Victorian rail tunnel workers constructing the Suburban Rail Loop (SRL) are set to earn up to $360,000 annually following a landmark pay deal brokered with the Construction, Forestry and Maritime Employees Union (CFMEU), a development that has ignited scrutiny over costs associated with the state’s major infrastructure projects.
The agreement, finalized this week, establishes a new benchmark for wages in the construction sector, with specialist tunnel workers receiving a base salary exceeding $280,000, plus superannuation and allowances that can push total annual earnings to $360,000, according to reports in The Australian and the Australian Financial Review. The deal comes as the Victorian government faces increasing pressure over potential cost overruns and allegations of corruption linked to the CFMEU’s involvement in the state’s “Considerable Build” program.
The timing of the agreement coincides with a damning report commissioned by the CFMEU administrator, Mark Irving KC, which alleges widespread corruption within the Victorian branch of the union under former boss John Setka. The report, titled “Rotting From The Top” and examined during a Queensland inquiry, claims the CFMEU Victorian branch “was no longer a trade union, it was a crime syndicate,” and accuses it of cultivating ties with underworld figures and bikie gangs. The report estimates the cost to Victorian taxpayers from CFMEU conduct could be as high as $30 billion, a figure that builds on an earlier estimate of $15 billion from anti-corruption expert Geoffrey Watson SC.
Allegations detailed in the report and subsequent media coverage include strippers being hired as cleaners at inflated salaries, work sites being used for drug distribution, and a pattern of bribery and “jobs for mates.” Watson claimed the Victorian CFMEU under Setka had become “a crime organisation,” and that the union’s power instilled fear throughout the industry.
Premier Jacinta Allan, who served as the presiding minister over the Big Build projects before becoming premier, has not directly commented on the specific allegations contained within the report. Attorney-General Sonya Kilkenny has responded to questions on the matter during public appearances, but details of those responses have not been widely reported.
The record pay deal for SRL workers has drawn criticism from some quarters, with concerns raised that it could further inflate costs on the already-budgeted $50 billion project. The Australian Financial Review reported that the deal was seen by some as the CFMEU “given a green light” to continue its influence over major infrastructure projects.
The allegations of corruption within the CFMEU are not new. The Guardian reported in February 2026 that a previous estimate linked CFMEU conduct to $15 billion in cost blowouts on the Big Build, based on a 15% increase attributed to union activity on the roughly $100 billion project. 9News reported similar figures, citing Watson’s claim that the final cost to taxpayers could reach $30 billion.
The Queensland inquiry into the CFMEU continues, with further hearings scheduled in the coming weeks. The Victorian government has yet to announce whether it will launch a formal royal commission into the allegations of corruption, despite calls from opposition members.
