Construction company John Holland and the Construction, Forestry and Maritime Employees Union (CFMEU) have voluntarily terminated their agreements requiring John Holland to use only three specific labour hire businesses on two major infrastructure projects, following an ACCC investigation.
The ACCC was concerned the agreements between John Holland and the New South Wales Branch of the CFMEU prevented other labour hire businesses from competing for work on the projects.
The agreements were about the use of labour hire on the M1 Pacific Motorway Extension to Raymond Terrace (the M1 Project) and M7-M12 integration project in New South Wales.
In response to the ACCC's concerns, John Holland has agreed not to make any agreements with unions in future that would limit its choice of labour hire companies or create certain preferential arrangements.
John Holland has also committed to implementing a competition law compliance assessment when reviewing agreements with unions, and undertaking staff training on the application of competition law in industrial relations.
"Genuine competition relies on businesses making independent decisions, and suppliers competing vigorously to get work," ACCC Chair Gina Cass-Gottlieb said.
"We are pleased that John Holland and the CFMEU have addressed our competition concerns by voluntarily terminating the agreements in question following our investigation."
John Holland and the CFMEU cooperated with the ACCC during its investigation.
The agreements between John Holland and the CFMEU were made in December 2023. The ACCC began its investigation following media reports last year.
Background
John Holland is a large infrastructure construction company operating in Australia and New Zealand.
The CFMEU is a trade union organisation that represents members in industries including construction. The Construction and General Division of the CFMEU was placed into administration in August 2024 for a period of up to 5 years.
The agreements were made with the New South Wales Branch of the Construction and General Division of the CFMEU in the context of enterprise bargaining negotiations with John Holland for enterprise agreements for the M1 and M7-M12 projects.
Addressing anti-competitive agreements and practices is an enduring compliance and enforcement priority for the ACCC.
More information about the ACCC's use of administrative resolutions is available at Enforcement action.
