For decades, the Construction, Forestry and Maritime Employees Union (CFMEU) has loomed over Australia’s construction industry – often, as has been widely reported, with intimidatory, aggressive, abusive and corrupt conduct, and without any real fear of any consequences.
For a long time, the industry has unwillingly accepted such conduct as just being part of doing business.
However, that era appears to be coming to an end. Late last year and over the course of this year, the CFMEU was placed into external administration which has now been validated by the High Court. Further to this and most recently, the Queensland Government announced it will conduct a full commission of inquiry into the Queensland chapter of the CFMEU, triggered by the damming report by Geoffrey Watson SC.
The report by Geoffrey Watson SC prompted the Queensland Government to launch into immediate action, announcing a full commission of inquiry, after Mr Watson exposed misconduct that many in the industry have witnessed firsthand for years – now impossible to ignore. The report paints a grim picture of the CFMEU’s conduct: careers ruined, lives disrupted, and a culture of fear and abuse that has plagued the sector for too long.
With Brisbane preparing for the much-needed construction boom ahead of the 2032 Olympics, the stakes have never been higher – and the cost of silence or turning a blind eye never more significant.
In this article, we break down what has happened, what’s changing, and the impact on the industry.
A culture of non-compliance, coercion and misconduct
The Watson Report paints a damning picture of the CFMEU’s Queensland branch—revealing non-isolated incidents and a deeply entrenched culture of violence, threats, and industrial bullying that has spanned years.
This is nothing new. Court’s have condemned the union’s conduct for years, including labelling some of its official’s conduct as a “pure industrial standover tactic” and a “wilful defiance of the law.”. The Watson Report has taken it even further, exposing conduct that has included bomb hoaxes, death threats, and vile personal attacks.
Among the most disturbing revelations were threats made against women and children and officials making threatening statements such as “we know where you live.” Watson concluded this wasn’t simply rogue behaviour by or two officials, but a systemic strategy adopted by the CFMEU and its offices, finding that it uses aggressive coercion to control and crush dissent.
What the Watson Report makes clear is that the CFMEU didn’t just break the rules – it built its power on a culture that treated the rules as irrelevant.
Worse still, Watson concludes that this misconduct was enabled by silence, with employers, regulators, and other industry stakeholders often turning a blind eye – whether out of fear or political calculation. The result was a union that operated with impunity and without fear of punishment, leveraging its intimidation not just on worksites, but in boardrooms and government offices.
Investigation, Reform and the Road Ahead
The appointment of Mark Irving KC as external administrator, and the subsequent Watson Report, represent a turning point for the CFMEU. For the first time in many years, the CFMEU’s most harmful elements are being confronted with genuine institutional force. Several senior officials have already been dismissed, and Irving has committed to sweeping internal reforms, including new employment contracts and strict rules to eliminate blacklists and “favours for mates” in enterprise bargaining.
The full commission of inquiry into the Qld chapter will provide powers akin to a royal commission. The inquiry, expected to begin in August and run for a year, investigating industrial conduct, criminal infiltration, and systemic corruption. Investigators will be empowered to summon witnesses including underworld figures, developers, and union officials, and expose practices that have long evaded scrutiny.
The government’s response represents a significant development for the construction industry and marks a potential turning point in how unlawful behaviour is addressed. It offers an opportunity to redraw the line between lawful unionism and unlawful coercion, between bargaining and industrial sabotage. As Deputy Premier Jarrod Bleijie noted, the inquiry must ensure that negotiations in the construction industry are no longer conducted “with a gun to the head.”
This reform cannot come from government alone. Employers must also hold the line. The inquiry is likely to prompt reconsideration of how industry participants respond to unlawful behaviour and reinforce expectations of compliance and accountability. This should be considered moving forward.
Commission of inquiry: Terms of Reference
On 30 July 2025, the Queensland Government finalised the terms of reference for its Commission of Inquiry.
The Inquiry will have powers to compel witnesses and documents and conduct public and private hearings. Importantly, it includes protections for whistle-blowers and victims. This serves as an active response to the Watson Report’s observations that many individuals declined to participate in the initial investigation for fear of retribution.
The terms of reference are broad. Among other matters, the Inquiry will examine:
- Instances of misconduct making workplaces unsafe or uncomfortable for women.
- The systemic nature of misconduct involving current and former leadership figures within the CFMEU.
- The involvement of organised crime or other criminal elements or identities with the CFMEU and in the Construction Industry.
- Irregularities in financial dealings by the CFMEU, including cash transfers and contracts.
According to Attorney-General Deb Frecklington, the Inquiry will allow Queenslanders “to know and understand the true extent” of the CFMEU’s impact on industrial relations and the state’s construction sector.
Industry groups, including the Property Council of Australia, have welcomed the swift announcement. Executive Director Jess Claire noted that the inclusion of protections for witnesses is “essential if the Inquiry is to deliver the lasting reforms that are so urgently needed.”
Implications for the Industry
The Commission of Inquiry is not merely a reckoning for the CFMEU, it represents a significant moment for the entire building and construction industry. For contractors, developers, consultants, and government clients, the coming year will bring heightened scrutiny, potential regulatory reform, and significant reputational exposure.
While the inquiry will primarily examine unlawful conduct within the union, it is also expected to expose instances where employers, contractors, and government entities may have enabled or acquiesced to coercive behaviour. The inquiry may also examine enterprise agreements and site arrangements alleged to have been influenced by coercive conduct.
At a practical level, industry participants should prepare for:
- Increased regulatory oversight, including potential federal or state legislative amendments targeting unlawful conduct in enterprise bargaining.
- Procurement reform, with governments likely to introduce stricter industrial compliance checks as a precondition to tendering for high-profile projects.
- Union engagement protocols, being reviewed or rewritten to reflect a zero-tolerance approach to threats of violence and intimidation.
Key Takeaways
The culture of misconduct within CFMEU is no longer deniable. The Watson Report has confirmed—publicly and unequivocally – what many in the construction industry have known for years: intimidation and coercion is entrenched in the CFMEU’s entire operation.
In the wake of the report, the CFMEU is now facing unprecedented scrutiny and forced reform. The union has been placed into administration, senior officials have been dismissed, and a broad internal overhaul is underway.
A formal commission of inquiry, commencing in August 2025, will go further examining not only the CFMEU but also alleged criminal conduct across the wider construction industry. All industry participants should prepare for this as well as the increased scrutiny.
Armed with wide-ranging powers to compel evidence from union officials, developers, and even figures linked to organised crime, the inquiry’s findings are likely to reshape industrial relations and workplace culture in the years to come. While such revelations regarding the union’s conduct is confronting, they also represent a long-overdue opportunity to restore lawful unionism and refocus the industry on safety, fairness, and accountability.
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