Grace Grace has been asked by Queensland Deputy Premier Jarrod Bleijie to respond to the "absolutely shocking" claim after the explosive allegation was made at the state's CFMEU probe on Wednesday.
Queensland's Commission of Inquiry into the CFMEU was told Ms Grace, the former Labor government's industrial relations minister, threatened to tear up a developer's contract if they did not work with the union on a troubled Toowoomba bypass.
Project director Jose Antonio Sanchez - who has worked for 39 years as a civil engineer around the globe - said he would have expected such threats in third-world countries.
"I would have expected that to happen in undeveloped countries like Nigeria," Mr Sanchez told the inquiry.
"I would never expected that to happen in a country like Australia."
The $1.6 billion Toowoomba Second Range Crossing, completed in 2019, is a 41km bypass linking the Warrego and Gore highways, diverting trucks from the steep climb between the towns of Helidon and Toowoomba.
The project, which includes an 800-metre viaduct, was beset with technical and safety challenges owing to the steep and rocky terrain.
Counsel assisting Patrick Wheelahan said there were 17 incidents where plant machinery rolled over. No one was injured.
On February 21 2018, a section of reinforced cage fell 30cm, prompting Ms Grace and former Transport and Main Roads Minister Mark Bailey to issue a joint statement expressing their concerns.
They travelled to Toowoomba on February 23 to meet with infrastructure consortium Nexus, who were delivering the $1.6 billion project.
It was at that meeting that Ms Grace is alleged to have made the threat, making it clear her expectation was Nexus would co-operate with the CFMEU.
Mr Sanchez described Ms Grace's tone as very aggressive and not open to negotiation.
"All I thought was 'bring it on'," he said.
At the time, Nexus and its partners Acciona and Ferrovial Argoman, had an enterprise agreement with the CFMEU's rival, the AWU.
Mr Wheelahan said the CFMEU was seeking to challenge AWU's traditional stronghold on civil infrastructure projects via "regulatory capture" of Workplace Health and Safety Queensland.
Mr Sanchez said the company had gone from having a good relationship with Workplace Health and Safety to a sudden deterioration from July 2017.
From that time, the project was inundated both with notices to improve from WHSQ and with CFMEU notices seeking entry to investigate alleged safety breaches.
In a video shown to the inquiry, police are shown issuing move-on directions to four CFMEU members who had entered the site without a formal induction.
They were arrested after being told they were breaching their own rules.
Mr Bleijie went on the attack demanding Ms Grace respond to the allegations.
"The people of Queensland deserve answers directly from ...(Ms Grace) with respect to these most serious allegations put on the public record today," he told parliament.
"Queenslanders would be shocked to hear that the threatening behaviour that was allowed to occur went all the way to the top."
Premier David Crisafulli also took aim.
"How did we reach the point in this state where decent democracy made way for third world thuggery and threats?" he told parliament.
"Because they (Labor) owe their existence to the CFMEU."
Ms Grace has been contacted for comment.Â
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