CFMEU Commission of Inquiry Commences: What Construction Companies need to know and must do now

On 1 August 2025, the landmark Commission of Inquiry into the Queensland Branch of the CFMEU officially commenced. The Inquiry, announced on 13 July 2025 following Geoffrey Watson SC’s Violence in the Queensland CFMEU Report, will run for 12 months and deliver its final report by 31 July 2026.

The Commission is led by Stuart Wood AM KC, one of Australia’s most renowned industrial relations barristers, with former Deputy Police Commissioner Bob Gee appointed as Secretary. The Government has described the Inquiry as Queensland’s “Fitzgerald moment” for the construction industry, signalling a once-in-a-generation review of union culture as it stands today, criminal influence, and systemic misconduct.

The Inquiry’s terms of reference are broad. They include examining:

• Misconduct and intimidation by CFMEU officials.
• Organised crime links and financial irregularities.
• Unsafe workplaces, particularly for women.
• Impacts on productivity, housing, and major infrastructure projects.

The Commission has been granted powers similar to a Royal Commission, including the ability to compel the production of documents, summon witnesses, inspect/seize records, and recommend criminal prosecutions. Crucially for construction companies, this extends to the compulsory disclosure of internal communications. This will include emails, financial records, and contracts.

Make no mistake. For an industry already under pressure to deliver the infrastructure pipeline ahead of the 2032 Brisbane Olympics, the Inquiry will reshape how companies engage with unions such as the CFMEU and the Government.

A Culture of Misconduct and Intimidation

The Inquiry follows the damning Watson Report, which described a “campaign of violence” directed by the Union against workers, women  and even children. The Report catalogued threats, intimidation, and industrial bullying, concluding that these were not isolated incidents, but part of a systemic strategy embedded within the Union’s operations.

Watson’s investigation was hampered by an “obstinate refusal to co-operate” from key witnesses connected to the CFMEU, with only 55 individuals ultimately interviewed. Many declined to participate due to fear of retribution, highlighting the culture of silence and coercion that has long surrounded the Union. As Watson observed, the Report “only scratched the surface” of the violence and intimidation within the Queensland branch.

The Inquiry has been tasked with going deeper. Its broad terms of reference empower it to examine not only misconduct by individual officials, but the entire culture and business model of the CFMEU, including links to organised crime, irregular financial dealings, and the seemingly deliberate law-breaking as a strategy. It will also look at the wider consequences, namely: lost productivity, unsafe workplaces, and stalled projects.

The Inquiry represents a turning point. For decades, many in the industry viewed intimidation and coercion as simply “part of doing business.” That era is now over. The Inquiry is a warning that unlawful conduct will no longer be ignored, and that those who have enabled or tolerated it, whether that be through silence or acquiescence, may now face scrutiny.

The Inquiry’s Powers and Disclosure Obligations

The CFMEU Commission of Inquiry has been given powers akin to a Royal Commission. Under the Commissions of Inquiry Act 1950 (Qld), the Commissioner may:

• Compel production of documents: including “books, documents, writings and records of whatever description” (section 5). Therefore, this captures documents such as emails, digital records, contracts, correspondence, and financial files.
• Summon witnesses: requiring individuals, including company directors or employees, to attend and give evidence, either orally or in writing (section 5(1)(a).
• Inspect and copy records: the Commission may retain and copy documents, photographs, and electronic records, and can enter premises to inspect relevant materials (section 19).
• Search and seize evidence: the Commissioner may issue warrants enabling police to enter premises, search and seize records or property relevant to the Inquiry (section 19A).
• Compel answers: individuals may be required to answer questions under oath or affirmation, with limited exceptions (section 5(1)(c)-(d)).

These powers override most other legal or contractual obligations. Section 5(2A) makes clear that a notice from the Commissioner takes precedence over “any oath taken” such as confidentiality clauses, NDAs, or other statutory secrecy provisions.

The consequences of non-compliance are serious. Failing to produce documents or attend when required can result in fines, imprisonment of up to one year, or even arrest under warrant (section 5A). Obstructing inspections or refusing reasonable assistance during searches may also attract penalties.

For construction companies, this means that the disclosure obligations are compulsory. If served with a notice, you must be prepared to produce internal communications (including emails), contracts and financial records. The Commission also has authority to retain those records, use them in evidence, and refer matters to prosecuting authorities.

Implications for the Industry

The CFMEU Commission of Inquiry will not only scrutinise the conduct of Union officials, but also contractors, developers, consultants, and government clients operating within Queensland’s construction sector. Its findings and recommendations are expected to reshape the way business is conducted for years to come.

1.  Heightened regulatory scrutiny: Companies can expect closer oversight of industrial conduct, site safety, and bargaining practices. Regulators and procurement agencies will be watching Inquiry developments closely, and compliance obligations will tighten.
2.  Procurement and tender reform: Government clients are already signaling that future procurement processes may require stricter industrial compliance checks. This means companies could face higher disclosure standards and the need to demonstrate active measures to prevent intimidation or unlawful bargaining conduct.
3.  Reputational risk: The Inquiry has broad powers to compel evidence, including emails and correspondence. If a company is found to have enabled, tolerated or turned a blind eye to coercive conduct, it may be exposed publicly. This risk extends beyond legal liability to reputational harm with clients and project partners.
4.  Reset in industrial relations: The Inquiry represents an opportunity to redraw the line between lawful union engagement and unlawful coercion. Contractors should anticipate greater expectations that site negotiations be conducted transparently and without threats, intimidation, or backdoor arrangements.
5.  Operational disruption: With Brisbane preparing for major projects in the lead-up to the 2032 Olympics, the Inquiry will likely cause some short-term uncertainty. Be aware, companies may be required to divert resources to responding to notices, managing document disclosure, and cooperating with investigators.

What Companies Should Do Now

With the Inquiry’s powers now active, all construction companies should prepare for the possibility of compulsory disclosure and scrutiny. Steps to take now include:

Preserve records:

• Suspend any automatic deletion of emails or files that may relate to dealing with the CFMEU or industrial conduct.
• Issue an internal “document hold” to relevant staff.

Identify exposure:

• Pinpoint exactly where your company has interacted with the CFMEU.
• Collate where records are stored (email servers, project platforms, shared drives, hard copy etc.)

Engage in legal review:

• Seek legal advice to assess potentially relevant documentation.
• Ensure privileged communications are identified and managed appropriately.

Prepare to respond:

• Develop a process for handling a Commission notice, including appointing internal points of contact in legal/HR/management.
• Ensure your company acts quickly and efficiently if a summons or notice to produce is received.

Reinforce compliance culture:

• Communicate to staff the seriousness of the Inquiry and the above legal penalties for non-compliance.
• Emphasise that while communication is mandatory, whistleblower and victim protections are in place.

Key Takeaway:

The CFMEU Commission of Inquiry represents an important turning point for Queensland’s construction industry. For decades, coercion, intimidation and unlawful conduct were too often tolerated as “part of doing business.” That time has, or at least appears to have, now ended.

Armed with sweeping powers to compel documents, summon witnesses, and seize evidence, the Commission will shine a spotlight not only on the CFMEU but also on those who have enabled or ignored misconduct.

For construction companies, this means compulsory disclosure obligations, reputational scrutiny, and the likelihood of major reform across compliance and union relationships.

While the process may be disruptive, it also represents an opportunity to reset workplace culture and reinforce integrity in the industry. Companies that prepare now, by preserving records, engaging in legal review, and strengthening compliance processes, will be best placed to navigate the Inquiry and emerge with their credibility better than ever!

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