Union says allegations ‘stink worse than a bag of prawns in the sun’

Explosive allegations about standover tactics and alleged corruption on Victoria’s Big Build sites will be referred to the state’s Independent Broad-based Anti-corruption Commission.

Explosive allegations by a Labor-aligned construction union about dodgy deals, standover tactics and alleged corruption on Victoria’s Big Build sites will be referred to the state’s Independent Broad-based Anti-corruption Commission.

The Australian Workers’ Union says the allegations “stink worse than a bag of prawns in the sun” and are costing taxpayers “tens of millions of dollars”.

The Herald Sun has revealed details sent to the Allan government by the AWU, including that a former public servant oversaw a road contract won by a major construction company with which he later took a senior role.

In letters sent by AWU state secretary Ronnie Hayden to Transport Infrastructure Minister Danny Pearson, it was also alleged that:

• Building companies were overlooked for contracts despite lower bid costs, due to industrial relations threats;

• Workers are being targeted and harassed due to union affiliations; and

• Contractors were told they need workplace deals with the militant CFMEU to win work on Victorian projects.

Opposition transport infrastructure spokesman David Southwick said the coalition would refer the matter to IBAC.

There are claims of standover tactics and alleged corruption on Victoria’s Big Build sites. Picture: David Caird

One letter details bombshell conflict-of-interest allegations involving former chief operating officer at Major Road Projects Victoria Steve Cornish.

Mr Hayden writes that Mr Cornish was in charge of procurement for the $391m Pakenham roads upgrade when contracts for the third stage of the project were awarded to construction firm Symal.

“Shortly after Symal was awarded the contract, Steve Cornish was appointed as Symal’s chief of strategic operations, a newly created ­position,” he writes.

Mr Hayden asks the government to “investigate all contracts that MRPV have awarded while under the ­direction of Steve Cornish”.

It’s thought the dodgy behaviour is costing taxpayers ‘tens of millions of dollars’.

He also alleges that in a meeting with contractors, Mr Cornish “referred to a company with a current AWU agreement as ‘using the equivalent of outdated VHS technology, as opposed to companies that have agreements with the CFMEU, who have the equivalent of Netflix’”.

Responding to the allegations, Mr Cornish said he had recused himself from decision-making on the Pakenham roads upgrade contracts while in discussions with Symal about a job, which he said was “over and above what would be the normal process”.

Mr Cornish said he had discussions with two companies for a “couple of months” about potential private sector roles while still at MRPV, but steered clear of contract deliberations involving those builders.

“There was a procurement process going on, but I didn’t have any day-to-day involvement with that,” he said.

“Ultimately all of the procurement work came under my wing but it wasn’t until it got to the pointy end, and decisions had to be made, that there was a potential conflict of interest that arose; at that point, I excused myself.”

A spokeswoman for Symal said the firm always abided by “strict government procurement guidelines on all our projects”.

One letter details bombshell conflict-of-interest allegations involving former chief operating officer at Major Road Projects Victoria.

Mr Cornish said the Netflix and VHS comments were “lighthearted” at a meeting on changes to the industrial relations landscape, triggered by Albanese government legislation that scrapped the federal building watchdog.

Leading industry figures have warned those law changes emboldened the CFMEU to target the AWU in the civil construction sector.

“It is a fact to say that it (legislation) has changed the industrial landscape dramatically,” Mr Cornish said.

“The government is paying the costs for these things (Big Build projects) so naturally there would be some interest from government, where things have the risk of costing more money.”

When approached by the Herald Sun about his letters, Mr Hayden said the matters should be probed by the Independent Broad-based Anti-corruption Commission.

“This stinks worse than a bag of prawns in the sun, contracts for major road and rail projects in this state are being awarded to a select group of contractors through opaque tender processes,” said Mr Hayden.

Premier Jacinta Allan on Thursday said she expected construction industry representatives on Big Build projects to adhere to “very rigorous standards” set by the major transport infrastructure authority.

She denied that the CFMEU’s powerful presence on construction sites was draining the public purse.

“No, the arrangements between construction partners and who they choose to engage with in terms of employee representatives is a matter for them,” she said.

“It is my expectation … that those relationships are conducted in an appropriate way.”

Ms Allan said any concerns or allegations should be directed to construction industry representatives or to independent agencies, not the government.

“I want to be very clear that across all of our infrastructure projects across the state, industrial relations matters are a matter for the construction industry and the employee representatives,” she said.

“I would say that if there are individuals or organisations who have any concerns, there are independent agencies of both state and federal level who have the powers to investigate.”

It’s alleged workers are being targeted and harassed due to union affiliations.

Meanwhile, Transport Infrastructure Minister Danny Pearson on Thursday said it was his expectation that all parties behave appropriately on construction sites.

Mr Pearson said he referred the allegations from Mr Hayden to the Major Transport Infrastructure Authority to be investigated.

“There were no issues found with the procurement processes in relation to the project in question,” he said.

Mr Pearson said it would be up to the anti-corruption watchdog to decide if the matter should be probed further.

“Ultimately, the ‘I’ in IBAC stands for independent,” he said.

The AWU also took aim at the $26bn North East Link, where industrial tensions between the AWU and the CFMEU have flared and the project budget has blown out by $10bn.

Last year, the Herald Sun ­revealed an Indigenous firm that was pushed off the job ­because it was not aligned with the CFMEU was shocked to learn its replacements were being paid much higher rates, while senior bureaucrats warned the government that standover tactics were being used on major projects.

The state secretary of the CFMEU, John Setka, said claims his union was driving up costs were “bull----”.

“These allegations have been going on since Jesus wore shorts, but give me an example where that has happened?” he said.

Mr Hayden also questioned processes on level crossing removal jobs in Melbourne’s south.

“These are Victoria’s Big Build projects, not only should all Victorians have the right to drive on them, but they should do so knowing that tens of millions of their hard-earned tax dollars weren’t wasted on dodgy deals,” he said.