Former Victorian CFMEU boss John Setka still sitting on board of worker entitlement scheme Incolink amid calls to reform system

Former Victorian CFMEU boss John Setka is still sitting on the board of a worker entitlement scheme taking over the South Australian construction industry.

Former Victorian CFMEU boss John Setka, who resigned last week amid allegations of union misconduct, is still sitting on the board of a worker entitlement scheme taking over the South Australian construction industry.

Mr Setka and Victorian president Robert Graauwmans are on the board of Incolink, a Victorian fund that last year gave millions to the construction union.

South Australian workers had previously been covered by the state-based BIRST fund, but as of July last year, CFMEU-negotiated agreements have mandated Incolink be used as their fund.

Master Builders SA chief executive Will Frogley said the arrangement needed to be reconsidered following allegations of criminal behaviour and links to organised crime within the Victorian branch of the union.

Neither Mr Setka nor Mr Graauwmans are personally accused of any criminal wrongdoing.

John Setka remains on the board of Incolink. Picture: Roy VanDerVegt

Master Builders SA chief executive Will Frogley said construction businesses have faced immense pressure to pay into Incolink. Picture: NewsWire/Roy VanDerVegt

“Since John Setka took over the South Australian branch of the CFMEU, our construction businesses have faced intense pressure to pay into Incolink, a Victorian redundancy fund that last year gave the Victorian CFMEU $20m,” Mr Frogley said.

“Master Builders SA calls on the state government to mandate the payment of redundancy payments on its construction projects into a South Australian fund, not the Victorian CFMEU-controlled Incolink.”

Mr Setka resigned from his union role on Friday but denied any wrongdoing, describing reports of misconduct as “false accusations” and “malicious attacks”.

The Victorian government has referred allegations against the union to police and anti-corruption authorities for investigation.

The Victorian branch of the union and the South Australian branch, which was under Victorian control, were placed into administration on Monday and are now being run by the national office.

Incolink has previously told the Advertiser nearly $21m in Australian Electoral Commission disclosures for 2022-23 related to a grant to fund a new Training and Wellbeing Centre in Victoria, and it intended to make similar investments in SA.

This week, a spokesman said Incolink is an industry partnership comprising equal board representation between unions and employers.

He said Mr Setka and Mr Graauwmans were nominated by the CFMEU – not by Incolink.

“Incolink’s shareholders appoint our nominee directors,” he said.

“At this stage, we have not been informed of any changes.

“In relation to governance matters, we will contact the administrator as necessary.”

Regarding the call to mandate the payment of entitlements into a local fund, a government spokeswoman said it does not have the power to mandate which worker entitlement fund is selected in a private sector enterprise agreement.

“These agreements are governed by Commonwealth laws,” she said.

“The state government is seeking advice about whether the choice of fund can be taken into account in procurement policy for major government infrastructure projects.”