CFMEU Allegations Trigger Federal Infrastructure Review

The Federal Government has ordered scrutiny of all major national infrastructure projects in the wake of allegations over the conduct of one of Australia’s most influential unions.

After alleged links to organised crime and reports of standover tactics on worksites were made last week, governments have come down hard on the CFMEU and the construction sector at large is now under a microscope. 

Late last week the Victorian Government announced an inquiry into the union in that state— now the Federal infrastructure minister Catherine King has directed her department to review the overseeing bodies of major infrastructure projects including the Western Sydney International Airport, slated for delivery in 2026 (pictured above), as well as the Inland Rail project. 

“Projects where the Commonwealth has a direct—and government business enterprises have a direct—role, on Western Sydney International airport [and] Inland Rail, for example, I’ve asked my department to work through to see if there’s any issues that need to be made aware of in any of those projects in relation to the matters that you’ve raised,” King told media.

“We want people in the infrastructure industry to earn good wages, to be safe at work. But the sorts of allegations we’ve seen in more recent days about the CFMEU are frankly something that we are all disgusted by.”

Meanwhile, the Victorian Government has unveiled the scope of an independent Construction Sector Review which it says intends to strengthen “the powers of bodies which are engaged with construction companies and construction unions”.

Gred Wilson, former secretary of the Department of Justice and Regulation, and most recently acting Victorian Public Sector Commissioner, will lead the review that intends to “investigate and recommend ways to amend any gaps or limitations in the current powers of Victorian bodies or legislation”.

▲ Inland Rail is among the projects the Federal Government has directed be reviewed.

As part of the review, the Victorian Government will develop whistleblower and complainant processes and protections, and decide whether the Victorian Infrastructure Authority should be able to remove individuals engaging in criminal or unlawful practices, the government said. 

The CFMEU has been suspended from the Victorian Labor Party, and the National Executive has banned donations from its construction division.

Last month, the Federal Government introduced legislation to allow the Manufacturing division of the CFMEU to vote on whether to remain with the union or divest from its leadership. 

Critis of the union have been vocal in the wake of the allegations.

The AI Group said that “all too little of what has emerged is a surprise to anyone with the remotest interest in the construction sector”, while the Housing Industry Association said that its members “cited concerns over many years regarding intimidation by the CFMEU”.

▲ The allegations by the major Australian media orgainsation were wide-ranging and nothing if not explosive.

“We fail to understand why any government representative would be shocked by these latest revelations and why it has taken this long to get action on these issues that have been identified in a number of past Royal Commissions, court cases and various government inquiries,” it said in a statement.

But despite the drama, new data has suggested that construction businesses are more positive about the future of the industry. 

Kennard Hire’s Construction Confidence Check report, which it said surveyed 410 Australian construction industry leaders, found that 67 per cent strongly agreed that the construction sector is stable, compared to 37 per cent last year.