Dozens of companies kicked off Victorian Big Build construction sites by scandal-plagued CFMEU

Dozens of companies have been black-listed or kicked off taxpayer-funded construction sites because they were not aligned with the CFMEU, as new details emerge about the scandal-plagued union flexing its muscles in plain sight.

• Federal Labor halts donations from CFMEU

Dozens of companies including scaffolders, concrete providers and traffic management companies have been black-listed or kicked off taxpayer-funded construction sites over the past two years because they were not aligned with CFMEU.

The Herald Sun can reveal new details of how the militant union, which is set to be placed under administration due to allegations of kickbacks, criminal associations and intimidation, flexed its muscles in plain sight, shutting down sites at the $26 billion North East Link and $34.5 billion Suburban Rail Loop to force builders to use their preferred suppliers.

Whistleblowers have told the Herald Sun how they had secured tenders for work on the Victorian projects, only to be later replaced despite no issues with their work or “non-conformance”.

In some instances, the union’s preferred subcontractors did not have plant or machinery required to do the job and had to buy them from companies cut from jobs they had won.

The CFMEU shut down sites at the $26bn North East Link to force builders to use their own suppliers. Picture: Andrew Henshaw

A separate contractor revealed they were told to bring $20,000 in cash to a meeting with a CFMEU representative at a Footscray pub, to allegedly broker a deal to get their firm onto a major infrastructure project.

They declined the meeting.

“You are reluctant to speak out about them because you know their associations (with bikies),” one whistleblower said.

“We were awarded work after going through a tender process. Someone in the government has got to be looking at this, how do they sign off on variations (to project budgets)?”

They said they felt they had no-one to turn to once the industry watchdog – the Australian Building and Construction Commission – was wound up by the Albanese government and the union acted with the belief it would not be challenged by Labor governments.

The union also targeted Suburban Rail Loop sites.

On Wednesday Opposition Leader Peter Dutton vowed the Coalition would introduce a private members bill to restore the ABCC when parliament returns in August, if the government didn’t.

It came as Australian Council Trade Union secretary Sally McManus announced the construction and general division of the CFMEU would be suspended for the foreseeable future.

Meanwhile fresh concerns have also been raised about Albanese Government law changes last year that watered down right of entry restrictions on construction jobs, allowing people with past criminal convictions easier passage on to sites if backed by a union.

One industry insider said there had been a proliferation of people on work sites with links to alleged criminal organisations who would previously have failed “fit and proper person” tests for entry permits.

The law changes were demanded by former Victorian CFMEU secretary John Setka and assistant secretary Joe Myles, who successfully put forward a motion at the ALP national conference calling for barriers to union officials accessing workplaces to be scrapped.

Mark Knight’s take on the CFMEU.

Workplace Relations Minister Tony Burke said the right of entry changes were a recommendation from an inquiry into industrial relations led by Marie Boland, but a review of their operation was due this year.

Asked if he had concerns about the exploitation of right of entry changes, Mr Burke said: “I had a strong view that when it comes to implementing recommendations on workplace safety, we should go with the Boland report, make those implementations and then review it … to deal with the sorts of risks that you’ve described”.

Mr Burke said steps were being taken to put the CFMEU in Victoria under independent administration with the power sack employees and delegates, and investigate funding decisions.

Several figures with links to bikie groups, including former Hells Angels president Luke Moloney, former Bandidos sergeant-at-arms Johnny “2 Guns” Walker and senior Mongol Tyrone Bell, are now CFMEU delegates – meaning they represent the union on building sites.

The union’s national secretary, Zach Smith, said he was “not in a position to comment on individuals” but that positions within the Victorian branch was being reviewed.

Former Hells Angels president Luke Moloney is now a CFMEU delegate.

The Herald Sun revealed earlier this year the extent of the CFMEU takeover of the Big Build, with confidential documents showing union-linked suppliers were winning contracts despite having bid prices double that of competitors.

This has led to budget blowouts worth hundreds of millions of dollars, whistleblowers alleged.

In 2022 and 2023, it was revealed that the union was disrupting sites to force builders to use its preferred subcontractors, often at vastly inflated prices.

One insider said some companies that were pushed off sites during those disputes complained to the State Government, including to the office of former premier Daniel Andrews, current premier Jacinta Allan, and industrial relations minister Tim Pallas.

Senior government figures were also told about a video of CFMEU officials, published by Nine Newspapers and 60 Minutes this week, who repeatedly threatened to bash owners of an Indigenous labour hire company, Marda Dandhi, in early 2022.