Preventing bribery and unlawful conduct on building projects has emerged as a key area of focus, with the Australian Government set to develop new standards for workplace relations on Commonwealth funded construction sites.

On Tuesday, Workplace Relation Minister Amanda Rishworth announced that she would start consultation on proposed new standards for workplace relations to be applied on Commonwealth funded construction projects.

Several focus areas will be considered.

These include:

  • removal of union veto power over the choice of subcontractors
  • development of a fit and proper person test to permanently remove bad actors from the industry
  • establishment of a ‘joined-up approach’ for enforcement by existing regulators
  • removing the role of so called ‘industrial fixers’, who operate outside the Fair Work Act
  • how to ensure that unlawful behaviour such as bribery does not occur; and
  • improvements to whistle-blower protections and dispute resolution processes.

The announcement comes after Construction, Forestry, Maritime Employees Union (CFMEU) administrator Mark Irving quit his role halfway through his three-year term.

Irving had been appointed in late 2024 in a bid to clean up the union following serious allegations of criminal conduct.

Building industry lobby groups welcomed the latest announcement.

“Master Builders Australia acknowledges and welcomes today’s announcement by the Minister for Employment and Workplace Relations Amanda Rishworth regarding the consultation process for new building and construction industry standards,” the Master Builders Australia said in a statement.

“We look forward to further details being outlined in the upcoming consultation and will continue to work constructively to secure lasting reform to ensure we do not repeat the failures of the past …”

“… While we are at the start of a process that has much work ahead of it, Master Builders welcomes the direction of these standards and the upcoming consultation process.”

Australian Constructors Association Chief Executive Officer Jon Davies says that the proposed standards are an important step in addressing entrenched behaviours in the sector.

“Consultation on new industry standards is welcome, but it must lead to genuine, industry‑wide change,” Davies said.

“Standards must be more than aspirations. They need to be clear enforceable and consistently upheld across the whole of the industry if they are to be effective.

“Administration of the CFMEU alone will not fix the deep‑seated industrial relations issues facing construction. Reform must ensure the behaviours and systems that allow coercion, intimidation and unlawful conduct are permanently addressed.

“The industry needs the confidence to actively participate in reform and to invest in a more sustainable and productive future. That means safeguards to ensure that the work of any Administrator cannot simply be undone, and that coercive practices cannot be replicated elsewhere in the industry.

“Any standards must ensure enterprise agreements are the result of genuine bargaining and do not include provisions that give third parties undue influence over project decisions, including who contractors can work with.

“When disputes arise, there needs to be agreed, efficient mechanisms to resolve them without automatically resorting to disruption of work.

“Safe, secure and well‑paid jobs are a worthy and shared objective. However, those jobs can only be sustained if employers can make a reasonable return on their investment and clients receive value for money. That requires a strong and ongoing focus on lifting industry productivity.”

Davies says that rising input costs and capacity constraints can be addressed through productivity improvements without compromising job security, particularly at a time when the industry has more work than available workers.

“We have an opportunity to create a modern construction industry,” he said.

“Well-designed industry standards, developed in consultation with all key stakeholders, can play a critical role in delivering a safer, more productive and more sustainable construction sector for the long term.”

 

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