Gang connections, thuggery, and corruption: FWO to do a deep dive into CFMEU

The Construction, Forestry and Maritime Employees Union (CFMEU) scandal continues to circulate throughout the news cycle. As more allegations come to the surface, the FWO has been approached to investigate their legitimacy.

As previously reported on HR Leader, Minister for Employment and Workplace Relations Tony Burke has laid down the gauntlet after recent allegations were brought forward surrounding the activities of the CFMEU. Claims of bikie connections, corruption, intimidation, and blatant thuggery are just some of the reports being brought forward.

Burke has tasked Fair Work Commission general manager Murray Furlong as the independent administrator who will investigate the affairs occurring within the CFMEU.

Now, Burke has also written to the Fair Work Ombudsman (FWO) regarding the alleged serious misconduct, asking the FWO to investigate certain allegations in relation to the making of enterprise agreements.

According to an FWO statement, these allegations: “May involve conduct contravening the Fair Work Act, including adverse action, coercion, misrepresentation and/or a failure to comply with disclosure requirements of benefits under an enterprise agreement for a registered organisation.”

FWO’s Anna Booth said: “The Fair Work Ombudsman’s investigations are continuing into the conduct of the construction and general division of the CFMEU relating to possible Fair Work Act contraventions.”

“If unlawful conduct is established, we will take appropriate enforcement action. As our investigations are ongoing, it will not be appropriate to comment further on them at this time.”

Minister Burke has staunchly supported regulators who will be looking into the inner workings of the CFMEU, believing that any push-back from the union will be met with swift deterrence from the federal government, going as far as changing government legislation to do so.

“If any of those actions taken by [Furlong] are opposed ... on the basis of some of the legal complexity of appointing an administrator, then the government will introduce legislation when Parliament returns to remove any barriers,” said Minister Burke.

“If it is opposed and there are barriers and this is not resolved by the time Parliament returns, then those barriers will be removed by government legislation.”

The FWO’s investigation, however, will only focus on conduct relating to possible Fair Work Act contraventions. As noted in the statement: “Matters of alleged criminal conduct fall outside the FWO’s jurisdiction.”

At the same time, the FWO has been successful in holding the CFMEU accountable for their discrepancies on multiple occasions, as Booth pointed out.

“The FWO has secured total penalties of more than $3.3 million in litigations that have concluded since they were transferred to the FWO in December 2022,” Booth said.

“The large majority of these penalties have been secured against the CFMEU or its officials.

“Improving compliance across the building and construction industry is a priority for the Fair Work Ombudsman, and we will continue to investigate reports of non-compliance and hold to account those who act outside the law.”