‘Modern-day mafia’: Building industry let down as CFMEU corruption claims arise
Following new corruption allegations in the Construction, Forestry and Maritime Employees Union (CFMEU), the Coalition and industry peak bodies have urged the re-establishment of an industry watchdog.
New allegations of corruption, violence against women and intimidation involving members of the CFMEU in Victoria have sparked the Coalition and peak bodies to urge for an industry watchdog.
The push for a building industry commission follows a 60 Minutes investigation alleging that over 100 CFMEU members were bribed, while further allegations showed violence against women, physical assault, intimidation and victim negligence.
The investigation also uncovered links between CFMEU members and bikie-linked figures who received large payments from companies on publicly funded projects to gain favour with union insiders, using taxpayers’ money.
Senior barrister Geoffrey Watson SC told 60 Minutes that the union’s activities had become a “cancer spreading” throughout the Victorian construction sector.
In August last year, allegations of corruption, bullying and unlawful members had already arisen.
The federal government placed the organisation under administration on 23 August 2024, and Mark Irving KC was tasked with investigating the claims and reforming the union.
Despite the changes and the union being under investigation, the 60 Minutes episode revealed that the CFMEU continues to be plagued by ties to bikie gangs, sparking outrage across peak bodies and the Coalition.
Describing the CFMEU as a “modern-day mafia operation”, Opposition Leader Peter Dutton said the union has increased the cost of residential and commercial housing in Australia.
“The culture of criminality and corruption is so entrenched, and it will never change,” he said.
If elected, Dutton said it would follow US-style laws allowing police to tackle organised crime in the construction industry and fight the alleged CFMEU corruption.
Additionally, Dutton pledged to restore the Australian Building and Construction Commission with stronger powers, increase penalties for Fair Work Act breaches, and tighten access and office-holding requirements for registered organisations.
Housing Industry Association (HIA) managing director, Jocelyn Martin, said the allegations about the conduct of the CFMEU members were unsurprising.
“Are we meant to believe that 60 Minutes were the first ones to find this out?”
“HIA members seeking to undertake commercial, multi-unit or government-funded work have cited concerns over many years regarding intimidation by the CFMEU and the influence they have on building sites,” Martin said.
She said the revelations about the CFMEU’s conduct will only dampen workers’ confidence in the building sector as the country tries to reach its national housing target of 1.2 million homes by 2029.
Martin said the HIA is supporting the Coalition in re-instating an industry watchdog to regulate the CFMEU operations as the current regulatory framework is “outdated and inadequate”.
“Industrial organisations that can’t operate properly under the current arrangements must be properly regulated and subject to the same degree of transparency and accountability as companies,” she said.
“Union office holders and members must be held accountable in the same way company directors are, and the same penalties should apply for failing to meet those standards.”
Martin said the issue does not only affect large projects and drive up costs while reducing value across the industry, as cost-effective builders cannot secure contracts like school renovations due to a lack of union connections.
“The construction industry must be promoted as an attractive industry for all workers by ensuring acceptable, safe and appropriate behaviour on construction sites,” Martin concluded.