Modern Australian
Men's Weekly

.

Labor wants to put the construction union into administration, but last year it axed the cop on the beat. That doesn’t look wise

  • Written by Timothy O'Leary, Lecturer in Construction and Property, The University of Melbourne

The government has backed a move by the Fair Work Commission to place the construction division of the Construction, Forestry and Maritime Employees Union (CFMEU) into administration.

Workplace Relations Minister Tony Burke said on Wednesday there could be “no place for criminality or corruption in any part of the construction industry”. He promised to legislate if necessary.

The commission’s decision to investigate placing the union’s construction division into administration follows allegations of thuggery, kickbacks, standover tactics and the parachuting of senior bikie figures into lucrative union positions aired in Nine newspapers and on the Nine television network.

Burke also promised to use the government’s procurement powers to ensure enterprise agreements used on government-funded projects were genuinely agreed and workplaces were free from intimidation.

But the allegations ought not to have come as a surprise.

Two decades ago, one of Australia’s most expensive and lengthy royal commissions, the 2002 Cole Royal Commission into the Construction Industry, led to the creation of the Australian Building and Construction Commission.

The ABCC, as it was known, was to be the building industry’s “cop on the beat”.

Decades of lawlessnes

Royal Commissioner Justice Terence Cole found “a culture of lawlessness” in the industry, although he didn’t find evidence of organised criminal activity.

Once established, the ABCC monitored and promoted compliance with a number of codes and laws. These included the Code for the Tendering and Performance of Building Work, the Building and Construction Industry (Improving Productivity) Act and the Fair Work Act.

The Code for the Tendering and Performance of Building Work ought not to be confused with the industry’s long-standing National Construction Code, which sets minimum standards for the design and performance of buildings.

When Labor regained power two years ago, Burke, as the newly sworn-in minister, confirmed he would implement Labor’s election promise to shut down what he called a “politicised and discredited organisation”.

A rap sheet covering five states

The commission was abolished as part of Labor’s Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act in February 2023.

The commission had fined the union a total of A$16.1 million over six years.

The rap sheet was long and extended beyond the construction divisions’s traditional stronghold of Victoria to Sydney, Brisbane, the Gold Coast, Adelaide and Perth.

Prosecuting the union and its officials took up most of the commission’s time. It also dealt with countersuits from the union and took action against and was sued by developers in cases in which the union was often a third party.

In 2022, in work commissioned by Master Builders Australia, Ernst & Young estimated the economic costs of Labor proceeding with its plan to abolish the ABCC at $47.5 billion by 2030.

The report foresaw higher costs and lower productivity in construction if the commission was abolished. It said this would act as a “handbrake” on the manufacturing and service sectors, given their dependence on construction.

Two decades on, a fresh crackdown

It is worthwhile asking why, two decades after a lengthy and expensive royal commission that found a culture of lawlessness in the industry, the government thought it was safe to close down the industry watchdog and now feels it necessary to crack down on the union the watchdog policed.

Thousands of construction industry contracts and deals are done each week. The industry has high levels of subcontracting and thin profit margins alongside inherent uncertainty and risks. This makes it an ideal breeding ground for improper industrial behaviour.

There remain too many instances of blatant corner-cutting and coercive behaviours, some of them illegal.

A separate employer-funded Construction Industry Culture Taskforce established in 2018 might help, but the government needs to also show it is committed to the change it has just begun 17 months after abolishing the Building and Construction Commission.

Authors: Timothy O'Leary, Lecturer in Construction and Property, The University of Melbourne

Read more https://theconversation.com/labor-wants-to-put-the-construction-union-into-administration-but-last-year-it-axed-the-cop-on-the-beat-that-doesnt-look-wise-234908

How Professional Cleaning Improves Indoor Air Quality

Indoor air quality (IAQ) plays a crucial role in our health, comfort, and overall wellbeing. Australians spend nearly 90% of their time indoors-at hom...

Solar and Solar Battery Systems: Powering Smarter Homes in Victoria

As energy prices continue to rise and sustainability becomes a priority for Australian homeowners, more families are investing in Solar and Solar Ba...

Plumbing Emergency Melbourne: What to Do When Every Minute Counts

A sudden plumbing issue can quickly turn into a major disaster if not handled promptly. From burst pipes and overflowing toilets to leaking gas line...

Why Older Melbourne Homes Require Detailed Building & Pest Inspections

Older homes make up a large part of Melbourne’s housing stock. Victorian terraces, Edwardian houses, Californian bungalows, and post-war brick hom...

7 Essential Tips for Choosing Reliable Moving Services in Perth

Moving to a new home or office can be exciting, but it also comes with stress, planning, and plenty of decisions. One of the most important choices yo...

How to Find the Best Real Estate Agent Near You on the Central Coast

Choosing the right real estate agent can make a major difference to your final sale price, days on market, and overall experience. The Central Coast...

Unlock Durability And Beauty With Burnt Timber Cladding Solutions

Imagine a home or commercial space that not only stands the test of time but also tells a story through its very facade. In the world of architectur...

Offroad Caravans: Built for Adventure Beyond the Beaten Track

Australia’s vast and varied landscapes invite travellers to explore far beyond sealed roads and crowded parks. Offroad caravans are purpose-built ...

The Expert's Guide to Understanding Large Bore Steel Pipe Specifications

When it comes to infrastructure, construction, and various industrial applications, the choice of materials is paramount. Among the options availabl...

Preparing for Your First Trip to San Francisco in 2026

San Francisco has long occupied a particular place in the Australian imagination. It is compact yet complex, progressive but historic, and visually st...

Modern Office Painting in Australia - It's the Real Game Changer

Walk into any modern Australian office today and you'll be struck by the fact it's a whole different beast from the ones we grew up with. Gone are t...

How to Choose the Right Suburb for Your Lifestyle

Choosing the right suburb is one of the most important decisions you’ll make when buying or renting a home. Beyond the property itself, the suburb...

Considering Cryolipolysis Fat Freezing? Here’s What You Need to Know

Body confidence can shift over time, and sometimes even good diet and training can still leave a stubborn area of fat that won’t budge. If you’r...

From Local Tradie to Digital Leader: The Strategy Behind Auto Gate Guys Sydney’s Growth

For many small trade businesses, digital marketing still feels like a buzzword, not a necessity. They rely on word-of-mouth referrals, repeat clients...

Electric Automation System: Smarter Control for Modern Electrical Infrastructure

Modern buildings and industrial facilities are increasingly dependent on intelligent control and efficiency. An electric automation system brings t...

The Damp Truth: Why Your Overflowing Gutters Are an Open Invitation for Termites

When it comes to protecting your home, most people think about visible threats — storm damage, cracked tiles, break-ins. But one of the most destruc...

Is Your Inventory a Sitting Duck? 2 Critical Upgrades to Protect Your Business Assets and Your Bottom Line

Imagine this: you finish a long day on the job, lock up your tools, materials, and work vehicle in the garage, and head home. But overnight, someone b...

Electrician in Melbourne: Reliable Electrical Solutions for Homes and Businesses

Finding a dependable electrician Melbourne is essential when safety, efficiency, and long-term performance matter. Electrical systems form the back...