2026/07/23 by Eugene Schofield-Georgeson
Business, Management and Accounting · Social Sciences · #Cooperative Studies and Economics #Corporate governance #Extortion #Incentive #Industrial relations #Labor Movements and Unions #Language change #Militant #Political corruption #Regulation and Compliance Studies #Scholarship #Trade union
paper · doi:10.1177/00221856261470139
published in Journal of Industrial Relations (SAGE Publishing)
openalex publication_date 2026/07/23 · openalex created_date 2026/07/24 · openalex updated_date 2026/07/24
Recent allegations of corruption within the Construction Division of Australia's Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) have prompted intense political and media scrutiny. Yet little scholarship explains the causes of corruption in the Australian construction union beyond ideological debate or sensationalist accounts. This article develops a critical explanation of corruption in the CFMEU by situating it within the structural, cultural and organisational dynamics of the construction industry and industrial relations system. Drawing on historical literature on trade union corruption, particularly in U.S. construction and transport sectors, the article distinguishes corruption from militant trade unionism, examining evidence surrounding recent allegations involving organised crime, bribery, extortion and conflicts of interest. The analysis argues that corruption has emerged from several structural conditions: decentralised enterprise bargaining, intense competition among contractors, a chronic skills shortage and a dangerous work environment requiring strong union enforcement of safety standards. These pressures have been compounded by declining union density and weakened state regulation, creating incentives to substitute organised crime for collective worker mobilisation. Internal union dynamics, including weakened democracy and opportunistic leadership, have further facilitated corruption. The article concludes that addressing corruption requires systemic industrial reform and democratic union renewal rather than governance regulation alone.