'Rotten culture': concerns takeover won't fix union

Business groups say a regulator is required to determine what's wrong in the construction industry. (Darren England/AAP PHOTOS)

Future administrators of the embattled CFMEU would need to demonstrate to the public the union was being cleaned up, amid calls for a new watchdog to oversee the sector.

The CFMEU's construction division has been accused of taking kickbacks, being linked to organised crime and employing standover tactics on worksites, in a series of Nine newspaper reports.

While the Fair Work Commission plans to appoint an administrator to take control of the union, business groups say more needs to be done.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar says an administrator is only one part of the solution in addressing concerns with the union.

"The public has to have confidence in the solutions that are being sought to be implemented here. It's not clear that simply the appointment of an administrator will go far enough," he told reporters in Canberra on Sunday.

"Deregistration needs to still be on the table at the appropriate point in time. We have to have a regulator that has the independence and the resources to really get to the bottom of what's been happening in the construction industry."

A CFMEU rally in Sydney
Zoe Daniels says police task force should investigate the criminal allegations about the CFMEU.

Independent MP Zoe Daniel says the previous watchdog in the sector, the Australian Building and Construction Commission, wouldn't be effective in addressing the allegations against the CFMEU.

"I don''t think (the ABCC) was particularly effective," she told ABC's Insiders program.

"The ABCC specifically has been so politicised that it's been impossible for it to be effective. That said, I'm not convinced that an administrator will be enough.

"It probably needs to be coupled with ... maybe a state, federal police task force, to look at those criminal allegations, dismantle what's there."

It comes as Victorian Premier Jacinta Allen promised to tear the "rotten culture" of the CFMEU "out by its roots", announcing a review into the construction industry.

Former acting commissioner of the Victorian Public Sector Commissioner Greg Wilson will head up the review, with an interim report to be handed down in six weeks.

"We have zero tolerance for, and need to take strong action to pull this rotten culture out by its roots," Ms Allan told reporters on Sunday.

"What we need to do is look at what further work we must do to strengthen our processes and systems."

Ms Allan said while she didn’t want to pre-empt any findings of the review, her government would consider putting in place legislation to strengthen policies to ensure there was a robust system for whistleblowers and complainants.

She committed to sharing the interim report within days of the government receiving it.

The state's opposition leader John Pesutto said the review would only hide the truth instead of shining a light on it.

CFMEU signage
Jacinta Allan says the CFMEU's 'rotten culture" needs to be pulled out "by its roots".

Shadow treasurer Angus Taylor said Prime Minister Anthony Albanese had been half-hearted in his approach by not deregistering the CFMEU.

"This organisation is clearly rotten to the core. It is a cartel being enforced by criminal underworld figures and others like bikies and every Australian is paying the tax for this cartel," he told Sky News.

"(The prime minister) should deregister the CFMEU, allow other organisations to step up and compete, to represent workers."

But Assistant Energy Minister Jenny McAllister said the approach to appoint an administrator was the right one.

"Deregistration would allow this same group of people to continue the same things that they are presently doing without regulatory oversight," she said.

"It's hard to see how this helps the situation."

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store