CFMEU SA branch reveals nearly $400,000 spike in legal bills but growth in membership

The state’s construction union is selling its city headquarters and has revealed a $513,209 operating loss, with legal bills soaring.

CFMMEU Victorian secretary John Setka apologising outside the Melbourne Magistrates Court for his conduct towards her. Picture: AAP Image/Julian Smith

• Setka’s foul-mouthed tirade at SA unionists
• CFMEU SA branch boss ‘pushed’
• He breaks silence on departure
• His deputy resigns two months later

The state’s construction union posted an annual $513,000 operating loss with legal bills soaring by nearly $400,000 according to its audited financial statements.

The CFMEU SA branch’s accounts show the union, which The Advertiser can reveal is selling its city headquarters, posted a $513,209 deficit in the year to March 31, compared to $220,942 surplus the previous year.

The union which has been hit with millions of dollars in court fines for illegally entering Adelaide worksites spent $413,194 — or nearly a fifth of all expenditure — on legal costs.

This compared with $19,634 for the year ending March 2018.

The Australian Building Construction Commission took the union to court over a series of incursions into building sites orchestrated by the Victorian branch of the CFMEU and its embattled leader John Setka, but which led to members losing their right to entry permits.

The SA branch also paid $400,000 to the national branch of the CFMEU, which last year intervened in the running of the state branch and led to the eventual ousting of former branch secretary Aaron Cartledge a year ago and resignation of senior officials.

He was replaced by Queensland official and national assistant secretary Andrew Sutherland.

The annual statements show that membership has increased by 180 to 2457, helping to lift membership income up by $40,000 to $1.28 million.

Aaron Cartledge resigned his CFMEU membership over concerns about the influence of the national branch on SA operations. Picture: Tom Huntley

In its report the union says it owes nearly $500,000 to related parties and that the national office has agreed no to seek repayment until June 26, 2020.

“The committee of management are confident of the union’s ability to continue as a going concern and the commitment from the CFMEU-NA (national) to continue to provide support,” the report said.

Full-time equivalent staff had increased from 3 to 9.5 over the reporting period.

Offers for the union’s South Tce headquarters, which it bought for $1.5 million in October 2015, close on July 23.

The Advertiser understands the sale is to boost coffers ahead of the CFMEU national conference, to be held in Adelaide, where it is expected the national executive will push to cut subsidies to the SA branch.

CFMEU assistant state secretary Andrew Sutherland who replaced Mr Cartledge.

The Advertiser sought comment from Mr Sutherland and assistant branch secretary Colin Fenney.

Mr Sutherland last week publicly defended Mr Setka who had been criticised for alleged comments he made about Rosie Batty during a national executive meeting.
Mr Setka says reports he denigrated the anti-violence campaigner were “fabricated”. He has rejected Labor leader Anthony Albanese’s calls for him to resign from the party.

Mr Setka pleaded guilty this week to harassing his wife Emma Walters via dozens of abusive telephone calls and texts.