But Ai Group says measures will burden employers while failing to address union misconduct
The Victorian government has committed to implementing all recommendations from an independent review into its engagement with construction companies and unions, aiming to address unlawful behaviour and misconduct within the sector.
Premier Jacinta Allan announced the government's response following the release of the review conducted by Greg Wilson. The review was launched in July after allegations of criminal or unlawful activities involving the construction division of the CFMEU.
"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," Allan said in a statement.
A key measure in the recommendations includes the establishment of a complaints referral body to streamline the reporting and management of issues related to government-funded construction sites. The body will act as a single entry point to receive and refer complaints.
The government acknowledged labour hire practices as a "problematic area" in the industry, which the review highlighted as providing potential avenues for dismissed workers to return under different subcontractors.
To address this, the Labour Hire Authority's regulatory framework will be strengthened. Proposed reforms include expanding the fit and proper person test to include past indictable convictions, insolvencies, and associations with criminal organisations.
The Victorian Government will also introduce stricter clauses in construction contracts for its projects. These will require contractors to report suspected criminal or unlawful conduct and address such issues promptly.
Additionally, consultation with the Federal Government is planned to create a state-federal alliance to share information, coordinate actions, and address emerging issues on worksites.
The Premier emphasised the importance of ensuring safety and accountability in the construction sector: "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."
Meanwhile, the review has drawn sharp criticism from the Australian Industry Group (Ai Group), which argues the measures will burden employers while failing to address union misconduct.
"Employers can only regard the report as whitewash of union misbehaviour amounting to a continued government protection racket for the CFMEU," said Ai Group Chief Executive Innes Willox in a statement.
"The report is in places almost touchingly naive and perhaps a logical extension of the state government's ridiculous claims in recent months of a lack of knowledge of the CFMEU's unlawful activities."
The Ai Group took particular issue with the new complaints referral body, arguing it adds unnecessary complexity without addressing the risks faced by employers reporting union misconduct.
Having another "referral body" to act as a clearing house also just adds another layer of complexity to the system, according to the group.
"Another referral body is not going to make employers feel safer to make complaints about the union's conduct or for complaints to result in positive outcomes. The reviewer seems to have completely missed the essence of the problem highlighted in the 'Building Bad' newspaper reports," Willox said.
The Ai Group encouraged the Victorian government to start engaging with the industry to help find solutions.
"What we need right now is a meaningful and effective response to the issues that have been clearly demonstrated through the union's behaviour, which saw the Federal Parliament act in the most decisive way by putting it into administration," Willox said.
