The construction sector is under increasing scrutiny as investigations reveal that organised crime groups, particularly outlaw motorcycle gangs, are building illegal business empires by funnelling illicit funds through construction firms. This approach enables them to outprice law-abiding companies during tenders and gain growing control over a significant part of the industry, even as reforms are being implemented within the CFMEU.
Over the past year, the government’s appointed administrator has concentrated on reforming Australia's largest construction union following exposure of internal corruption. However, attention is now turning to how external criminal groups are continuing to thrive. Despite widespread illegal activity, including fake companies, extortion scams, tax evasion and fraud, many businesses in construction still work with corrupt operators because of the financial advantages offered.
Some major firms have reportedly employed known criminals as industrial mediators to provide protection from union interference, though these arrangements are often based on misrepresentation. In certain cases, employers are pressured into sham schemes where payments are purportedly bribes for union officials, but are instead retained by the criminals themselves.
The administrator's latest report, published without publicity, recommends greater employer accountability. Suggestions include introducing a fit and proper person test for employer representatives, similar to what is already applied to union officials. The report also notes the CFMEU is reviewing its enterprise bargaining policy to include an employer’s past record involving corruption or unlawful conduct.
Around 60 CFMEU staff, mostly organisers or leadership, have left since the union entered administration. Still, broader change across the construction industry remains difficult without stronger legislation, improved cooperation between agencies and more robust enforcement powers to identify and remove corrupt elements. The administrator has stated that government bodies, employers, regulators and police all need to take greater responsibility for making reform a reality.
