Allan, Albanese told of union thuggery in 2022Detailed evidence was sent more than 18 months ago that CFMEU officials were threatening violence and banning non-union preferred firms from taxpayer-funded projects.
Nick McKenzie, David Marin-Guzman and Ben Schneiders
Jul 16, 2024 – 5.00am
Victorian Premier Jacinta Allan and Prime Minister Anthony Albanese were sent detailed evidence more than 18 months ago that CFMEU officials were threatening extreme violence and unlawfully black banning non-union preferred firms from state and federally funded projects.
A letter from the directors of an Indigenous labour hire firm, which was emailed to Ms Allan, then premier Daniel Andrews and then opposition leader Mr Albanese, details serious threats of violence, intimidation and unlawful union black bans on the Monash Freeway upgrade project run by major contractor CPB.
Premier Jacinta Allan said on Monday she had asked Labor officials to suspend the CFMEU from her party’s state branch. Justin McManus
Leak to accused criminal
Government documents reveal Ms Allan, who was Victoria’s deputy premier and infrastructure minister at the time, took a year to respond and, even then, insisted industrial relations were a federal issue and suggested a call to state bureaucrats if there were any other concerns.
In a separate extraordinary development, it can be revealed that questions sent to the CFMEU from this masthead about the union’s links to organised criminals were leaked to an accused criminal in NSW with deep organised crime links.
The accused criminal’s syndicate has ties to CFMEU-backed labour hire firms winning work on Minns government-funded projects.
This masthead has confirmed that around 48 hours after questions were sent to the CFMEU, they were in the hands of the alleged criminal, who can’t be named for legal reasons but whose syndicate has a strong relationship with certain NSW union officials.
The revelations come as the crisis engulfing the union deepened on Monday. The CFMEU placed the Victorian branch into administration and announced its own investigation into claims of bikie and underworld infiltration and allegations union support is being traded for kickbacks.
Mr Albanese has said that action is insufficient and Workplace Relations Minister Tony Burke confirmed he was still considering deregistration.
Review flagged
Ms Allan pledged to suspend the CFMEU from the Labor Party and referred the matter to Victoria Police and the Independent Broad-based Anti-corruption Commission for investigation. She said Labor in Victoria would stop taking the union’s political donations, but only until the investigation concluded.
Ms Allan also flagged a review of state government building contracts and a request to the federal government to assess all construction industry pay deals to ensure they were free of improper conduct.
At her Monday morning press conference, Ms Allan repeatedly insisted she had “zero tolerance” for the intimidating behaviour revealed by the investigation with 60 Minutes, but could not explain why it took a year to address the detailed evidence presented to her about serious CFMEU misconduct on state government Big Build sites.
Ms Allan was told at the time that the threats of violence and unlawful conduct were captured on video recordings that could be made available to authorities.
Where is the safe place? Why as an employer should we be threatened with violence, and why should this violence take place in front of employees?
Frustrated at the lack of response from Ms Allan, the firm wrote to Mr Albanese in October 2022 repeating their concerns. Asked about the email on Monday night, the prime minister’s office said it would check the records to see if the email was received. It is unclear whether Mr Albanese or his office received the letter, only that it was sent.
Ms Allan and Mr Albanese were also sent transcripts of the threats from two CFMEU officials. These included one that recorded a senior union organiser threatening to violently bash two directors of a small labour hire company, and another that captured a second organiser claiming the union controlled the Big Build and would ban non-favoured firms.
In the letter, the directors detailed how they faced “fear of retribution” and asked for government help.
“These are supposed to be government jobs for Victorians, free for tender and free of coercion where businesses are free to engage with other entities without fear of retribution,” the letter said.
“We can’t go to clients, they don’t want IR problems; we can’t discuss it with the union, or the bodies who are supposed to keep a leash on this behaviour out of fear of business collapse or personal ramifications.
“Where is the safe place? Why as an employer should we be threatened with violence, and why should this violence take place in front of employees?”
Ms Allan’s reply apologised for the delay but wrote that she was unable to help. She advised the firm to seek assistance from the federal government or the large state contractors who had earlier warned the directors not to complain.
In the letter dated April 17, 2023, Allan wrote “the management of industrial relations and subcontractor selection is the responsibility of our contracted construction partners”.
“As such, your correspondence has been forwarded to the relevant construction partner for appropriate action, and we have reinforced our expectation that they operate to the highest standard of lawful and ethical behaviour.”
She explained that the federal government was primarily responsible for employment legislation meaning “they will be best placed to address allegations of illegal behaviour and I encourage you to seek advice from the relevant federal department on these matters”.
Asked about the lengthy delay to respond to the CFMEU bullying on Monday, Ms Allan said she always took “immediate” steps to investigate claims.
“I have absolutely zero tolerance for any sort of bullying thuggish intimidatory behaviour on Victorian work sites, and where we had had issues raised with either myself or the relevant delivery agency we have moved to immediately investigate those allegations.”
