CFMEU places Victorian branch into administration, national executive to take over
Victorian Premier Jacinta Allan has asked both police and the state’s corruption watchdog to investigate allegations of criminal conduct by CFMEU officials, the move coming as the militant union’s state branch was placed into administration.
Victoria
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Jacinta Allan has asked both Victoria Police and IBAC to investigate allegations of criminal conduct by CFMEU officials on government worksites.
The Victorian premier broke her silence on Monday after allegations were first aired on Friday to outline what she described as a raft of “immediate” actions being taken by the government.
Further to referrals to police and IBAC, Ms Allan said she had also asked the ALP’s national executive to suspend the construction division of the CFMEU from the Victorian Labor Party.
She also wants all political donations from that division banned and has vowed to tighten the state’s anti-bikie laws.
Ms Allan said she would also move to stamp out any compromised EBAs and would review all big build projects to ensure taxpayer monies was not being misused.
The premier said she had “zero tolerance” for the “thuggish” behaviour exposed in the media, adding this “rotten culture must be pulled out by the roots”.
When asked whether this was an open industry secret and why she failed to act, Ms Allan said: “I have been absolutely clear that I have no tolerance at all for bullying intimidatory behaviour in any workplace, in any workplace in any part of our state.
“What we have done when allegations have been pushed over that period of time, it was always my expectation that they be examined, investigated by the relevant agencies and authorities had no tolerance for this sort of behaviour.”
Ms Allan was asked about multiple letters sent to her office alleging illegal behaviour in 2022 and 2023 but denied that she failed to take action saying she had referred all complaints to the federal government.
When asked if she had failed to act on corruption and compromised EBA deals within the industry as Minister for Transport and Minister Major Infrastructure, Ms Allan said she “rejected” the accusation.
State Opposition Leader John Pesutto hit out at Ms Allan, accusing her of allowing “rampant corruption and misconduct” under her watch.
“For a decade, Premier Allan – first as minister for transport infrastructure and now as the leader of the Labor Party – has given the CFMEU preferential treatment over major projects and turned a blind eye to repeated illegal and thuggish behaviour,” he said.
Attorney-General Jaclyn Symes said new anti-bikie laws would be introduced in coming months, but admitted the changes come up to four years after the state government attempted to tough anti-consorting laws, which have not been used once since being introduced.
The stance from Ms Allan came as the Victorian branch of the militant CFMEU was placed into administration.
National Secretary Zach Smith announced the move on Monday following an emergency meeting of the national executive.
It follows the claims of ongoing criminal conduct by senior Victorian CFMEU officials across major construction site’s including government projects.
“The CFMEU has zero tolerance for criminality and anyone found to have engaged in criminal conduct while representing the CFMEU will be identified and removed,” Mr Smith said.
“The CFMEU has one purpose and one purpose only and that is to defend and advance the safety and conditions of workers. The Victorian Branch has been hugely successful in pursuing this purpose, but the national executive also recognises that a number of recent allegations are serious and demand an unprecedented response.”
Mr Smith said although serious allegations of wrongdoing demanded a serious response, general smearing of officials and delegates because of their histories or personal relationships was completely unwarranted.
“Cancel culture will never be our culture,” he said.
“Our union operates in a tough industry in which people are badly hurt or killed every week and in which shonky developers and contractors are allowed to run rampant.
“There are corporates and right-wing politicians who want our union to go away and they’re not motivated by any actual ethical concerns, they just don’t believe blue collar workers deserve decent pay or proper safety standards on site.
“The National Office will be uncompromising in cleaning up whatever wrongdoing we find because we know that blue collar workers depend on our union being strong and effective.”
Libertarian MP David Limbrick has written to the Victorian Auditor General urging for an immediate investigation.
“In particular, would request that a review look at: Processes around awarding construction contracts,” he said in a statement issued to media on Monday.
“Processes around awarding contracts to specialist labour hire companies based on workforce diversity requirements.
“Irregularities around management of conflict of interests.”
He also promised to advocate for extra resources for the Auditors’ office to carry out a full investigation.
Anthony Albanese welcomed the CFMEU’s Victorian branch being placed into administration, saying it was a “good thing”.
The prime minister said the allegations of links to organised crime were shocking, inappropriate, and a betrayal of union members.
“It is an indictment of the leadership of the CFMEU that they haven’t been held to account,” Mr Albanese told ABC radio on Monday.
“I have contempt for someone like John Setka — he has no legitimate role in the union movement.
“The revelations that have been made in recent days need to be condemned in the strongest possible terms.”
Mr Albanese said the branch being placed into administration was a “good next step but we need further action”.
Asked if both deregistration and a halt on accepting donations from the Victorian branch were possible, Mr Albanese said: “everything is possible”.
“We will take whatever action is appropriate, but where there are breaches of the law, such as people offering bribes, those people need to be prosecuted by the law,” he said.
“People who are working on construction sites around Australia are hardworking Australians. They shouldn’t be tainted.”
Senior federal Labor minister Murray Watt said he fully supported the action being taken by Ms Allan.
“There are massive cultural problems, particularly, in the Victorian division of the construction branch of the CFMEU,” Senator Watt said.
“Unfortunately, we are seeing similar issues elsewhere. So I’m sure the national executive will consider those matters as promptly as they can.
“We need to clean up this operation once and for all.”
Opposition workplace relations spokeswoman Michaelia Cash said it was time that the union was deregistered.
“Having a different part of the union administer the Victorian construction branch is not going to solve the problem,” Senator Cash said.
“They have made it clear over a number of years that they have no intention of changing their ways. They need to start again.”
Australian Chamber of Commerce and Industry chief executive Andrew McKellar said an independent, high-level judicial inquiry with all of the powers of a Royal Commission was warranted.
Mr McKellar said the abolition of the Australian Building and Construction Commission was a “terrible mistake”.
“Public confidence needs to be restored,” he said.
“Simply deregistering the union, simply having the national office of the CFMEU come in and take over the administration of the state division in Victoria, that’s not adequate.
“They can only be held to account if there’s a powerful, well-resourced independent regulator that can bring them to book.”
Former union boss and Government Services Minister Bill Shorten backed the Allan government response, adding he was “angry and disappointed” about the allegations.
“No one should be using their position as a union rep to be taking money and companies shouldn’t be offering money,” Mr Shorten said.
“This behavior is not acceptable and can’t be ignored.”
Master Builders Australia chief executive Denita Wawn said a multipronged approach involving police, state and federal governments was needed to consider the criminal allegations.
Ms Wawn said there were potential breaches of Fair Work provisions and the ACCC needed to consider the anti-competitive behaviour.
She said MBA has asked the federal government to give protections to complainants wanting to give evidence about the CFMEU but fear retribution.
“There is also no provision in the Fair Work Act for the Fair Work Ombudsman to take away an official standing if they are recidivist offenders,” Ms Wawn said.
“So, there are new laws that should be introduced, at the bare minimum, in the spring sittings when federal parliament returns.”
Federal Workplace Relations Minister Tony Burke said he welcomed the Victorian branch being placed into administration but said it was “only a start”.
“The response so far is progress, but falls short,” Mr Burke said.
“I will be weighing up the department’s advice, the evidence that’s emerging and the response of the union.”
Big build workers welcomed the news saying there had been too much disruption on sites.
“They have been corrupt for years, everybody knows it,” the unidentified worker said.
“It should have been picked up long ago. It has been a joke on big build sites the amount they stuff they get away with.”
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