Premier Peter Malinauskas considering freezing out John Setka’s CFMEU from worker cash grab

Premier Peter Malinauskas has revealed the state government is considering moves to stop the CFMEU funnelling workers’ entitlements to Victoria.

Moves to freeze the John Setka-led CFMEU out of funnelling workers’ money to a Victorian entitlements fund are being considered by the state government, Premier Peter Malinauskas has revealed.

A proposal by the Master Builders Association to use government procurement policy on major infrastructure projects to ensure workers’ entitlement funds remain in South Australia was being examined, the Premier told parliament on Wednesday.

Responding to an Opposition question, Mr Malinauskas said the government was “seeking advice” about the proposal but was cautious about setting an “ill advised precedent to have a state government of either political persuasion now starting to dictate what employees in supermarkets or pubs and restaurants and anywhere else are getting paid”.

The Setka-led CFMEU Victorian branch formally took control of the SA construction union operation in August 2022, prompting warnings employers would be forced to pay workers’ entitlements into Victorian-based Incolink, rather than an SA-based BIRST scheme.

CFMEU leader John Setka pictured in Adelaide in August, 2022. Picture: Roy VanDerVegt

Opposition Leader David Speirs has warned a CFMEU cash grab risks escalating by $1.8bn the cost of the state’s two biggest infrastructure projects – the $15.4bn South Rd tunnels and the $3.2bn Women’s and Children’s Hospital.

Citing “independently verified” analysis showing cost blowout risks to the projects, Mr Speirs said this was based on CFMEU pay deals struck in Victoria.

A union member declared “there aren’t enough Ford Rangers in the country” after the Victorian CFMEU on Monday backed a 21 per cent pay rise deal, saying “apprentices will have (Ford) Raptors (costing up to $110,000).

The new Women’s and Children’s Hospital construction site. Picture: NewsWire / Brenton Edwards

Mr Speirs said the South Australian construction industry was not large enough to absorb a CFMEU cash grab, highlighting current negotiations over a SA Major Civil Contractor Enterprise Agreement that mandated the use of Incolink.

Master Builders SA on Tuesday warned Mr Setka would control the state’s construction industry forever and funnel millions of dollars into Victoria unless Mr Malinauskas “mans up” within weeks and kept vows to safeguard BIRST.

“It’s time for Peter Malinauskas to act on his promises and stop John Setka and the CFMEU from infiltrating our civil construction industry,” Mr Speirs said.

“We cannot afford to see huge amounts of extra money – to the tune of billions – added on to the North-South Corridor and new Women’s and Children’s Hospital projects.

“We warned Peter Malinauskas almost two years ago about the danger of John Setka and the Victorian CFMEU’s infiltration of South Australia’s building industry, but the Premier was arrogantly dismissive, now it’s his problem to fix.”