The Victorian Government says it is cracking down on unlawful behaviour in construction, following an independent review into state bodies’ engagement with businesses and unions.
The State Government will accept all recommendations of the Formal Review into the Victorian Government Bodies’ Engagement with Construction Companies and Construction Unions, conducted independently by Greg Wilson – either in principle or in full.
As part of its response, the State 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 State Government accepts 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.
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. The government will consult on these changes.
Construction policies and contracts for Victorian 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 State Government will also 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 established the Formal Review in July 2024 as part of a suite of actions in response to the allegations of criminal or unlawful conduct by the construction division of the CFMEU. The Review found that most relevant interventions sit with the Commonwealth in industrial relations and the CFMEU administration.
The measures the State 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.
Victorian Premier, Jacinta Allan, said, “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 Final Report and Government Response is available here.
