The Construction Forestry and Maritime Employees Union could be deregistered in the wake of organised crime allegations, the government has declared.
Federal workplace relations minister Tony Burke is currently seeking advice on what powers the government has to respond after it was alleged the union was linked to organised bikie crimes.
The allegations result from a several months-long investigation by Nine newspapers, 60 Minutes and The Age, which say the CFMEU had been parachuting criminal figures into high-paying jobs nationwide.
The expose claimed bikies and criminals acting as Construction, Forestry, and Maritime Employees Union delegates have received hundreds of thousands of dollars working on federal and state government-funded projects.
Many are employed on federal and state government-funded projects, particularly Victoria’s $100 billion-dollar Big Build road and rail infrastructure program.
The revelations have already led to CFMEU boss John Setka stepping down from his 12-year reign as the union’s head just hours before the allegations were published.
Mr Setka has denied the allegations, labelling them “false stories” and blaming endless media attacks for his decision to walk away from the CFMEU after more than four decades of involvement.
“[The] decision is in response to the ongoing and relentless stories written with multiple allegations, whether true or not, about this great union,” he said in a statement on Friday.
“These stories have been constant, and while I’ve been the target of many of them, enough is enough; the ongoing false allegations continually do nothing but harm the work this great union does for its members.”
The government considers the resignation a positive first step but remains adamant that it will consider deregistering the organisation should it not take effective action to clean up any underworld ties.
Mr Burke says he is awaiting the revelation of further reports on the union and advice from within his own cabinet before deciding what action, if any, should be taken.
“The extent of the criminal elements that have [allegedly] been there, I find absolutely abhorrent,” Mr Burke said in an interview with ABC on Sunday.
“I want advice on all the powers that I have with respect to what we’re seeing out of the construction division of the CFMEU, in particular Victoria, but I don’t know if it will broaden with the extra stories.”
“I will effectively look at three things: the advice on the extent of my powers, the allegations as they are revealed and, finally, the extent to which the union itself acts immediately and effectively. If they don’t, I will.”
“I want to make clear – everything is on the table.”
The union has also come under fire from state government opposition leaders, with the Victorian Liberal Party saying the allegations showed it was time for a new independent corruption watchdog.
“It’s time to get a cop on the beat, to clean up the industry that Labor has allowed to run riot for far too long,” Deputy Opposition leader David Southwick said.
“We’ve seen the blowouts, we’ve seen the corruption. We’ve seen the intimidation, and Victorians are all paying for this.”
Meanwhile, Queensland Opposition leader David Crisafulli said the CFMEU was “militant in its behaviour” and was knowingly decreasing project productivity.
Master Builders says the revelations confirm the CFMEU’s true modus operandi, which many in the construction industry are already aware of.
“The CFMEU accounts for less than 10 per cent of industry participants, but their unyielding stranglehold on builders, subbies, and clients has gone on for long enough,” a spokesperson said.
“The investigation confirms what we have heard from builders on the ground, ongoing coercion and bullying tactics employed by union representatives to accept pattern EBAs conditions including who they can and can’t hire on site.”
The industry body has since released a list of government recommendations it would like to see implemented.
Master Builders recommendations:
- Establishment of a cross-jurisdiction police strike force investigation.
- The Fair Work Ombudsman (FWO) to commence a review of CFMEU activities.
- ACCC investigates activities that may be contrary to competition laws.
- Increase the powers of the FWO to hold officials and unions to account.
“This should include a capacity to conduct reviews of whether officials and registered organisations should continue to hold their existing status and provide greater protection to complainants who are currently too afraid to come forward with evidence in fear of retribution.”
The Australian Constructors Association also said the alleged revelations came as “no surprise” to anyone who has worked within the construction industry.
“These issues contribute to the construction industry’s productivity being lower than it was thirty years ago,” said ACA CEO Jon Davies.
“They are also why only 13% of our workforce are women, why projects are running late and over budget, and why more people are leaving the industry than joining it.”
“While we support unions assisting Contractors in maintaining safe working conditions and representing workers on pay and conditions, they should not control who works on a project or when concrete can be poured.”
“We urge authorities to thoroughly investigate all allegations made in this investigation and call on state and federal governments to take strong action. As Minister Burke said on Insiders over the weekend, worksites should be free from bullying and thuggery.”
