Opposition Pledges to Resurrect Building Watchdog Amid CFMEU Corruption Issues

The embattled CFMEU continues to face scrutiny of corruption and its conduct.
Opposition Pledges to Resurrect Building Watchdog Amid CFMEU Corruption Issues
Australia's Opposition Leader Peter Dutton during media interviews at Parliament House in Canberra, Australia, on May 15, 2024. (Tracey Nearmy/Getty Images)
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Opposition Leader Peter Dutton says he will work to resurrect a dormant construction watchdog in the wake of the controversy surrounding the Construction, Forestry, Maritime, and Energy Union (CFMEU).

Mr. Dutton says the Liberal-National Coalition would introduce laws for the Australian Building and Construction Commission (ABCC) to monitor the construction industry during the federal Parliament’s August sittings.

Failing that, the opposition leader pledged to bring back the ABCC if he wins the next election.

The overseeing body was wound down last year, with all outstanding legal matters referred to the Fair Work Ombudsman.

It was formalised in 2016 and issued $8.7 million in fines to the CFMEU during its short tenure, with one judge calling the union the “greatest recidivist offenders in Australian corporate history.”

Mr. Dutton says it was necessary to bring the body back to ensure standards across the industry.

Speaking on 2GB Radio on July 18, Mr. Dutton said people were not really shocked by allegations of corruption, and misbehaviour in the union’s construction division, saying it was “common knowledge.”

“The CFMEU is the most prosecuted union in the country,” he said. “There are hundreds of convictions that have been made for assaults and stand-over tactics, and the level of corruption is just phenomenal.”

Labor MP Bill Shorten argued against bringing back the ABCC, saying he didn’t believe it would solve the industry’s woes.

The ABCC was initially established in 2005 in response to the Cole Royal Commission report, which identified elements of lawlessness in the construction sector.

ABCC and Union’s Tense Relationship

The construction division of the CFMEU and the now defunct-ABCC have had a tense relationship, which boiled over into a long-held grudge by former CFMEU boss John Setka against former commissioner Stephen McBurney. 

In June, Mr Setka told the ABC it was fair to describe his feelings against Mr McBurney as a grudge, but said he was not making threats but rather “exposing people.”

A Construction, Forestry and Maritime Employees Union (CFMEU) signage at the CFMEU Construction Victoria offices in Melbourne, Australia on July 15, 2024. (AAP Image/Joel Carrett)
A Construction, Forestry and Maritime Employees Union (CFMEU) signage at the CFMEU Construction Victoria offices in Melbourne, Australia on July 15, 2024. (AAP Image/Joel Carrett)

“People like McBurney can’t attack workers and their conditions and be so undemocratic they make North Korea look like a democracy, and then just ride off into the sunset like nothing’s ever happened,” he said.

Mr. McBurney acted as the ABCC’s commissioner from 2018 until 2023, and now works as an umpire boss for the Australian Football League (AFL).

Last month, Mr. Setka called on the AFL to sack Mr. McBurney, and commented that while the union would not try to hold up construction projects for the AFL, noted that work that fell behind would be a case of “bad luck.”

The dispute led to the manufacturing division calling to break away from the union and Mr. Setka eventually stepping down from his role.

Further, a Nine Newspapers investigation revealed hidden police cameras had captured footage of the CFMEU’s NSW construction boss Darren Greenfield taking $5,000 in cash from a building company owner before placing it into a drawer.

The footage led to corruption charges for Mr. Greenfield and his son Michael, who are still awaiting trial.

Labor, ACTU Distancing From CFMEU

The Coalition’s pledge comes as Labor’s National Executive announced on July 18 that it would cut ties and block donations from the beleaguered CFMEU.

“The number one job of any union and its officials is to look after its members. The reported behaviour is the complete opposite of this,” said Labor’s National Secretary Paul Erickson on July 18.

Several Labor state governments have also taken action with New South Wales and Victoria pausing CFMEU donations, and Queensland freezing talks.

Peak union body, the Australian Council of Trade Unions, has also called it quits with the CFMEU construction division.

The flags of the Electrical Trades Union, and the CFMEU flying over a construction site at Griffith University's Nathan Campus in Brisbane, Australia on Jan. 30, 2024. (Daniel Teng/The Epoch Times)
The flags of the Electrical Trades Union, and the CFMEU flying over a construction site at Griffith University's Nathan Campus in Brisbane, Australia on Jan. 30, 2024. (Daniel Teng/The Epoch Times)

MP Speaks Out on Union Issues

Independent western Sydney MP Dai Le has spoken out about the construction wing of the CFMEU and the impact it had on people in her electorate.

Ms. Le said there were issues of non-English speakers being were pressured to join the union.

“There are a lot of threats that I have heard of in the construction industry that happen out here in south-western Sydney,” she told ABC TV.

“They were too scared to raise it because they said there were obviously people who were a part of the colourful bikie gangs.”

Call for End to Union Monopolies

Industrial relations reform group, the HR Nicholls Society, has called on the federal government to open up the union industry so more worker’s groups can be created.

The organisation says the CFMEU enjoys protections under the “conveniently belong” rule in the Fair Work (Registered Organisations) Act 2009.

This clause effectively limits an industry to one union group, with the law stating that the Fair Work Commission does not need to register a new union if workers can “conveniently belong” to an existing entity.

HR Nicholls Society president and barrister, Frank Parry, said this practice went against the principles of free association under the International Labour Organisation (ILO).

“In Australia however, workers are not able to exercise this right. And now what we see is that thousands of workers are forced to be represented by the CFMEU,” he said in a statement to The Epoch Times.

“Many workers would rightly object to being linked to the CFMEU in this manner, especially after what has been uncovered in the last few days.”

He further called for the Victorian and federal governments to exclude the CFMEU as a party to Enterprise Bargaining Agreements (EBAs) in government contracts.

“They must remove the CFMEU as respondent to these EBAs, allowing any other union to step into that role. Any other union should be able to represent employees on construction work on Government contracts,” Mr. Parry said.

Crystal-Rose Jones is a reporter based in Australia. She previously worked at News Corp for 16 years as a senior journalist and editor.
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