Indigenous justice commission to probe worksite allegations amid CFMEU fallout

Victoria’s powerful truth-telling inquiry will probe allegations that First Nations workers have been mistreated on building sites, following revelations that the CFMEU banned Indigenous firms that weren’t aligned with the construction union.

The development comes after Premier Jacinta Allan conceded a year-long delay in replying to separate serious allegations against the CFMEU “didn’t meet expectations”, while continuing to insist she has zero tolerance for bad behaviour and criminality.

Yoorrook commissioner Travis Lovett at a hearing in April.Credit: Justin McManus

The Yoorrook Justice Commission said on Tuesday that it was concerned by reports in this masthead regarding alleged government failures in ensuring fairness in the awarding and administration of large construction contracts and was considering new “investigative steps”.

The commission has powers equal to a royal commission including to call witnesses, compel the production of documents and make findings and recommendations.

“In recent days, Yoorrook has been contacted by a number of First Peoples suppliers, organisations and individuals wishing to share their experiences, including of alleged misconduct and exploitation within the sector,” the commission said in a statement.

“These reports follow a number of submissions previously received on the topic.”

The Yoorrook probe comes after this masthead, The Australian Financial Review and 60 Minutes published a months-long investigation detailing serious allegations about the union and its behaviour on taxpayer-funded projects. This included accusations of threats of violence, intimidation and unlawful union black bans.

On Monday, this masthead reported on Indigenous Melbourne man Ben Nash, who died following his first shift on a CFMEU-dominated government worksite, having claimed he was bullied and humiliated. An Indigenous-run company that had employed Nash had been targeted by the CFMEU.

Yoorrook was first announced in June 2020 as a truth-telling inquiry that would use its powers to examine historical and systemic issues related to First Nations peoples in Victoria. It recently held public hearings examining opportunities for improved economic participation for Indigenous people, including on construction projects.

It is now seeking new submissions detailing “any government failings in providing fair opportunities for First Peoples businesses to participate in large procurement processes”. The commission is also calling for reforms to enforce oversight and integrity.

Premier Jacinta Allan addressing the media on Tuesday, Credit: Darrian Traynor

Yoorrook commissioner and deputy chair Travis Lovett urged businesses and individuals to come forward, including on a confidential basis.

Meanwhile, Allan on Tuesday sought to manage the continued fallout from the investigation by publicly releasing separate correspondence with the head of Victoria Police from June last year.

That letter, seen by this masthead, suggests the premier contacted Chief Commissioner Shane Patton upon learning of a “small number of possible criminal incidents on government infrastructure projects” during a regular meeting with the boss of Victoria’s Major Transport Infrastructure Authority on May 29, 2023.

“Given that this issue has been raised with me and the potential seriousness of possible criminal activity in worksites operated by contracted providers on major infrastructure projects, I feel duty bound to also raise this matter directly with you,” the letter from Allan said.

Patton said on Tuesday that a detailed assessment of then-deputy premier Allan’s concerns was conducted last year, but no further action was taken “because there wasn’t deemed to be any threshold of criminality met”.

He said Allan’s letter raised “what I would call anecdotal concerns about whether criminality was occurring within the Major Transport Infrastructure Authority”.

The letter was released after Allan’s second press conference in as many days held to address allegations of bullying and standover tactics by CFMEU members at Victorian Big Build sites.

Allan has been under pressure over her response to the CFMEU.Credit: Darrian Traynor

Earlier on Tuesday, this masthead revealed Allan and Prime Minister Anthony Albanese were separately sent detailed evidence in 2022 that officials from the construction union were threatening extreme violence and unlawfully blocking non-union firms from state and federally funded projects.

Government documents reveal that Allan, who was infrastructure minister at the time and deputy to then-premier Daniel Andrews, took a year to respond. When she did, she insisted industrial relations was a federal issue and suggested a call to state bureaucrats if there were any other concerns.

Allan conceded on Tuesday that she was disappointed with the delay in replying to the 2022 letter, but said the belated response, and separate correspondence with the police commissioner about related issues, showed she always acted on serious allegations.

“In terms of the particular piece of correspondence [from 2022] … I’ve had the opportunity to examine where the processes didn’t meet the expectations that I expect,” the premier said.

“But when it was formally lodged with my office and the Major Transport Infrastructure Authority, it was acted upon. Then, as now, I have zero tolerance for any sort of illegal behaviour.”

Patton said police were assessing, for at least the second time in about a year, whether allegations of misconduct in the CFMEU’s construction branch amounted to criminal offences.

“We are actively assessing that at the moment,” he told ABC Radio Melbourne.

“There’s obviously some really inappropriate, thuggish behaviour. There’s potential threats. There’s potential influence in contracts. Whether that meets the criminal threshold, though, is a different matter.”

Allan brushed aside questions about whether she would resign – pointing out there was much work to be done at a state and federal level – and said a royal commission or the return of the national Australian Building and Construction Commission was a matter for the federal government.

The Labor Party had also begun formal processes to eject the CFMEU’s construction division from its ranks, the premier confirmed.

“I’m confident this push will succeed,” she said.

Allan said donations from the CFMEU’s construction arm to Victorian Labor had now been paused and fresh laws to crack down on organised crime would be introduced to parliament next month.

Opposition Leader John Pesutto on Tuesday labelled Allan’s year-long delay in replying to the 2022 warning a “failure of leadership”.

With Lachlan Abbott

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