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CFMEU boycotts inquiry

The construction union has boycotted a royal commission hearing in Canberra that has heard a formwork company owner was forced to fork over thousands of dollars to secure work.

The claim by Elias Taleb on Monday came as lawyers for the ACT branch of the CFMEU decided to not attend the opening hearing day on Monday, protesting over the commission’s timetable.

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Counsel-assisting Jeremy Stoljar quizzed Mr Taleb throughout the morning, but there were no representatives for the union present.

The 35-year-old company owner detailed how he gave more than $135,000 to a CFMEU organiser named as Fihi – who is now no longer part of the union – during 2012 and 2013 to secure jobs in the capital.

He also paid the membership dues of his workers, which sometimes numbered up to 50, fearing if he didn’t he would be kicked off projects.

Some of his employees didn’t want anything to do with the union, he said, explaining how at times he was made to sign their membership forms himself.

“I had to,” he told Mr Stoljar.

Over the next two years, Mr Taleb paid the union organiser thousands of dollars in order to secure work, which he said would have otherwise gone to other companies.

For one residential unit project in Yarralumla, he was made to pay $50,000 in cash instalments.

When asked by Mr Stoljar if he knew what happened to the money he gave to the union, Mr Taleb said “no”.

Some payments were made at Fihi’s house while others took place at Canberra restaurants.
“The money was always in normal white envelopes … unsealed but folded over and secured by a rubber band,” he told the commission.

Mr Taleb is the first of nearly 40 witnesses expected to be brought before three weeks of hearings in Canberra.

The commission is also due to hear on Monday about another witness giving the same organiser $40,000 as recently as 2014.

“The evidence the commission will receive paints a disturbing picture of the conduct of the CFMEU in the Australian Capital Territory,” Mr Stoljar said in his opening statement.

Allegations will include corrupt payments, standover and intimidation tactics and the establishment of cartels.

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