Table of Contents

VOLUME 3

Subject / Page
PART 6 / CFMEU ACT / 1
6.1 / INTRODUCTION / 1
6.2 / HALAFIHI KIVALU / 7
A – INTRODUCTION / 8
B – ELIAS TALEB / 11
Payments in respect of the Yarralumla job / 11
Payments in connection with Denham Constructions job / 13
Gungahlin job / 14
Habitat job / 14
Elias Taleb ceases making payments / 15
Evidence of builders / 17
C – MEDWHAT ELEISAWY / 20
D – TONY BASSIL / 21
E – PAYMENTS BY JIAN YU ‘JACKIE’ HE / 23
F – PAYMENTS BY JOHN DOMITROVIC / 24
G – HALAFIHI KIVALU CEASES TO BE EMPLOYED BY THE CFMEU / 26
H – KNOWLEDGE ON THE PART OF OTHER OFFICIALS AT THE CFMEU / 28
Johnny Lomax / 30
Zachary Smith / 35
Jason O’Mara / 39
Anthony Vitler and Kenneth Miller / 40
Dean Hall / 41
6.3 / INAPPROPRIATE PRESSURE TO ENTER INTO ENTERPRISE AGREEMENTS / 47
A – INTRODUCTION / 48
B – STATUTORY CONTEXT / 52
C – SAFETY INSPECTIONS AND THE NATURE OF BUILDING SITES / 59
The nature of construction work / 60
The nature of safety standards / 63
Conclusion / 69
D – MILIN BUILDERS / 70
IQ Apartments Project / 71
Trilogy Apartments Project / 74
The Moore Street Project / 80
Conclusions regarding the Moore Street site visits / 97
E – A & P LEEMHUIS BUILDERS PTY LTD / 99
Assessment of conduct of CFMEU officials / 105
A follow up meeting with HalafihiKivalu / 107
F – CASE STUDY - CLAW CONSTRUCTIONS / 108
The Arthur Circle site / 108
Erindale site / 112
Flemington Road site: purpose of visit / 117
Flemington Road site: Dean Hall and Joseph Bartlett / 121
G – CAPITAL HYDRAULICS / 135
H – OTHER EXAMPLES / 139
I – LODGEMENT OF MPR EBA / 144
Conclusions / 161
J – SMEAR CAMPAIGN / 163
6.4 / MEMBERSHIP ISSUES / 167
A – INTRODUCTION / 168
B – PARTICULAR CONDUCT / 171
HD Projects: HalafihiKivalu / 171
HD Projects: Jason O’Mara and Anthony Vitler / 177
Tony Bassil / 180
Anthony Costanzo / 182
Adrian Maretta / 189
MPR Scaffolding / 194
Jian He / 197
CFMEU membership administration / 199
C – CONCLUSIONS / 201
6.5 / Anti-competitive conduct / 203
A – INTRODUCTION / 204
B – TYPES OF ANTI-COMPETITIVE CONDUCT / 205
Cartel conduct / 206
‘Services’ / 210
Accessorial liability: section 79 of the Competition and Consumer Act 2010 (Cth) / 210
CFMEU’s approach / 211
C – SCAFFOLDERS / 213
Further meetings in 2015 / 226
D – CONCRETERS / 231
E – OTHER TRADES / 236
Bricklayers / 236
Crane operators / 241
General evidence / 243
F – A WARNING / 245
6.6 / CREATIVE SAFETY INITIATIVES AND CONSTRUCTION CHARITABLE WORKS / 249
A – INTRODUCTION / 248
B – SUMMARY OF FINDINGS / 250
C – BASIC OVERVIEW OF CFMEU ACT ENTITIES / 251
Cetw / 254
CCW / 258
CTUCCF / 259
The Tradies Group / 259
JLT Discretionary Trusts / 261
D – A PRELIMINARY POINT: CCW AND THE TERMS OF REFERENCE / 264
E – FUNDS FLOW IN RELATION TO CETW AND CCW / 267
CETW as trustee for the CSI Trust / 270
CCW / 276
F – TOPICS OF CONCERN / 278
CETW: governance failures / 278
CCW: diversion of funds for non-charitable purposes and breaches of officers’ duties / 282
CFMEU ACT: systemic breaches of fiduciary duty / 301
CFMEU ACT: third line forcing or other exclusive dealing / 315
Third line forcing or other exclusive dealing: the law / 315
Third line forcing or other exclusive dealing: application of the law / 321
G – A FINAL ISSUE / 327
6.7 / FURTHER CONCLUSIONS REGARDING CFMEU CONDUCT / 333
PART 7 / CFMEU NSW / 339
7.1 / CBUS LEAK TO THE CFMEU / 339
A – INTRODUCTION / 342
The importance of the case study / 342
Superannuation payment arrears information / 345
The plan of approach / 345
B – THE BACKGROUND AND THE KEY EVENTS / 347
