Victoria Targets ‘Rotten Culture’ in Construction with New Laws

The new law will create a complaint referral service to investigate misconduct at public construction sites.

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

In response to alarming reports of violence and intimidation on state construction sites, particularly against women, the Allan government has introduced new legislation aimed at reforming industry culture.

Victorian Premier Jacinta Allan emphasised the government’s commitment to reform, stating, “The government is moving ahead swiftly to eradicate the rotten culture exposed in parts of the Victorian construction sector.”

As part of the effort, the Premier announced an independent sector review to strengthen the powers of regulatory bodies in responding to allegations of criminal or unlawful conduct.

The review will assess “gaps or limitations in Victorian legislation and their interaction with the powers of the Commonwealth.”

A Fresh Approach to Regulation

The Wage Theft Amendment Bill 2025, a key recommendation from the independent Wilson review, will create a dedicated service to handle complaints about misconduct on public construction projects, ensuring they are directed to the right investigative bodies.

“This will make it easier for complaints to be made and provide a single doorway for issues to be raised and actioned, with a particular focus on complaints that involve a threat to the safety of women,” the government stated.

The new complaints service will be managed by the Workforce Inspectorate Victoria, which has expanded its role beyond wage theft enforcement.

The service will also cover other worker protections like child employment, long service leave, and contractor protections.

In a broader shake-up, recent changes to federal law now make wage theft a criminal offense across Australia, so Victoria will repeal its own state laws on the issue and rely on the new federal framework.

“Criminal and unlawful behavior has no place in Victoria’s construction industry,” said Minister for Industrial Relations Jaclyn Symes. “This new complaints service will help rid worksites of bad conduct.”

The government’s action follows disturbing media investigations exposing violent incidents on state-funded construction projects.

One report showed a bikie-linked safety representative allegedly assaulting a woman on-site.

Another revealed a convicted violent offender detaining a woman in a confined space at a government hospital project while smoking illicit drugs.

Opposition Calls for Tougher Measures

While the government seeks to address the issue with regulatory reforms, the Opposition argues for a more aggressive approach.

Drawing inspiration from U.S. “racketeering laws,” the Coalition argues that tackling individual offenders is not enough and that criminal organisations within the industry need to be dismantled.

The Coalition announced a reform package modelled on the U.S. to dismantle what it calls the “criminal stronghold” within the CFMEU.

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

The U.S. Racketeer Influenced and Corrupt Organisations (RICO) Act was instrumental in dismantling organised crime in the 1970s by allowing authorities to target entire criminal networks and imposing harsher penalties to deter future offenses.

Former mobster Michael Franzese noted that RICO’s severe sentencing led many criminals to abandon their activities rather than risk decades in prison.

However, the Coalition’s attempt to introduce it in the Parliament was opposed by both Labor and the Greens, who argue that the government’s new approach will be more effective in addressing misconduct on construction sites.