Coalition’s Proposed ‘RICO-Style’ Crackdown on Mob Links in Unions Voted Down in Senate

The RICO laws were instrumental in the dismantling of organised crime in the United States, which effectively controlled the union movement.

Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) signs in Brisbane, Australia on July 16, 2024. AAP Image/Jono Searle

The first sitting day of Parliament turned into a political slugfest, with the CFMEU once again at the centre of corruption allegations.

An exposé revealed violence and intimidation on state construction sites—particularly against women—sending shockwaves through the nation.

The Liberal Party, led by Senator Michaelia Cash, moved a motion demanding an immediate crackdown on the union’s alleged ties to organised crime and calling for urgent legislative action.

Within hours of the exposé, the Coalition unveiled a reform package modelled on American “racketeering laws” to dismantle what it called the “criminal stronghold” within the CFMEU.

Coalition Leader Peter Dutton said, “We need to go after the criminal organisations, not just the individuals.”

The U.S. “Racketeer Influenced and Corrupt Organizations (RICO) Act” was instrumental in the dismantling of organised crime syndicates in the 1970s, which had flourished for decades across major cities.

RICO was different because it allowed officials to prosecute entire criminal organisations, not just individual members, and also ramped up the penalties—criminals were often deterred from committing crimes again due to the prospect of spending decades behind bars, according to former mobster Michael Franzese.

Senate Showdown

For an hour, the Senate became tense, with the Liberals accusing Labor of shielding the CFMEU.

But in the end, the motion was defeated 36-31.

Cash harshly criticised Labor for its ties to the union.

“What an absolute disgrace. Money talks in this country, dirty money flowing from the CFMEU ...” she alleged

Meanwhile, National Party Senator Bridget McKenzie raised concerns over taxpayer funds potentially being funnelled into CFMEU-linked projects.

Pointing to a mysterious $5 billion (US$3.2 billion) cost blowout in Victoria’s infrastructure budget, she demanded accountability.

“Hardworking Australians deserve to know that their money isn’t being siphoned off to fund criminal activities under the guise of public works,” she said.

Labor Fights Back: ‘We’re Cleaning House’

Labor rejected the Coalition’s criticism, calling it political grandstanding.

Workplace Relations Minister Murray Watt reminded the opposition that many of these scandals happened under their watch.

“What started to change that was the actions of a Labor government. We appointed an administrator to the CFMEU, something the Coalition failed to do in nine years.”

Watt doubled down on Labor’s commitment to reform, arguing that simply deregistering the union would only create more chaos.

Emergency Management Minister Jenny McAllister also criticised the opposition’s “mistruths and misstatements.”

“There are two contrasting approaches today. One based on actual policy action, and one based on political theatrics,” she declared.

She warned that a reckless approach could endanger ongoing projects, putting thousands of legitimate workers at risk.

Jacqui Lambie Unleashes

And then came Independent Senator Jacqui Lambie, who labelled the Coalition’s outrage as hypocrisy, arguing that they failed to clean up the CFMEU when they were in power.

“Nine years, nine years, you had your ABCC going. What did that do? Nothing. Absolutely nothing!” she said.

But her harshest warning was for those calling for the CFMEU’s deregistration.

“They’re a 1 percent bike gang now. That’s what they’ve turned into. If you think ripping off the patch will stop them, you’re dreaming. You’ll just drive them further into the shadows.” Lambie said.

More Drama in the Lower House

Meanwhile, in the lower house, Liberal MP Zoe McKenzie grilled Infrastructure Minister Catherine King on whether taxpayer dollars had been siphoned into organised crime networks via the CFMEU.

She pushed for a clear audit of where public funds were going and whether there were safeguards in place to prevent money from being funnelled into corrupt hands.

King condemned the CFMEU’s behaviour but pushed back, arguing that federal infrastructure funds are strictly allocated under state agreements.

“No doubt, the behaviour we’ve seen from the CFMEU is absolutely unacceptable. But this government has taken the strongest possible action to deal with it,” King said.

She said the government’s approach was not about protecting unions but about ensuring real reform without destabilizing the construction sector.

Despite the opposition’s demands for immediate action, Labor is standing firm on its “clean-up from within” strategy.