The H.R. Nicholls Society

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I warned on CFMEU 10 years ago

The following is an opinion editorial by John Lloyd PSM, as featured in the Herald Sun newspaper on July 25, 2024

As the first Commissioner of the Australian Building and Construction Commission, I know all too well what the CFMEU is capable of.

The ABCC launched hundreds of proceedings in the civil jurisdiction – almost all cases resulted in adverse findings and penalties.

However, we had no power to prosecute for criminal conduct.

I referred about 40 cases of suspected criminal conduct to various Commonwealth and state law enforcement agencies. Regrettably, it seems nothing much came of those referrals.

I have no doubt that the Labor Party has known, for at least the last 20 years, about the unlawful, violent conduct of the CFMEU – one of its biggest donors. Yet it still took the union’s money.

According to the Grattan Institute, the ALP took more than $3m from the CFMEU alone in the year up to the last federal election.

The CFMEU has had a working model of thuggery, threats and law defiance for years.

In 2014, at the time of the Royal Commission into Trade Union Governance and Corruption, I highlighted my great concern about the penetration “of bikie gangs and criminal corrupt conduct in the industry”.

Yes, that was 10 years ago!

I heard Employment and Workplace Relations Minister Tony Burke say last week he abolished the ABCC because it was ineffective. If this was the case, why would a ruthless outfit like the CFMEU be so determined to have it abolished?

The ABCC had strong powers, it rigorously pursued unlawful conduct, and won cases that involved high penalties and costs for the union.

The CFMEU wanted this significant constraint on its power removed and the ALP government obliged. In doing so, the rights of honest contractors and their employees were treated with contempt.

The conduct of the CFMEU must be constrained and its culture of thuggery purged. This will require a tough regulator with strong powers to investigate unlawful conduct, including the power to conduct compulsory interviews of unwilling witnesses.

Penalties must be restored to a level where they act as a deterrence.And law enforcement agencies must demonstrate a greater willingness to stamp out criminal conduct across the industry.