Master Builders SA chief Will Frogley denies ‘conflict of interest’ over Incolink attacks
Union chiefs have launched a bruising public attack on the head of Master Builders SA, accusing him of putting financial interests over workers.
SA News
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An influential construction boss has been accused of waging a “self-interested disinformation campaign” against a CFMEU-linked fund expanding into South Australia.
But Master Builders Association (MBA) SA chief executive Will Frogley has shut down the criticism, calling for greater oversight of workers’ entitlements schemes.
The stoush broke out after Mr Frogley called on the state government to force employers to pay into BIRST, a SA-based redundancy fund on which MBA has a board member.
He said the CFMEU has put “immense pressure” on employers to pay into rival Victorian fund Incolink, which set up an Adelaide office last year and counts disgraced ex-union boss John Setka as a director.
Incolink last year gave the Victorian CFMEU nearly $21m for a workers’ training centre but told The Advertiser it would make similar investments in SA.
On Wednesday, SA Unions hit back – accusing Mr Frogley of a “conflict of interest” because MBA SA receives a financial benefit from BIRST but not Incolink.
Union figures say MBA SA has received $4m in funds from BIRST over the last 20 years, including dividends and board fees, while the CFMEU has received $1.8m.
The money is required to be used for schemes and programs that benefit the construction industry.
Communications, Electrical, Energy and Plumbing Union (CEPU) secretary John Adley, who stepped down from the BIRST board on Tuesday, accused Mr Frogley of “denying members their rights to deal with their money the way they choose”.
“It flies in the face of a long-held workplace principle, that it is workers who should have a say in where their superannuation and entitlement funds get invested,” he said.
“A monopoly for BIRST benefits the MBA SA.”
He also accused Mr Frogley of overplaying links between Incolink and Mr Setka, who is one of nine other directors that included both union and industry leaders.
Mr Frogley rejected that his attacks were personally motivated and said he would support a complete ban on surplus payments to both lobby groups and unions.
He called on union leaders to publicly declare whether they would also support a ban.
“I am sure workers would prefer money in their pocket rather than in the hands of a union or industry association,” he said.
He also called for an independent government audit of every redundancy fund in the country to determine how workers’ money was being spent.
Last Friday, Mr Setka stepped down as head of the CFMEU’s Victorian branch after it emerged the union’s construction arm allegedly employed underworld figures, used intimidation tactics and took bribes.
Mr Setka was not personally accused of any wrongdoing and dismissed the reports as “false accusations”.
On Wednesday, the federal government appointed an administrator to temporarily manage the entire union amid several ongoing police investigations, including into the SA branch.
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