HIA members seeking to undertake commercial, multiunit or government funded work have cited concerns over many years regarding intimidation by the CFMEU and the influence they have on building sites regarding workplace conditions and who can work on particular jobs. The influence exerted over training, redundancy schemes, labour-hire and superannuation through enterprise bargaining agreements also impacts cost, productivity and restricts healthy competition.

Recognising the unproductive impact unions would have on the residential building industry, for years HIA has worked hard to ensure there is no direct union influence in the sector.

Off the back of the media coverage of these issues, it has been encouraging to see governments commit to a far-reaching independent review into the CFMEU. 

Equally it is pleasing to hear that federal, state and territory governments are appalled by the situation and appear willing to take action. 

At the same time, we fail to understand why any government representative would be shocked by these latest revelations and why it has taken this long to get action on these issues that have been identified in a number of past Royal Commissions, court cases and various government inquiries. 

The way forward

In response to these investigations and reports the Federal Government announced their intention to appoint an independent administrator to the CFMEU’s construction branches.

This follows a number of the CFMEU State Branches being placed into administration.

There must be zero tolerance for flouting the rule of law on or off construction sites and the appointment of an independent administrator to oversee the CFMEU’s operations is a good first step.

Furthermore, HIA calls on federal, state and territory governments to act in accordance with the seriousness and gravity of the situation and use the full extent of their legal powers to address these long standing issues.

The current business environment under which the CFMEU can conduct its activities lacks the accountability and transparency required of the rest of Australian businesses. It should surprise no one that the clandestine business environment afforded to the CFMEU is an enabler to corruption and poor business practices. The current situation, while difficult, is an opportunity for widespread and meaningful reform, accountability and transparency.

Many believe that weeding out corrupt individuals will fix the problem. It won’t.  Structural change is required to prevent new corrupt officials replacing the old.

Government leadership is needed, and industry is relying on this to not be based on tokenistic measures or simply the announcement of another review or inquiry. Rather, measurable long term reform is needed to address this key issue once and for all.

How will we ever build affordable housing for Australia when the very people responsible are turning a blind eye to practices which fail to get value for tax payers?”

For more information please contact: