Scrutiny of Victoria's response to the CFMEU scandal has intensified as an Indigenous commission opens a new line of inquiry and the opposition demands a royal commission.
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The Yoorrook Justice Commission has expressed concern over reports of government failures to ensure fairness in the awarding and administration of large contracts in the construction sector.
Premier Jacinta Allan has acknowledged it took too long to reply to an Indigenous labour-hire firm's 2022 letter detailing allegations of CFMEU officials threatening violence and banning non-aligned firms from government-funded projects.
As Australia's first truth-telling inquiry as part of the state's treaty process, Yoorrook was established in 2021 with the powers of a royal commission.
It can call witnesses, compel the production of documents and make findings and recommendations.
Indigenous suppliers, organisations and individuals have contacted the commission wanting to share allegations of misconduct and exploitation within the construction sector.
The commission is investigating systemic injustices against Aboriginal and Torres Strait Islander people, including within the Victorian economy, and previously received submissions on construction.
"Increased participation in the Victorian economy is essential for Victorian First Peoples, if true self-determination is to be achieved," commissioner and deputy chair Travis Lovett said.
"We encourage affected First Nations businesses and individuals to continue to come forward, including on a confidential basis, to contribute to our ongoing inquiries, and inform necessary change in the sector."
After the blasting the premier's "pathetic" response, Opposition Leader John Pesutto echoed his NSW counterparts' calls for a royal commission.
Proposed terms of reference include investigating any connections between CFMEU misconduct and the management of government departments and identifying the roles and responsibilities of accused individuals.
"This mess can only be properly addressed and the problems overcome with a thoroughly independent inquiry," Mr Pesutto told reporters on Wednesday.
"If Premier Jacinta Allan doesn't agree to what we've proposed then I do think it is appropriate that she resign."
In 2015, a federal royal commission into trade union corruption found there were thugs and bullies in unions and made 79 recommendations.
Mr Pesutto conceded it was unlikely the premier would agree but said the terms of reference could be repurposed to establish a parliamentary inquiry.
Earlier, Ms Allan pointed out Victoria Police and the corruption watchdog were assessing allegations bikies and organised crime figures infiltrated the union following a referral from her.
"I believe those agencies have the tools and powers and resources to appropriately investigate these allegations," she said.
"Yoorrook has been established as an independent agency so I don't want to cut across the work they are doing."
Speaking before the federal government announced it would back the appointment of an independent administrator to the embattled union, the premier said she would welcome the move.
The union's national executive has placed its Victorian and South Australian branches into administration and launched its own investigation.
In other moves spurred on by Ms Allan, federal Labor is suspending the CFMEU's construction arm from the Victorian Labor Party, which is no longer accepting donations from the division.
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