Advertisement

CFMEU pays $3.5m to settle Grocon lawsuit

Grocon is one of Australia's biggest construction companies.

Grocon is one of Australia's biggest construction companies.

The construction union CFMEU will pay about $3.5 million to building giant Grocon to settle a civil case against it over illegal blockades to a series of Grocon Melbourne building sites.

A CFMEU spokesman confirmed the payout to Grocon, which he said would settle the civil case against the union.

The blockades were sparked by a dispute between the CFMEU and Grocon over safety issues that culminated in a blockade of the Myer Emporium work site in Melbourne’s CBD.

Shorten’s call on union fees

The CFMEU spokesman said the payment would cover Grocon’s legal costs only and would end the civil case.

grocon-210615-newdaily

A crane at a Grocon construction site in Melbourne. Photo: AAP

“This dispute was always about and will always be about the safety of building workers and the general public,” a CFMEU spokesman told AAP.

“This settlement means that not one cent of CFMEU members’ money will go to a company that continues to flout safety and put lives at risk in the name of profit.”

It’s understood Grocon sought $10.5 million from the union in lost earnings and costs over the blockades, sparked by a dispute with the company over safety issues and the appointment of shop stewards.

The union blockaded Grocon projects including its Myer Emporium site in 2012.

The CFMEU was later found guilty of contempt by the Victorian Supreme Court and fined $1.25 million.

Comment has been sought from Grocon.

Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter
Copyright © 2024 The New Daily.
All rights reserved.