CFMEU Influence Over Victorian Government Under Royal Commission 2026

The CFMEU enjoys a significant level of influence over the Victorian government, a royal commission into the Big Build has heard. The inquiry is examining allegations of corruption and misconduct in major public infrastructure projects, with a focus on the construction union's close ties to the Andrews Labor government.

On the first day of hearings, counsel assisting the commission, Chris Young KC, outlined evidence that a major construction company feared putting the CFMEU offside due to its connections to the government. The hearings will scrutinise a June 2022 meeting where government officials allegedly sought to appease the union after it forced work to stop on a level crossing removal project in Sunbury.

Background: The Gap Road Project and CFMEU Interference

The royal commission is investigating the integrity of major public and civil infrastructure construction projects in Victoria, including the level crossing removal project at Gap Road in Sunbury, north of Melbourne. The project involved removing a level crossing and building a new rail bridge and underpass.

In 2022, the CFMEU forced work to stop on the project, prompting a meeting between government officials and the union. The commission will hear from 20 witnesses compelled to appear during the November hearings, focusing on what government officials did during that meeting to appease the union.

Young presented evidence showing that in the years leading up to the union's interference, there was growing awareness within the construction sector about the prospect of industrial action curtailing work and the increasing influence of the CFMEU. In 2017, John Holland, one of the companies involved in the Gap Road project, noted that the CFMEU was "proud of the fact that none of their site visits are code compliant."

Why This Matters: CFMEU's Influence and Government Ties

The royal commission's findings could have significant implications for the Victorian government and the construction industry. The CFMEU's influence over government decisions raises questions about transparency and accountability in public infrastructure projects.

The inquiry will examine whether the union's close links to the Andrews Labor government allowed it to exert undue pressure on contractors and government officials. This could lead to recommendations for legislative or policy changes to prevent similar situations in the future.

For a deeper look at the broader construction scandal involving the CFMEU, cost blowouts, and crime, see our detailed report on Victoria's construction scandal.

Key Takeaways from the Royal Commission

• The CFMEU is alleged to have significant influence over the Victorian government, particularly in major infrastructure projects.
• A construction company feared retaliation from the CFMEU due to its close ties to the government.
• The royal commission is focusing on a June 2022 meeting where officials allegedly appeased the union after work stopped on the Gap Road project.
• 20 witnesses have been compelled to appear, and evidence will examine the union's industrial action and code compliance.
• The inquiry could lead to reforms in how government interacts with unions on public projects.

What to Watch Next

The hearings are expected to shed light on the extent of the CFMEU's influence and whether government officials acted improperly. The commission will hear from a range of witnesses, including government officials, union representatives, and construction company executives.

As the inquiry progresses, it may uncover further instances of union interference in public projects. The findings could also impact ongoing negotiations and contracts in the construction sector.

For context on other recent developments in Australia, including the CFMEU inquiry, see our Australia news roundup.

Implications for the Construction Industry

The royal commission's scrutiny of the CFMEU could lead to changes in how construction companies interact with the union. Companies may become more cautious about reporting union behavior or may seek clearer guidelines from government.

The inquiry also highlights the potential risks of close relationships between unions and political parties. It may prompt calls for greater separation between the two to ensure fair competition and integrity in public procurement.

For a specific example of alleged corruption, read about the Mick Gatto payments exposed in the CFMEU inquiry involving a labour hire firm.

Political Reactions and Accountability

The royal commission has already seen a minister break ranks over CFMEU hospital allegations, signaling potential political fallout. The inquiry's findings could affect public trust in the government's handling of infrastructure projects.

As the hearings continue, watch for reactions from the Victorian government and opposition parties. The commission's final report may recommend changes to laws governing industrial relations and public procurement.

In a related matter, the Australia minister breaks ranks over CFMEU hospital allegations, indicating growing scrutiny of the union's role in public services.

FAQ

Conclusion

The royal commission's hearings will provide crucial insights into the CFMEU's influence over the Victorian government and the construction industry. The outcome could lead to significant reforms in how public infrastructure projects are managed and how unions interact with government.

For ongoing coverage of this and other Australian news, stay tuned to Grand Goldman. In the meantime, you can read about Mick Gatto payments exposed in the CFMEU inquiry over the Big Build for more on the inquiry's scope.