The administrator of Australia’s main construction union has vowed to crack down on illegal behaviour after a report commissioned by the union itself supported allegations of thuggery and criminal conduct that have been aired in media organisations.

Mark Irving, who was appointed administrator of the Construction and General Division of the Construction, Forestry and Maritime Employees Union (CFMEU) by the Commonwealth Government last month, has outlined a number of actions which he intends to take in order to restore the integrity and orderly function of the union.

The actions respond to last week’s release of an interim report from an investigation into the union’s Victorian and Tasmanian branch.

Led by Geoffrey Watson SC, that investigation was ordered by the union itself in July prior to its Construction and General division being placed into administration.

The interim report found that allegations of criminal behaviour and thuggery that were published in a series of media reports in July are supported by the information which had been gathered to-date.

It found that the Victorian branch of the union’s Construction and General Division had been caught up in a cycle of lawlessness and association with outlawed motorcycle gangs.

In his response, Irving has indicated that he will accept all of the seven recommendations in the report.

In particular, actions which he has either already taken or intend to take include:

• Asking Watson to continue his investigation in Victoria and to provide a comprehensive report by 1 December. Irving will use his coercive powers to enable Watson to overcome previous limitations regarding his ability to conduct the investigation (see below).
• Launching further detailed investigations into the conduct of branches in Queensland, New South Wales and South Australia.
• Establishing an integrity unit within his administration to investigate the growing number of allegations that have been raised with him.
• Directing this team to make initial enquires to several suppliers about their relationship with certain former union officials and staff
• Initiating a broader investigation into the operation of labour hire especially in Victoria. This will focus on the circumstances in which enterprise bargaining agreements (EBAs) have been entered into with labour hire agencies and any connection of these agencies with organised crime/outlaw motorcycle gangs along with potential illegal payments made by agencies to certain union official and employees.
• Establishing an anonymous whistle-blower service to report wrongdoing within the union and the industry.
• Giving directions to all CFMEU employees who are involved in the EBA processes in regard to a range of matters revolving around integrity, good faith and conflict of interest.

The latest developments were sparked after allegations of thuggery, illegal behaviour and associations with outlaw motorcycle gangs have been raised in respect of the Construction, Forestry and Maritime Employees Association (CFMEU).

The allegations were contained in a series of media reports that were published in July by The Australian Financial Review, The Age and The Sydney Morning Herald.

The allegations were also aired in an episode of 60 Minutes.

In response to the allegations, the Commonwealth Government last month successfully applied to have the union’s Construction and General division placed into administration.

This occurred after laws enabling the Government to do this were enacted into legislation.

Prior to the administration, the CFMEU itself had commissioned Watson to investigate the conduct specifically of the Victorian branch of the union’s Construction and General Division.

That investigation had been initiated by the Union’s National Secretary Zach Smith.

In his interim report, Watson noted that there had been limits on his ability to undertake his investigation.

These included a lack of power to compel witnesses to give evidence or to compel production of documents, a lack of ability to offer potential witnesses promises of confidentiality and threats of violence being made against members of the executive team of the Victorian branch if they cooperated with the investigation.

Nevertheless, the interim report found that:

• The information which has been gathered supports the allegations of criminal and corrupt conduct.
• Based on the information uncovered, the Victorian Branch has been caught up in a cycle of lawlessness, where violence was an accepted part of the culture and that the CFMEU had lost control due to connections with outlaw motorcycle gangs and organised crime figures.
• Victorian Branch officials have not only engaged in threatening and abusive behaviour, they have also been subjected to threats, violence or abuse in connection with their work for the union.
• Based on the information available, the Victorian Branch has been infiltrated by OMCG’s and organised crime figures.
• Despite the removal of some delegates after the media reports, the Victorian Branch had no intention to fix the problem, and even if it did, more needs to be done
• The EBA process is capable of being misused to confer favours or to fulfil corrupt bargains as the result of the infiltration of outlaw motorcycle gangs and organised crime, as well as when CFMEU officers are financially induced to exercise their powers for unlawful or improper purposes.

The latest developments came as tens of thousands of workers rallied on the streets of Sydney and Melbourne on Wednesday.

The workers were rallying against the Commonwealth Government’s decision to place the CFMEU into administration.

The rally was the second since the administration was announced.

Unions have threatened further action, with the Electrical Trades Union saying that it will call for a third rally that would be a 72-hour stoppage.

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