Criminal elements still influential in CFMEU construction division, report reveals

A report into alleged infiltration of the CFMEU by motorcycle gangs has found the construction union’s efforts to rid itself of criminal elements were “inadequate”.

The union’s construction department was placed under administration in August after allegations emerged that criminal motorcycle gangs had infiltrated the department, that bikers had been appointed as delegates on major projects, and that bullying, intimidation and corrupt behavior were reported.

A report commissioned by the CFMEU leadership and conducted by respected barrister Geoffrey Watson SC has found that bikers remain influential within the union and that EBA negotiations have become “vulnerable to corruption”.

The interim findings of the report were released today by the union’s executive.

“Based on the information available to me, it is my opinion that the Victoria branch has been infiltrated by OMCGs (outlaw motorcycle gangs) and organised crime figures,” Mr Watson said in his report.

“The Victorian branch became trapped in a cycle of lawlessness, where violence became accepted as part of the culture and the threat of violence was a substitute for reasonable negotiation.

Mr Watson said that during his investigation serious threats had been made against CFMEU officials who cooperated with the investigation.

He found that union officials had not only engaged in threatening and insulting behaviour, but had also been subjected to threats, violence and assault.

Mr Watson made seven recommendations, including that the CFMEU should build a working relationship with the police to tackle criminal behaviour.

He also recommended further investigation into links to motorcycle gangs, a review of EBA processes and a review of the process for appointing union representatives.

Mr Watson also recommended an investigation into a specific allegation that union official Derek Christopher received about $200,000 in free labour from construction companies in 2017.

Federal government says findings vindicate union leadership

Federal Employment Relations Minister Murray Watt said the report’s findings supported the government’s decision to allow the union to go into liquidation.

“This report was actually commissioned by the CFMEU National Secretary, Zach Smith. So even a report commissioned by the union itself has shown widespread corruption, widespread intimidation by bikers and widespread violence associated with the CFMEU and the construction industry,” he said.

Mr Watt defended Prime Minister Anthony Albanese’s response to revelations about alleged criminal infiltration of the CFMEU.

“No one in Australian politics has stood up more strongly to the leadership of the CFMEU, which has sadly condoned violence and links to organised crime, than Anthony Albanese,” he said.

Police are still investigating eight cases involving alleged fraud in the construction sector, but have dismissed 12 other allegations.

An investigation into alleged intimidation of a property developer was ongoing, and a man was charged on a separate charge of making threats to attack two owners of a temporary employment agency.

Last week, police said former CFMEU boss John Setka would not face charges of trespassing after turning up at two construction sites in Melbourne.

Video footage emerged of Mr Setka speaking to workers at the Footscray Hospital construction site. There were also reports that he visited the Metro tunnel construction sites.

Premier Jacinta Allan called Mr Setka’s presence in the workplaces unacceptable and unlawful, but Victoria Police said no criminal offences had been committed.

The Fair Work Ombudsman said earlier this month that it was investigating whether the actions reported by Mr Setka breached the Fair Work Act.