The business and structure of Cbus / 347
The CFMEU controversy with Lis-Con / 348
18 June 2013: the first Gaske leak / 349
18-25 June 2013: referring Lis-Con to lawyers for action / 350
25-27 June 2013: the CFMEU decision to go to war with Lis-Con / 351
Brian Parker’s plan / 351
27-28 June 2013: the CFMEU directs Cbus to start proceedings against Lis-Con / 352
Brian Parker’s first step: approaching Bob McWhinney on 8 July 2014 / 354
The events of 9 July 2013 / 355
12 July 2013: Brian Fitzpatrick reports failure to Brian Parker / 357
Brian Parker’s second step: approaching David Atkin on 18 July 2013 / 358
18-22 July 2013: Lisa Zanatta procures the Zanatta spreadsheets / 359
24 July 2013: Maria Butera and Lisa Zanatta decide on a meeting to concert plans for delivery / 361
25 July 2013: Maria Butera and Lisa Zanatta meet / 362
26 July 2013: Maria Butera and Lisa Zanatta make their final plans / 363
Brian Parker updates Brian Fitzpatrick / 365
29 July 2013: Lisa Zanatta flies to and from Sydney / 366
The aftermath of Lisa Zanatta’s trip to Sydney / 367
The second Gaske leak / 368
David Atkin capitulates to David Noonan in relation to Steve Gaske / 372
The 11 May 2014 Sydney Morning Herald article and the 20 May 2014 meetings / 372
The positions of persons affected / 373
C – THE PARKER/ATKIN CONVERSATION OF 18JULY 2013 / 374
Explanation for the uncharacteristic behaviour of Lisa Zanatta and Maria Butera / 384
Submissions of Brian Parker on the 18 July 2013 conversation / 390
Submissions of David Atkin on the 18 July 2013 conversation: irrelevant points / 405
Submissions of David Atkin on the 18 July 2013 conversation: substantive points / 412
D –THE EVENTS OF 20 MAY 2014 / 427
General / 427
The background to the 20 May 2014 conversation / 428
Maria Butera’s evidence / 431
Lisa Zanatta’s evidence / 433
David Atkin’s evidence / 435
Consciousness of guilt / 435
Consideration / 436
Brian Parker’s submissions about the 20 May 2014 conversations / 443
David Atkin’s submissions about the 20 May 2014 conversations / 446
E – THE FINAL SUBMISSIONS OF DAVID ATKIN / 446
F – LIS-CON’S QUEENSLAND LOCKOUT / 458
G – CONCLUSIONS AND RECOMMENDATIONS / 459
Breaches of privacy / 459
Perjury / 459
Breaches of the Corporations Act: Maria Butera, Lisa Zanatta and David Atkin / 461
Breaches of the Corporations Act: Brian Parker / 463
Breach of professional standards / 465
Cultural problems withinCbus / 466
7.2 / PAYMENTS TO ORGANISERS / 471
A – INTRODUCTION / 472
B – THE KEY INDIVIDUALS AND BUSINESSES / 476
Brian Parker and Darren Greenfield / 476
George Alex and his businesses / 476
C – KEY EVIDENCE OF CASH PAYMENTS / 481
Some of the more significant text messages / 482
The Westerway spreadsheets and associated evidence / 495
Unsatisfactory oral evidence given by Darren Greenfield and the Alexes / 505
D – OTHER EVIDENCE / 526
Meetings at George Alex’s house / 527
General tone of text messages and phone calls / 532
Favourable treatment of George Alex’s business / 537
Threat to Brian Fitzpatrick / 551
Jimmy Kendrovski’s evidence / 553
Jim Byrnes’s evidence / 555
Darren Greenfield’s financial position / 557
Imperfect records / 557
Darren Greenfield’s influence / 558
‘Union stuff’ as code for money-skimming / 560
E – APPROPRIATE FINDINGS: DARREN GREENFIELD AND GEORGE ALEX / 561
7.3 / DONATIONS & EBAS / 591
A – INTRODUCTION / 592
B – DONATIONS FROM JIANQIU ZHANG’S GROUP OF COMPANIES / 593
Jianqiu Zhang’s companies do not have a CFMEU EBA / 594
