CFMEU still wielding power, causing fear and calling shots on Vic building sites, insiders reveal

The Victorian building industry is still struggling to shrug off the influence of underworld figures and bikies, eight months after the powerful CFMEU was placed in administration — with insiders revealing intimidation is still being used to demand deals.

Construction companies on taxpayer-funded mega projects have been told to stop violence, bullying and rorting occurring on public sector worksites.

The warning was delivered by the state’s Big Build boss, Kevin Devlin, who told construction giants they must prevent criminals getting work on their jobs and take “all appropriate steps to prevent criminal, unlawful or inappropriate conduct”.

A letter sent by Mr Devlin late last month was obtained by the Herald Sun after industry figures said a “cycle of lawlessness” created by the CFMEU remains a problem — even though the union was forced into administration last year by the Albanese government.
In the letter, Mr Devlin urges companies to dob in people of “ill repute” through anonymous channels, as well as a crackdown on ghost shifts and doubling dipping — where workers sign off on shifts they don’t attend or claim payment for multiple shifts in one day.

CFMEU members strike outside Fair Work Australia offices against the sacking of a CFMEU official in December 2024. Picture: Luis Enrique Ascui

Industry insiders have lifted the lid on ongoing intimidation used by figures connected to the CFMEU to maintain control of major projects, which they say is costing taxpayers millions.

Projects are still being forced to use the disgraced union’s preferred suppliers, with allied unions such as the Electrical Trades Union helping to enforce controlling tactics and taxpayers ultimately wearing the costs.

A High Court appeal against the CFMEU administrator, brought by dumped officials last year, is yet to be resolved and has caused delays in stronger action on work sites where firms fear industrial repercussions such as site shutdowns that can cost millions of dollars a day.

Budget blowouts have already battered Victoria’s major projects, while a pipeline of work is now tightening significantly ahead of another horror State Budget swimming in red ink.

Construction workers block the intersection of Elizabeth and Victoria streets in Melbourne on September 21, 2021. Picture: Getty

The warning to companies they need to do more to prevent illegal activity is another sign the construction industry is struggling to shrug off the influence of underworld figures and bikies, who investigators found had infiltrated the CFMEU and caused the union to “lose control”.

Industry insiders slammed Mr Devlin’s letter as “weak” and was sent in the absence of real action.

They said the only way to stop the rorts was to ban companies who break the law – including by giving preferential treatment to companies with CFMEU workplace deals – from tendering for other jobs.

“Everyone is waiting for the High Court decision, and everyone is too scared to do anything,” one insider said.

Another said sites were still being “forced to take on their (CFMEU) contactors”.

The issue of construction union power has featured during the federal election campaign, with Opposition Leader Peter Dutton calling the CFMEU a “modern day mafia operation” and promising he would deregister it if he wins the May 3 poll.

CFMEU members striking on December 13. Picture: Luis Enrique Ascui

Victorian opposition major projects spokesman Evan Mulholland said “a weak letter and an anonymous tip-off line won’t fix a culture that Labor has spent years enabling” and that a coalition government would introduce a Construction Enforcement Victoria watchdog.

“The CFMEU calls the shots, and taxpayers are the ones paying the price,” Mr Mulholland said.

A VIDA spokesperson said the letter from Mr Devlin was “routine”, but acknowledged there was still concerning behaviour in parts of the industry.

“We’re working with our construction partners and relevant authorities to address this concerning behaviour in parts of the Victorian construction sector,” they said.

“It’s routine for the Director-General to write to building partners to outline their obligations on a range of matters including to report illegal and unacceptable behaviour occurring on construction sites.”

Mr Devlin’s letter also suggests a fear of corruption or payback remains high in the industry, with a reminder to builders that Crime Stoppers tip-offs do not require personal details to be left and that the whistleblower service does not store IP addresses.

It also says VIDA can “potentially exercise contractual powers to direct the removal of particular individuals from projects” – but the Herald Sun has been told those powers have not been used even after administrators were installed at the CFMEU.

Originally published as CFMEU still wielding power, causing fear and calling shots on Vic building sites, insiders reveal