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WORLD / K13 NEWS

Minister’s Office Warned Contractor Would Lose Victoria Work If It Didn’t Resolve Industrial Dispute

A royal commission in Victoria heard that a minister's office told a major construction contractor it would lose public work in the state if it failed to resolve an industrial dispute with the CFMEU. Witnesses described worker fear and claims of union influence over safety decisions at a rail project site.

Minister’s Office Warned Contractor Would Lose Victoria Work If It Didn’t Resolve Industrial Dispute

The Royal Commission into the integrity of major public and civil infrastructure construction projects in Victoria has heard that, during a 2022 industrial dispute on a level crossing removal project at Gap Road in Sunbury, a senior official from the Victorian Infrastructure Delivery Authority (Vida) was advised by Vida’s manager Evan Tattersall that contractors John Holland and CPB Constructions would not be granted further work in Victoria unless they resolved their conflict with the Construction, Forestry and Maritime Employees Union (CFMEU).

Minister's Office Warning

Peter Wilkinson, former Vida official now executive general manager of the Suburban Rail Loop authority, said he learned from Tattersall—his direct superior at Vida—that the minister’s office had conveyed to him on either 6 or 7 June 2022: 'If they can’t handle the industrial [relations] in Victoria, they can’t have any more work.'

Tattersall was referring specifically to John Holland and CPB Constructions. Wilkinson confirmed that at the time, these contractors were tendering for a separate major infrastructure project—the Melbourne Airport Rail Project—but did not know whether the minister's office was aware of this.

Work Resumed After Union Meeting

The dispute ended after a meeting between construction officials from CPD Constructions and CFMEU representatives. Stephen Villella, delivery director on site, described the event as 'extremely galling,' saying it required company leaders to 'bend the knee' to union officials to resolve concerns.

Villella stated none of the safety issues raised by the CFMEU were serious enough to justify halting work at Gap Road. He said workers became fearful of their employment status—staying in lunchrooms for long periods once they began attending—and that many refused to come to work altogether due to fear of organizational or personal consequences.

Union Claims and Alleged Influence

In a meeting with CFMEU organiser Joe Myles, Villella reported that Myles suggested collaboration could help win future tenders—including the airport rail project—and claimed he had direct lines into Jacinta Allan’s office.

Villella rejected claims by counsel assisting the commission that it was Paul Tzimas, a former CFMEU organiser, who presented union demands at Gap Road. He said Myles left abruptly during the first half of a 30-minute session—what he described as a 'snub'—and did not discuss any formal list of demands in detail.

After construction managers agreed to the union's demands, work resumed normally. Villella remarked: 'Amazingly, all our safety issues ceased.'

Critical Response from Commission Counsel

Chris Young KC, counsel for the royal commission, criticised Vida on Thursday for failing to disclose relevant evidence promptly. In response, senior counsel Chris Carr SC reported that significant new material had been produced overnight and noted this has led to multiple lines of inquiry, meaning no further witness testimony is expected until Tuesday.

All statements are attributed directly to witnesses or officials as presented in public records. No independent verification was conducted beyond what is contained in official reports and recorded testimonies provided during hearings.

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