The head of a billion-dollar redundancy fund warned its employer group directors the CFMEU could deprive them of tens of millions of dollars in disbursements if they did not approve the union’s controversial expansion plans, in comments that raise serious governance questions for the sector.

Sources familiar with the matter told The Australian Financial Review that Incolink chief executive Erik Locke, a former ALP Victoria secretary, wrote to Master Builders Association Victoria late last year advising it not to block a push into NSW as the CFMEU could move to mandate a different fund for workers or even sideline the employer group from the board.