John Setka-led Victorian branch of the CFMEU takes control of SA branch after union members unanimously endorse proposal

The John Setka-led Victorian branch of the CFMEU has now formally taken control of the SA branch - and last night Setka was there to celebrate.

The John Setka-led Victorian branch of the CFMEU has formally taken control of the SA branch after union members unanimously endorsed the controversial proposal.

The construction union said the “cooperative administration arrangement” was approved by the SA branch management committee and at a general meeting held at the South Tce headquarters on Wednesday evening.

Victoria-Tasmania branch secretary Mr Setka, who attended the meeting and addressed members, and president Robert Graauwmans will expand their roles to encompass the SA branch.

Video of inside the meeting that was posted to the CFMEU SA Facebook page showed Mr Setka at the front of a packed room as members chanted “union power”.

“A good turnout at the general meeting last night, welcoming the Victorian branch!!” the caption read.

Screenshots of a video taken inside the CFMEU SA meeting last night, which show new secretary John Setka in attendance. Picture: CFMEU SA / Facebook

Screenshots of a video taken inside the CFMEU SA meeting last night. Picture: CFMEU SA /Facebook

The move has sparked concern among some industry groups that CFMEU-backed attempts to replicate Victorian conditions will lead to huge wage hike demands, making development unaffordable.

SA branch secretary Andrew Sutherland said the approval was “a significant step towards building a stronger and sustainable SA branch”.

“Members will be the big winners from a measure that provides stability, experience, leadership and additional resources while the South Australian branch grows,” he said.

The opposition on Wednesday renewed calls for a $125,000 CFMEU donation to Labor be handed over to a domestic violence charity, given Mr Setka’s conviction for harassing his wife. But the government dismissed the call as “a cheap political attack”.

On Tuesday, Master Builders Association chief Will Frogley said “a lot of people” in the industry were nervous about the takeover,

“The last thing we want to do is kill the goose that lays the golden egg because we’re being greedy on wages,” he said.

Master Builders SA CEO Will Frogley. Picture: Supplied

CFMEU leader John Setka. Picture: ABC

“We need to be reasonable about this, get into the helicopter and see the lay of the land in the economy at the moment, with inflation and interest rates and everything else.

“(We need to) make sure we’re acting in a sustainable way for the industry to be healthy and strong in South Australia for years to come, not be shortsighted by trying to replicate Victorian conditions.”

The Australian Performance of Construction Index, an indicator of how the sector is performing, fell by 0.9 points to 45.3 when July results were released on Wednesday.

The figure indicated contraction in activity across the sector for a second month, with commercial construction, house building and engineering construction all reporting falls in activity.

Prominent property developer Theo Maras last week warned the union merger could decimate the industry, and the Property Council said it “could add further heat to rising costs”.

However, CFMEU SA secretary Andrew Sutherland said SA agreements were locally negotiated and there has been no move to bargain Victorian wage rates.

He said “bad actors” in the South Australian construction industry have for many years gained competitive advantage over decent employers by making dodgy agreements that cut corners and often do not pass minimum legal compliance.

“Whilst it might make a few bad egg bosses unhappy, that workers are finally getting a fair go is not going to cause the industry to collapse,” he said.

“Smarter employers will work with their workers through unions to make sites safer and more productive through co-operation.”