The Times Australia
The Times World News

.

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[1] a move by the Fair Work Commission[2] 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[3].

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[4], 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[5], 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[6], 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[7]”.

A rap sheet covering five states

The commission was abolished as part of Labor’s Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act[8] in February 2023.

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

The rap sheet[9] 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[10] 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[11].

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[12] 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.

References

  1. ^ backed (ministers.dewr.gov.au)
  2. ^ Fair Work Commission (www.fwc.gov.au)
  3. ^ free from intimidation (theconversation.com)
  4. ^ Cole Royal Commission into the Construction Industry (nla.gov.au)
  5. ^ Code for the Tendering and Performance of Building Work (www.legislation.gov.au)
  6. ^ National Construction Code (theconversation.com)
  7. ^ politicised and discredited organisation (www.tonyburke.com.au)
  8. ^ Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act (www.fairwork.gov.au)
  9. ^ rap sheet (www.afr.com)
  10. ^ sued by developers (www.news.com.au)
  11. ^ $47.5 billion by 2030 (masterbuilders.com.au)
  12. ^ Construction Industry Culture Taskforce (www.constructionindustryculturetaskforce.com.au)

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

Times Magazine

Why Social Media Marketing Matters for Businesses in Australia

Today social media is a big part of daily life. All over Australia people use Facebook, Instagram, TikTok , LinkedIn and Twitter to stay connected, share updates and find new ideas. For businesses this means a great chance to reach new customers and...

Building an AI-First Culture in Your Company

AI isn't just something to think about anymore - it's becoming part of how we live and work, whether we like it or not. At the office, it definitely helps us move faster. But here's the thing: just using tools like ChatGPT or plugging AI into your wo...

Data Management Isn't Just About Tech—Here’s Why It’s a Human Problem Too

Photo by Kevin Kuby Manuel O. Diaz Jr.We live in a world drowning in data. Every click, swipe, medical scan, and financial transaction generates information, so much that managing it all has become one of the biggest challenges of our digital age. Bu...

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

The Times Features

Could we one day get vaccinated against the gastro bug norovirus? Here’s where scientists are at

Norovirus is the leading cause[1] of acute gastroenteritis outbreaks worldwide. It’s responsible for roughly one in every five cases[2] of gastro annually. Sometimes dubbed ...

Does running ruin your knees? And how old is too old to start?

You’ve probably heard that running is tough on your knees – and even that it can cause long-term damage. But is this true? Running is a relatively high-impact activity. Eve...

Jetstar announces first ever Brisbane to Rarotonga flights with launch fares from just $249^ one-way

Jetstar will start operating direct flights between Brisbane and Rarotonga, the stunning capital island of the Cook Islands, in May 2026, with launch sale fares available today...

Introducing the SE 2 and Mini hair dryers from Laifen

The Mane Attractions for Professional Styling at Home Without the Price Tag Fast, flawless hair is now possible with the launch of Laifen’s two professional quality hair dryers th...

Home Gym Recovery Routines: What Pro Athletes Do After Workouts

Training is only half the equation. What you do after your workout has just as much impact on your progress, performance, and long-term health. Professional athletes know this, w...

Flipping vs. Holding: Which Investment Strategy Is Right for You?

Are you wondering whether flipping a property or holding onto it is the better investment strategy? The answer isn’t one-size-fits-all. Both strategies have distinct advantages a...