CFMEU Halted Rail Work Until Affiliated Firm Appointed, Inquiry Hears 2026

The CFMEU halted work on a Victorian government rail project until an affiliated firm was appointed, the Big Build royal commission has heard, in a case that puts union leverage on public infrastructure under the microscope.

Steve Testolin, a John Holland general superintendent, told the commission about a June 2022 meeting at CFMEU headquarters where union officials issued demands that had to be met before work could resume on the Gap Road level crossing removal project in Sunbury.

The hearing is the first time the royal commission into the integrity of major public and civil infrastructure construction projects in Victoria has taken witness evidence in public.

What the royal commission heard about the CFMEU work stoppage

Testolin testified that he attended the 6 June 2022 meeting with three colleagues and CFMEU officials Joe Myles and Paul Tzimas. The meeting came as the union was involved in the Gap Road project, which was supposed to proceed with non-stop construction of a rail bridge over a 30-day period.

Work was stopped by the union, and the commission has previously heard allegations that officials unlawfully entered the site and stood in front of equipment. The commission is examining whether the CFMEU used the stoppage as leverage to secure outcomes it wanted, including the appointment of an affiliated firm.

Testolin recalled telling union officials to “cut the bullshit” before they issued their demands, according to evidence given on Tuesday.

Why the CFMEU allegations matter for Victoria's Big Build

The Big Build is a multi-billion-dollar program of major infrastructure projects across Victoria, including level crossing removals, rail extensions and road upgrades. Allegations that a union can halt work on such projects raise questions about cost, delays and the integrity of procurement.

The commission is specifically looking at whether the CFMEU put pressure on work to stop on government projects and whether that pressure was used as leverage to gain concessions. The Gap Road project is a focus of the commission’s November hearings.

For taxpayers, the concern is that union demands could inflate costs or distort hiring and contracting decisions on projects funded by public money.

Key takeaways from the CFMEU rail project evidence

• The Big Build royal commission heard its first public witness evidence on Tuesday.
• A John Holland superintendent testified about a June 2022 meeting with CFMEU officials.
• Work on the Gap Road level crossing removal was stopped during a planned 30-day construction window.
• The commission is examining whether the union used the stoppage as leverage to get an affiliated firm appointed.
• The CFMEU has previously been accused of unlawful site entry during the dispute.

What happens next in the Big Build royal commission

The commission’s November hearings are focused on the Gap Road project and the CFMEU’s conduct. Further witnesses are expected to be called, and the commission will ultimately report on the integrity of Victoria’s major infrastructure construction.

The evidence could lead to recommendations about how government projects manage union engagement and industrial action. It may also prompt scrutiny of procurement rules to prevent affiliated firms from gaining unfair advantage.

For now, the testimony paints a picture of a union willing to stop work on a flagship project to get what it wanted — a claim the CFMEU is likely to contest as the hearings continue.

How union leverage on construction sites is being tested

The royal commission is not just about one project. It is examining a pattern of alleged conduct across Victoria’s Big Build, including whether unions have improperly influenced who gets hired or contracted.

The Gap Road dispute is a test case: if the commission finds the CFMEU stopped work to force the appointment of an affiliated firm, it could reshape how industrial relations are managed on public projects. The background to this story is set out in Victoria Big Build Royal Commission: How the Corruption Inquiry Works. A related thread runs through CFMEU Influence Over Victorian Government Under Royal Commission.

The construction industry will be watching closely, as will the Victorian government, which has committed billions to the Big Build program. Earlier coverage in Victoria Big Build Royal Commission: Bikies and Corruption Cost shows how the argument developed. A closer look at the same subject appears in Mick Gatto Payments Exposed in CFMEU Inquiry Over Big Build.

FAQ

The royal commission’s scrutiny of the CFMEU comes amid wider scrutiny of union conduct in Australia. Separate inquiries have examined allegations of surveillance and intimidation, such as the Sydney mayor surveillance scandal that Icac is hearing, which also raises questions about the use of spy gear and improper pressure.

In other proceedings, courts have heard about the fear and pressure individuals face in high-stakes disputes. For example, the Alan Jones trial heard a teen feared losing money, illustrating how financial leverage can be used to control outcomes.

Similarly, the Jesse Baird case revealed he was petrified of Beau Lamarre-Condon, a reminder of the human cost when power is abused. These cases, while different, all touch on the theme of coercion and the need for accountability.

As the Big Build royal commission continues, the evidence about the CFMEU’s tactics will be weighed against the broader public interest. The outcome could have lasting implications for how Victoria delivers its infrastructure and how unions operate on publicly funded projects.

The commission’s findings will also be relevant to debates about Pauline Hanson’s rise and the racism inquiry, which has highlighted how political movements can influence social cohesion. In the construction context, the focus is on ensuring fair and lawful practices.

Grand Goldman will continue to follow the royal commission and provide updates as more witnesses testify and evidence emerges.