Victorian Premier Jacinta Allan has acknowledged that organised criminal behaviour occurred on some of the state's largest construction projects under the Big Build program, but she has firmly rejected growing calls for a royal commission into alleged corruption involving unions and labour hire companies.
Premier's admission and apology
In an opinion piece published in The Age on Thursday night, Allan wrote that "we now know that criminals operated on some of Victoria's construction sites" during the Labor government's Big Build projects. She described the activities as involving "violence, intimidation and organised criminal behaviour," calling them "shocking and unacceptable." Allan apologised, stating, "I'm deeply sorry that it happened on projects funded by the Victorian people. Now the question is how we stop it happening again." She emphasised that such behaviour does not represent the majority of union workers on these projects.
Rejection of royal commission
Allan argued that a royal commission would not solve the problem, despite repeated calls from figures such as Geoffrey Watson SC, the CFMEU administrator, and former Victorian ombudsman Deborah Glass. She noted that Australia held a royal commission into trade unions in the last decade, which cost $46 million, targeted workers, achieved only one criminal conviction, and failed to change workplace culture. "If the goal is another report, another royal commission will deliver one. If the goal is changing behaviour on worksites, changing the culture is the answer," she wrote.
Allegations and government response
Allan's op-ed came after allegations that money from the Big Build was being paid to gangland figures and that the government was warned about cost blowouts due to CFMEU demands. While she acknowledged criminality, she did not address claims about her time as transport infrastructure minister, including reports that state government officials told a rail consortium she wanted a deal with the CFMEU over a level crossing removal project, resulting in the union forcing its preferred labour hire company onto the site. Another claim involved ministerial pressure from Allan's office in a 2022 dispute between the CFMEU and a rail infrastructure partnership.
Police and regulatory actions
Allan highlighted steps taken by her government, including giving Victoria Police stronger powers to investigate criminal conduct, resulting in more than 90 criminal charges. The Labour Hire Authority received stronger powers to cancel construction licences, leading to 164 firms being affected. The CFMEU was placed into administration, and Allan expelled the union from the Victorian Labor Party. Additionally, construction companies on government projects must now report suspected criminal behaviour, workers have stronger whistleblower protections, and state agencies share intelligence with the federal government.
Opposition's stance
Opposition leader Jess Wilson also wrote in The Age, calling for a royal commission to expose how $15 billion of Victorians' money has been "rorted" and to ensure it never happens again. She described Labor's Big Build as "a hunting ground for organised crime, standover men, and corrupt union bosses."
