CFMEU workers walk off West Gate Tunnel and other sites amid dispute in South Australia

CFMEU members have walked off the West Gate Tunnel project and other sites in Victoria amid an industrial stoush with a developer in another state.

The Age has spoken to two construction industry sources, who do not have authority to speak publicly, who have confirmed the workers downed tools on the $10.1 billion project on Tuesday, a move that union members have linked to safety concerns.

However, the sources said this explanation was a smokescreen and the action appeared targeted at John Holland, one of the major contractors, with similar action under way at other sites run by the builder.

John Holland has lodged a tunnelling enterprise agreement in the Fair Work Commission with the Australian Workers Union, the CFMEU’s main construction union rival, for the $15 billion River Torrens-to-Darlington tunnel in South Australia.

This has prompted a backlash from the CFMEU, sources said, which wants the deal to be withdrawn.

The West Gate Tunnel is scheduled to be completed and open to motorists by the end of this year. The tunnel was originally slated to open in 2022 but was beset by delays because of a dispute between the builders, Transurban and the state government over cost overruns and the handling of soil contaminated with PFAS chemicals.

The spectre of potential delays for the tunnel, triggered by the CFMEU stoppages, comes at an unwelcome time as the government looks to cash in on cutting the ribbon for the project by the end the year.

West Gate Tunnel is one of two signature projects by the Allan government scheduled to open this year, alongside the Metro Tunnel.

Opening both are key to Allan’s electoral strategy to secure a historic fourth term for Labor as she seeks to capitalise on the goodwill of the two events to validate the government’s agenda. The Metro Tunnel is expected open in early December in a limited capacity, with full services through the five new city train stations set to begin in early February 2026.

Sources said it was believed CFMEU members had walked off other John Holland sites in Victoria on Tuesday. However, the West Gate Tunnel is currently the building giant’s biggest project in the state.

Although the CFMEU does not have coverage of tunnelling work, which is the domain of the AWU, it has increasingly muscled out its main rival on other parts of infrastructure projects, including what are known as surface works.

A source said one point of contention was how the agreement applied to nearby work sites, including the area above the tunnel and its entrances.

A John Holland spokeswoman said they were aware of stoppages but declined to comment.

The West Gate Tunnel walk-off demonstrates the ongoing influence of the CFMEU on Victoria’s signature Big Build projects, even after the union was put into administration in July 2024.

That takeover was triggered by Building Bad, a joint investigation by this masthead, The Australian Financial Review and 60 Minutes, which exposed widespread criminality within the construction industry, including assaults, firebombings and intimidation tactics.

Since then, CFMEU administrator Mark Irving has sought to end the union’s association with industry fixers – including warning veteran gangland figure Mick Gatto away from contacting his employees.

Allan vowed to root out bad behaviour on government work sites following the Building Bad series, but has been criticised at times for not acting sooner to address concerning CFMEU behaviour flagged before the investigation.

“Industrial relations are a matter for our contractors,” an Allan government spokesman said.

“Safety remains our highest priority, and we expect contractors and unions to work together to resolve these matters as efficiently as possible.”

The state opposition’s major projects spokesman, Evan Mulholland, said a Coalition government would establish a royal commission into unlawful behaviour on major projects and set up a watchdog, Construction Enforcement Victoria, to address concerning behaviour on building sites.

“Once again, Premier Jacinta Allan is sitting idly by while the CFMEU runs roughshod over Victorian taxpayer-funded projects over disputes not even in Victoria,” he said.

“It’s absurd that this kind of CFMEU petulance over workforce dominance is allowed to continue under Labor’s watch.”

The CFMEU has been contacted for comment.

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