How Victorian CFMEU helped bankroll SA Labor’s election win

A Victorian union helped bankroll SA Labor’s victorious election campaign, despite its leader being kicked out of the party.

The militant John Setka-led Victorian branch of construction union CFMEU helped bankroll SA Labor’s state election victory but mystery surrounds the total donation.

Electoral Commission of South Australia records show two separate donations made in March, both for $125,000.

'Electoral Commission of South Australia records of CFMEU Victorian branch donations to SA Labor Party.

Electoral Commission of South Australia records of CFMEU Victorian branch donations to SA Labor Party.

One was from the CFMEU with a Melbourne address, the other donation spelled out the union as the “Construction, Forestry, Mining and Energy Union Construction and General Division Victorian Branch.”

Inquiries to Acting Premier Susan Close on exactly how much was donated and if Labor was happy to take the money from the Victorian union whose state secretary Mr Setka had been expelled from the Labor Party were referred to ALP state secretary Aemon Bourke.

He was unaware of two donations being listed by the ECSA but indicated there was just the one for $125,000.

Mr Bourke said the money came from the Victorian branch as the SA branch did not have the finances.

“In the lead up to the March state election SA Labor spoke to many local unions about donating, including Andy Sutherland from the SA branch of the CFMEU,” he said.

“I understand ultimately the Victorian CFMEU branch donated as they were in a stronger financial position.”

The active canvassing for cash from unions came despite then-opposition leader Peter Malinauskas vowing to outlaw political donations if he won office.

“We should ban donations for all elections,” he said in January. “No more private money for political parties’ campaigns. Not business money, not union money, I want this state election (on March 19) to be the last state election where private money plays any role.”

The Victorian branch has since merged with the SA branch in a move that has alarmed the construction industry with warning exorbitant wage and conditions claims will drive up costs.

Master Builders Association SA chief executive Will Frogley warned the “hard line tactics” used by the Victorian division would not be welcome is SA.

Opposition leader David Speirs. Picture: NCA NewsWire / Brenton Edwards

Premier Peter Malinauskas. Picture: NCA NewsWire / Brenton Edwards

Opposition leader David Speirs called for clarification on exactly how much was donated and what the CFMEU expected in return once Labor won power.

“Militant Victorian unionist and tyrant John Setka undoubtedly has links to the heart of Peter Malinauskas’ Labor Party and is already exerting huge control over industry in South Australia,” he said.

“John Setka’s CFMEU handed over $250,000 to Peter Malinauskas’ Labor Party during the election campaign in a move that confirms the two organisations are in bed together.

“These guys are thick as thieves and there’s 250,000 ways to prove it.

“The close relationship between John Setka’s CFMEU and Peter Malinauskas’ Labor Party is a huge concern and it begs the question – what was promised in return for this $250,000 contribution?”

It comes as an international survey shows Victorian construction workers are among the highest paid in the world at an average wage of $243,000 over a year for those working 38-hour weeks.

The report paves the way for SA workers now under the Victorian division’s leadership to aim for similar lucrative wages — paid for by employers,

As reported by The Advertiser revealed construction firm Built Pty Ltd running the $1bn Festival Tower project and $450m 60 King William St project has just agreed to lucrative terms with the union lodged with the Fair Work Commission running to June 2025 guaranteeing industrial peace on the sites.