Federal government announces commencement of FWO investigations into alleged corruption

The Federal Labor government has recently announced that the Fair Work Ombudsman (FWO) will undertake investigations of over 40 allegations of corruption and coercion within the building industry, allegedly involving both the CFMEU and unnamed builders.

The announcement follows on from the government’s decision to place the CFMEU Construction and General division into administration and the dismissal of a significant number of the union’s officials.

Speaking on 16 October 2024, the Industrial Relations Minister, Hon. Murray Watts, referred to work already commenced by the agency, stating, “The FWO’s report complements the ongoing work being done by the administrator of the union. I am concerned about the ongoing reluctance on the part of complainants to come forward, and we are considering what further steps can be taken to address this”.

During a recent interview on the ABC’s 7.30 Report program, Senator Watts was asked about the government’s anticipated six-month plan to improve the industry. He stated, “This is obviously one of a number of actions the government is taking to not just clean up the CFMEU construction division, but really overhaul this industry as a whole. We’ve now, of course, appointed the administrator who’s taken charge of the union division and is progressively cleaning that up”.

There is the ability for individuals to lodge a complaint against the union through the following link: Report a concern about the CFMEU | Fair Work Commission

In addition to targeting the now notorious union, Senator Watts also commented that “Employers who have done the wrong thing also need to be held to account”.

The FWO’s investigations will include witness interviews, visits to construction sites, and reviewing records and documents. It is understood that the investigations may also examine allegations of threats against contractors to enter into enterprise bargaining agreements with the union in the past.

We highly recommend that you seek legal advice in the event of being approached by the FWO. Workforce Advisory has a lengthy history and involvement in the commercial sector of the industry and is well versed in union discussions and negotiations.

Meanwhile, no date has yet been set for the challenge in the High Court to the union being placed in administration. Unsurprisingly, there has been support for the union from long-standing affiliated organisations, including the Electrical Trades Union (ETU).

The ETU’s national executive recently passed a motion that stated, “It is a cornerstone of our democracy that every organisation or individual has their right to due process and their day in court. The CFMEU has not been afforded that fundamental principle of natural justice, and the ETU will stand up against this unfair treatment, as should every other union”.

For queries about unions, the FWO or other employment questions, please contact Dean Cameron at Workforce Advisory Lawyers – We Know Employment Law on 0417 622 178, 1300 or via email to dean.cameron@workforceadvisory.com.au.

Disclaimer: This information is provided as general advice on workplace relations and employment law. It does not constitute legal advice, and it is always advisable to seek further information regarding specific workplace issues. Liability limited by a scheme approved under professional standards legislation.

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