Controversial $125,000 donation to the SA Labor Party to be returned to CFMEU, state executive rules

Premier Peter Malinauskas’ move to stand up to the CFMEU by handing back a controversial $125,000 donation has sparked fierce backlash from union bosses.

Premier Peter Malinauskas’ move to stand up to the CFMEU by handing back a controversial $125,000 donation has sparked fierce backlash from union bosses, who have accused him of betraying members and lashed his comments as “irresponsible”.

Just hours after the Labor Party state executive endorsed Mr Malinauskas’ request to relinquish the money, the union issued a scathing statement that likened his decision to “calling for reinforcements and then shooting them in the back when the battle is won”.

Mr Malinauskas had initially resisted calls to hand back the donation, which was made by the Victorian branch, but this week changed his position following reports of vandalism to Master Builders Association (MBA) cars.

Those reports came days after the militant John Setka-led Victorian branch formally took control of the SA branch, sparking fears hard-line tactics would infiltrate in South Australia.

Explaining the U-turn, Mr Malinauskas said he would not “stand by and accept inappropriate behaviour in the SA construction sector”.

But, in a scathing 800-word rebuttal, CFMEU SA divisional branch secretary Andrew Sutherland called on him to provide evidence that the union was involved in the incident, which has been reported to the police.

He said neither the Premier’s office nor the Labor Party have written to the CFMEU regarding concerns about alleged conduct of union officials, employees or members. Further, the union was not given the opportunity to consider, investigate or respond to any allegations prior Mr Malinauskas’ announcement.

“For a Premier who has spoken so expansively about the rule of law and the need to work together in industrial relations to then fail to apply even the most basic principles of natural justice to his own decision-making is staggeringly hypocritical,” he said.

Mr Sutherland said the “erratic decision” to return to donation was “a significant betrayal of the CFMEU members who supported (Mr Malinauskas) during the election campaign”.

“The comments made by the Premier directly linking any alleged incidents on South Tce on Friday to Victorian officials are strongly denied, were irresponsible and should not be repeated,” he said.

Photos that emerged show a snapped windscreen wiper on the car of MBA boss Will Frogley and a CFMEU sticker placed on a MBA field car.

Mr Malinauskas had faced calls from the Opposition to donate the CFMEU money to a domestic or family violence charity, but Education Minister Blair Boyer said party rules stipulated it must be returned.

Asked earlier in the day whether he was concerned the incident would damage his relationship with the CFMEU and other unions, a government spokesman said “the Premier will always stand up for the interests of working people”.

“The Premier’s approach is to work collaboratively with business and unions to achieve mutually beneficial outcomes. This approach will continue,” he said.

The spokesman said “this isn’t about money, this is about doing the right thing”.

“The Premier said if there was unacceptable behaviour, he would act, and that is exactly what he has done in this instance,” he said.

Legislation to ban political donations — a Labor election commitment — will be introduced “well before the next election”.