Links to organised crime and outlaw bikies strip labour hire firms of their licences in a major crime crackdown

More than 100 Victorian construction companies have had their licences stripped over links to outlaw bikies and organised crime as business owners face rejection due to their criminal pasts.

Dozens of labour hire firms supplying workers to Victorian construction sites have had their licences stripped amid a sweeping crackdown on operators linked to organised crime and outlaw motorcycle gangs.

The state’s labour hire watchdog revealed that 126 construction companies have their licences cancelled and a further 44 applications have been rejected in the wake of the CFMEU scandal.

In many cases business owners were rejected due to their own criminal histories or links to criminal figures, including members of bikie gangs.

Victorian Premier Jacinta Allan ordered the crackdown. Picture: NewsWire/David Crosling

The number of licences being cancelled in the construction sector had jumped by almost 30 per cent, in just one year, after the Labor Hire Authority had been tasked with cleaning out dodgy players by Premier Jacinta Allan in late 2024.

In one of the known cases the LHA stripped a business of its licence after the owner appeared to be a front man.

“The application named only the sole director of the business as a relevant person. However, LHA’s investigation identified that the director had limited knowledge of the business and that the true controlling mind was the undisclosed figure,” the LHA’s annual report stated.

It was also reported that some licences were cancelled or refused after it was found the owners, or executives, had extensive criminal histories.

The watchdog also issued record penalties for businesses operating without a licence, totalling $759,674 in fines.

In November the state government moved to give the watchdog even more powers to stamp out dodgy players introducing proposed changes to the Labour Hire Licensing Act 2018 (Vic).

The bill aims to specifically tighten rules around the “fit and proper” person test.

It comes after Ms Allan Allan promised to stamp out “thuggish behaviour” on construction jobs in December 2024.

She ordered a review be conducted independently by Greg Wilson, who previously served as Secretary of the Department of Justice and Regulation.

The review stated that labour hire was a “problematic area in relation to the allegations that led to this review” and made a recommendation to give the Labour Hire Authority regulator more powers, including an expanded fit and proper person test to include criminal backgrounds, indictable convictions, insolvencies, and the close association with an unfit or improper person or membership to criminal organisations.

Labour Hire Licensing Commissioner Steve Dargavel has previously flagged he would be ramping up activity in the sector.

The watchdog has also increased activity in the horticultural, cleaning and security sectors.

This included seizing a luxury Maserati motor car, a 1kg bar of gold bullion, various jewels, numerous Louis Vuitton accessories from a company director who had previously refused to pay fines imposed by the Supreme Court of Victoria after an LHA investigation.

“Individuals who fail to comply with their licence obligations are on notice – we will use every avenue available to ensure you pay the price for your conduct,” Commissioner Dargavel said.

Originally published as Links to organised crime and outlaw bikies strip labour hire firms of their licences in a major crime crackdown