the CFMEU, gangs and organised crime.
“It was headed by a bikie, Joel Leavitt,” Watson says, noting involvement from other gangs.
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