Grace Grace issued a directive to the Queensland Industrial Relations Commission asking it to restore allowances and conditions which were stripped during the Newman government administration.

The LGAQ has asked the Supreme Court to review the decision, given the QIRC's independence.

But Ms Palaszczuk defended her minister.

"The minister is entitled to make a ministerial direction – I understand that the LGAQ have expressed their concerns and in fact they have raised those concerns with both myself and the deputy premier Jackie Trad at a recent meeting," she said.

"However, now they have lodged a judicial appeal through the Supreme Court and we need to let that process take its course."

But Ms Palaszczuk denied that appointing a former union organiser as her industrial relations minister left the government open to further attack.

"Grace Grace has vast experience across working with not just the union movement, but the business community," she said.

"She has served on boards previously, such as South Bank – Grace Grace is doing a very good job as Employment Minister, Industrial Relations Minister and, of course, handling the complexities of the racing industry as well."

Ms Grace will be one of the LNP's targets at next week's budget estimates hearings, with Jarrod Bleijie, the opposition spokesman for employment and industrial relations, due to lead the charge.

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