Victorian government in Australia vows to crack down on ‘rotten culture in construction’

A CFMEU protest march in 2019 in Australia (Image: John Robert McPherson via Wikimedia Commons, CC BY-SA 4.0)

It has accepted all of the recommendations of a formal review, part of a suite of actions that came in response to allegations of criminal or unlawful conduct by the construction division of the CFMEU union.

In July, claims of bullying and coercion within the CFMEU’s construction branch on job sites emerged. It disputed the claims but was placed into administration in August.

The formal review made eight main recommendations, including the establishment of a complaints referral body as a single point of entry to receive complaints relating to Victorian government construction sites.

The Victorian Government said it also accepted that labour hire is a “problematic area in relation to the allegations that led to this review”, because workers who may have been dismissed by one subcontractor have a potential route to return to sites under another.

In response the Victoria Premier Jacinta Allan said that the Labour Hire Authority’s regulatory powers would be strengthened, with an expanded “fit and proper person” test to include past convictions, insolvencies, membership to criminal organisations, or close association with an unfit person. The government said it would consult on the changes.

Among other measures, construction policies or contracts on projects funded by the Victorian Government will include clauses that cover criminal or other unlawful conduct. These would require contractors to report and address suspected criminal or unlawful conduct on sites and promote the new complaints referral body.

The Victorian Government will also consult with Australia’s federal government to establish an alliance across state and federal law enforcement as well as regulators to share information and coordinate action in relation to emerging issues on construction sites, it said.

The full informal review is available here.