This article is from the Australian Property Journal archive
THE Victorian Branch of the country’s most powerful union, the Construction, Forestry and Maritime Employees Union (CFMEU) has been placed into administration, whilst the Victorian government has referred the matter to Victoria Police and the Independent Broad-based Anti-Corruption Commission (IBAC).
The move comes after a Nine investigation uncovered alleged corruption, criminal bikie and underworld figures have infiltrated major construction projects including federal and state government contracts.
Last Friday state secretary John Setka stepped down after 40 years with the union movement including 12 years leading the Victorian branch, ahead of the publication of Nine’s story.
A Nine report alleges that criminals were parachuted into high paid jobs on government-funded projects under the leadership of Setka.
Nine alleged criminal bikies and underworld figures received hundreds of thousands of dollars working on government projects.
Nine journalist and Walkley Award winner Nick McKenzie said his investigation uncovered “deep infiltration of underworld figures into the CFMEU”.
Setka rejected the allegations in his statement, labelling it the investigation as “relentless”.
“[The] decision is in response to the ongoing and relentless stories written with multiple allegations, whether true or not, about this great union,” the statement said.
CFMEU national secretary Zach Smith said a lawyer will be appointed to oversee an independent investigation into the allegations.
“The CFMEU has zero tolerance for criminality and anyone found to have engaged in criminal conduct while representing the CFMEU will be identified and removed,
“The CFMEU has one purpose and one purpose only and that is to defend and advance the safety and conditions of workers.
“The Victorian branch has been hugely successful in pursuing this purpose, but the national executive also recognises that a number of recent allegations are serious and demand an unprecedented response.” Smith said.
The Australian Council of Trade Unions (ACTU)’s secretary Sally McManus has called on the CFMEU national executive to stand down all union officials subject to criminal allegations whilst an investigation is underway, including relevant police investigations.
“There is no place whatsoever for criminal activity in unions, as a union movement we completely oppose this, will resist it and will stand up against it.
“We will not tolerate anyone using a union for their criminal activities. Such people should face the full force of the law.” McManus said.
The ACTU executive will convene a meeting this week to consider actions to take.
Meanwhile Victorian Premier Jacinta Allan has asked the Labor party suspend the CFMEU from the state branch and ban all political donations during the investigation period.
“But what we’ve seen isn’t unionism – it’s self-interested thuggery at its worst. The union needs to fix its conduct and it shouldn’t have anything to do with the Party until it does.
“I have referred these matters to Victoria Police and the Independent Broad-based Anti-Corruption Commission (IBAC). Victoria’s anti-corruption commission and police have the appropriate powers to investigate or refer allegations of corruption and criminal activity,”
The premier promises to toughen anti-bikie laws.
“We will request the Federal Government exercise its powers under the Fair Work Act to review – and if necessary, terminate – CFMEU enterprise bargaining agreements on Victorian construction sites to prevent criminal activity.
“We will also review the ability of Victorian Infrastructure Delivery Authority (VIDA) to direct the removal of individuals with criminal associations from worksites,” Premier Allan said.
At the same time, NSW premier Chris Minns has called for the NSW secretary Darren Greenfield to resign, indicating that his government is prepared to launch an independent inquiry into the NSW branch.
Greenfield is currently facing allegations of accepting bribes from employers and the matter is before the courts.
Greenfield denies the allegations.
“These stories have been constant, and while I’ve been the target of many of them, enough is enough, the ongoing false allegations continually do nothing but harm the work this great union does for its members.”
The Master Builders Australia CEO Denita Wawn has called on the Prime Minister Anthony Albanese to intervene.
“Governments cannot turn a blind eye to this abhorrent and alleged criminal behaviours that we have seen displayed over the past few days,”
“The CFMEU accounts for less than 10% of industry participants but their unyielding stranglehold on builders, subbies, and clients has gone on for long enough.
“The investigation confirms what we have heard from builders on the ground, ongoing coercion and bullying tactics employed by union representatives to accept pattern EBAs conditions including who they can and can’t hire on site.
“It’s clear the industrial relations system in building and construction is broken,” she added.
“There have been four royal commissions, hundreds of court judgments, and dozens of other reports and independent inquiries that forensically examined the unlawful and illegal conduct of building unions.
“They all reached the same conclusion – there are problems unique to building and construction, and therefore there is a need for an industry-specific workplace regulator or specific rules for the industry,” Wawn said.
Opposition Leader Peter Dutton has blamed PM.
“The Prime Minister’s weak leadership has enabled the out-of-control CFMEU to reach a point where we now see startling allegations that the union has been deeply infiltrated by bikies, gangland and underworld criminal figures,” Dutton said.
On the weekend Albanese welcomed the resignation of Setka.
“I expelled him from the Labor Party in my first few weeks as Labor leader. That was appropriate.
“Trade Unions exist to look after workers, to look after their wages and conditions and health and safety. They don’t exist to engage in the sort of conduct that John Setka has clearly been engaged with.
“It should be condemned. It should be isolated. It should be stamped out,” the PM said.
