CFMEU to implement code of conduct for delegates over ‘deeply worrying’ allegations

The CFMEU construction division is bringing in a new national code of conduct for its delegates and workplace representatives to stamp out “deeply worrying” misconduct revealed in a months-long media investigation.

In an update to union members on Wednesday, national secretary Zach Smith said some allegations in media reporting since the July 13 exposé in this masthead, 60 Minutes and The Australian Financial Review had been “misleading and false”.

CFMEU national secretary Zach Smith emailed members saying he takes criminality “incredibly seriously”.Credit: Alex Ellinghausen

“But I should also be clear about this: some are deeply worrying and warrant investigation,” Smith wrote in the update.

A months-long investigation by the media organisations revealed allegations of organised crime involvement on building sites and kickbacks to union officials. Labor’s national executive and the state branches of the Labor Party in NSW, Victoria and Queensland have suspended donations from the CFMEU while investigations take place.

Smith said he had spent this week setting up an independent process to investigate some of the allegations.

“Before that, the national executive of the union has agreed to implement a national code of conduct for all delegates and workplace representatives.”

He wrote that he expected to receive an application from the Fair Work Commission to put some branches into administration “within the next few days”, and reassured members that union work representing members would continue.

The CFMEU’s Victorian branch has already been placed into administration.

Victorian Labor ministers have been forced to defend themselves over what they knew and when.

Planning Minister Sonya Kilkenny admitted on Tuesday that she had previously received an emailed complaint about the CFMEU as the local member for Carrum. She said she referred it internally and that it was then referred to Fair Work.

But she was forced to backtrack on Wednesday. The matter was never referred to Fair Work, but the parties were already in front of the Federal Court with a dispute under the Fair Work Act.

“I received an email dated 28 March 2020 from a concrete business located in my electorate that said it was having issues with the CFMEU. This email was sent to a number of members of parliament,” Kilkenny said.

“This matter was referred to the Minister for Industrial Relations [Tim Pallas].”

Pallas replied to the business in early May that year.

Kilkenny also admitted that, at an event in her electorate in October 2022, the principal of a local Indigenous construction company complained to her about the behaviour of some CFMEU members. The Age revealed the allegations, which were also put to the premier in 2022, last week.

“At the same event I verbally relayed this to Major Road Projects Victoria, who were hosting the event,” Kilkenny said.

Victorian Opposition Leader John Pesutto this week called on Premier Jacinta Allan to make public all allegations of CFMEU misconduct that had previously been referred to government ministers.

He also called for union members to be banned from the building industry consultative council and for the government to support the opposition’s proposal to effectively ban construction companies whose employees have links to organised crime and outlaw motorcycle gangs from winning lucrative government contracts.

“These are very reasonable but necessary steps that the premier can take,” Pesutto said on Wednesday.

Labor figures have been keen to point out that construction is a deadly and dangerous industry and that the union’s work has improved conditions.

Narre Warren South MP Gary Maas was the former state secretary of the National Union of Workers, before it became the United Workers Union. He is not factionally aligned to the CFMEU but told The Age he believed the narrative was “no longer about criminality in the CFMEU but now more about dismantling the union movement more broadly”.

Smith, the CFMEU national secretary, said in his update to members on Wednesday that union members were not fools.

“Most of those decrying the union as a monster have no idea what it’s like to work in this industry, and they certainly haven’t bothered to ask any CFMEU members,” he wrote.

“They’ve never thought about what it’s like to see a mate killed or injured onsite. They’ve never thought about what it’s like to arrive at work at 5am and find out the boss who owes you thousands has mysteriously gone into liquidation.”

He said that those arguing the CFMEU had increased construction costs were, in effect, saying members should be earning less.

“They don’t think you should be able to provide your family with a decent life,” Smith wrote.

“So, yes, I take criminality incredibly seriously. I am determined to stamp it out. But I will also never ever apologise for the important work this union does.”

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