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US expert warns unions could target Olympic builds

Ronald Goldstock believes laws can be created so Olympic construction delays could lead to charges. (Liam Kidston/AAP PHOTOS)

Olympic construction sites could be targeted for union disruption given the hard deadlines for completion, a US organised crime expert has warned.

Ronald Goldstock, the former director of the New York State Organised Crime Task Force, gave evidence before the Commission of Inquiry into the CFMEU sitting in Brisbane on Thursday.

Commissioner Stuart Wood KC has shown interest in US laws that target organised crime activity. 

The Commission of Inquiry into the CFMEU
Ronald Goldstock says US groups engaged in crime can be charged as entities, facing harsh penalties. (Liam Kidston/AAP PHOTOS)

Mr Goldstock described the Racketeer Influenced and Corrupt Organisations Act (RICO), a US federal law to combat organised crime by allowing prosecution and civil penalties for racketeering activity.

Under the law, organisations engaged in criminal activity could be charged as entities, be they a corporation, a business enterprise, a mob family a biker gang or a union, and face harsh penalties and forfeiture of property.

Mr Goldstock said delays in the construction industry were extremely costly and could lead to racketeering.

"Anybody who has the ability to slow down the process is a potential extortionist and can demand something in return for continuing the project," he said.

"You have the Olympics and it has to be done on time ... any delays could result in extraordinary loss."

A CFMEU flag (file image)
There are concerns the CFMEU could use building delays as part of a strategy to exert their power. (Jono Searle/AAP PHOTOS)

It would be possible to create an offence whereby any delay in the construction of Olympic venues could lead to charges, with exceptions for legitimate delays, Mr Goldstock suggested.

Commissioner Wood said it appeared the CFMEU had a strategy to impose "bad actors" as delegates on building sites to physically intimidate people.

"Those individuals would have licence to do whatever they liked, that is trespass, breach laws, intimidate people, threaten ... stop concrete pours, organise blockades and stop work at a moment's notice."

The purpose of the business model appeared to be to extend the scope and power of the CFMEU, the commissioner said.

Mr Goldstock said the commissioner's description was "almost the definition of organised crime".

Ronald Goldstock
Extortion in the US construction industry is minimal due to the RICO laws, Ronald Goldstock says. (Liam Kidston/AAP PHOTOS)

A regulatory body could be created to quickly identify troublesome individuals and remove them from construction sites, he said.

Union officials could raise grievance through the proper channels.

Mr Goldstock said the RICO laws in the US aimed to stop organised crime from infiltrating unions and extortion in the construction industry was minimal, allowing building work to proceed as it should.

On the evidence, a change in the leadership of the CFMEU was needed and that was possible, he said.

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