Melbourne, March 18, 2026 — Premier Jacinta Allan has firmly dismissed allegations that the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) was responsible for delays or cost overruns in the North East Link project. The project, a crucial infrastructure development intended to connect the Eastern Freeway to the M80 Ring Road, has seen its budget swell to $26 billion from an initial $10 billion estimate.
The controversy erupted after The Age reported that Spark, the consortium responsible for the 10-kilometre toll road, had expressed concerns to the government about the CFMEU’s actions in March 2023. According to the consortium, union disruptions had postponed tunneling activities by as much as two months.
Government’s Position on Project Delays
Premier Allan has categorically denied these claims, stating, “Those claims are incorrect.” She emphasized that the project’s scope had been expanded to better serve the community, with enhancements such as longer tunnels and additional lanes. Allan reassured that the project remains on track for completion by 2028.
“The project is scheduled to be delivered by 2028, and the feedback I get from the project, and when I was out there a couple of months ago, is that the work of the tunnel boring machines is going really well,” Allan stated. “North East Link is a much-needed project. It’s been talked about for decades.”
Union Disputes and Project Delays
The 2023 briefing note, obtained by the Victorian opposition through freedom of information laws, indicated that tunneling was delayed due to “later delivery and longer CFMEU-driven assembly.” The first tunnel-boring machine was delayed by 65 days, and the second by 44 days. However, the Big Build website suggests that tunneling began even later than these revised dates.
According to sources who requested anonymity, a demarcation dispute between the CFMEU and the Australian Workers’ Union (AWU) was a significant factor. The AWU contended that cranes should have been operated by its members, but the CFMEU took control instead. “During this month, the CFMEU prevented the surveyors from carrying out their duties effectively,” Spark’s report noted, though it also mentioned that workarounds had been developed.
Financial Implications and Broader Context
The North East Link’s budget has ballooned from an initial $10 billion to $26 billion, with the government attributing the increase to inflationary pressures from the COVID-19 pandemic and geopolitical tensions such as Russia’s invasion of Ukraine. Opposition transport infrastructure spokesman Evan Mulholland criticized Allan, stating she was repeatedly warned about CFMEU’s behavior, which allegedly added costs and caused disruptions.
A separate inquiry in Queensland, utilizing royal commission powers, is investigating the impact of industrial actions on infrastructure costs. Transport Australia, a peak body in the industry, has reported that such activities could add a 30% premium to project costs.
Looking Forward: Addressing the Challenges
Premier Allan has consistently dismissed claims of major cost overruns as unfounded. Despite corruption buster Geoffrey Watson, SC, estimating potential losses up to $15 billion, Allan maintains that the issues are not systemic. She has referred any serious allegations to the appropriate authorities.
As the North East Link progresses, the government remains committed to addressing any challenges that arise, ensuring that the project meets its 2028 completion target. The ongoing scrutiny and investigations highlight the complexities of managing large-scale infrastructure projects amid industrial and economic pressures.
For further updates, stay tuned to our Morning Edition newsletter, which provides a daily summary of the most important and interesting stories.
