Construction bosses say tougher laws needed to stop return of Building Bad

Construction companies involved in Victoria’s major infrastructure projects are calling for the state government to ban coercive industrial practices they say enabled the CFMEU to control billions of dollars in public funds. The companies met Thursday night to discuss the fallout from the ongoing “Building Bad” scandal, intensifying pressure on Premier Jacinta Allan to strengthen the government’s response to corruption on major projects.

Concerns Over Corruption and Coercion

Construction giants including John Holland, Lendlease, CPB Contractors and Acciona voiced their concerns after witnessing firsthand the cost of corruption and criminal involvement on Victoria’s Big Build sites. The meeting followed the release of reports detailing alleged misconduct and the influence of organized crime within the construction industry.

Founding chief executive of Victoria’s Independent Broad-based Anti-corruption Commission, Alistair Maclean, has criticized the government, public service, and integrity agencies for failing to address growing evidence of wrongdoing. Maclean urged the government to “come clean” on its failure to prevent corruption.

Every Big Build project has its own government-appointed authority and is additionally managed or regulated by the Victorian Infrastructure Delivery Authority, Industrial Relations Victoria, WorkSafe Victoria and the Workforce Inspectorate Victoria.

Calls for Legislative Change

Maclean questioned the oversight of departments and agencies, asking, “What were heads of departments advising their ministers?” He also raised concerns about safety compromises resulting from the presence of individuals with criminal backgrounds in union health and safety roles.

The calls for action come after the Allan government refused to support proposed law changes from the Greens that would grant the anti-corruption agency “follow-the-money” powers to investigate the misuse of public funds by private entities. The government stated it is developing its own IBAC reform bill.

Premier Allan acknowledged a “rotten culture” had taken root at Big Build sites but has ruled out a royal commission. She cited steps already taken, including tougher labor hire laws, mandatory reporting requirements, and increased information sharing between relevant agencies.

Industry Response and Proposed Solutions

The Australian Constructors Association (ACA) convened a board meeting to formulate a response to the scandal, addressed by Fair Work Commission chief Murray Furlong, who suggested construction companies bear responsibility for preventing corrupt practices on their sites.

The ACA is advocating for a statewide construction code to prevent the CFMEU from controlling subcontractor selection on government-funded projects. They also propose a fit-and-proper-person test for union health and safety delegates, citing concerns about the use of criminal associates in these roles, as detailed in a report by Geoffrey Watson, SC.

The ACA expressed concern that CFMEU-style tactics could be adopted by other unions and emphasized the need for legislative changes and increased governance to prevent future corruption.