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Yet another CFMEU royal commission won’t solve much until we learn from the past

A royal commission focused on individual criminality may not address the underlying conditions that allowed corruption to flourish.

Victoria's Premier Ben Carroll has announced a new royal commission into corruption allegations within the CFMEU, the largest construction union in the country. This is not the first time such an inquiry has taken place, with multiple royal commissions and state reviews having been conducted over the past few decades. The cost of these inquiries has been substantial, with the current Queensland investigation already surpassing $95 million.

The new royal commission will specifically look into the alleged infiltration of bikie gangs and organized crime within Victoria's Big Build program, a construction initiative. This inquiry comes after former Premier Jacinta Allan's resignation following a detailed investigation by Nine Newspapers' Building Bad. The allegations have reportedly inflated Victorian infrastructure spending by an estimated A$15 billion.

Previous inquiries have generally focused on individual wrongdoing, but the deeper question remains: why does corruption within the construction union persist? This research article examines the structural factors that have contributed to this issue. Past inquiries have largely framed corruption as the result of bad individuals making poor choices, but this perspective fails to consider the broader context.

Drawing on research into US unions, such as the Teamsters' relationship with the mafia, it is suggested that specific conditions make unions vulnerable to infiltration by organized crime. These conditions include intense competition among small firms, easy entry into the industry, and shortages of skilled labor in a deregulated market. In Australia, these factors, combined with weakened unions and under-resourced state management, have created an environment conducive to organized crime infiltration.

The decline of union strength in the construction industry since the 1980s, due to policy changes such as enterprise bargaining and restrictions on strikes and union rights, has left unions more exposed to the influence of organized crime. Organized crime has responded by imposing an informal licensing system, where employers who agree to pay up can operate without interference, while others face pressure.

This dynamic is further exacerbated by safety concerns and the need for union officials to deal privately with developers suspected of links to organized crime.

While the royal commission may uncover specific instances of criminal conduct, a focus solely on individual wrongdoing may not address the underlying structural conditions that make corruption a rational choice for some officials. To truly combat corruption, there is a need to rebuild collective bargaining, address safety concerns, and restore democratic accountability within the union. Without these changes, the findings of the latest royal commission are likely to be followed by similar inquiries in the future.

Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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