The Australian Competition and Consumer Commission (ACCC) has laid criminal charges against the CFMMEU and its ACT construction and general division branch secretary, Jason O'Mara, over alleged cartel conduct. The charges follow a joint investigation between the ACCC and the Australian Federal Police (AFP) arising from the 2016 Heydon Royal Commission into Trade Union Governance and Corruption. The charges are being prosecuted by the Commonwealth Director of Public Prosecutions, with the first mention of the charges before the ACT Magistrates Court is scheduled for 27 September.
In a statement, ACCC Chair Rod Sims said the union and O'Mara are each charged with attempting to induce suppliers of steelfixing and scaffolding services to reach cartel contracts, arrangements or understandings containing cartel provisions in relation to services provided to builders in the ACT in 2012 to 2013.
The charges by the ACCC are understood to have stemmed from work by the Commercial Construction Unit (CCU), a specialist team set up to investigate allegations of anti-competitive conduct in the commercial construction sector. The CCU has a Memorandum of Understanding (MoU) with the ABCC and has recently set up an anonymous reporting portal where the public can report anonymously with an ACCC investigator about anti-competitive practices in the construction sector.
Master Builders will monitor this matter with interest and advise members of developments.