While the Victorian and South Australian branches of the CFMEU (Construction, Forestry, Maritime, Mining and Energy Union) have been placed into administration, following allegations that criminals infiltrated the union, here in the ACT the CFMEU is advocating for ACT Labor to grant it greater powers over procurement decisions and the hiring of senior public servants, local media has reported.

The Master Builders Association of the ACT and the Canberra Liberals have both demanded that Labor reject this proposal.

At the ACT Labor Conference later this month, the CFMEU will reportedly push for increased authority to investigate and prosecute companies that breach the ACT secure local jobs code; more involvement in appointing senior public servants, including sitting on hiring panels; more powers to address workplace safety and pay issues for companies bidding on government tenders; union consultation to scrutinise companies; and employment quotas for women in government-funded construction projects.

Chief Minister Andrew Barr, however, said that the policy proposals were “neither an ACT Labor party policy position, nor something that is being actively considered by the Government”.

Motions put up for debate at the ACT Labor Conference are subject to amendment, Mr Barr noted. More than 200 Conference Delegates will consider the motions before the Conference, clarifying their intent and practicality. Motions can be referred to ACT Labor’s policy committees or branch council for further work.

Master Builders ACT said that ACT Labor must “stand up against the CFMEU tactics of bullying and thuggery, and reject this outrageous request”.

Construction costs can increase by up to 30 per cent due to delays caused by CFMEU influence on building sites, an MBA spokesperson said; as Australia was in the middle of a national housing crisis, this was unacceptable.

“The principles of freedom of association and competition must be protected,” the spokesperson said. “It beggars belief that the CFMEU would call for the union to have even more power over ACT Government procurement decisions.

“It is especially galling in light of the recent allegations of bullying, intimidation and corruption by the CFMEU in Victoria, which have come as no surprise to our members. This abhorrent conduct is experienced daily on construction sites around the country, and the ACT is no exception.”

Opposition leader Elizabeth Lee urged the Chief Minister to reject the union’s “push [for] extraordinary and unprecedented power”.

“For a union to have the veto power in relation to ACT Government tenders, contracts, procurement, and the appointment of very senior ACT public servants is an incredible overreach,” Ms Lee said.

Master Builders ACT claim that unions have interfered in procurement for years. An earlier agreement between Unions ACT and the ACT Government that allowed unions a rôle in procurement decisions was “inappropriate”, the spokesperson said; the Secure Local Jobs Code, which replaced the MoU in 2019, was “worse”. At the time, the MBA warned it would give unions a power of veto over government contracts.

The CFMEU’s call for expanded powers follows a controversial tender process for the Campbell Primary School refurbishment, where union influence allegedly affected the outcome. The Integrity Commission heard last year that education minister Yvette Berry’s office overruled a local company, Manteena, getting the contract because the CFMEU did not favour it. Ms Berry has denied instructing her staff not to award the contract to Manteena due to union concerns. The head of the ACT Education Directorate, Katy Haire, launched a court action last year to stop the investigation.

“The CFMEU is not only a member of ACT Labor that has input into party leadership positions including the current Education Minister and Deputy Chief Minister [Ms Berry], but also provides significant donations to the ACT Labor Party,” Ms Lee said.

Ms Berry was a union organiser for 15 years with trade union United Voice (now part of the United Workers Union), and her election campaign was backed by the CFMEU, the Community and Public Sector Union (CPSU), and the Transport Workers’ Union (TWU).

The CFMEU donated $50,000 to Labor at the 2020 election; altogether, unions donated nearly $90,760 to the party.

“There is no role for third parties in procurement decision-making,” the MBA said. “The preliminary findings in Operation Kingfisher [the investigation into the Campbell Primary School procurement] highlight the influence and control the union already has over the government in the ACT.

“If the CFMEU get their way, they will continue to bully and harass not only our builders and subcontractors, but our government officials too.

“If this proposal is implemented, it could have a devastating impact not only on the wellbeing and livelihoods of those employed in our industry, but could also put even more barriers in the way of reaching housing targets and building the infrastructure needed to support our communities.”

Ms Lee said Canberrans should question whether criminals and bikie gangs had infiltrated the ACT branch of the CFMEU, as they had in Victoria.

“The ACT is the only jurisdiction in the country that does not have anti-consorting laws, which makes Canberra a desirable location for outlaw bikie gangs and organised criminals,” Ms Lee said.

ACT Labor condemned the alleged criminal activities within the CFMEU Victorian/Tasmanian Branch, Mr Barr said. Like Prime Minister Anthony Albanese, Victorian Premier Jacinta Allan, and the Secretary of the Australian Council of Trade Unions (ACTU), Sally McManus, he agreed “that this behaviour has no place in the union movement”.

“The National CFMEU needs to urgently clean up its Victorian/Tasmanian branch in the best interests of Victorian and Tasmanian construction workers and the broader union movement. The starting point for this is the decision to place the Victorian/Tasmanian branch into administration, and we are expecting that further actions will be announced in the coming days.

The Federal Government is closely monitoring the CFMEU’s response to the allegations before considering potential action, Mr Barr noted; the ACT Government will act accordingly.

“The allegations aired over the weekend do not include the ACT branch of the CFMEU,” Mr Barr said. “ACT Labor suggests no wrongdoing on the part of the CFMEU in the ACT. ACT Labor has not received any donations or affiliation fees from the Victorian/Tasmanian branch of the CFMEU.”

The CFMEU has been asked to comment.