Mr Watson made seven recommendations including further investigations to identify instances when Victorian branch officials have engaged in or been subject to threatening, violent or abusive conduct.

One incident captured on video involved a Victorian branch organiser who introduced himself as someone who worked for the union.

He then threatened two owners of an Indigenous labour hire firm, saying among other things: “I’ll f***ing take your soul and I’ll rip your f***ing head off”.

Mr Watson said when he raised that incident with Victorian union officials, his "impression was that they regarded it as unexceptional".

He also said the branch should build "co-operative relationships" with the Victoria Police, the Australian Federal Police and regulatory authorities "so that criminal conduct can be dealt with in accordance with the law".

"Based on the information uncovered during my investigation, the Victorian branch has been caught up in a cycle of lawlessness, where violence was an accepted part of the culture, and threats of violence were a substitute for reasoned negotiations," Mr Watson said.

He detailed a "stubborn refusal" by the union to involve police in matters. 

"It was almost as though the police were regarded as enemies," Mr Watson said. 

"I was told about specific incidents in which union people had been severely bashed or subjected to threats of violence or death, but no police referral was made."

Federal Workplace Minister Murray Watt said he was not surprised by the report's damning findings.

"Even a report commissioned by the union itself has demonstrated widespread corruption, widespread infiltration by bikies and widespread violence connected to the CFMEU and the construction industry," he told reporters.

Mr Watt also noted the report raised concerns not just about figures within the union, but also employers and others involved in the construction industry.

One senior official said he could give Mr Watson “1000 cases where workers have been stood over and bashed” and added that “all the police do, is turn around and go after unions”.

Efforts to rid the union of bikies had been inadequate and there was no record of a formal investigation.

"I remain unconvinced that the Victorian Branch had a real intention to fix this problem. Even if it did, more needs to be done to fix the problem,” he said.

He recommended further probes into any remaining links between union delegates and outlaw motorcycle gangs, and their influence.

Mr Watson noted his investigation was hampered by his inability to compel witnesses to give evidence or compel the production of documents, and he was unable to offer confidentiality to potential witnesses.

"Part-way through my investigation, I was told that threats of violence had been made including against members of the executive team of the Victorian branch," he wrote.

"Because of those threats, I was instructed to refrain from contacting certain third parties."

Victorian Government Services Minister Gabrielle Williams said the government had condemned similar behaviour "on worksites or anywhere else".

Deputy Opposition Leader David Southwick said the government had ample opportunities to rid bikies from worksites and the saga will be costly for taxpayers.

ACTU president Michele O'Neil said she had not read the report but backed the administrator's efforts to scope issues outside of the union directly.

In August, federal Attorney-General Mark Dreyfus placed the construction arm of the CFMEU into administration, appointing Mark Irving KC as administrator.

Mr Watson said Mr Irving later instructed him to provide his report and make recommendations about investigations the administrator should carry out.

License this article