This article is from the Australian Property Journal archive
VICTORIA’S Allan government will adopt all recommendations of the Formal Review into allegations of criminal or unlawful conduct by the construction division of the CFMEU.
Premier Jacinta Allan said the government will accept the findings of the Formal Review into the Victorian Government Bodies’ Engagement with Construction Companies and Construction Unions, conducted independently by Greg Wilson.
The review was established in July this year after a Nine investigation uncovered alleged corruption, criminal bikie and underworld figures have infiltrated major construction sites in Victoria, including federal and state government projects.
Following the revelation the Victorian branch of the CFMEU was placed into administration whilst the state secretary John Setka stepped down ahead of the publication of Nine’s story.
The report alleges that criminals were parachuted into high paid jobs on government-funded projects and criminal bikies and underworld figures received hundreds of thousands of dollars working on government projects.
In the final report, senior public sector bureaucrat Greg Wilson, who previously served as Secretary of the Department of Justice and Regulation, made eight recommendations to the government.
In response to Wilson’s review, Premier Allan said a rotten culture has been exposed in the construction sector and the Victorian Government is eradicating it.
“Criminal and unlawful behaviour has no place in Victoria’s construction industry, and I thank Mr Wilson for his work that will help us stamp it out.
“Unions are meant to keep people safe – we are making sure that people coming forward with information about conduct on worksites have the complaints processes and protections they deserve,” the premier said.
As part of its response, the government will establish a complaints referral body as a single point of entry to receive and refer complaints relating to Victorian Government construction sites.
The government has agreed with the review’s identification of labour hire as a “problematic area in relation to the allegations that led to this review”, as it provides a potential route for workers who may have been dismissed by one subcontractor to return under another.
As a result, the Labour Hire Authority’s (LHA) regulatory powers will be strengthened, including by expanding the fit and proper person test to include past indictable convictions, insolvencies, close association with an unfit or proper person or membership to criminal organisations.
Furthermore, construction policies and contracts for state government-funded construction projects will include clauses that cover criminal or other unlawful conduct, requiring contractors to report and address suspected criminal or unlawful conduct on worksites and promote the new complaints referral body.
The review also found that most relevant interventions sit with the Commonwealth in industrial relations and the CFMEU administration.
As a result, the state government will consult with the federal government to establish an alliance across state and federal law enforcement, regulators and other relevant entities to share information, coordinate action and inform government of emerging issues on construction sites.
The premier said the measures her government is adopting aim to complement Commonwealth reforms and CFMEU changes, as well as actions already taken by the Government, which includes this year passing anti-bikie laws that make it easier to prevent certain individuals from associating with each other.
“Mr Wilson’s recommendations and their impact will be evaluated two years following the delivery of this Review to ensure these strong actions tear this rotten culture out by its roots,” Allan said.
