‘Cycle of lawlessness’ in CFMEU construction division: report

The construction arm of the Victorian branch of the CFMEU has become trapped in a cycle of ‘lawlessness’, with violence accepted and threats replacing negotiations.

This is one of the damning findings of an interim report into allegations that the Building and General Department was involved in criminal and corrupt behaviour, revealed by Nine Newspapers earlier this year.

The interim report, prepared by Geoffrey Watson SC, who was hired by CFMEU National Secretary Zach Smith in July to conduct an independent investigation into the allegations, was released on Monday.

Mr Watson made seven recommendations, including that further research be conducted to identify instances where officers from the Victoria department have engaged in or been subjected to threatening, violent or abusive behaviour.

He also said the department must build “cooperative relationships” with Victoria Police, the Australian Federal Police and regulatory authorities “so that criminal conduct can be dealt with in accordance with the law”.

“Based on the information I uncovered during my research, the Victorian department was caught in a cycle of lawlessness, where violence was an accepted part of the culture and the threat of violence was a substitute for reasonable negotiation,” Mr Watson said.

Mr Watson said his investigation was hampered by his inability to compel witnesses to give evidence or produce documents.

“I could not give any promise of confidentiality to potential witnesses,” he added.

“Halfway through my investigation, I was told that threats of violence had been made, including against members of the Victoria branch management team.

“Because of those threats, I was ordered to no longer contact certain third parties.”

Last month, Federal Attorney General Mark Dreyfus placed the CFMEU’s construction arm and all of its associated departments under administration.

Mr Dreyfus appointed Mark Irving KC as administrator.

Mr Watson said Mr Irving later instructed him to present his report and make recommendations on investigations the administrator should carry out.

Mr Watson also recommended further investigation into any remaining links between union reps and criminal motorcycle gangs, and their influence.

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