The Victorian Premier faces mounting scrutiny as the CFMEU scandal threatens her political career, revealing deep connections between her government and the controversial union

On July 19, 2024, Victorian Premier Jacinta Allan found herself at the centre of a political storm as the CFMEU scandal unfolded, casting a shadow over her leadership. The controversy, ignited by allegations of intimidation and misconduct by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), has exposed Allan’s intricate ties to the union and stirred intense debate about her role in the scandal.

The CFMEU, long associated with aggressive tactics on Victorian construction sites, has come under severe scrutiny following a series of explosive reports by The Australian Financial Review, The Sydney Morning Herald, The Age, and 60 Minutes. These reports revealed evidence of violence, threats, and corruption linked to the union’s involvement in Victoria’s $100 billion Big Build project.

Premier Allan, who previously oversaw the Big Build as the state’s infrastructure minister, faced questions about why she took over a year to address a whistleblower’s warnings about CFMEU practices. At a tense press conference, Allan struggled to provide satisfactory answers, stuttering in response to inquiries about the delayed action.

In a bid to manage the fallout, Allan announced several measures: a review of the CFMEU’s conduct, suspension of the union from the Victorian ALP, and a promise to strengthen anti-bikie laws. Despite these efforts, the scandal has only deepened concerns about Allan’s accountability and the government’s connection to the CFMEU.

The CFMEU’s leader, John Setka, has resigned in the wake of the scandal, but Allan’s attempts to distance herself from the controversy have been met with skepticism. Critics argue that Allan’s deep-rooted ties to the union movement make her particularly vulnerable. Her involvement with the union dates back to her early career, and her husband, Yorick Piper, previously worked with the CFMEU in a different capacity.

The scandal has also had political repercussions beyond Victoria. Prime Minister Anthony Albanese, along with other state premiers, has been drawn into the fray, with Albanese calling for an investigation into the CFMEU’s enterprise bargaining agreements. Meanwhile, Allan’s approval ratings have plummeted to 27%, as voters react to rising debt, project overruns, and service cuts.

Allan’s struggle to navigate the scandal highlights the broader challenges facing her government. As the crisis unfolded, her attempts to downplay the severity of the allegations and shift blame to the CFMEU’s individual actions fell short. Her decisions, including her reluctance to expel the CFMEU from Victorian Labor, have been criticized as inadequate responses to a situation that could threaten the stability of her administration.

Analysis

Political: The CFMEU scandal places Jacinta Allan in a precarious position politically. Her deep ties to the union, combined with her previous role overseeing the Big Build, have made her a focal point of criticism. This scandal challenges Allan’s credibility and raises questions about her ability to lead effectively. The situation also puts pressure on the Victorian ALP, which has enjoyed a long period of dominance. The political fallout could potentially weaken Allan’s grip on power and influence the upcoming elections.

Social: The scandal mirrors broader societal concerns about corruption and the integrity of public institutions. The CFMEU’s aggressive tactics and the alleged misconduct at construction sites highlight issues of accountability and transparency in governance. The public’s reaction to the scandal underscores a growing demand for ethical practices and reform within organizations that wield significant power and influence.

Racial: The CFMEU’s alleged exclusion of Indigenous firms from state projects adds a racial dimension to the scandal. This exclusion reflects broader issues of racial equity and inclusion within major government contracts and projects. The situation has prompted calls for a closer examination of how such practices affect marginalized communities and how to ensure fair treatment in procurement processes.

Gender: The scandal has implications for gender dynamics within politics and labor relations. As a female leader in a traditionally male-dominated environment, Jacinta Allan’s handling of the scandal is under intense scrutiny. The situation highlights challenges faced by women in leadership roles when navigating crises and dealing with accusations of misconduct within their organizations.

Economic: The economic impact of the CFMEU scandal is significant. The disruption to the Big Build projects, coupled with the loss of public trust, could affect future infrastructure investments and project funding. The scandal’s effects on the state’s financial stability, including potential cost overruns and delays, further complicate the economic landscape. Allan’s government now faces the challenge of restoring confidence and addressing the economic repercussions of the scandal.