The Victorian government says 140 labour hire companies have been issued notices signalling the potential cancellation of their licences, as regulators intensify investigations into the state’s construction labour sector.
Victoria’s transport infrastructure minister Gabrielle Williams confirmed on Thursday that the state’s Labour Hire Authority (LHA) had issued formal notices as part of a broader compliance crackdown following multiple investigations.
Speaking outside state parliament, Williams said one of the companies facing possible cancellation is a subsidiary of the M Group, which currently has workers on the major North East Link road project in Melbourne.
“That sets in train a process and if that final determination is upheld, M Group will be walked off any sites that they’re on,” Williams said.
“I’m advised that they currently have a presence on the North East Link project.”
Williams said the notice issued on Wednesday was an important regulatory step that could ultimately affect the company’s ability to continue operating on construction sites in Victoria.
“Obviously the notification that was issued yesterday is a very meaningful step, and with a final determination coming in, which may well change the presence of M Group on that site,” she said.
Royal commission scrutiny
The labour hire company has also come under scrutiny in a report by corruption barrister Geoffrey Watson, which was tabled during the Queensland royal commission into the Construction, Forestry and Maritime Employees Union (CFMEU).
The report alleged that underworld figure Mick Gatto owned several companies within the M Group and that the companies had received favourable treatment from the construction union.
“Gatto, of course, denies he owns the M Group companies, but that is transparently false,” Watson wrote in the report.
“The attempts to conceal Gatto’s involvement are crude.”
Watson’s report described Gatto as a “malignant influence” on the CFMEU for decades.
Another M Group operation based on the Gold Coast was also criticised earlier this week during hearings of the Queensland inquiry.
Investigation already underway
Williams rejected suggestions that the actions taken by Victoria’s Labour Hire Authority were influenced by the Queensland royal commission.
Instead, she said the regulator had been conducting investigations for months before issuing the notices.
“Let’s be clear, the Labour Hire Authority has been squirreling away across a number of investigations,” Williams said.
“We’ve seen in recent days and weeks that bear fruit with the cancellation of now, I believe, over 140 licences.”
She said the notice issued to the M Group subsidiary was part of those broader investigations.
The Labour Hire Authority, established in Victoria to regulate labour hire providers and protect workers from exploitation, has the power to suspend or cancel licences where companies breach labour hire laws or fail to meet regulatory standards.
If a final determination confirms the cancellation, affected companies would no longer be able to legally supply workers to Victorian workplaces, including large government construction projects.
The North East Link, one of the largest road infrastructure projects in Victoria, has already been subject to heightened scrutiny over labour practices and contractor compliance.
