Cartel conduct in the construction industry?

Australia’s competition watchdog said it will be looking into allegations of cartel conduct in Canberra’s construction industry as evidence was presented to the Royal Commission into Trade Union Governance and Corruption this month.

According to news reports, three men — including two union officials — have been arrested following allegations of bribery, blackmail, standover and intimidation tactics, and the promotion of cartels by the ACT branch of the Construction Forestry Mining and Energy Union.

The ACCC said it is aware of “serious allegations and evidence” presented to the commission which particularly concerned concreting and scaffolding within Canberra’s construction industry.

“Cartel conduct such as price fixing, anti-competitive agreements and attempts to bring about collusive arrangements are matters of grave concern to the ACCC,” said ACCC Chairman Rod Sims.

“The ACCC will be looking closely at the allegations. Our enquires will be conducted by the specialist team we have recently established to look at similar allegations in the construction industry arising from the Royal Commission into Trade Union Governance and Corruption.”

Under the Competition and Consumer Act 2010 there are civil and criminal penalties for cartel conduct.

The ACCC said it does not “generally comment on its investigations, but considered it was appropriate in this case due to the public nature of the allegations”.

Sims urged anyone with information about the allegations to call the ACCC’s cartel immunity hotline on (02) 9230 3894 or email cartelimmunity@accc.gov.au.