The Victorian Government has pledged to implement recommendations to clean up the state’s construction industry. The move follows the release of a report into unlawful behaviour in the construction industry. Earlier this year, Prime Minister Anthony Albanese responded to growing concerns about the culture of Australia’s construction industry by placing the construction arm of the CFMEU into administration.

So why is change required, what changes are proposed, and do they go far enough?

Why is change needed?

The recommendations come after claims of bullying and standover tactics in the Construction arm of the CFMEU. It is alleged that organised crime figures and outlaw motorcycle gangs infiltrated the CFMEU and placed themselves and colleagues in delegate positions. Critics have also argued that there is a culture of violence within the CFMEU. Among allegations of violence among the union is a video of CFMEU organiser Joel Shackleton, who was arrested in September, allegedly threatening to bash two owners of Indigenous labour hire firm Marda Dandhi, which was aligned with CFMEU rival the Australian Workers Union.

In response to these allegations, Victorian Premier Jacinta Allan pledged to improve the construction industry’s culture.

“I was absolutely disgusted at the allegations of criminal, unlawful behaviour that was reported on Victorian and indeed Australian construction sites,” she said.

“We have zero tolerance for this behaviour, and we’ll work incredibly hard to pull this rotten culture out by its roots.”

Ms Allan said the government will adopt all eight recommendations of the report, which was conducted by former Deputy Secretary Of The Department Of Premier & Cabinet Greg Wilson.

What are the recommendations?

Among the recommendations are strengthening labour-hire laws. The government says it will expand the test for who is fit to be involved in labour-hire to exclude those convicted of indictable offences, those who have been declared insolvent or have close associations with members of criminal organisations. This addresses concerns that workers who have been kicked off work sites are using labour-hire to return through different companies.
The report also recommended a new complaints mechanism, which the government says will be set up within Industrial Relations Victoria.
Other recommendations of the report include:
• The establishment of an alliance of state and federal law enforcement entities to tackle criminal conduct at government construction sites.
• construction policies and contracts for government projects should include a clause that covers criminal or unlawful conduct.

Does the change go far enough?

Many believe the changes do not go far enough to address cultural issues within the Australian construction industry. They argue legislative protection should be provided to whistleblowers who expose wrongdoing in the construction industry. This will encourage employers who fear reprisals from the CFMEU to speak out.

Some advocates say that the new complaints body should be independent, not part of Industrial Relations Victoria.

Master Builders Australia would like to see greater clarity on how builders should address suspected criminal activity.

“It is currently unclear how builders – according to these recommendations – would be able to effectively address suspected criminal activity,” Master Builders chief executive Michaela Lihou said in an interview with the Australian Financial Review.

It’s important to remember that most people in the construction industry are decent, hardworking and honest. They must be rewarded for their contribution to the industry.

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Article References

ABC News (18 December 2024) ‘Victorian government accepts recommendations to clean up the state’s construction sector’, ABC News, accessed 23 December 2024

McCubbing, G & Marin-Guzman, D (18 December 2024) ‘Industry slams ‘whitewash’ Victoria government report into CFMEU’, Financial Review, accessed 23 December 2024