The secretly filmed confrontation involving CFMEU officials on a Monash Freeway upgrade site has sparked a major scandal, revealing the union’s unchecked power over Victoria’s taxpayer-funded projects. The video, capturing a brief but intense exchange, shows union officials exerting their influence with violent undertones, a situation that has become a focal point for political and industrial reform in the state.
This development follows the recent removal of the two men featured in the video, Gerry McCrudden and Joel Shackleton, from the CFMEU’s Victorian ranks. Their departure marks a significant step in the Albanese government’s ongoing efforts to reform the union, which has been under administration since August 2024. However, the scandal underscores deeper issues within the union and the state’s construction industry, which have plagued the Allan government amid billion-dollar budget overruns.
Unveiling the Video’s Impact
The video, recorded during a 2023 confrontation, shows McCrudden boasting about the CFMEU’s control over state Labor’s Big Build contractors. “We’ve got them all,” he declares, indicating the union’s decisive role in awarding lucrative subcontracts. Shackleton, meanwhile, is heard issuing violent threats, leading to his court appearance on charges of threatening to kill.
The video has intensified scrutiny on the CFMEU, prompting union boss Zach Smith to purge its Victorian branch of officials implicated in unlawful behavior. This move represents a critical turning point in addressing the corruption scandal that has long dogged the union.
Political Repercussions and Reform Efforts
The announcement comes as new opposition leader Jess Wilson prioritizes containing construction cost blowouts as part of her agenda. The CFMEU’s influence over the Big Build projects has been a major concern, with allegations of corruption and organized crime involvement surfacing repeatedly.
Despite the recent purges, the Allan government has faced criticism for its handling of the situation. Premier Jacinta Allan has claimed that the union’s old practices are being eradicated, yet insiders argue that reform has been slow and insufficient. The union’s administrator, Mark Irving, KC, and chief investigator Geoffrey Watson, SC, have testified before a Queensland commission of inquiry, highlighting the severity of organized crime and corruption in Victoria.
Challenges in Addressing Corruption
Meanwhile, credible intelligence suggests that bikie-linked companies continue to secure lucrative subcontracts on Big Build projects. Informers are reportedly too intimidated to provide formal witness statements, leaving authorities largely powerless to act. Companies with gangland connections, such as the Maz Group and Cycon Civil, operate freely on government projects, despite previous denials of wrongdoing.
The infiltration extends to state Labor’s Indigenous employment policy, which encourages the hiring of Indigenous subcontractors. However, firms with gangland ties, like Cycon Civil, have exploited this policy, winning government contracts through questionable means. The alleged victim in the video confrontation was an Indigenous firm unlawfully banned from Big Build work.
The Path Forward
The CFMEU’s recent clean-out is seen as a necessary step, but significant challenges remain. Former CFMEU assistant secretary Shaun Reardon has called for a complete overhaul of the union, emphasizing the need to eliminate the influence of bikies and corruption. “Reform is needed,” Reardon writes, urging the union to return to its roots as a champion of social justice and workers’ rights.
The Allan government has introduced new rules requiring contractors to report wrongdoing, but has resisted calls for a royal commission-style inquiry. Opposition leader Jess Wilson has promised such an inquiry if elected in 2026, potentially bringing McCrudden and Shackleton to testify.
The CFMEU scandal highlights the complexities of reforming a powerful union entrenched in the state’s construction industry. As the Albanese government continues its oversight, the focus remains on rebuilding the union and ensuring accountability in Victoria’s Big Build projects.
“The Albanese government intends to keep Mark Irving as administrator until a time when it feels democratic elections can be safely held without what it calls ‘the elements of crime and corruption’ attached.”
As the saga unfolds, the need for transparency and reform within the CFMEU and Victoria’s construction industry becomes increasingly apparent, with implications for the state’s economy and governance.
