Victorian Premier Jacinta Allan has promised to tear the “rotten culture” of the CFMEU “out by its roots”.
The union’s construction division has been accused of taking kickbacks, being linked to organised crime and employing standover tactics on worksites, in a series of Nine newspaper reports.
Ms Allan announced an independent review into the troubled construction industry on Saturday, to be led by Greg Wilson, who has previously served as acting commissioner of the Victorian Public Sector Commissioner.
Ms Allan said she was disgusted by the allegations and an interim report would be delivered to the government in six weeks.
“We will tear this rotten culture out by its roots – making sure our construction industry meets the expectations of the Victorian people,” Ms Allan said.
“Unions are meant to keep people safe – we are making sure that people coming forward with critical information about conduct on worksites have the complaints processes and protections they deserve.”
Mr Wilson’s review is expected to recommend ways to stamp out unlawful conduct on building sites, including those included in Victoria’s Big Build.
The state government also announced the scope of the Independent Construction Sector Review.
It will also consider how government can establish clear processes and protections for whistleblowers and complainants with allegations of criminal or unlawful practices, coercion, bullying or intimidatory conduct.
The interim report will be provided to the government by August 29 and a final report by November 28.
At the request of the Victorian government, the national executive of the Labor Party has banned donations from the CFMEU’s construction division and suspended the division from the Victorian Labor Party.
On Monday, the government wrote to Employment and Workplace Relations Minister Tony Burke requesting the government exercise its powers to review, and if necessary, terminate, union enterprise bargaining agreements on Victorian construction sites to prevent criminal activity.
On Wednesday Mr Burke confirmed he had requested the Fair Work Ombudsman undertake a targeted review of all enterprise agreements made by the Victorian branch of the construction division of the CFMEU that apply to Victorian Big Build projects.
The Victorian government has also written to the police commissioner and the Independent Broad-based Anti-Corruption Commission (IBAC) referring the allegations for investigation.
Earlier this month controversial union boss John Setka quit the CFMEU’s top job citing “malicious attacks” and “ongoing false allegations” in response to the media reports.
He was due to retire later in 2024 after 12 years as the head of the CFMEU in Victoria.
