CFMEU pays out $3.5m to settle Grocon blockade lawsuit

The construction union CFMEU will pay about $3.5 million to building giant Grocon to settle a civil case against it over illegal blockades to a series of Grocon Melbourne building sites.

A CFMEU spokesman confirmed the payout to Grocon, which he said would settle the civil case against the union.

The blockades were sparked by a dispute between the CFMEU and Grocon over safety issues that culminated in a blockade of the Myer Emporium work site in Melbourne's CBD.

The CFMEU spokesman said the payment would cover Grocon's legal costs only and would end the civil case.

"This dispute was always about and will always be about the safety of building workers and the general public," a CFMEU spokesman told AAP.

"This settlement means that not one cent of CFMEU members' money will go to a company that continues to flout safety and put lives at risk in the name of profit."

It's understood Grocon sought $10.5 million from the union in lost earnings and costs over the blockades, sparked by a dispute with the company over safety issues and the appointment of shop stewards.

The union blockaded Grocon projects including its Myer Emporium site in 2012.

The CFMEU was later found guilty of contempt by the Victorian Supreme Court and fined $1.25 million.

Comment has been sought from Grocon.