The federal government has ended a long-running battle between Canberra's construction union and the Australian Competition and Consumer Commission (ACCC) over a failed prosecution, with a settlement of more than $1 million for legal costs.
The charges against the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) arose out of the royal commission into trade unions.
It began with a raid on the union's Canberra office five years ago.
The union and its then boss, Jason O'Mara, were accused of cartel behaviour.
The ACCC alleged the union had tried to induce local steel fixers and scaffolders to set a minimum price to afford a wage rise, in 2012 and 2013.
The ACT's industrial court heard allegations the union was accused of threatening to "run businesses out of town" if they did not cooperate.
But the case never got beyond the opening statements.
It was dropped in August last year because of problems with the evidence.
At the time, ACCC chair Rod Sims said it was being abandoned because of the extended time that had elapsed since the alleged conduct occurred and the challenges that had posed for witnesses' memories.
The union's Zac Smith said the government had only recently agreed to the out-of-court settlement for $1.265 million.
"That's not the full amount the union incurred and it's probably only a fraction of what the federal government spent," Mr Smith said.
Mr Smith said the charges were spurious to start with.
"The prosecution was always doomed to fail," he said.
"It was a case that never should have been brought and it was the politicisation of the ACCC by the then conservative government to attack the CFMEU."
Mr Smith said Mr O'Mara, who has now left his union job, was relieved by the final settlement.
"He always knew that he had done nothing wrong, he had always set out to do what every good trade union official does, and that's to negotiate a good deal for their members," he said.
"It is vindication for Jason, it's vindication for the CFMEU."
