Victoria's Big Build inquiry hears CFMEU threatened to 'smash' subcontractor

A two-week block of public hearings for Victoria's Big Build royal commission have started.

The first day of hearings explored the events leading up to a stop-work at a Sunbury level crossing removal site in June 2022.

The public hearings continue until November 20, days out from the state election.

Victoria's Big Build royal commission has heard a major contractor was wary of the "unprecedented access" the CFMEU had to government ministers, as well as alleged threats against subcontractors.

A level crossing removal project at Sunbury, in Melbourne's outer north, was the focus of the first day of a two-week block of public hearings.

The royal commission is exploring a number of themes, including allegations related to the conduct of the CFMEU (Construction, Forestry, Mining and Energy Union) on sites.

Counsel assisting the commission Chris Young KC noted that all of the themes being canvassed were allegations at this stage, some of which had been denied.

Events related to a work stoppage at the Gap Road project in June 2022 were the focus of Monday's hearing.

Work ceased on June 6 and resumed on June 7 after control of the site was transferred to the CFMEU.

The commission heard that project costs blew out by an estimated $6 million.

Passages from several internal memos from site contractor John Holland were read out during today's hearing, including allegations about the CFMEU's relationship with the Victorian government.

"It is worth noting the significance of the CFMEU's relationship with the Andrews government in Victoria and the impact this is having and will have in the future in respect to client relationships," a memo dated to 2017 said.

"The union movement played a critical role in the election of the government, both organisationally and financially. The premier is factionally aligned with the Socialist Left and the CFMEU is the key industrial organisation in that faction.

"We also understand the CFMEU have unprecedented access to ministers and other key Victorian government stakeholders.

The commission heard that John Holland was increasingly cautious in its interactions with the CFMEU, with documents describing an escalating campaign by the union on the Gap Road site leading up to the June 2022 stop-work.

Allegations of threats of violence against subcontractors were also aired during today's hearing.

One instance was captured in notes from an internal contractor meeting about conduct on site ahead of the June 2022 stop-work.

"CFMEU are putting pressure on Wagstaff [Piling] not to work tonight, said 'you guys better not turn up tonight otherwise we'll smash you during the day'," Mr Young said, reading from a transcript.

The commission heard that police and WorkSafe Victoria were notified, but that Victoria Police took no action as it was regarded as an occupational health and safety issue.

Wagstaff Piling subsequently told firms they would not be working, citing pressure from the union.

The commission heard similar incidents to those at the Gap Road project had played out at other Big Build sites.

"It is instructive that the commission has heard from other contractors with remarkably similar experience on other major projects," Mr Young said.

The royal commission has already received a raft of information, including private hearings and requests for more than 110,000 documents.

The hearings come as Victorians prepare to head to the polls for the November 28 state election.

Premier Ben Carroll today denied any knowledge of the CFMEU's access to senior government officials and ministers.

"What today's hearings show is that I am a premier that will make the tough decisions," Mr Carroll said.