The Victorian government has announced a sweeping crackdown on corruption in the construction industry following a damning report exposing misconduct within the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU).
The move is set to address what Premier Jacinta Allan has described as a “rotten culture” in the sector.
Under the new measures, contractors working on Victorian government projects will be required to report criminal activity on worksites.
The reforms come in response to findings that detailed allegations of bullying, standover tactics, and criminal behaviour within the CFMEU’s construction and general division, which was placed into administration earlier this year.
Industry standards get an overhaul
The state government has pledged to implement all eight recommendations outlined in an independent review led by investigator Greg Wilson.
The recommendations include the establishment of a complaints referral body specifically for Victorian government construction sites and the formation of a collaborative alliance between state and federal law enforcement to curb illegal activity.
To tighten oversight, the Labour Hire Authority’s regulatory powers will also be strengthened. This includes enhanced scrutiny of workers to ensure they meet the “fit and proper person” criteria.
The new guidelines will consider an individual’s criminal history, previous insolvencies, and potential links to organized crime.
Wilson’s report flagged the misuse of labour-hire services as a significant issue, highlighting how some individuals removed from worksites by subcontractors were able to return through third-party labour-hire providers.
Contractors will now face mandatory obligations to report and address unlawful activities, backed by a new referral body aimed at overcoming what the review described as a “culture of reluctance to report criminal and unlawful conduct.”
Premier Jacinta Allan has vowed to reform the troubled industry, emphasizing the need to protect workers and rebuild trust in unions.
“I am absolutely determined that we do everything we need to do to tear this rotten culture out by its roots,” Allan stated.
She called on workers and union members to demand better representation, criticizing the actions of some CFMEU members.
“Workers deserve strong, good unions because strong, good unions protect workers’ rights, protect their safety conditions, and provide good and fair outcomes on worksites,” the Premier said.
“That’s what good unionism looks like. That’s not what we’ve seen from some elements of the construction division of the CFMEU.”
The government has committed to evaluating the impact of these changes two years after their implementation.
CFMEU pushes back
The CFMEU has strongly opposed the forced administration of its construction and general division, sparking nationwide protests.
In August, tens of thousands of construction workers and union supporters rallied in cities including Melbourne and Sydney. Protesters in Melbourne chanted the name of John Setka, the former secretary of the CFMEU’s Victoria-Tasmania branch, while Sydney demonstrators marched to New South Wales Parliament House.
Setka, who resigned from his role just days before the report’s release, has denied the criminal allegations, dismissing them as “false.”
