SA’s Shadow Industrial Relations spokesman calls for Women’s and Children’s Hospital contract audit after CFMEU whistleblowers raise concerns

Construction industry fears over the militant CFMEU pushing SA companies off major building sites are sparking calls for more transparency around contracts.

Master Builders SA chief Will Frogley at a housing press conference with Premier Peter Malinauskas last year. Picture: NewsWire / Roy VanDerVegt

Industry fears over the militant CFMEU taking over SA construction sites are sparking calls for an independent audit into how subcontractors for government projects are awarded.

State Opposition Industrial Relations spokesman Ben Hood demanded an independent audit of how subcontractors win work on government construction projects following revelations major subcontractors feared reprisals for speaking out about the CFMEU.

Mr Hood said numerous reports from major construction subcontractors over the CFMEU’s “grip” on SA’s construction industry – including at the new Women’s and Children’s Hospital site and Adelaide Central Market project – must be investigated.

“We need independent oversight, starting with an audit of how subcontractors are selected for government projects,” he said.

CFMEU flags flying at the Adelaide Central Market development. Picture: Kelly Barnes

Industry whistleblowers claimed the CFMEU was blocking SA companies from jobs and pushing local workers onto the Victorian CFMEU IncoLink redundancy scheme rather than SA’s BIRST.

“We need transparency around redundancy schemes like IncoLink. South Australians deserve better than Melbourne unions calling the shots,” Mr Hood said.

Master Builders Association SA chief Will Frogley welcomed recent news that the national corporate watchdog was looking at regulating unions’ billion-dollar redundancy funds including the controversial Victorian CFMEU IncoLink scheme.

The Australian Securities and Investments Commission last month announced it was assessing whether the Corporations Act should apply to industry funds and was now seeking submissions on its consultation paper.

Its move followed reports of the CFMEU’s IncoLink fund dispersing tens of millions of dollars of surplus monies to its union and employer group sponsors.

An IncoLink statement said it acted in accordance “with state and federal laws, our trust deed, and external legal advice”, and rejected claims funds were distributed to shareholders.

Mr Frogley said his association had long-campaigned for proper regulation of redundancy funds and for any dividends to unions or any other party banned.

This followed the Victorian CFMEU’s takeover of the SA branch in 2022.

“Redundancy funds shouldn’t be massive slush funds. They should have full compliance with the Corporations Act, and any dividends should go to workers only – it’s their money,” Mr Frogley said.

“Nobody in South Australia had really heard of Incolink until the Victorian CFMEU started trying to mandate them in every local enterprise bargaining agreement.

“Every year the Victorian CFMEU receives millions of dollars from Incolink. We think distributing millions of dollars of workers’ money to anyone other than workers is plainly wrong, especially when industrial bodies sit on redundancy fund boards and negotiate rates in template enterprise agreements.”

In response to questions for Industrial Relations Minister Kyam Maher, a government spokesperson said national laws meant workers and businesses could pick their own funds.

He said the SA Government had no legal power over their choices and the federal government regulated worker entitlement funds.

The spokesperson said that the Infrastructure and Transport Department recently strengthened terms and conditions across “all contract suites” on government projects to provide protection around engaging subcontractors, suppliers and consultants.

This included “collusion or anti-competitive behaviours, expectations on respectful behaviour, and the introduction of increased audit rights”.

All tenderers had to confirm “they have read and understand” their obligations, the spokesperson said.