New Laws Aim to Eliminate ‘Rotten Culture’ in Construction Industry, Victoria Announces

In light of concerning reports of violence and intimidation at state construction sites, particularly targeting women, the Allan government has introduced new legislation to reform the industry’s culture.

Victorian Premier Jacinta Allan emphasized the government’s dedication to reform, stating, “The government is swiftly moving forward with its plan to eliminate the problematic culture uncovered in certain parts of the Victorian construction sector.”

As part of these efforts, the Premier has announced an independent sector review aimed at enhancing the powers of regulatory bodies to better address allegations of criminal or unlawful behavior.

The review, according to Premier Allan, will “examine and suggest ways to address any gaps or limitations in the current powers of Victorian bodies or legislation to address allegations of criminal or other unlawful behavior in the Victorian construction sector, along with their correlation with the powers of the Commonwealth.”

A New Approach to Regulation

The Wage Theft Amendment Bill 2025, a significant recommendation from the independent Wilson review, will establish a specialized service to handle complaints about misconduct on public construction projects, directing them to the appropriate investigative entities.

“This will streamline the process of making complaints and provide a central point for issues to be raised and addressed, with a specific focus on complaints involving threats to women’s safety,” stated the government.

The new complaints service will be overseen by the Workforce Inspectorate Victoria, which has expanded its responsibilities beyond enforcing wage theft.

The service will also address other worker protections such as child employment, long service leave, and contractor protections.

Following recent changes to federal law, wage theft is now a criminal offense nationwide in Australia. Consequently, Victoria will repeal its own state laws on the matter and rely on the new federal framework.

“Criminal and unlawful behavior has no place in Victoria’s construction industry,” stated Minister for Industrial Relations Jaclyn Symes. “This new complaints service will help eliminate misconduct on worksites.”

The government’s actions come in response to troubling media investigations uncovering violent incidents on state-funded construction projects.

One report detailed a safety representative with bikie connections allegedly assaulting a woman on-site.

Another report exposed a convicted violent offender detaining a woman in a confined space at a government hospital project while consuming illicit drugs.

Opposition Pushes for Stricter Measures

While the government aims to address the issue through regulatory reforms, the Opposition calls for a more forceful approach.

Taking cues from U.S. racketeering laws, the Coalition argues that tackling individual offenders is insufficient and that criminal organizations within the industry must be dismantled.

The Coalition unveiled a reform package modeled after the U.S. framework to dismantle what it deems the “criminal stronghold” within the CFMEU.

“We must target the criminal organizations, not just the individuals,” stated Coalition Leader Peter Dutton.

The U.S. Racketeer Influenced and Corrupt Organizations (RICO) Act played a key role in dismantling organized crime in the 1970s by enabling authorities to disband entire criminal networks and impose severe penalties to deter future offenses.

Former mobster Michael Franzese noted that RICO’s harsh sentencing prompted many criminals to cease their activities rather than risk lengthy prison terms.

However, the Coalition’s efforts to introduce this in Parliament faced opposition from both Labor and the Greens, who argue that the government’s new approach will be more effective in addressing misconduct on construction sites.