Interview with Laura Tchilinguirian, ABC News Radio

Event: Interview with Laura Tchilinguirian, ABC News Radio
Date: 15 July 2024, 3:35pm AEST
Speakers: Denita Wawn, CEO Master Builders Australia
Topics: CFMEU investigation
E&OE

Laura Tchilinguirian, ABC News Radio: Victorian police and the state’s corruption watchdog have been called on to investigate allegations of corruption, intimidation and criminal gang infiltration within the construction union, the CFMEU. Allegations were raised in a joint investigation by Nine newspapers, alleging bikie leaders and underworld figures have worked as union delegates on major construction sites in Victoria and New South Wales. Denita Wawn is Chief Executive of the building industry association, Master Builders Australia, and joins us now. Denita, thanks very much for coming on to ABC News Radio.

Denita Wawn, CEO Master Builders Australia: Good afternoon.

Laura: What’s your reaction to these allegations that were aired last night on 60 Minutes and in Nine newspapers today?

Denita: Unfortunately, Master Builders Australia and our members were not surprised of these allegations. We’ve heard stories abound for years, but there’s simply been no one willing to put the evidence to, police or regulators so commend the work that has been done to bring these stories to life, and the process now to investigate further.

Laura: How widespread do you think this issue is? Is it just in Victoria and New South Wales?

Denita: Well, our concern is that the Victorian branch of the CFMEU also oversee the management of Tasmania and South Australia. And of course, New South Wales also looks after, to some degree the ACT, so there are some concerns about other jurisdictions and the flow on. That really now is up to the police and other regulators of each of those jurisdictions to be satisfied that there is no evidence of concern in their respective jurisdictions. Hence, the reason why we’ve asked amongst other things for a multiple jurisdiction police strike force that has got adequate resources to get to the bottom of this once and for all.

Laura: What impact could this alleged intimidation and corruption have on building costs and timeframes?

Denita: Master Builders has always said that the unlawful activity of the CFMEU drives up costs. It drives up costs to the extent that we’ve always said around about 30 per cent. We know that the signing of enterprise agreements that provide a huge amount of opportunities and costs are also undertaken in duress, with additional allegations of money exchanging hands as well. So that ultimately comes down to the client, and the client is either the Australian consumer and also the Australian taxpayer. The governments in the big government projects. So that is part of the reason why we’ve seen the escalation of construction costs over time.

Laura: What do you make of the action taken so far by the national branch of the CFMEU and the Victorian Premier Jacinta Allan?

Denita: I certainly commend the decision of Jacinta Allan in the number of initiatives that the Premier has announced today. Certainly, the national executive of CFMEU and stepping in quickly on administration of the VIC-TAS branch is good. I certainly am questioning the CFMEU being able to hold their own independent review. We think that government regulators and police need to step in to ensure that we’ve got a satisfactory review, but certainly commend them for stepping up and holding people to account amongst their leadership.

Laura: Premier Allan’s also called for enterprise bargaining agreements on Victorian construction sites to be reviewed or even torn up. What do you make of that?

Denita: I certainly commend the Premier for that. We’ve asked for that as well in our statement last night, that there are considerable concerns that many EBA’s, including the most recent ones that have been signed in the last few months in New South Wales and Victoria, have well been undertaken under duress and coercion. We’ve already had significant phone calls to our New South Wales branch today, concerned that builders have signed agreements under duress. So certainly that is something that we welcome and we have asked for the Fair Work Ombudsman to review all CFMEU EBA’s to ensure that they have been genuinely agreed by the employer.

Laura: What do builders want to happen next?

Denita: Well, builders are seeking the police investigation. We believe it is also critical given some of the information that was disclosed that the ACCC ensures that there is a proper investigation about whether or not there was any anti-competitive behaviour and, including cartel-like behaviour, needs to be considered. The Fair Work Ombudsman needs to undertake a review but we asked for more than that. We are asking the federal government in the spring sittings to look at additional powers of the Fair Work Ombudsman to review the status of officials of the unions, that if they are undertaking illegal activity, if they are recidivist in their improper activity, then they be stripped of their official status in terms of being under a registered organisation. We’ve had enough of union officials doing the wrong thing and still holding their status as a union official. We believe it’s critical that legislation is introduced. The other important thing is that many in our industry have wanted to come forward, but they’ve been too afraid because of retribution. We say more needs to be done in terms of witness protection.

Laura: Denita Wawn, appreciate your time this afternoon.

Denita: Thank you.

Laura: That’s Master Builders Australia chief executive Denita Wawn there.

Media contact:
Dee Zegarac
National Director, Media & Public Affairs
0400 493 071
dee.zegarac@masterbuilders.com.au