North Queensland Regional Director of Workplace Health and Safety Paul Smith told the Commission of Inquiry into the CFMEU on Thursday former union boss Michael Ravbar had dictated to the regulator.
"We did everything that the CFMEU wanted," he said during his second day of evidence to the inquiry, which is holding hearings in Cairns.
"Michael Ravbar called the tunes, and we danced to his tune."
Mr Smith said relations had improved since the CFMEU was placed into administration by the federal government in August 2024.
But he said that pointed to an earlier failure of leadership, castigating his own department for not standing up to the union.
"It just shows to me that it was a lack of leadership from the CFMEU, how they engaged in that behaviour," Mr Smith said.
"That was their tactic, that was their business plan. You know, they operated like the Italian Mafia and the Russian Mafia.
"They had a real confrontational approach."
Mr Smith described how the extent of state capture went to the top, recounting a conversation with former industrial relations minister Grace Grace in January 2023.
He told Ms Grace the union expected Workplace Health and Safety to respond to trivial toilet complaints in the same way they would to a fatality.
"She responded with words to the effect of, 'well, I hope you aren't doing that'," Mr Smith said.
When he said the CFMEU disliked him for ignoring their demands, he said Ms Grace replied "they don't like me, either".
Mr Smith said inspectors had been pressured to issue safety notices on work sites and the number of infringements issued in Central and North Queensland ballooned from 28 to 158 notices between 2017 and 2019.
He said he was angry and disappointed Queensland's Office of Industrial Relations accepted the CFMEU's approach.
"Leadership was missing in action," he said.
"We were spineless when it came to dealing with the CFMEU.
"We've got a lot of responsibility for the workers of Queensland, and yet we didn't operate appropriately."
The inquiry heard evidence on Wednesday that a senior Workplace Health and Safety official, Helen Burgess, had been under investigation by the Crime and Corruption Commission (CCC) for two years.
Ms Burgess, who was alleged to have been in a close relationship with former CFMEU state president Royce Kupsch, was accused of working for the union by Mr Smith.
He made a formal complaint against Ms Burgess in 2022.
On Thursday, he expressed his frustration at the Office of Industrial Relations for its reluctance to remove Ms Burgess from her role after the CCC found grounds for disciplinary action.
Mr Smith said Ms Burgess was eventually suspended on full pay in December 2024.
Commissioner Stuart Wood is expected to report to the Queensland government in July.
