Premier Peter Malinauskas moves to block John Setka’s CFMEU workers’ entitlements takeover

Premier Peter Malinauskas is moving to deploy state powers to block controversial union leader John Setka’s takeover of construction workers’ entitlements.

Premier Peter Malinauskas is moving to block a takeover in South Australia of construction workers’ entitlements by a fund backed by controversial union leader John Setka.

Vowing the state was willing to deploy powers to throttle the move, Mr Malinauskas highlighted the higher cost to workers and lack of complaints about the existing scheme.

The Victorian Incolink fund, which supports redundancy payments and provides training for construction workers, will replace the SA-based BIRST scheme from July under CFMEU-mandated coverage.

Mr Malinauskas on Thursday told parliament the Victorian scheme’s cost was substantially higher than the SA model but had similar coverage, rhetorically asking: “Which begs the question, why change?”

Premier Peter Malinauskas speaks in state parliament. Picture NCA NewsWire / Emma Brasier

Responding to a question from Liberal treasury spokesman Matt Cowdrey, he said he had met with Master Builders SA and promised to examine the “legitimate levers the state has at its disposal” on the issue, even though some had been adopted federally.

“Nonetheless, there are still various acts and powers and functions that exist with the state that we’re willing to deploy, should that opportunity present itself and should the need arise,” he said.

“The other element … is the issue of South Australian workers’ money going across the border, and that would that would strike us as being a less than desirable outcome, particularly in the absence of any obvious benefit to either South Australian businesses or South Australian workers themselves.

“ To that end, the state government has an interest. We will examine our options carefully and respond appropriately.”

Mr Malinauskas last August caved into pressure to insist a controversial $125,000 CFMEU donation to the state Labor Party would be returned, following the vandalising of Master Builders’ SA cars.

CFMEU leader John Setka in Adelaide. Picture: Roy VanDerVegt

Treasurer Stephen Mullighan on Thursday told parliament the state government was “taking action to make sure that participants in the construction industry are better protected against anyone who behaves or engages in either inappropriate or, even worse, illegal conduct in the industry”.

He said SafeWorkSA was being given more resources for worksite inspections and beefed up legal tools, saying Attorney-General Kyam Maher was working on these.

Mr Setka in May said the SA industry had nothing to fear with the entry of the Victorian-based workers entitlement fund, of which he is a director.

The CFMEU state secretary said the Incolink fund was a vast improvement on the current system and dismissed concerns it would impose a financial millstone on business.