The ACT branch of the CFMEU (Construction, Forestry and Maritime Employees Union) is reportedly pushing for greater powers that will allow it to investigate and prosecute companies bidding for government tenders that breach the Secure Local Jobs Code.
The Union has proposed a motion to the upcoming ACT Labor Conference on 27th July that is believed to include a consultation process that would see companies vying for tenders have to obtain an auditor certificate before they are allowed to quote for a contract.
A number of standards would have to be met in accordance with the process, including working conditions, pay and health & safety.
The Union is also reportedly asking for more involvement in the appointment of senior public servants and seeking construction employment quotas for women in government-funded projects.
Master Builders ACT – which represents the state’s building and construction industry – has called on the ACT Labor government to reject the proposal, saying there is no role for third parties in procurement decision-making.
“Experiences in other jurisdictions, including Victoria and Queensland, show that the cost of construction can increase by up to 30 percent due to delays brought about by CFMEU influence on building sites,” said a spokesperson.
“This is unacceptable given we are in the midst of the worst national housing crisis of our times. The principles of freedom of association and competition must be protected. It beggars belief that the CFMEU would call for the union to have even more power over ACT government procurement decisions.”
The spokesperson also raised concerns surrounding the impact that a successful proposal could have on the wider industry.
“If this proposal is implemented, it could have a devastating impact not only on the wellbeing and livelihoods of those employed in our industry, but could also put even more barriers in the way of reaching housing targets and building the infrastructure needed to support our communities.
“If the CFMEU gets their way, they will continue to bully and harass not only our builders and subcontractors, but our government officials too.”
The news comes as the CFMEU has faced allegations of underworld figures and outlaw motorcycle gangs infiltrating its construction division.
The Albanese government has since suspended the affiliation of the construction division in NSW, Victoria, South Australia and Tasmania, which means it will not accept donations and delegates will be banned from attending ALP conferences.
The CFMEU donated $50,000 to Labor at the 2020 election, according to figures from the ACT Electoral Commission.
An independent administrator is expected to be appointed in an attempt to overhaul the CFMEU, with support from Workplace Relations Minister Tony Burke.
“I do believe these actions are best taken by the regulator, but any action to appoint an administrator will be supported by me as minister,” said Burke.
“If we simply went down the deregistration path, we would have an organisation still capable of bargaining and doing the entire business model that we have been seeing reported over recent days with no layer of regulation or additional oversight that applies to registered organisations.”
However, taking to Instagram, Michael Hiscox, CFMEU ACT Acting Secretary, said the ACT branch of the CFMEU – which has not been accused of any wrongdoing – is not expected to be put into administration and welcomes any criminal investigation into the industry if it looks at the industry in its entirety.
“With that in mind, it’s important I address some of the claims from the likes of Master Builders ACT that we’ve seen in Canberra in recent days,” said Hiscox.
“Make no mistake, Master Builders and their political enablers have one motivation: cutting the wages and conditions of our members. We will not let them.”
