CFMEU officials demanded installing their own union-aligned labour contractors to resolve a health and safety stoppage on a major level-crossing removal project in Sunbury, northwest of Melbourne, in June 2022, a royal commission has been told.
John Holland project director Joe Aygur said it was conveyed to him that if the dispute was not resolved the company could struggle to win more work including on the highly lucrative Melbourne Airport Rail.
Mr Aygur said the view was conveyed to him by then-Rail Projects Victoria project director Peter Wilkinson.
"There was a view in government that if we could not work through our industrial relations matters that we would not win further work in Victoria," Mr Aygur told the commission on Tuesday.
"Was he any more specific around who or where or what that was coming from?" counsel assisting Chris Young asked.
"Minister's office," Mr Aygur replied.
While Mr Aygur did not specify which minister, at the time future premier Jacinta Allan held the transport portfolio while future treasurer Tim Pallas was industrial relations minister.
CFMEU's conditions for ending the stoppage were clearly defined as getting union-aligned labour hire, traffic control and health and safety representation on the site, Mr Aygur said.
Following a meeting at CFMEU's offices, the demands were met and work continued on the site the following day.
Two otherJohn Holland supervisors on the Sunbury project told the inquiry on Tuesday it was clear CFMEU members had an agenda when they started flagging dozens of safety issues and spent an increasing amount of time on site.
"They weren't there to say hello," Robert Van Den Tol told the commission.
"They were on a mission for something."
Work was forced to a stop on June 6 after CFMEU delegates occupied the site, blocking machines and refusing to move even when police were called.
Steve Testolin worked for John Holland as general superintendent on the Sunbury project, with supervisor duties including managing industrial relations.
"It's pretty much a stand-off at that time," he told the commission.
On June 7, Mr Testolin attended a meeting with CFMEU officials including Joe Myles, who he said he knew at the time he was to give in to the union's demands.
"Joe then pretty much said, 'Enough with the small talk, what do youse want?" Mr Testolin said.
"The room went pretty quiet.
"I just thought I better say something so I said, 'How 'bout you cut the bullshit and tell me what you want.'"
Mr Testolin said he was told that if they aligned themselves with the union moving forward they would be a preferred contractor for future projects including the Airport Rail.
The commission on Tuesday heard evidence from Glenn Tyrrell who worked for labour hire company Zoom Recruitment on the Sunbury project.
Mr Tyrrel functioned as health and safety representative for the site prior to the occupation, but says afterwards his duties were reduced essentially to zero.
Mr Tyrrell told the commission less than a week after the forced stoppage he was called into a meeting where he was told to sign on with new labour hire employer, BK Labour and to become a member of the CFMEU.
"Did you join them?" counsel assisting Tim Jeffrie asked.
"Had to," he replied.
The commission continues on Wednesday.
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