Murray Watt declares CFMEU scandal a ‘once in a generation’ chance to clean up construction industry

The government has called a national meeting of key construction industry leaders to address lawlessness and misconduct plaguing the sector after a string of allegations against the CFMEU.

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Workplace Relations Minister Murray Watt has called a national meeting of key construction industry leaders to address lawlessness and misconduct plaguing the sector, saying the CFMEU scandal presents a “once in a generation opportunity” to clean up the industry.

In a speech to the National Press Club on Wednesday, Senator Watt will announce the government’s “high-level” National Construction Industry Forum will reconvene in October to examine immediate priorities for the building and construction industry, including measures to address law-breaking and misconduct from industry players on “both the worker and employer sides”.

The government move came as CFMEU administrator Mark Irving announced he would exercise his coercive powers to allow anti-corruption barrister Geoffrey Watson to pursue his probe of the union’s Victorian branch, including allegations against its former deputy Derek Christopher.

Mr Irving will also launch new probes in Queensland and NSW to investigate the involvement of outlaw motorcycle gangs and organised crime groups within the construction industry, and alleged kickbacks paid by employers to the union.

In an olive branch to employers, Senator Watt expanded membership of the NCIF to include Master Builders Australia chief executive Denita Wawn and Civil Contractors Federation chief executive Nicholas Proud.

The tripartite forum was an outcome of the government’s jobs and skills summit but Ms Wawn was originally omitted in July last year when then workplace relations minister Tony Burke announced the forum’s 12 members, split evenly between union and industry.

Referring to the recent controversy that has seen the CFMEU’s construction divisions forced into administration, Senator Watt said he wanted to “reinvigorate” the forum, “with recent events presenting an opportunity to reset and evaluate the work conducted previously”.

“We need to fundamentally change the culture of this industry,” he said. “We need a major reset in (our) construction industry, and we have a once-in-a-­generation opportunity to do it.”

Senator Watt said the construction sector “like many others, works best when government, employers and workers are all on the same page”.

Mongols bikie and powerbroker Tyrone Bell wearing his CFMEU gear pictured alongside union organisers and former union secretary John Setka.

While there would need to be “give and take” from all participants, he said he had seen the value of getting everyone around the same table, citing the formation of the Agriculture Workforce Working Group in his previous portfolio. “Workplace co-operation is delivering for workers and business in other sectors. There is no reason it can’t happen in the construction sector too,” he said.

Ms Wawn on Tuesday said the building and construction industry was at a critical juncture and the NCIF needed to have a clear focus on reversing declining productivity and stamping out ­unlawful and corrupt conduct.

The Australian Constructors Association said reconvening the NCIF and the inclusion of the employer associations was a “unique opportunity to reshape the construction industry for the better”.

In his response to Mr Watson’s interim report into the Victorian CFMEU, Mr Irving said he has asked him to continue his investigation, including allegations against Mr Christopher, and report to him by December.

Police raided Mr Christopher’s home in 2017 as part of an investigation into claims contractors supplied building materials in return for favourable treatment. He has denied any wrongdoing.

“Mr Watson’s report has shed light on a cycle of lawlessness where violence was an acceptable part of the culture that exists across the Victorian construction sector and that in this cycle of intimidation and violence the CFMEU had lost control,” Mr Irving said. “I have sought that Mr Watson will continue his work.

“The coercive powers vested in me … will enable him to overcome limitations that previously inhibited conduct of his investigation.”

Mr Irving said the Queensland probe would examine the involvement of outlaw motorcycle gang members and those connected with organised crime in the construction industry, as well as unlawful “kick-backs” and secret benefits of any kind offered by employers to CFMEU delegates and officers.

He would also examine the transfer of funds or resources from the CFMEU to Your Union Your Choice Pty Ltd, a company set up to run a High Court challenge to the administration.

The probe into the NSW branch will look at the involvement of bikies and organised crime as well as unlawful kick-backs and secret benefits of any kind offered by employers to CFMEU delegates and officers.

Mr Irving will also investigate “the failure of certain officers to properly exercise their fiduciary obligations” in relation to payment of legal fees in a criminal matter for Michael Greenfield and Darren Greenfield, and whether the duo “breached statutory obligations in relation to allegations they allegedly received payments from employers”.

The Australian reported this week that Mr Irving had questioned the legality of the NSW CFMEU’s “extraordinary” decision to transfer $3.15m of members’ funds to pay for lawyers for the Greenfields to fight bribery charges.