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Industry looks to solutions in wake of union revelations

Numerous construction stakeholders have come forward advocating for solutions after revelations regarding a prominent Australian union.

Master Builders Australia and the Australian Constructors Association have chipped in with proposals on improvements that can be made after an investigation by Nine Newspapers into the CFMEU.

The investigation alleges irregular developments involving high ranking members of the CFMEU.

But Master Builders Australia has stated the CFMEU is only a small portion of the industry.

In a statement by the peak building body, it set out its recommendations to improve the situation.

The recommendations were:

  • Establishment of a cross-jurisdiction police strike force to investigate the allegations which is sufficiently resourced.
  • The Fair Work Ombudsman (FWO) to commence a review of CFMEU activities including whether recent EBAs were in fact genuinely agreed.
  • ACCC investigation of activity that may be contrary to competition laws.
  • At the very least, the Federal Government introduces legislation in spring sittings that increases the powers of the FWO to hold recidivist officials and unions to account. This should include a capacity to conduct reviews of whether officials and/or registered organisations should continue to hold their existing status and provide greater protection to complainants who are currently too afraid to come forward with evidence in fear of retribution.

According to Master Builders, the CFMEU only accounts for 10 per cent of industry participants.

Image: Javier/stock.adobe.com

Golden opportunity

Australian Constructors Association (ACA) CEO Jon Davies said the revelations were a chance to review and improve the national culture around building and construction.

“While we support unions assisting Contractors in maintaining safe working conditions and representing workers on pay and conditions, they should not control who works on a project or when concrete can be poured,” he said.

The ACA also recommends the Federal and state governments to thoroughly investigate all allegations and ensure worksites are free from bullying.

“We now have an opportunity to make this a reality, and the Australian Constructors Association is ready to work with all stakeholders to achieve this goal,” he said.

What will happen next?

Since a series of detailed stories emerged, CFMEU Victorian secretary John Setka has resigned, and that branch has been placed into administration.

The Federal Government is reviewing options of investigating the union to find out how deep the allegations go, including appointing an independent administrator, which has been welcomed by Master Builders and the ACA.

Federal Industrial Relations Minister Tony Burke also said he was considering deregistering the construction division of the CFMEU.
A number of state premiers have come forward suspending affiliation with the CFMEU while banning political donations from the union.

CFMEU National Secretary Zach Smith said the union had “zero tolerance of criminal activity”. He added that any form of de-registration would leave workers “vulnerable and without representation, without protection in an industry like ours.”

 

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