Sources familiar with the dispute said CPB had raised the matter with the Major Transport Infrastructure Authority at the time but no action was taken. CPB declined to comment.
Fair Work Ombudsman probe
It is understood the Fair Work Ombudsman has recently started investigating the CPB matter.
Two months after receiving the firm’s letter Ms Allan was also briefed about another Indigenous firm that the CFMEU had allegedly kicked off nine government projects, including the state’s signature project the $200 billion Suburban Rail Loop, according to emails released under freedom of information.
Nick McKenzie has quizzed Victorian Premier Jacinta Allan after an investigation by this masthead, AFR and 60 Minutes sparked a construction industry crisis.
That Indigenous firm’s letter outlining its concerns was completely redacted in response to an FOI request last year.
However, a copy of the letter subsequently obtained by the Financial Review showed that the firm, which did not have a CFMEU-endorsed pay deal, detailed claims of the union’s repeated actions to black ban the firm from building sites mid-contract.
At the state government’s Suburban Rail Loop project, on the Greensborough to Diamond Creek upgrade, an Acciona manager had emailed the firm’s owner after 14 months of work to say “there will be no bookings going forward” and that he had been “instructed” to only use two traffic management companies that were not Indigenous.
Ms Allan responded to those claims by referring the alleged coercion to the Australian Building and Construction Commission, which the Albanese government was about to scrap.
In subsequent emails to the FWO, the labour hire owner alleged the Acciona manager had told him the CFMEU had threatened to close the site down every day until they were replaced and that would cost it more than $1 million a day.
Acciona did not respond to requests for comment.
Fair Work Ombudsman Anna Booth, whose agency has been investigating alleged coercion of indigenous firms for well over a year, said it had “active investigations into the conduct of the CFMEU, including into the Victorian branch, relating to possible Fair Work Act contraventions”.
“Improving compliance across the building and construction industry is a priority for the FWO, and we will investigate reports of non-compliance and hold to account those who act outside the law.”
Since it took over the building industry remit in 2022, the FWO has launched several legal actions against employers in the building industry but none against the CFMEU.
Read more on the Building Bad investigation
Part 1: Bikies, underworld figures and the CFMEU takeover of construction
‘It’s a cancer that spreads...we’ll all pay for it’: This is the investigation into CFMEU power that prompted union boss John Setka to quit.
Part 2: Caught on film: How Setka and the CFMEU wield their power
Videos show John Setka delivering a suitcase message to a rival’s home, and other officials issuing threats and boasting of the union’s total control.
Part 3: ‘Everybody eats’: secret recording exposes CFMEU kickback plan
Harry Korras was clear that to get a CFMEU EBA “there’s a fee. That’s business.” Meanwhile, police evidence mounts against John Setka’s anointed successor.
Part 4: ‘I just need this to stop’: Dead after first day on CFMEU site
A day before his 19th birthday, Ben Nash had no idea the t-shirt he was wearing would lead him to be bullied, humiliated and locked in a shed.
Years of wilful incuriosity have enabled the CFMEU
The latest expressions of shock and platitudes about “zero tolerance” by senior figures in the labour movement come across as utterly disingenuous.
Deregistering CFMEU won’t help clean out criminals: McManus
ACTU secretary Sally McManus says deregistering the CFMEU would be counterproductive, as the union’s national executive ordered the Victorian branch into administration to investigate alleged criminal links.
‘More action needed’: Albanese poised to move against CFMEU
Prime Minister Anthony Albanese has cast doubt on the ability of the renegade union to clean up its act.
Comment: Fair Work Act isn’t much help dealing with the CFMEU
Stronger rules and safeguards are needed, along with an audit of the EBAs the union has signed, if proper governance is finally to be installed at the CFMEU.
Analysis: ‘The dam is breaking’: Setka resignation blow to culture of fear
The CFMEU boss’ departure was a shock even to his own officials, but it is a watershed moment for the culture of silence and intimidation that has ruled the construction industry.
‘Good’: PM welcomes Setka resignation after AFR investigation
Anthony Albanese slammed former CFMEU boss John Setka as calls emerged for him to take tougher action against the militant union after allegations reported today.
Setka quits CFMEU effective immediately
Powerful CFMEU boss John Setka has quit the union ahead of explosive allegations regarding misconduct involving himself and the union.
CFMEU deal helps add 10pc to apartment costs The CFMEU’s latest wages deal for NSW will increase labour costs by up to 19 per cent in the first year alone, a new analysis finds.
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Building Bad
John Setka
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Investigation
Nick McKenzie
Investigative reporter
Nick McKenzie is an Age investigative journalist who has twice been named the Graham Perkin Australian Journalist of the Year. A winner of 14 Walkley Awards, he investigates politics, business, foreign affairs, human rights and criminal justice. Email Nick at
nickmckenzie@protonmail.comDavid Marin-Guzman
David Marin-Guzman
Workplace correspondent
David Marin-Guzman writes about industrial relations, workplace, policy and leadership from Sydney. Connect with David on Twitter. Email David at
david.marin-guzman@afr.com 
