CFMEU boss says new redundancy fund Incolink – that he’s a director of – is a ‘Rolls Royce’

Union boss John Setka says a new CFMEU-mandatory redundancy fund is a “Rolls Royce’’ compared with the “rusted-out VH Holden’’ SA workers currently use.

Controversial construction union boss John Setka says the local industry has nothing to fear with the entry of a Victorian-based workers entitlement fund to South Australia.

The CFMEU state secretary said the Incolink fund, which supports redundancy payments and provides training for construction workers, was a vast improvement on the current system and dismissed concerns it would impose a financial millstone on business.

SA construction workers are currently covered by the state-based BIRST system, but from July CFMEU-negotiated agreements will mandate coverage by Incolink, of which Mr Setka is a director.

“I don’t see what the downside is, I can’t understand what the hysteria is, I think it’s people being a bit parochial,’’ said Mr Setka, a Victorian who took over the SA branch last year. “Last time I looked South Australia wasn’t a separate country.’’

“It’s like you are driving an old VH Holden and it’s all rusted out and someone pulls up in a Rolls Royce then you want to get out and hang s**t on the Rolls Royce and say what a heap of shit that is.

“If it wasn’t so serious, its almost laughable at the controversy over bringing in a good scheme that does well, and has a good track record.’’

In Victoria, each employer will see premiums rise from $81 to $160 a week per employee to fund redundancy and retirement benefits, as well as to provide training in areas such as mental health, but Mr Setka said the increase would be phased in over several years.

The premiums in South Australia are yet to be determined.

He said the industry would be able to afford the increase and said the CFMEU had an interest in keeping construction viable.

“We’re all creatures of the industry, we’re all stakeholders, we’re not going to s**t in our own backyard. What interest is it for us to send a builder broke?’’ he said.
Mr Setka also denied claims Incolink was a CFMEU “slush fund’’, saying two royal commissions had found no wrongdoing and the fund was heavily audited.

He also said Incolink would open an office in SA and the push into the state was part of a plan to take the scheme national.

The local arm of the Master Builders’ Federation declined to comment, while several SA builders were also contacted.