Master Builders ACT hammers CFMEU push for more procurement power

Master Builders ACT has called on ACT Labor to reject a push from the construction union to have more say in government procurement processes.

The ACT branch of the CFMEU has proposed in a motion to the upcoming ACT Labor Conference on 27 July that the union be given powers to investigate and prosecute companies in breach of the Secure Local Jobs Code.

The motions come as allegations of underworld infiltration envelop the CFMEU’s Victorian Branch and spread to NSW.

The CFMEU’s ACT branch believes unions should be able to raise concerns about workplace safety and pay at companies vying for government work.

It wants a consultation process to be embedded in the Code requiring companies to obtain a Code Certificate from an auditor before quoting for a project.

Companies must show that they meet standards on pay and conditions, health and safety, financial viability and collective bargaining.

A Master Builders ACT spokesperson said the CFMEU motion was outrageous and would give it even more power in how tenders were decided.

CFMEU Secretary Zach Smith already sits on the Code Advisory Council, along with United Workers Union ACT Branch Secretary Lyndal Ryan and UnionsACT Secretary Kasey Tomkins.

Canberra Business Chamber CEO Greg Harford and State Operation Manager of Millennium Services Group Menka Zarzour are also on the Council.

Master Builders ACT has been raising concerns about union interference in procurement for years.

It said the original memorandum of understanding between Unions ACT and the ACT Government was inappropriate, and the Secure Local Jobs Code that replaced it was worse.

“There is no role for third parties in procurement decision-making,” the spokesperson said.

Integrity Commission hearings in its Operation Kingfisher investigation into the awarding of the Campbell Primary School modernisation contract highlighted the influence and control the union already had over the government in the ACT, the spokesperson said.

It is alleged that a local company missed out on the contract at the behest of the CFMEU.

“If the CFMEU get their way, they will continue to bully and harass not only our builders and subcontractors, but our government officials too,” the spokesperson said.

Delays brought about by CFMEU influence on building sites could add up to 30 per cent to construction costs.

“If this proposal is implemented, it could have a devastating impact not only on the wellbeing and livelihoods of those employed in our industry, but could also put even more barriers in the way of reaching housing targets and building the infrastructure needed to support our communities.”

The spokesperson said the motion was especially galling in light of the recent allegations of bullying, intimidation and corruption by the CFMEU in Victoria.

The ACT branch has not been accused of any wrongdoing.

Another union motion from the CPSU calls for union representation on hiring panels for all public servants and statutory office holders.

Canberra Liberals Leader Elizabeth Lee called on Chief Minister Andrew Barr to unequivocally reject these motions.

She said Operation Kingfisher had heard evidence that a local company missed out on the job despite being the preferred tenderer because it was allegedly not favoured by the CFMEU.

Even more concerning, the Integrity Commission had also heard evidence that the pressure to do so came directly from the Education Minister’s office, Ms Lee said.

“The CFMEU is not only a member of ACT Labor that has input into party leadership positions, including the current Education Minister and Deputy Chief Minister, but also provides significant donations to the ACT Labor Party,” she said.

Chief Minister Andrew Barr said the policy proposals put forward as motions were neither an ACT Labor Party policy position nor something that the government was actively considering.

“More than 200 Conference Delegates will consider the motions in the lead-up to the Conference,” he said.

“This involves clarification on the intent and the practicality of these motions, and motions can be referred to ACT Labor’s policy committees or branch council for further work.”

Mr Barr also said ACT Labor condemned, in the strongest terms, the alleged criminal activities of some members of the CFMEU Victorian/Tasmanian Branch.

He said the allegations did not include the ACT branch of the CFMEU.

“ACT Labor suggests no wrongdoing on the part of the CFMEU in the ACT. ACT Labor has not received any donations or affiliation fees from the Victorian/Tasmanian branch of the CFMEU,” he said.

In NSW, Premier Chris Minns has moved to suspend the CFMEU from the state party and written to the party’s general secretary to stop any donations as bribery allegations emerge.

“The revelations that have come to light this morning are appalling,” he said in a joint statement with NSW Treasurer Daniel Mookhey.

“There is absolutely no tolerance for criminal or corrupt behaviour in the building industry, in unions or anywhere for that matter.”

CFMEU state secretary Darren Greenfield is facing charges for allegedly accepting bribes in 2021.

Further announcements are expected.