Former justice department chief Greg Wilson's final report on the state's construction sector, which was sparked by allegations of intimidation and coercion within the union, was released on Wednesday.
It delivered eight recommendations including the complaints body, the establishment of an alliance involving state and federal law enforcement and amending what constitutes a 'fit and proper person'.
This new definition would exclude people found guilty of an indictable offence over the past decade and anyone part of a criminal organisation or with a close associate who would not be found to be a 'fit and proper person'.
There are allegations of serious criminal activity linked to the CFMEU's construction arm. (James Ross/AAP PHOTOS)
The recommendations and their impact would be evaluated two years after the report's delivery, Mr Wilson said.
Industrial Relations Victoria would co-ordinate the state's law enforcement agencies and regulators and consult with federal agencies to meet the recommendations.
At this point, further reforms would be needed to provide Victorian government bodies with the powers to investigate and respond to allegations of criminal or other unlawful conduct in Victoria's construction sector.
"A system this complex requires a multifaceted set of responses to effect change - cultural, regulatory, legal, policy and contractual. No agency on its own can resolve these issues," the report stated.
The review was sparked following allegations of serious criminal activity, including intimidation and coercion in the CFMEU on government construction worksites aired in media reports in July 2024.
It also considered whether Victoria's integrity watchdogs should be given stronger powers to investigate corruption at government worksites.
While agencies such as the Independent Broad-based Anti-corruption Commission and the Auditor-General's Office can investigate and expose corruption in public office, they don't have powers to look into contract arrangements between private sector employers on major government projects.
An interim report, released in August, found there was "significant reluctance" from workers to make complaints within the construction industry "both because of fear of reprisal and because people lack confidence" any action would be taken.
Even if whistleblowers wish to make a complaint, they do not know who to lodge it to, the report stated.
"One person described approaching 10 entities over two years, including state and federal bodies and major contractors, and being unable to find anyone who could deal with the issue they were raising," it said.
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