Jianqiu Zhang’s companies: donations to the CFMEU / 599
CFMEU NSW’s accounting records / 605
Conclusions / 606
C– CHARITABLE FUNDRAISING ACT 1991 (nsw) / 608
A preliminary objection / 608
Summary of the law / 609
Application of the law to the facts / 612
7.4 / BUILDING TRADES GROUP DRUG AND ALCOHOL COMMITTEE / 615
A – INTRODUCTION / 618
B – BACKGROUND / 619
BTG D&A Committee / 619
CIDAF / 622
C – THIESS PAYMENT: SUMMARY OF THE EVIDENCE / 623
Introduction / 623
Background to the payment of $100,000 / 627
Transfer 1: Payment by THJV of $100,000 to the BTG D&A Committee / 630
Objective material / 630
Steve Dixon’s evidence / 633
Michael Deegan’s evidence / 637
Peter Chatburn’s evidence / 638
Michael Knott’s evidence / 638
Peter McClelland’s evidence / 640
Andrew Ferguson’s evidence / 641
Trevor Sharp’s evidence / 644
Tony Papa’s evidence / 646
Preliminary observations about the evidence of the witnesses / 646
Transfer 2: Payment to the BTG Account / 650
Transfers 3A and 3B: Payments to the CFMEU NSW and CIDAF / 651
Transfer 4: Payment of $72,727.29 from the CFMEU NSW / 656
Transfer 5: BTG D&A Cash Deposit Account / 660
Transfer 6: Withdrawal of $80,230.88 from the Cash Deposit Account / 662
Transfer 7: Transfer of $72,000 back to the CFMEU NSW / 662
Events in late 2011 / 665
D – THIESS PAYMENT: FINDINGS ON THE EVIDENCE / 668
Not a donation to CFMEU for safety purposes / 669
Not a payment for drug and alcohol safety training / 670
$100,000 payment was a disguised payment to the CFMEU NSW / 675
E – THIESS PAYMENT: Legal Issues / 690
Corrupt commissions / 690
Analysis / 693
Additional submissions for Steve Dixon / 697
Tony Papa and Trevor Sharp / 701
F – SIPHONING OF EBA FUNDS: OVERVIEW / 706
G – SIPHONING OF EBA FUNDS: SUMMARY OF EVIDENCE / 706
Evolution of EBA levy clause / 706
BTG D&A Safety Program Account / 709
Application of money from the BTG D&A Safety Account / 712
CFMEU NSW/BTG D&A Committee arrangements: evidence / 716
CFMEU NSW/BTG D&A Committee arrangements: industry knowledge / 720
H – SIPHONING OF EBA FUNDS: FINDINGS / 727
Relevant legal principles / 727
Conclusions / 728
7.5 / COMMITTEE TO DEFEND TRADE UNION RIGHTS / 741
A – INTRODUCTION AND SUMMARY / 742
B –SUMMARY OF EVIDENCE / 743
Formation of CTDTUR and the Trust / 743
Approval of the Transfer / 747
Contributions to the Defend Trade Union Rights Trust / 750
Terms of the Trust deed / 751
Distributions from the Trust / 753
Grant to MUA / 755
TUCW debt/equity transaction / 756
Administrative overlap between the CTDTUR and the CFMEU NSW / 758
C – RELEVANT LEGAL PRINCIPLES / 762
Transfers to defeat creditors / 762
Duties of union officers / 764
D –ANALYSIS AND CONCLUSIONS / 768
CFMEU NSW’s control of the Trust / 768
Purpose of the Transfer / 771
Breaches of duty: Transfer made for improper purpose / 776
7.6 / U-PLUS/COVERFORCE / 781
A –INTRODUCTION / 782
B – SUMMARY OF FINDINGS / 783
C – RELEVANT FACTS / 784
Background / 785
The UPlusScheme summarised / 786
Money flow to the CFMEU NSW: 2003 to 2009 / 789
Money and benefits flow to the CFMEU NSW: 2010 to June 2013 / 796
Money and benefits flow to the CFMEU NSW: July 2013 to date / 801
D – DUTIES OF UNION OFFICIALS NEGOTIATING ENTERPRISE AGREEMENTS / 809
Fiduciary duties / 809
Duty to disclose relevant information / 813
E – BREACHES OF FIDUCIARY DUTY / 815
F – GOOD FAITH BARGAINING REQUIREMENTS / 824
G – BREACH OF THE CORPORATIONS ACT 2001 (CTH) / 825
Section 911A(1) generally / 825
Exceptions and exemptions to s 911A(1) / 832
Conclusion / 839