Corruption controversy engulfs Australian construction union

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

Minister for Employment and Workplace Relations Tony Burke said in a statement today (17 July) that he would ensure Australia’s workplace tribunal, the Fair Work Commission, had “all the powers it needs” to appoint administrators to the union if it decided such action was necessary.

Burke’s intervention came after an investigation focused around the Victorian branch of the CFMEU’s construction division by Australian broadcast network Nine, which alleged corruption.

Following the publication of the allegations in multiple media outlets, the CFMEU announced earlier this week (15 July) that the Victorian Branch would be placed into administration and that the national office of the union would assume all executive powers.

“We will establish an independent process to investigate any credible allegations of wrongdoing. This is the first time in our union’s history that such an action has been taken.

“However, we have zero tolerance for criminality. Anyone found to have engaged in criminal conduct while representing the CFMEU will be identified and removed. Our union exists for one purpose only: to defend and advance the safety and conditions of workers,” it said.

The Fair Work Commission announced on Wednesday (17 July) that it is “undertaking careful analysis of the extensive media reporting involving the construction and general division of the CFMEU in relation to alleged non-compliance under the RO [Fair Work (Registered Organisations)] Act.”

Government support for Fair Work Commission

Calling the reported behaviour of the CFMEU’s construction division “abhorrent and intolerable”, Burke said in a statement, “The general manager of the Fair Work Commission has indicated he wants to take legal action to appoint administrators to the construction division of the CFMEU and is seeking advice on this course of action.

“If the general manager of the Fair Work Commission takes this action, I will intervene to ensure the proceedings are successful.”

He added that the Australian government would legislate to ensure that there was a “clear pathway” for the Commission to put any part of the construction division of the CFMEU into administration if the issue hadn’t been resolved by the time Parliament returns.

“The government will ensure the regulator has all the powers it needs to appoint administrators. There can be no place for criminality or corruption in any part of the construction industry,” he added.

Meanwhile, he has asked the Fair Work Ombudsman to review all enterprise agreements made by the Victorian branch of the construction division of the CFMEU that applies to Victorian ‘Big Build’ projects, a series of high-value transportation projects across the state.

He said, “I stress as part of this review the government is seeking information on coercive behaviour and has no intention of taking any action which would put at risk terms and conditions of employment for the workers covered by these agreements. This is not their fault.

“The government will use its procurement powers to ensure that enterprise agreements used on government-funded projects are genuinely agreed and that workplaces are free from coercion and intimidation.”

In its statement, following the allegations against the CFMEU, it said, “Our union operates in a tough industry where people are injured or killed every week and where shonky developers and contractors are often allowed to run rampant. We know that big business and their political backers will always hate our union because they think blue-collar Australian workers don’t deserve decent pay or robust safety standards. We stand firm in our commitment to protecting and advancing the rights and safety of all our members.”