CFMEU inquiry: Former minister denies threatening contractors; union administrator steps down

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A former Queensland government minister has denied allegations that she threatened contractors on a major infrastructure project, while the administrator appointed to overhaul the CFMEU has announced his resignation.

Inquiry into CFMEU hears allegations against former minister

Grace Grace, who served as Queensland's industrial relations minister, has engaged legal representation as the Commission of Inquiry into the Construction, Forestry and Maritime Employees Union (CFMEU) examines claims that she pressured contractors to work with the union.

According to the Commission's website, barrister Adrian Duffy KC was granted leave to appear for Ms Grace on Tuesday.

The inquiry has heard that Ms Grace allegedly told contractors on the Toowoomba bypass project that she would tear up their contract unless they reached an agreement with the CFMEU. The allegation was aired this week during hearings into the union's activities.

Senior counsel assisting the inquiry, Patrick Wheelahan, told the commission that the CFMEU was seeking to gain a foothold on the Toowoomba Second Range Crossing project, a $1.6 billion road that bypasses Toowoomba. He said the union used its "regulatory capture" of Workplace Health and Safety Queensland and took advantage of "ministerial threats" to the project.

The project, which began construction in 2016 and concluded in 2019, involved building several bridges, an 800-metre viaduct, and a 30-metre deep cutting through volcanic rock. The inquiry heard there were 17 incidents on the site where plant machinery rolled over, and that 74 improvement notices were issued by Workplace Health and Safety Queensland inspectors between July 2017 and February 2018.

Project manager Jose Sanchez told the inquiry that Nexus Infrastructure, the consortium behind the project, met with Ms Grace amid safety concerns and a dispute involving the CFMEU and WHSQ. Sanchez alleged Ms Grace said: "We have come here to tell you that you need to reach an agreement with the CFMEU otherwise we will cancel your contract." He described her tone as "really aggressive".

Ferrovial Agroman managing director Enrique Blanco, whose company was part of the consortium, said Ms Grace warned "things could get ugly" for Nexus if they did not work with the union.

Ms Grace has denied the claims but has not yet given evidence to the inquiry. She said last week that "all the evidence on this issue" would come out "at the appropriate time", and that she would not provide a running commentary while the inquiry is ongoing.

The inquiry is also hearing this week from contractors involved in the Cross River Rail project, another major Queensland infrastructure venture.

Political reaction

Deputy Premier Jarrod Bleijie has labelled the former minister "Grace the Disgrace" and called for her resignation. Ms Grace, who is now Labor's opposition spokesperson for industrial relations, has rejected the calls and maintains her denial.

The allegations are among several raised during the hearings that point to a complex relationship between the former Queensland Labor government and the CFMEU. The inquiry has heard evidence suggesting the union had direct access to ministers and influence over policy and the bureaucracy, while also frequently criticising, pressuring and, at times, abusing government figures.

CFMEU administrator steps down

Separately, Mark Irving KC, the senior barrister appointed to clean up the CFMEU, has resigned as administrator. He was appointed in August 2024 amid revelations of widespread corruption, criminality and violence within the union.

During his tenure, Mr Irving commissioned multiple investigations and removed hundreds of individuals from their positions. He also faced death threats, according to the CFMEU's statement.

In a statement, the CFMEU said Mr Irving had written to Fair Work Commission general manager Murray Furlong to tender his resignation, explaining that the administration was entering a new "rebuilding" phase.

"The Union is changing its personnel. It is changing its culture. It is regaining its position in civil society," Mr Irving wrote, adding that the rebuild phase requires a different approach and a different set of skills.

He has delegated powers to Michael Crosby, described by the CFMEU as "an experienced and respected union leader", though Mr Irving will remain on as senior counsel.

A government spokesperson thanked Mr Irving "for the significant and crucial work he has driven over the past 20 months", saying this work would continue under new leadership once appointed by the Fair Work Commission general manager.

However, Australian Constructors Association chief executive Jon Davies, who spoke to Mr Irving after the decision, described the timing as "surprising", noting that "really good progress" was starting to be made.

Union members received an internal memo on Monday informing them of the change.