Authorities are investigating claims that union figures have intimidated Indigenous firms. 

The Fair Work Ombudsman (FWO) is investigating allegations of coercion by the Construction, Forestry, Maritime, Mining, and Energy Union (CFMEU) against Indigenous labour hire companies on Victorian government building projects. 

The FWO is encouraging witnesses to come forward anonymously with information. Its investigation was initiated in response to reports that revealed emails indicating that the Andrews government was aware of allegations of “illegal CFMEU activity” on its infrastructure projects. 

The emails, obtained through Freedom of Information requests, detailed instances of the CFMEU pressuring an Indigenous firm, whose name was withheld, on nine projects, including the $200 billion Suburban Rail Loop (SRL) Project.

They also suggested that Darren Driscoll, the industrial relations director at Victoria's Major Transport Infrastructure Authority, had informed Deputy Premier Jacinta Allan about the coercion allegations. However, McCartney stated that the government had referred companies to the now-defunct Australian Building and Construction Commission.

While Premier Daniel Andrews denied allegations that the government took no action regarding CFMEU coercion on its projects, he has not specified the response. 

Indigenous businesses, many of which had agreements with the Australian Workers Union, claimed that they were expelled from work sites and blacklisted by the CFMEU unless they agreed to the union’s terms. 

An FWO spokesperson has told reporters that inquiries are underway, and urged individuals with concerns to contact the Fair Work Infoline or submit information anonymously via its My Account feature.

The investigation will focus on potential breaches by contractors or the CFMEU of the Fair Work Act's laws against adverse action and coercion. 

Scott McCartney, CEO of the state Indigenous chamber of commerce Kinaway, expressed support for the FWO investigation, stating that his organisation would cooperate fully.

Laing O'Rourke, the managing contractor for the SRL project, declined to comment on whether it had terminated an Indigenous firm due to CFMEU pressure. 

However, a spokesperson said the company remains committed to supporting Indigenous businesses, and highlighted their engagement of 141 First Nations businesses, with a spend of nearly $70 million in the past year.

Many Indigenous firms affected by the alleged coercion have chosen not to comment publicly, but the actions are said to have had severe impacts on their businesses and Indigenous workforce.

Last month, the Victorian opposition referred the alleged coercion to the Independent Broad-based Anti-corruption Commission, urging an investigation into potential influence by the CFMEU or state ministers on procurement decisions. 

Opposition spokesman for major projects, David Southwick, criticised the government, accusing it of turning a blind eye to CFMEU intimidation and prioritising political connections over the welfare of Victorians.