Victoria braces for crippling strike as unions threaten to halt construction

Victorian building unions are threatening a 72-hour wildcat strike that would shut down construction activity across the state and put more pressure on over-budget and already delayed major projects.

The warning of a crippling shutdown is an escalation of industrial action linked to the forced administration of the scandal-riddled CFMEU, and would ramp up tensions between construction workers and the state and federal Labor governments.

Tens of thousands of workers march through central Melbourne.Credit: Justin McManus

As many as 25,000 workers, on police estimates, from the CFMEU, the Electrical Trades Union and the Australian Manufacturing Workers Union, marched from Trades Hall, along La Trobe Street, and onto Flagstaff Gardens at a two-hour rally on Wednesday. A smaller crowd of about 5000 also marched in Sydney.

Workers in high-vis and wearing shirts and hoodies with slogans such as “God forgives, the CFMEU doesn’t”, led chants of support for the embattled union including “when the unions are under attack, what do we do? Stand up! Fight back!“.

Police said after the rally there were no incidents of violence and they were pleased with the behaviour of the crowds, which the building unions put at 50,000 people.

The protest was sparked by an Albanese government decision to put the CFMEU into administration after an investigation by this masthead exposed bribery and standover tactics employed by some members and delegates.

CFMEU members walk through the Melbourne CBD during the union movement’s second major protest in the wake of the administration of the CFMEU. Credit: Justin McManus

Addressing the rally, Electrical Trades Union Victorian secretary Troy Gray, flanked by workers, flagged a ratcheting up of pressure on the government in the coming weeks, including work stoppages.

“If there is a continued attack on the working conditions and the living standards of Victorian construction workers for the building industry group of unions, we will call a third rally, and that third rally will be on a Wednesday, and there’ll be a call for a 72-hour stoppage,” Gray said.

“We put the industry on notice. Victorian construction workers are some of the most productive and most efficient construction workers anywhere in the world.

“If you want to f--- with us, we will f--- with you.”

Any stoppage would put further pressure on the raft of major projects being rolled out by the state government, many of which are already over budget, including Melbourne Metro Tunnel, the North East Link and the increasingly costly Suburban Rail Loop.

A Victorian government spokesperson said industrial relations were a matter for its project partners, but it would work with them to understand any impacts.

“We support the strong actions the Federal Government is taking to stamp out corruption within the CFMEU,” they said late Wednesday. “We are taking steps to stamp out rotten culture in construction in Victoria with our independent review and new laws to remove bikies from construction sites.”

Gray also took umbrage with references in this masthead’s reporting to the presence of organised crime figures and known bikies within the CFMEU, sometimes as delegates on worksites, saying the 12 bikies kicked out of the union represented a fraction of the total membership.

“We in this union believe in second chances. And if you have tattoos on your face you probably can’t work in real estate,” Gray said.

He also said – to cheers – that “there has been no better union official than John Setka”, who resigned from his position as the head of the CFMEU on the eve of the Building Bad investigation being published.

Workplace Minister Murray Watt – who was delivering an address at the National Press Club in Canberra during the protest – was surprised to hear about the potential 72-hour stoppage, saying it was the first he had heard of it.

“Workers have got rights to take protected action under our legislation, and it’s a matter for Mr Gray how he chooses to describe those kind of things,” he said.

“And I feel that the role that I’ve got in this is ensuring that workers continue to get paid fairly, that we have safe … workplaces for construction workers to go to, that employers can negotiate without fears of violence and intimidation, that workers and unions can negotiate free of fear of union of violence and intimidation.”

Master Builders Victoria chief executive Michaela Lihou said the organisation was disappointed with the rally.

“Any workers who walked off construction sites to attend today’s rally took part in unlawful industrial action,” she said.

“Further industrial action through strikes or rallies is a lose-lose scenario. It means workers don’t get paid and it also means that projects that benefit Victorians are further delayed and cost even more.”

Victorian Chamber of Commerce and Industry chief executive Paul Guerra said Victoria was in danger of becoming the protest state.

“Whilst we recognise the right to protest, it’s now having a marked impact on CBD business viability and our reputation,” he said.

A key focus for the rally were new laws to allow for the federal government to appoint an administrator to a union following the Building Bad joint investigation by The Age, The Sydney Morning Herald, The Australian Financial Review and 60 Minutes.

Building Bad detailed allegations of corruption, intimidation and criminal infiltration involving the construction union and building sites across the country, including government projects.

Officials from the CFMEU, the ETU, and the AMWU said there were increasing concerns that employers were hoping the administration will lead to weaker pay.

AMWU Victoria secretary Tony Mavromatis was one of those to share those concerns, despite his union’s apparent support of the ACTU’s backing of the administration, telling the crowd he had been overseas for the past five weeks and had been biting his tongue until his return.

Jasmine, a CFMEU member, spoke about her concerns about the cost of living and the need for strong pay deals. Credit: Justin McManus

“We’ve got good memories. Today you touch the CFMEU with these dirty laws, tomorrow another union.

“Repeal these laws. The unions do not need administrators. We had problems before and we’ve fixed them before. Get the f--- out of our way and let us do it.”

One protester, who did not identify, himself blamed Prime Minister Anthony Albanese for the problems the union was facing. “Albo needs to go, and he needs to go fast,” he told this masthead.

Another worker, only identified as Jasmine, spoke at the rally to share her concerns about the potential unravelling of pay deals. “It’s the ability to send our kids to better schools, give us the peace of mind to know that we’re going to be able to feed our families, pay our rent and pay our mortgages,” she said.

Victorian shadow treasurer Brad Rowswell said that the union leadership in Victoria didn’t care about the impact of illegal industrial action on Victorian taxpayers.

“The Victorian government must explore every avenue available to stop this illegal action. If they don’t, they are complicit,” he said.

“Every Victorian is paying the price because the Labor government is letting unions dictate terms on Victorian government building sites, paid for by Victorian taxpayers.”

– with Olivia Ireland

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