The Victorian government looks set to reinstate its tough stance against building unions after winning a legal appeal to uphold its construction code.
In a major decision delivered in May, Federal Court Justice Mordy Bromberg ruled the government broke federal workplace laws by threatening not to use builder Lend Lease on the new Bendigo Hospital project.
The government had said an agreement struck between Lend Lease and the CFMEU did not comply with its construction code for publicly funded projects.
The Full Bench of the Federal Court on Thursday upheld the state government's appeal against the decision.
Finance Minister Robert Clark said the government would look at reinstating the code, which was watered down after the May decision.
"The guidelines play a key role in ensuring that Victorian building sites operate in a productive and law-abiding manner and that Victorian taxpayers receive value for money on state-funded projects," Mr Clark said.
Mr Clark said the state would also benefit from the federal government's planned reinstatement of the Australian Building and Construction Commission.